The FTX Fallout cryptocurrency exchange spills over to the NFT ecosystem
Earthquake in the ecosystem of cryptocurrencies of intensity 8 on the Richter scale (earthquake capable of great destruction over a very large area of several hundred kilometers). This week the announcements moved at lightning speed worthy of Star-Wars.
Very quickly a Nov.2 CoinDesk article claimed that FTX’s sister hedge fund Alameda Research had overfished by holding too many FTT FTX tokens and people got scared. Binance CEO CZ later announced that he was selling $ 2.1 billion in FTT, so people got more scared and things escalated into a real panic over the weekend with record withdrawals of around $ 8.6 billion. from FTX since 10. Sam Bankman-Fried (SBF), the founder and CEO of FTX went from next Warren Buffett to an outcast in less than two months as he was a beacon of hope for investors big and small.
Impact on NFTs
The fallout from the FTX cryptocurrency exchange is spreading across the NFT ecosystem, and many in the NFT community are trying to clarify the potential impacts on their NFT projects. Read the Reuters summary and Kaiko’s summary to understand the twists that are far from over. I’m not sure anyone still knows what really happened, there is still a lot of information to put together.
Here are some speeches:
- Yuga Labs co-founder Wylie Aronow provided updates to Bored Ape Yacht Club and Yuga Labs subscribers, reassuring users that no funds were impacted by the FTX collapse.
- Animoca Brands’ exposure to FTX is “limited to an insignificant trade balance,” according to a statement by President Yat Siu. Animoca Brands remains financially strong with a cash balance of approximately $ 214 million, digital assets of $ 940 million with an additional $ 3 billion of off-balance sheet digital reserves and a portfolio of approximately 380 companies, ”Siu said.
- Roham Gharegozlou, CEO of Dapper Labs, updated his Twitter account with a thread on the company’s location, stating that Dapper Labs “has no material exposure to FTX, Alameda, FTT, SOL or any other affected tokens.”
- In a Discord channel reserved for Azuki owners, the founder of the ZAGABOND project confirmed that about 90% of the team’s money is “held in fiat in a traditional bank. The rest is in Coinbase, in cold storage and some funds in BlockFi ”. ZAGABOND says the team “got about half of those funds from BlockFi” and “is discussing its next steps with a legal advisor” before adding, “we’re fine anyway.”
The Web Garage3
More information in this week’s free newsletter 05:
- Kodex, Web3 usability
- FTX spin-off on the NFT ecosystem
- SuperRare Labs supports copyrights for artists and collectors
- Swiss Post will launch NFT stamps on the Tezos blockchain
- Crypto Gaming: Gif Games Roadmap
- The collection of logos
- Launch of the LooksRare aggregator
- First artist to sell an NFT on Instagram
- Decentral and metaverse music festival
- The fly fish club
- Cardano Vs Ethereum (Staking and rewards)
- 🦊 MetaMask snaps Hackathon
- 🗞️ News (8)