FFATH 💸 How to avoid the next FTX 📉 Why reserves matter 🌴 Do Kwon, Su Zhu and more
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Headlines
🚀 Google cloud is soon to become a Solana node validator
⚽ Lionel Messi takes stake in Sorare
📱 Helium recently voted to move from its own platform to Solana
⚽ BetDEX to go live on Solana mainnet before World Cup in Qatar
🇰🇷 Bank of Korea tested NFT trading, remittances with CBDC
🇬🇧 UK bank Santander will block payments to crypto exchanges
👟 STEPN partners with ASICS and Solana
⚖️ Feds update Tornado Cash sanctions
Featured Story
Why reserves matter - how to avoid the next FTX/ Celsius
This is perhaps the most important thing you will read. Last week started with what seemed like a brawl between two Titans and ended with the liquidations and Bankruptcy of SBF’s FTX and his hedge fund Alameda. In short, FTX stole money from its customers, and instead of buying the promised assets, shuffled funds around to prop up their own token, FTT, buy advertising and make political bribes donations. FTX cooked the books and didn’t have any reserves.
However, that is not the topic for today. FTX is a drop in the CEX bucket. Central banks and other, traditional, CEX platforms do the same thing, and any kind of bank run could collapse the entire system. Don’t take my word for it.
For the past few years, the Reserve Requirement Ratio (RRR) in the United States has been set as 0.0 %. Here is proof. In fact, most countries have reserve requirements far less than 10%. Live in France? Well, congrats your RRR is 1%. If you’d like to see where your home country stacks up you can find that information here.
What this means is that the rich are fleecing the middle class. Not your keys, not your crypto is not just something we say in the industry. It’s the reason cryptocurrency exists.
Much like FTX, traditional stock brokers never buy the securities you want them to, rather these centralized institutions take capital from investors and add it to their churn of corruption. Therefore an individual buy order of any traditional security will never go to the lit market and thus have no impact on the supply/demand for that asset. Instead, any assets they do hold are kept in the broker’s name, you get an IOU. Do you understand?
CEXs can do the same to manipulate the prices of crypto, stocks, and other assets by never executing your order. Moreover, they are not legally required to hold any reserves. This is stealing. This is a fraud, and it is rampant in the financial industry. Congratulations, you own nothing. Happy?
Enter decentralized finance. Cut out the middleman and apply actual buy/ sell pressure to tokens and assets. Perhaps more importantly, by keeping your investments in a decentralized wallet, you actually own them. No need to worry about cash reserves or a bank run. That BTC is yours.
We’re going all in now. If you’ve been keeping up with FFATH you’ll know we’ve been preaching DEX for months, and warning of this impending collapse. FTX is the canary in the coal mine, the warning bell for everyone to get out while they can. The good news is that technology is finally here to keep us safe. My personal RRR is 100%. What’s yours?
Read: Global Reserve Requirement Ratio, 1980 – 2022 | CEIC Data
Need a wallet? Here are a few.
Ledger - MetaMask - Loopring - Argent - XDEFI
Special: FTX Overview
💸 Pantera Capital's exposure to FTX is from its Blockfolio investment
📺 Don’t worry SBF, Jail is not that bad
💸 FTX Has European License Suspended by Cyprus Regulator
💸 Tether freezes $46M of USDT held by FTX
💸 The Bahamas took action to freeze the assets of FTX
📺 Hitler reacts to getting rugged by SBF
💸 Our Commitment To Transparency (All binance wallet)
👉 HuobiGlobal and Tornado decided to permanently support users to redeem their TRON tokens deposited on FTX
Insider News
👉 Ether officially turns deflationary
👉 Ethereum roadmap
🔥 Do Kwon comes back at the best time with Su Zhu
🖼️ OpenSea creates tool to help NFT collections enforce royalties on-chain
⚠️ BlockFi suspends withdrawals after FTX collapse
👉 El Salvador doesn't have funds stuck on FTX
👉 Neon Labs plans to support EVM on Solana
🌳 Adam Neumann launches carbon-offsetting NFT project
👉 Mirror your NFTs from Optimism to Ethereum
🔺 $4 million incentive program for trading platform GMX
💲 500 million of insurance for digital assets in cold storage
👉 Binance custody adds NEAR token and NEP-141 standard to its Infrastructure
👉 Polkadot ecosystem weekly digest
🖼️ LooksRare NFT Aggregator (coming soon)
👉 A Letter from KuCoin CEO
👉 Solend struggling to liquidate SOL loan due to congestion
👉 Starknet reveals new governance entity
👉 The next 2 years of NEAR
👉 Tether dominates Curve's 3pool liquidity
⌛ Time machine on Debank
Data
📊 State of Boba network Q3 2022
Reads
📚 Defi on Bitcoin - Pascal Hügli
📚 Pure Evil - Arthur Hayes
📚 Speechless - Arthur Hayes
📚 Learn from my mistakes - Andre Cronje
Friends of FFATH
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