November: FTX Saga, Adoption, NFT Royalties
The biggest news not only of November but of the whole year was FTX blow up. The whole saga was no less than any Netflix show. It started with the Twitter feud between SBF and CZ; the announcement by Binance to take over FTX which was then withdrawn; the exposure of SBF’s $10 billion fraud by setting up a backdoor to client funds; and finally a hack that drained off the rest of the funds. The whole saga was broadcasted live on Twitter.
The markets were confronted with the fire of FTX. Almost all major cryptocurrencies experienced a red November wedding, with Bitcoin -18%, ETH -20%, SOL a whopping -59%, ADA -23% , UNI -20%. BNB and MATIC held up better than most in November with -7% and -3.5% respectively
Gaming Tokens were no different — THETA -21%, SAND -35%, AXS -26%, MANA -40%, ILV -40%
1) What 2) Happened?
FTX Saga — A Timeline
In case you missed the whole episode, here’s the timeline of events.
Nov 2- Coindesk published an overview of Alameda’s assets, which suggested that Alameda could be insolvent.
We learned then, that Alameda had over $8b of loans on their books, that was primarily backed by their $FTT token — something that no sophisticated lending desk (the type that would have $8b to spare) would ever allow.
Nov 5- Massive amount $FTT started moving
Nov 6- CZ made a rare announcement of Binance’s intent to sell their FTT
In reply to CZ’s post, CEO of Alameda, Caroline offered to buy his firm’s FTT token holdings for $22 each.
Nov 7- CZ confirmed $585 million transfer of $FTT, causing panic in market . SBF said “FTX is fine. Assets are fine”.
Nov 8- SBF confirms Binance is acquiring FTX.
Nov 9- Binance decides against pursuing the deal to bail out FTX.
Nov 10- FTX stops taking on new customers and freezes withdrawals.
Nov 11- FTX, FTX.US and Alameda research filed for bankruptcy protection in US. SBF resigns as CEO.
Nov 12- FTX hacked for most of its remaining crypto. Financial Times reports that just before FTX went bankrupt, the exchange’s primary balance sheet showed only $900 million in liquid, easy-to-sell assets against $9 billion in liabilities.
Nov 13- Bahamas securities regulator launches a probe into FTX collapse.
Nov 14- SBF’s response to what all happened was-
Nov 23- ’Avengers’ Directors to Bring FTX Miniseries to Amazon 😆
Other Top News
- Circle completed an integration to allow use of USDC into Apple Pay
- JP Morgan executes its first live trade on a public blockchain, swapping SGD for JPY via Aave on Polygon
- Nike announces plans for ‘.SWOOSH’, a new marketplace for all Nike digital collectibles to be hosted on Polygon. Starting in the New Year, users will be able to buy, trade, and create virtual products.
- Infura Collecting MetaMask Users’ IP, Ethereum Addresses After Privacy Policy Update
Gaming World
Updates & Top News of Web3 Gaming
- Mekaverse has gone live with its MEKA-CITADEL metaverse, a social/gaming hub for the community
- Unity is integrating Tezos Blockchain in games’ development engine
- Axie Infinity just kicked off the Saigon testnet for the Ronin sidechain. Axie Origins: Season 2 is introducing new gameplay mechanics, too.
- AavegotchiDAO voted to create a new foundation that will have 9 multisig signers/directors.
- Castaways, an island survival sandbox game, said users that don’t honor the project’s royalties won’t receive future airdrops.
- Folia announced Straylight Protocol, a generative onchain multiplayer game by Paul Seidler of terra0.
- The Beacon, a free to play MMORPG on Arbitrum, launched its prototype:
NFT Arena
Top News of NFT’s fast moving market
- BIGGEST NFT Sale: Bored Ape Yacht Club #232 sold for 800WETH
- Your Diploma is an NFT — Mongolian Students to Receive Honors on a Polygon Chain
- A new Web3-native game launcher is MetaMask’s latest foray into blockchain gaming
- OpenSea Pledges to Enforce NFT Royalties After Creator Backlash
- Grand Theft Auto maker Rockstar Games bans NFTs on third-party servers
- Magic Eden expands NFT support to Polygon network
- Moonbirds migrated on-chain
Notable upcoming NFT sales-
1- Metaplaces — Offices | Mint date 11/30/2022 | Mint price 0.12 ETH
2- Astro X NFT | Mint date 12/15/2022 | Mint price 0.32 ETH
3- BVDCAT | Mint date 1/15/2023 | Mint price 4 SOL
4- KeplerHomes | Mint date 12/16/2022 | Mint price 1.2 BNB
Deep Dive
Submerge deeper into reports of the trending topics
- Blockchain Analysis: The Collapse of Alameda and FTX
- The State of NFT Markets | October 2022
- Blockchain Gaming Q3 2022 Report: New Frontiers And The Path Forward
- State of ApeCoin Q3 2022
Technical Analysis
What indicators say about market
We saw two common doji candles on the BTC weekly chart, which is showing indecision in the market and price movement in a narrow range.
However, the Doji can be a reversal and depends how other indicators are in the chart.
BULLISH RSI: We can see bullish RSI divergence on the weekly chart which indicate that BTC can give a bounce in coming weeks. MACD is also showing the same that short sellers are not so strong.
Support : Apart from $15500, BTC has a 400 weekly support at $13,716 and $12,000 where smart money can enter in the market.
Resistance: $17,200/$18,400/$21,000 is the resistance for BTC
Factors: Market also trying to understand cascading effect of FTX and Genesis. And we can see a big base on development.
TREND: Market is very much in same range which we saw in 2018/19 when BTC broke $6000 and stayed a few months between $3200-$4500 and jump towards $14000 in June 2019..
EVENTS:
Dec 13: US CPI data
Dec 14: FOMC meeting
DeQuest Updates
Partnership Announcements
- DeQuest joins forces with the Fabwelt Ecosystem
- DeQuest x Legends of Elysium
Releases
About DeQuest
DeQuest is the first platform of its kind for Metaverse users who want to understand blockchain gaming concepts, through skill level progression and guided learning. It serves as a bridge to easily track users’ knowledge and skill levels across Metaverse ecosystems, as well as their ability to carry out different jobs in the Web3 world.
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The insights, views and outlooks presented in the report are not to be taken as financial advice. DeQuest Research Analysts are not registered broker/dealers or financial advisors. DeQuest Research Analysts may hold assets mentioned in this report.
