The Obsidian Weekly: Shake the Fleas
What an INSANE week in Crypto! It’s not every week that there’s industry shaking moments, but this was definitely one of them. We’ve said for a long time that the bear market is where bad actors and low quality projects go to die, and where the real pioneers go to build. There was some bloodshed on the block, and I’m sure it won’t be the last. It may sting right now, but the space has to shake the fleas off, if it’s ever going to reach it’s capacity. That’s exactly what’s happening.
Weekly Web3 News:
Below, you can find some of the most interesting things happening in the web3 space this week, all in a bite-sized format.
FTX has filed for Chapter 11 bankruptcy. Sam Bankman-Fried resigned. All withdraws halted.
List of companies that Alameda and FTX have invested in. It’s more than 250 companies. https://twitter.com/edvis100/status/1591106598436761603?s=46&t=AtFEpoF-aUjFpim_ALXfBA
SEC won its case against LBRY. This creates a dangerous precedent which can make every crypto a security in the US.
Walmart, largest wholesale and retail chain, has begun selling cryptocurrency mining hardware.
US Department of Justice seized a record breaking 50,676 BTC in the Silk Road darknet marketplace case. It is the largest confiscation of crypto in history.
SEC is interested in investigating promotion of HEX, Pulsechain and PulseX crypto projects.
Vitalik Buterin presented an updated roadmap for the development of Ethereum.
LG Electronics is hiring a Chief Technology Officer (CTO) to lead the company’s growing Web3 business.
American billionaire Tim Draper believes that the price of BTC will be $250,000 by mid-2023.
Arthur Hayes calls Central Bank Digital Currencies ‘Pure Evil’.
Circle will add Solana support for Euro Coin in 2023.
Reuters is reporting that Binance helped to process $8 billion dollars from Iran despite sanctions.
Bitcoin mining difficulty shrinks by 0.20% for the first time in 4 weeks.
Miners started selling cryptocurrency mining equipment at prices 77% cheaper than in 2021.
Coin Metrics analyst named a possible cause of the FTX liquidity crisis.
55 million SOL available for unstaking.
Bloomberg removes Sam Bankman-Fried from list of billionaires. Sam’s fortune in just 1 day fell by $14.6 billion (-94%) to $991.5 million.
In step with Binance, several exchanges including Kucoin, OKX, Huobi and Polonix announced that they will also post proof of their reserves.
At the beginning of 2022, FTX was valued at $32 billion. Sequoia, Ontario pension fund, BlackRock, Paradigm, Circle and other big institutions invested millions of dollars. Now Bloomberg says FTX is worth $1 dollar.
Coinbase CEO Brian Armstrong ruled out the impact of the FTX crisis on Coinbase.
According to US treasury, Tornado Cash was involved in facilitating transactions connected to North Korea’s nuclear weapons program.
Meta announces layoffs of 11,000 employees.
Binance refused to buy FTX. https://twitter.com/binance/status/1590449161069268992?s=46&t=AstmMIXxP03cptb4tetCNw
US CPI rose to 7.7% in October — expectations were at 8.2%. Bitcoin returned to levels above $17,000 amid the publication of inflation data in the US. https://www.cnbc.com/2022/11/10/consumer-prices-rose-0point4percent-in-october-less-than-expected-as-inflation-eases.html
Sequoia Capital marks down $213.5 million FTX investment to $0. https://fortune.com/2022/11/10/ftx-sam-bankman-fried-sequoia-writes-down-214-million-investment-to-zero-venture-capital-crypto/
Metamask developers added a cross-chain bridge aggregator (beta) to the dapp. Now you can easily move tokens between chains. https://metamask.io/news/latest/meta-mask-launches-bridge-aggregator-in-dapp-to-easily-move-tokens-across-chains/
Tether has published a new reserves audit report. Analysts have confirmed the compliance of Tether’s collateral with the volume of stablecoins on the market. https://assets.ctfassets.net/vyse88cgwfbl/1Xfu4398CIoMiuKjPhvnHM/6d1608c90bb775d2d432b7b24264da28/ESO.02_Std_ISAE_3000R_Opinion_30-9-2022_RC134792022BD0548.pdf
BlockFi suspended the withdrawal of funds. Moreover they are hiring bankruptcy counsel. https://twitter.com/blockfi/status/1590875997351866368?s=46&t=AtFEpoF-aUjFpim_ALXfBA https://twitter.com/autismcapital/status/1590883231230234624?s=46&t=AtFEpoF-aUjFpim_ALXfBA
Elon Musk, in his first letter to Twitter employees, admitted that the company could face bankruptcy. https://amp.theguardian.com/technology/2022/nov/10/exodus-twitter-elon-musk-possible-bankruptcy
CZ warns that more companies could fail in the coming weeks due to FTX issues. https://www.ft.com/content/0fa4f3b6-213c-4e76-bcd9-fcf184a264a2
Tune in next week, for a new plate of crypto bites.
What’s happening at Obsidian?
The Obsidian Table Podcast
Our podcast, The Obsidian Table, is designed around the simple idea that if the general DeFi investor is highly informed and educated, they’d be unruggable. If you are looking for more tools, to become a dominate force in DeFi, in wealth, and in habit, we’ve released a new episode for you to dive into.
Verified by Obsidian
We announced a new Verified by Obsidian project, Alchemy Trades! Check this link for details!
Developers by Obsidian
We are thrilled to finally unveil Developers by Obsidian! If you are talented and looking for work in the web3 space, we’ve got just the set up for you. We currently have openings on our team, whether you’re a contract or code developer, a community manager, a marketing specialist, or anything else you’d consider beneficial to DeFi projects. Check out our website to apply.
If you’re a project, and you’re looking for quality developers, marketers, community managers, or anything in between: we have a built out team of Verified talent ready to tackle your toughest tasks. Check out our website for more details!
The House of Obsidian
Community is the lifeblood of who we are at Obsidian. It was our foundation, and it’s my favorite piece of the puzzle. If you’re looking for conversation, counsel, or alpha, join our discord!
This last week, we hosted Fraction Mining, Battle Stakes, Cepheus Cloud, and Holoclear for AMAs!
We’ve regularly host community events and contests, as simple as Uno tournaments where you can walk away with a wallet full of new crypto. Come hang out!
The Obsidian Council
Our very first community, the “inner circle” of legends. Regular market analysis classes, research deep dives, and tight knit community. We are currently transitioning to an NFT membership, and when that goes through, we will have some insane things to announce.
We hosted our very first in person event this last week! I cannot wait to share more about it, but to me it really cemented this idea of doing life together, instead of just being an investment group.
4 more events coming in 2023, so stay tuned!
Until Next Time
We’ll see you next week, Obsidians!
Thank you to our Medium team: Research — Flow; Writer and Editor-Matthew Walker.