
Marcus Sotiriou, Analyst At a Listed Digital Asset Broker global block (TSXV:BLOK).
The FTX story continues as crypto investors fear who else could be the next custodial platform. The exchange that received the most negative attention over the weekend was Crypto.com.this is crypto dot com Around the time Crypto.com’s Proof of Reserves was released, he transferred $400 million to Gate.io.
This led to significant speculation that Crypto.com was trying to forge proof of reserves, making the reserves appear higher than they actually were. However, Crypto.com CEO Kris Marszalek admitted that the funds were transferred in error, stating that “all of the ETH was successfully withdrawn by Crypto.com and returned to cold storage,” Gate. io, Crypto.com Proof of Reserve took place on October 19th and deposit took place on October 21st.
Nevertheless, Crypto.com’s accidental transfer of $400 million at a time when there is extreme fear in the market over the exchange’s solvency doesn’t look good for the exchange. Uncertainty has caused Crypto.com’s tokens to plummet by more than 50% in his one week.
Despite unprecedented FUD being circulated in the media, there is new hope in the crypto market thanks to the CEO of CZ. binanceCZ announced this morning that To further mitigate the cascading effects of FTX, Binance will establish an Industry Recovery Fund to support otherwise strong but liquidity-stressed projects. CZ also welcomes other companies with sufficient capital to co-invest, spurring Justin Sun to show support for his CZ proposal.
The market reacted very positively to the announcement, with Bitcoin gaining more than 5%. Funding rates have also turned increasingly negative along with this rise, suggesting that short selling is building up.
As the number of addresses with over 10,000 Bitcoins exploded in the past week or so, many Bitcoin whales chose this time of panic to accumulate (see below).
Additionally, the largest Bitcoin whale (not an exchange) added 6,000 Bitcoins to its stack last week after being nearly dormant for two months.More information on this can be found using this LinkThe whale buildup shows how they see this situation as an opportunity, which I agree with. Even if the extent of bankruptcy remains unknown, bear market investors have an incredible opportunity to generate wealth in the next bull market.