14/11/22 Crypto Weekly #026
FTX‘s collapse starts a new crypto domino effect. Is there a silver lining for Web3?
Welcome to One Click Crypto’s (1CC) newsletter.
Last week was one the worst in the history of Web3. Described as the Lehman Brothers moment in crypto, the FTX collapse initiated another domino-like effect in the industry.
In these difficult times, it is important to distinguish facts from speculations in order to prevent any unnecessary FUD. Still, the upcoming weeks will put DeFi to the test, so be prepared for increased volatility, shocking reveals, and further conspiring.
Bitcoin fell by -19.75% from 7 days ago and is currently trading at $16,507. Ethereum, on the other hand, lost -20.74%. The total cryptocurrency market cap is $849B, with BTC increasing its dominance to 37.3%.
FTX Files for Bankruptcy, CEO Sam Bankman-Fried Steps Down
FTX filed for bankruptcy in the United States after stunning the sector with a liquidity issue. According to a statement, FTX and about 130 related entities have initiated voluntary proceedings to let the FTX Group review its status and optimize recoveries for stakeholders. Sam Bankman-Fried, the CEO, has resigned.
FTX Investigating a Possible $477M Hack.
Only 24 hours after filing for Chapter 11 bankruptcy in the United States, FTX’s wallets were emptied of more than $515M in Ethereum, Binance Smart Chain (BSC), and Avalanche tokens.
$477M is alleged to have been stolen, while the rest is thought to have been transferred into secure storage by FTX.
The Chief Security Officer of Kraken, Nick Percoco, then lit up Twitter with a quick tweet implying that they knew the identity of the guy who conducted this transaction, which, judging by their answer, Ryne Miller did not, implying that this was indeed part of the exploit.
Crypto Exchanges Promise to Publish Proof of Reserves
In the aftermath of FTX’s multibillion-dollar collapse, cryptocurrency companies are scrambling to reassure users and put as much space between themselves and the corporation as possible.
Binance, Crypto.com, OKX, and Derebit have all vowed to produce proof that they have enough reserves to cover their clients’ liabilities.
Coinbase has also taken steps to differentiate itself from FTX, apparently emailing consumers recently to emphasize how its “business is distinct and ultimately better safeguards” client accounts and assets.
- Elon Musk: SBF’s Twitter Investment Approach “Set Off My BS Detector”
- Crypto.com Boss to Answer Questions on YouTube After Transaction Errors
- FTX Founder Secretly Moved Funds Through Backdoor: FTX Insider
- White House Says FTX Crash ‘Underscores’ Crypto Concerns
- JPMorgan Sees Wave of Crypto Deleveraging From FTX’s Woes
- DeFi Weekly Exchange Volume Hits $32 Billion Amid FTX Collapse
- FTX Faces Criminal Probe in Bahamas After Losing $1B in Crypto
Read the October Crypto report for the latest market insights, the macroeconomic state of DeFi, and our latest research in just one click.
One Click Crypto performance
Aggregated return of One Click Crypto vs. BTC and ETH
Last week, Bitcoin (BTC) dropped by -21.14%, while Ethereum (ETH) lost -22.89%. The aggregated return of One Click Crypto trading strategies returned -11.88%.
Top trading strategy
The best AI bot on One Click Crypto last week was Solar with -4.82% ROI. Second, with -4.94% was Horizon, followed by Astral v2 with -7.40% ROI.
Top-performing market pairs
Astral v2 managed to return +34.32% in BNB: USD despite the poor market condition. On MATIC: BUSD, Horizon returned +23.85%, while Astral gained +12.86%.
November 12, 2022
- Automatic deactivation of FTX bots
October 28, 2022
- Resolved issues with the connection of API key after enabling “Spot trading”
- Resolved issue with the update of API key
October 25, 2022
- Rebranding of One Button Capital to One Click Crypto
In just five days, the second-largest crypto exchange went from $10B to $0, demonstrating that no one is too big to fail.
Moving forward, the mission is to rebuild crypto and prevent these mistakes from repeating in the future. Centralized exchanges took the first step by taking responsibility for providing proof or reserves and promised to be more transparent from now on.
Due to raised concerns around using API for crypto trading, we remind you to take the best security measures to prevent any associated risk.
CEO at One Click Crypto
This is not financial advice. This newsletter is strictly educational and does not provide investment advice, solicit the purchase or sale of any assets, or encourage readers to make financial decisions. Please use caution and conduct independent research.