Read in the Digest:
- Bahamian regulators take control of seized FTX assets to protect investors
- Binance suspends deposits of Solana-based USDT and USDC stablecoins
- Twitter closes offices, staff resigns as users turn to decentralized alternatives
Bahamian regulators take control of seized FTX assets to protect investors
A week after the Securities Commission of The Bahamas froze the assets of the Bahamas subsidiary of FTX, the regulator confirmed the transfer of FTX’s digital assets to government-controlled digital wallets.
The regulator said it acted under the “authority of an Order made by the Supreme Court of The Bahamas.” It added that it would hold the assets for “safekeeping” while FTX goes through its bankruptcy filing.
According to the financial regulator, the action was taken last Saturday under the Digital Assets and Registered Exchanges Act, 2020 (DARE Act) to protect the interests of clients and investors.
A Thursday filing, signed by the new FTX CEO John Ray, suggests that some of the unidentified transfers of digital assets from FTX reserves were directed by the financial regulator of the Bahamas.
Flipsider:
- The filing also hints that for the transfer of funds there could be a jurisdictional fight between the U.S. and the Bahamas. FTX was headquartered in the latter.
Why You Should Care
The security regulator will work with regulators and authorities in multiple jurisdictions to address matters affecting the creditors for the best possible outcome.
Binance suspends deposits of Solana-based USDT and USDC stablecoins
Binance, the world’s largest cryptocurrency exchange by trading volumes, has temporarily halted deposits of Solana-based Tether (USDT) and USD Coin (USDC) stablecoins.
The announcement has raised concerns as Binance did not state reasons for the suspension. It merely said that they would remain suspended on the platform “until further notice.”
However, hours after stating that it “reserves the right in its sole discretion to amend or change or cancel this announcement” Binance resumed deposits for USDT. USDC remains temporarily suspended.
The concerns were compounded as other leading exchanges, including OKX, BitMex and ByBit followed suit. The USDT and USDC stablecoins were also suspended on their respective platforms.
Flipsider:
- Circle, the issuer of USDC, took to Twitter to announce that USDC on Solana was operating properly without any issues in deposits or withdrawals.
Why You Should Care
While no official reasons have been stated, the suspension could be due to the close ties Solana had with the bankrupt FTX.
Grayscale’s Bitcoin and Ethereum trusts hit all-time premium lows
The shockwaves of the FTX collapse sent the prices of Bitcoin (BTC) and Ethereum (ETH) to two-year lows. As the prices of the two leading cryptos tumbled, so did their counterpart trust funds on Grayscale.
According to the data, amidst the market decline, Grayscale Bitcoin Trust Fund’s (GBTC) negative premium expanded to a whopping 42.7%. This is the lowest negative premium rate ever recorded by the fund.
Similarly, the negative premium of Grayscale’s Ethereum Fund dropped to 40.12%, also a record low. Ethereum Classic is the worst-performing crypto held by Grayscale, with its premium dropping to -66.95%.
Despite the declines in its trust funds, Grayscale has said that it was not affected by the recent collapse of Genesis Global Capital. Both companies are subsidiaries of the Digital Currency Group (DCG).
Flipsider:
- Not all Grayscale trusts are trading poorly, with Filecoin (FIL) at +252%, Decentraland (MANA) at +72.77%, and Chainlink (LINK) at +44.39%.
Why You Should Care
The drop in the value of GBTC, which owns 3.5% of the world’s Bitcoin, has been linked to the unwillingness of investors to invest in the market due to the recent FTX crash.
Twitter closes offices, staff resigns as users turn to decentralized alternatives
The Elon Musk takeover of Twitter has been nothing short of eventful. In his latest move, Twitter employees were alerted that all office buildings were temporarily closed and badge access suspended. No reason was given.
The close of offices comes after Elon Musk demanded that employees sign a pledge to work “long hours at high intensity.” Twitter employees were asked to sign or clear their desks by November 17th. The closed office report comes a day after.
Twitter employees reacted to the demand with almost 50% resigning. They took the second option of clearing their desks and taking three months’ severance pay. Employees are not the only ones leaving, as users have also been saying goodbye to Twitter.
As users leave the platform, Mastodon, a decentralized alternative to the bird app, has seen a surge in new registrations. In the first two weeks of Musk’s reign, Mastodon reportedly added over a million new members.
Flipsider:
- Jack Dorsey, the former Twitter boss has unveiled his decentralized social media network. Bluesky Social aims to give users control over their data and access to “an open market of algorithms.”
Why You Should Care
The recent happenings confirm Buterin’s prediction that Twitter could face more competition or become a better platform depending on how Musk runs the company.