I hope you don’t spend all your BTC this Black Friday 🙂
This is the web3 newsletter for all interested in the freshest news. We want to keep you updated and make you smarter
on the crypto field than 95% of the population.
We’re still in the crypto bear market and expect even lower prices after FTX bankruptcy.
Despite the current difficult market condition many new web3 projects are being announced. You can read more about that in Web3 Express News.
Genesis is a crypto exchange like no other. It's a platform that brings together big-pocket investors, institutional firms, and prominent companies to build the future of finance. The company is a subsidiary of Digital Currency Group (DCG), which owns Grayscale Investments, the most prominent digital asset fund.
According to the Twitter thread - the fall of Genesis could have a much bigger impact than FTX.
Grayscale released an update reassuring investors that they hold all the underlying assets in their fund and that the company has never lent or traded them. Genesis's exposure to 3AC and FTX, two of the giant holes in its loan book, has been covered by DCG.
The problem is that through assurance, there is still no cash flow in Genesis.
Luna, 3AC, and FTX also assured me that everything was ok. We need to wait a few days or weeks to see the future of Genesis.
❌ IS FTX A WEB3 FAILURE?
The $32 billion collapse of the FTX exchange and its sister trading firm Alameda Research recently once again has crypto’s detractors gloating in the headlines. FTX bears no resemblance to most of what the longtime believers in blockchains and Web3 are trying to build.
The FTX platform is centralized, restrictive in participation, and operated by a few people. This is unlike the blockchain industry, which is decentralized and transparent. The FTX platform relies on a corporation to hold user funds. In contrast, other blockchain projects are more like Bitcoin and Ethereum. They allow users to transfer value between two parties anywhere in the world without an intermediary like a corporation or bank.
Many such programmable blockchains form the backbone of Web3, the movement to decentralize internet infrastructure using blockchain-based technologies. These open blockchain networks run on transparent ledgers where transaction records are verifiable by anyone in the network and, therefore, difficult to censor. The benefit of decentralized systems is that stakeholders know what is happening, bad actors can’t exploit or take over, and the former can adapt in response to challenges.
Centralized exchanges offer an on- and off-ramp between fiat currencies and cryptocurrencies. They do not provide the same degree of privacy or control as decentralized exchanges.
We’ve recently seen centralized exchanges like Binance and Crypto.com respond to pressure by disclosing their reserves. This is a positive development toward self-regulation and applying decentralized financial practices to centralized institutions. FTX’s collapse highlights the need for more transparent accounting and compliance systems that protect participants while preserving an individual’s privacy.
In addition to self-disclosures of reserves and liabilities, best practices for DeFi and centralized crypto projects might include on-chain asset registries or mandatory transaction posting. For exchanges, a hybrid approach might avoid exchange custody of users’ funds while still offering recovery via centralized institutions (or support for social recovery).
😎 WEB3 EXPRESS NEWS
Tim Ferriss presented his new NFT project. "The Legend of CØCKPUNCH" is the tale of a fantastical realm, a universe of the bizarre, which will be released over time. Stories are the gateway drug in this new form of long-format fiction project called Emergent Long Fiction! 100% of NFT direct sale proceeds are donated to the Saisei Foundation, a registered 501(c)(3) nonprofit private foundation.
According to a Dutch court hearing on November 22, Alexsey Pertsev, the developer behind the Tornado Cash cryptocurrency application, will be detained for another three months while he is investigated.
Magic Eden announces that Polygon, the leading standard for open, non-fungible tokens (NFTs), has integrated MATIC. Polygon is now a premier partner of Magic Eden and supports
MATIC.
