Reading time 2m33s
GM geniuses 🧠
Here’s a top-down glance at the new way the economy works:
Amazon has no products
Airbnb has no real estate
Uber doesn’t own any cars
FTX has no cryptocurrency 😅
We shouldn’t pretend this was just an “oopsies” though; this was an expose on how the global banking system works.
The only difference is that banks know they can just get bailed out by the government and taxpayers 🤷♂️
Anyway, the FTX Saga has gotten worse.
Today's Agenda:
- BTC Gains Hodlers 📈
- FTX Gets Hacked 🆘
- SBF Tries to Flee 💨
- Rolex NTFs Coming 💥
- New Solana Stores 🚀
First off, some good news
There was a massive spike in the number of Bitcoin wallets receiving transactions after FTX’s collapse.
Essentially this tells us that BTC is coming off exchanges and into wallets – around $3B worth of it over the weekend.
Exchanges are losing reserves fast.
According to a tweet by Glassnode, BTC hodlers have been withdrawing coins to self-custody at a historic rate of 106kBTC per month, comparable with only three other times before:
- Apr 2020
- Nov 2020
- June-July 2022
Seems like people are finally starting to learn: not your keys, not your crypto!
Crypto Br0s leaving exchanges like:
Just don’t remind us what happens to Captain Jack Sparrow immediately after this scene in the movie 👀
Out of the frying pan, into the fire.
But who always comes out on top? 🧐
What is the safest type of wallet to store your Bitcoin or other crypto on?
Tap your answer below to see if you’re right!
While all the shenanigans were occurring in the eye of the public as FTX collapsed, it appears that around $659M was drained from FTX wallets in the background.
Nobody knows who did it yet, or how, or even how much was stolen and how much was potentially FTX’s security team moving the funds themselves.
You can imagine there is wild speculation about who might have had the ability/motive to take a cool couple hundred million dollars, but I don’t wanna get in too much trouble 😇
In the aftermath, FTX began removing functionality for trading and withdrawals and moving its remaining digital assets into cold wallets for safe storage.
Their Chapter 11 filing (a type of bankruptcy that allows the company to “reorganize” and try to resume operations one day), along with the way the remaining funds are being handled, suggests this could be a very long drawn out process for users to get their funds back, not unlike how the Mt Gox hack happened in 2014 but people are still waiting today to receive their funds.
You know what I always do when I’m just chilling and haven’t done anything particularly illegal lately?
Try to flee from the Bahamas to Dubai but get stopped by border police.
No wait, that’s not me, that’s SBFraud!
Allegedly he and two associates tried to leave the Bahamas but were stopped, and now they are “under supervision” by Bahamian authorities.
It’s hard to really lay the blame for any of this at SBFraud’s feet though, as he clearly wasn’t in the right state of mind.
Mans was Goblin up all the crypto 😞
Bankrupt FTX Yacht Club
It’s becoming a bit of a tradition for the crypto community to respond to significant disruptions with NFTs.
It was a matter of time before they made one to honor Scam Bankrupt-Fraud 😅
It was trending at #2 on OpenSea 👀
Lil Bubble also made an epically hilarious meme song featuring SBF and company.
Web3 Pipeline 📢
Rolex Files Metaverse and NFT Trademarks - it will be interesting to see if the world’s top brands, such as Rolex, will maintain their dominance over their respective markets in the digital world.
Solana Spaces Moving Forward - they announced plans to build 10 more web3 phygital stores in 2023 after the success of their Manhattan location.
CryptoCOM Sent 320k ETH to Wrong Address - allegedly just a clerical error, the ~$400M mistake led to speculation of incredible incompetency and is just one more reason you should self-custody.
NFT drops of the day 👀
Gakkoverse | TBD (SOL)
Nov 17 - an immersive storytelling platform with on-chain verification, NFT collaborative drops and metaverse escape room games.
🛑 NOTE: drops not promoted/endorsed
✅ DYOR and practice safe minting!
Satoshi hasn’t failed us.
We have failed Satoshi.
That’s all for today frens!
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DISCLAIMER: This is not financial advice. This newsletter is strictly educational and is not investment advice to buy or sell any assets or to make any financial decisions. Do your own research.