Market Update: November 11, 2022

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Following the collapse of FTX, White House Press Secretary Karine Jean-Pierre suggested that regulators take a “harder look” at the cryptocurrency market. One of the world’s most well-known exchanges for digital assets, FTX, filed for bankruptcy on Monday. This caused its shares to plummet as consumers rushed to withdraw their funds and tried to understand how such a major player in the cryptocurrency sector could suddenly collapse. On Twitter, Edward Snowden referred to the White House as “opportunistic serpents.” FTX US is currently alerting users that they may soon lose access to the site. A few days from now, trading on FTX US might be suspended. Whenever you want to close a position, kindly do so. Withdrawals are still possible and will be open. “We will give updates as we have them,” the firm said in an email to users. Many sponsorship agreements in the US have included the use of the primary FTX branding, and some of those agreements have specifically been made with both FTX and FTX US. According to a Wednesday Bloomberg article, the U.S.

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On Thursday, Bahamas Securities Commission issued an order to freeze FTX’s assets. The organisation suspended FTX’s operating licence and requested that a provisional liquidator be appointed by the Bahamas Supreme Court. After relocating from Hong Kong, FTX launched its new corporate headquarters in the Bahamas in September 2021. Companies like OKX and FTX built headquarters in the island nation thanks to its welcoming crypto regulations. Sam Bankman-Fried conducted a four-day seminar in the Bahamas in May of this year (2022) while FTX was still settling into its new home there. FTX founder and CEO Sam Bankman-Fried resigned in an open letter. The FTX Future Fund has supported moonshot projects in fields like biosecurity and A.I. Sam Bankman-Fried has committed to donating a sizable portion of his income and has attempted to position himself as the “most charitable billionaire in the world.”

According to The Information, Coinbase is letting go of more than 60 employees from its hiring and institutional onboarding units. The layoffs at Coinbase also came just five months after the exchange fired 18% of its employees to get ready for what it called a potential “long crypto winter.” The exchange had to reduce its staff because it had “overhired,” according to CEO Brian Armstrong. The value of Coinbase’s stock has decreased by about 80% this year and 27.4% just this month. The exchange hired Google’s chief product officer for a staggering $646 million salary deal. Armstrong will retain the services of Surojit Chatterjee as an advisor through at least February 2023. According to Armstrong, neither FTX, a collapsing competitor exchange, nor Alameda Research, a sibling firm of FTX, are a threat to Coinbase.

That’s it for today, see you tomorrow


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