This Week in Crypto

November 18, 2022

With the crypto greed and fear index at 23 and the overall market cap just shy below $870 million, the crypto market may be ready to face an extended winter. During the week, plenty of news filled the crypto industry from all directions. In this week’s issue of “This Week in Crypto”, we look at some of the news that made the headlines and take a deep dive into what it all means.

Bahamas Government Orders Transfer of FTX Funds

This is another piece of news related to the ongoing collapse of FTX and Alameda Research. The Securities Commission of Bahamas (SCB) has announced that it ordered the transfer of crypto assets in FTX’s current custody into a cold storage wallet controlled by the Bahamian government. It is interesting to note that this announcement was announced a few days after the supposed seizing of the crypto assets occurred.

This news draws a parallel to the previous news from FTX that due to the request of the government, all FTX users with KYC registered in the Bahamas were allowed to withdraw their funds. However, the government of the Bahamas continues to claim that no such request was made. At the current moment, the rabbit hole seems to continue to go deeper.

Key Takeaway

While the contradicting statements between the government of the Bahamas and FTX may be obscured, the clear contradiction that is looming over the horizon is the potential conflict between the Bahamas and the United States. While FTX is officially registered in the Bahamas, its operational status allowed it to file for bankruptcy within the United States under Chapter 15. While Chapter 15 bankruptcy does take into account the need for cooperation with a foreign jurisdiction brought by a foreign entity, the cryptocurrency assets in a Bahamian government wallet are bound to cause conflict when it comes to possible future restitution for those who are affected by the crisis. Hence, it can be expected that even when the Chapter 15 bankruptcy filing goes through, the court order will take a significant amount of time, along with an additional battle between the two jurisdictions. As a result, it may take a long time until the victims are fully compensated and the market recovers fully.

When Will the Crypto Winter End?

As BTC is failing to break above its sub-17k level, traders and holders alike are looking for any predictions on when the crypto winter may end. Unfortunately, according to some of the leading industry experts, the winter may last for even a year. While Coinbase has predicted that the bear market may last until the end of 2023, Pantera Capital has said that the price recovery will only begin as the next Bitcoin halving is upon us. The next Bitcoin halving is expected to happen during the first half of 2024. However, some experts such as Tim Draper have predicted that the price of BTC will recover to $25,000 during the first half of 2023.

Key Takeaway

According to previous data, when the large cryptocurrency exchange Mt.Gox closed and disabled user withdrawals, the price of BTC went down by 85% in comparison to the previous high. It took over 2 years for BTC to reach a new high. Currently, BTC is down by almost 78% in comparison to the previous high. Hence, it may be predicted that a further decrease in price may be waiting for BTC and the overall cryptocurrency market. Even if the price of BTC does not go down much further, undoubtedly it will take a significant amount of time until retail confidence in the market is restored. So what can traders and holders do to hunker down for the winter?

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Mass Exodus from Gemini

Genesis, the lending partner of Gemini, has lost access to a part of its funds due to it being locked in FTX. As a result, Gemini has suspended interest payments on its Gemini Earn products. This has resulted in institutions rapidly pulling out their funds from Gemini in what can be described as a mass exodus. Around 230 million USD worth of stablecoins, along with 22,000 BTC and 20,000 ETH have been detected to be involved in the withdrawal.

Key Takeaway

While the rumors circulating on Genesis and Gemini claim that a liquidity crunch is going to hit Gemini soon, the mass withdrawal was completed without many issues. Moreover, the withdrawal seems to be originating mostly from institutions, indicating that these institutions are simply reallocating their funds so that they can continue to generate yield on their holdings. For retail investors, it is a good indication that if there is no clear advantage to keeping their assets on an exchange, it is best to keep them in safe storage. If you have BTC, MXC, or DHX, the best place to safely keep your assets is the MXC DataDash app. Moreover, there are staking options on MXC offering attractive benefits. Download today and keep your crypto assets safe while accruing value.

However, Here is Something to Celebrate

As the end of the year is approaching, the MXC community can look forward to MXC’s commitment to the season of giving. There are lucrative opportunities on the way for anyone involved in the MXC movement to win big prizes! Keep an eye out for the next giveaway by following MXC Foundation on Twitter and turning on the notifications!

About MXC

Based in Berlin, Germany, the MXC Foundation is a purpose-built IoT Foundation with the mission to inspire fast, efficient, decentralized data exchanges using LPWAN, Blockchain, and Token technology. The MXC Foundation is pairing “MXC” — the pioneer IoT cryptocurrency — with advanced LPWAN technology, developing the next, vital step in the fourth industrial revolution, enabling secure, vastly scalable, lightning-fast transactions. Learn more at: www.mxc.org

For further information, media requests, or comment, please MXC can be contacted directly at hello@mxc.org or via the www.mxc.org website.

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