Multicoin Capital, a cryptocurrency-focused asset manager, lost about 55% of its funds in about two weeks. The drop was triggered by FTX's insolvency. 9.7% of its assets were custodied by FTX. Multicoin is writing down its FTX's positions to zero, pending permission from its auditors and administrators. The fund has no plans to close up shop and it is in the process of introducing a number of operations and infrastructure improvements.
The Luna Foundation Guard spent $2.8 billion of crypto trying to defend UST's peg. Terraform Labs spent an additional $613 million trying to defend the peg. The efforts ultimately failed and led to widespread contagion across the crypto industry. Terra was a decentralized stablecoin that failed to maintain peg parity even after its creators spent proprietary capital to defend it, which is a different issue from centralized platforms misusing customer funds for financial gain.
Binance NFT users will now be able to explore NFT offerings from OpenSea. The newly revamped Binance NFT will include the majority of OpenSea's top 200 NFT collections. Binance NFT plans to integrate more marketplaces and chains. The recent update also includes upgraded metrics, data visualizations, and individual NFT pages for enhanced price analysis.
StarkWare has deployed its new StarkNet token on the Ethereum mainnet. The tokens are not available yet for sale as the StarkNet foundation is still trying to work out the best mechanism for distributing them. The StarkNet Token was designed to help StarkNet achieve decentralization through voting, staking, and fee payments. StarkWare's rollup technologies address the scalability problems of the Ethereum blockchain.
This Twitter thread features a detailed timeline of the events that led to FTX's meltdown. According to this timeline, what happened at FTX and Alameda was a crime, plain and simple. Crypto exchanges aren't authorized to lend customer assets unless it is outlined in their terms of service or the customer opts in. FTX's terms of service expressly require that customers retain title to their assets, which means what they did was legally theft.
The unraveling of FTX and Celsius has triggered a flight to non-custodial wallets. Many users are still accepting custody risk in exchange for lower costs and ease of use. Smart contract wallets and multi-party computation protocols are two alternatives to seed-based key management solutions. This article discusses what properties wallets should have, the different types of wallets, ongoing challenges in the wallet ecosystem, and the tradeoffs between different wallet solutions.
Changpeng Zhao has emerged as the victor in its war against FTX. Sam Bankman-Fried faces possible prison time in the US for committing wire fraud. FTX was Binance's closest competitor. Its downfall has handed CZ the opportunity to reframe himself as the leader the crypto industry needs. CZ insists he did not manipulate FTX's downfall.
Sam Bankman-Fried recently responded to a request for comment regarding recent events. Through Twitter DMs, SBF discussed how FTX and Alameda gambled with customer money without realizing it. He also discussed regulators, his regrets, and what he wishes he could have done differently. A summary of the interview, along with screenshots of the DMs, is available in the article.