Crypto
Collapsed crypto exchange guards against hackers as hundreds of millions of dollars disappear
Extra chaos has engulfed troubled cryptocurrency change FTX, with analysts saying lots of of thousands and thousands of {dollars} in belongings had been moved off the platform in “suspicious circumstances”.
Key factors:
- The collapse of FTX has prompted recent calls to higher regulate the crypto-asset sector
- Sources say a minimum of $1.49 billion of buyer funds has vanished
- Former founder Sam Bankman-Fried has stepped down as chief govt and denied hypothesis he had flown to South America
The change additionally revealed it had detected unauthorised entry, an announcement that got here after it filed for chapter on Friday.
FTX’s swift downfall has turn into one of many highest-profile crypto blow-ups, with merchants dashing to withdraw billions from the platform in simply 72 hours.
Rival change Binance additionally deserted a proposed rescue deal.
FTX chief govt John J Ray III mentioned on Saturday the corporate was working with police and regulators to mitigate the issue, and was making “each effort to safe all belongings, wherever situated”.
“Amongst different issues, we’re within the technique of eradicating buying and selling and withdrawal performance,” he mentioned.
The change’s dramatic fall from grace has seen its 30-year-old founder Sam Bankman-Fried, identified for his shorts and T-shirt apparel, morph from being the poster little one of crypto’s successes to the protagonist of the business’s largest crash.
Mr Bankman-Fried, who lives within the Bahamas, has additionally been the topic of hypothesis about his whereabouts.
On Saturday he denied social media hypothesis that he had flown by personal jet to South America.
Billion of {dollars} faraway from FTX platform
The turmoil at FTX has seen a minimum of $US1 billion ($1.49 billion) of buyer funds vanish from the platform, sources instructed Reuters.
Mr Bankman-Fried had transferred $US10 billion ($14.92 billion) of buyer funds to his buying and selling firm, Alameda Analysis, the sources mentioned.
New issues emerged on Saturday when FTX’s US normal counsel Ryne Miller mentioned on Twitter that the agency’s digital belongings had been being moved into so-called chilly storage “to mitigate injury upon observing unauthorised transactions”.
Chilly storage refers to crypto wallets that aren’t linked to the web to protect in opposition to hackers.
Blockchain analytics agency Nansen mentioned it noticed $US659 million ($983.14 million) in outflows from FTX Worldwide and FTX US in 24 hours.
A separate blockchain analytics agency Elliptic mentioned about $US473 million ($705.65 million) price of crypto belongings had been “moved out of FTX wallets in suspicious circumstances early this morning”, however that it couldn’t verify that the tokens had been stolen.
Crypto change Kraken mentioned: “We are able to verify our group is conscious of the id of the account related to the continued FTX hack, and we’re dedicated to working with regulation enforcement to make sure they’ve all the pieces they should sufficiently examine this matter.”
FTX was not instantly accessible for remark concerning the outflows or Kraken’s assertion.
A doc that Mr Bankman-Fried shared with traders on Thursday and was reviewed by Reuters confirmed FTX had $US13.86 billion ($20.68 billion) in liabilities and $US14.6 billion ($21.78 billion) in belongings.
Nevertheless, solely $US900 million ($1.342 billion) of these belongings had been liquid, resulting in the money crunch that ended with the corporate submitting for chapter.
In its chapter petition, FTX Buying and selling mentioned it had $US10 billion ($14.92 billion) to $US50 billion ($74.59 billion) in belongings, $10 billion to $50 billion in liabilities, and greater than 100,000 collectors.
Mr Ray, a restructuring knowledgeable, was appointed to take over as chief govt.
The collapse shocked traders and prompted recent calls to manage the crypto-asset sector, which has seen losses stack up this yr as cryptocurrency costs collapsed.
“Issues will proceed to simmer after the FTX crash,” mentioned Alan Wong, operations supervisor of Hong Kong Digital Asset Change.
“With a niche of $8 billion between liabilities and belongings, when FTX is bancrupt, it should set off a domino impact, which can result in a collection of traders associated to FTX going bankrupt or being compelled to promote belongings.”
Cryptocurrency shares plunge amid fallout
Since its founding in 2019, FTX had raised greater than $US2 billion ($2.98 billion) from prime traders together with Sequoia, SoftBank, BlackRock and Temasek.
In January, FTX had raised $US400 million ($596.75 million) from traders at a $US32 billion ($47.74 billion) valuation.
SoftBank and Sequoia Capital mentioned they had been marking their investments in FTX all the way down to zero.
Cryptocurrency change Coinbase International Inc may even write off the funding its ventures arm made in FTX in 2021, in line with an individual conversant in the matter.
Bitcoin fell beneath $US16,000 ($23,870) for the primary time since 2020 after Binance deserted its rescue deal on Wednesday.
On Saturday it was buying and selling round $US16,831 ($25,109.65), down by greater than 75 per cent from the all-time excessive of $US69,000 ($102,940) it reached in November final yr.
FTX’s token FTT plunged by round 91 per cent this week. Shares of cryptocurrency and blockchain-related companies have additionally declined.
“We consider cryptocurrency markets stay too small and too siloed to trigger contagion in monetary markets, with an $890 billion market cap compared to US fairness’s $41 trillion,” Citi analysts wrote.
“Over 4 years, FTX raised $1.8 billion from enterprise capital and pension funds. That is the first method monetary markets may undergo, as it might have additional minor implications for portfolio shocks in a risky macro regime.”
The US securities regulator was investigating FTX.com’s dealing with of buyer funds amid a liquidity crunch, as effectively its crypto-lending actions, a supply with information of the inquiry mentioned.
Hedge fund Galois Capital had half its belongings trapped on FTX, the Monetary Instances reported on Saturday, citing a letter from co-founder Kevin Zhou to traders and estimating the quantity to be round $US100 million ($149 million).
Reuters
Crypto
VT Markets Anticipates Cryptocurrency Growth from Policy Changes and Market Momentum in 2025 Q1 Economic Outlook
HONG KONG SAR – Media OutReach Newswire – 13 January 2025 – VT Markets, an award-winning financial services provider, today releases its 2025 Q1 Economic Outlook. The report highlights how the dual tailwind of favourable policies and market dynamics will propel the cryptocurrency sector into a new era of mainstream adoption. The report also underscores the transformative strides achieved by cryptocurrencies in 2024, which sets the stage for further growth in the upcoming year.
2024 As A Landmark Year for Cryptocurrency
With the conclusion of the 2024 U.S. Presidential election, cryptocurrencies have ascended from niche assets to mainstream investment products. Political developments, particularly arising President Trump’s re-election and his pro-cryptocurrency stance, acted as the main catalyst for this phenomenon. Participants observed Bitcoin’s price surging by over 40%, crossing $108,000 by year-end anticipating dovish policy shifts and renewed investor confidence towards the digital asset.
Key regulatory appointments, such as naming crypto advocate Hester Peirce as SEC Chair, signalled to the market a shift towards a more favourable regulatory framework, instilling optimism in institutional and retail investors alike.
The Rise of Spot Bitcoin ETFs
In early 2024, the U.S. SEC approved multiple spot Bitcoin ETFs; a significant breakthrough for the cryptocurrency industry then. By year-end, assets under management for these ETFs grew from $28.8 billion to $110 billion. Among them, BlackRock’s IBIT ETF stood out, achieving record-breaking $30 billion AUM in under 300 days.
This development not only validated cryptocurrencies as a mainstream investment class but also paved the way for wider institutional participation. The integration of cryptocurrency into traditional finance is seen as a key step toward standardisation – an issue which has plagued the industry since its inception.
Liquidity and Risk Appetite Fuel Growth
Macroeconomic conditions, including the Federal Reserve’s shift towards an easing monetary policy, contributed to increased market liquidity and higher risk asset valuations. Cryptocurrencies, known for their high-risk, high-reward profile, inevitably emerged as a preferred choice for portfolio diversification, further driving their adoption and price momentum.
2025 Will Be A Year of Regulatory Clarity and Technological Innovation
Looking ahead, the cryptocurrency sector is poised for greater regulatory clarity and broader market acceptance globally:
United States: Expected legislation on stablecoins and other crypto assets will a establish a clear regulatory environment.
European Union: The upcoming implementation of the Markets in Crypto-Assets Regulation (MiCA) will enhance transparency and compliance.
Asia-Pacific: Singapore and Hong Kong are set to strengthen their positions as regional crypto hubs, promoting Web3 development and reopening licensing opportunities for exchanges.
Emerging Markets: Countries like Brazil, the UAE, Australia, and South Africa are advancing efforts to legitimize cryptocurrencies, potentially becoming regional leaders in the sector.
A New Era for Mainstream Cryptocurrency Adoption
The VT Markets’ Research Desk suggests that the confluence of supportive policies, transparent regulations, and robust market conditions will accelerate the mainstream adoption of cryptocurrencies.
They believe that this transition from speculative assets to recognised investment products will be a pivotal moment in financial innovation.
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Crypto
Experts celebrate promising new breed of cryptocurrency: 'Not only promises efficiency …'
An up-and-coming player in the world of cryptocurrency is looking to revolutionize the industry through its unique processes that highlight sustainability.
According to Be3, cryptocurrency XRP, developed by Ripple Labs, could have a “transformative impact on both finance and environmental sustainability” thanks to its unique consensus mechanism that does not require mining and uses a negligible amount of energy even as it scales.
It generates a minuscule amount of pollutants per transaction while producing 1,110 pounds of electronic waste and impacting just over 8 cubic miles of natural resources.
This approach separates XRP from its contemporaries, which often rely on the notoriously power-hungry proof-of-work systems and hulking mining centers that can destabilize the grid.
Statistics provided by TRG Datacenters show that XRP is the second-most eco-friendly cryptocurrency behind IOTA, consuming just 0.0079 kilowatt-hours per transaction. Comparatively, bitcoin ranks last at a staggering 707 KWh per transaction.
Furthermore, the cryptocurrency became the first major global blockchain to achieve carbon net zero by purchasing enough renewable energy to offset its minimal energy requirements, per the XRP Ledger.
Be3 also noted other features that make XRP an attractive option for institutions focused on environmental responsibility, as it takes just three to five seconds to settle at fractions of a cent per transaction.
It’s a welcome addition to a sector that desperately needs more sustainable options. A study by the International Monetary Fund found that crypto mines, in conjunction with artificial intelligence data centers, accounted for 2% of global electricity demand and 1% of carbon dioxide pollution in 2022.
The United Nations found that the bitcoin mining network used 173.42 terawatt-hours of electricity between 2020 and 2021, resulting in a carbon footprint equivalent to burning 84 billion pounds of coal.
Coal and natural gas also supplied 66% of the energy for mining operations during this period, polluting the planet with planet-warming gases.
Luckily, the sector has made significant strides in recent times in an effort to become more eco-friendly.
Alephium, which utilizes a proof-of-work blockchain, has partnered with Gigatons to implement a proof-of-less-work consensus that is significantly more energy efficient.
Meanwhile, Ethereum has transitioned to a proof-of-stake system that has cut its energy consumption by nearly 100%.
“In a world increasingly attentive to environmental impact, XRP’s innovative technology not only promises efficiency but also a greener future,” Be3 wrote.
Join our free newsletter for good news and useful tips, and don’t miss this cool list of easy ways to help yourself while helping the planet.
Crypto
ZIUM Launches to Revolutionize Instagram and Cryptocurrency Solutions
Zagreb, Croatia–(Newsfile Corp. – January 12, 2025) – ZIUM, a cutting-edge agency founded to tackle some of the most pressing challenges in social media and digital marketing, is now officially open for business. Specializing in Instagram username claims, account unbans, and cryptocurrency marketing, ZIUM has positioned itself as a trusted partner for individuals and businesses seeking innovative solutions in the digital age.
The agency operates at the intersection of technology, social media, and blockchain marketing, empowering clients to unlock their full potential online. With a dedicated team of experts and a results-driven approach, ZIUM is redefining the way people navigate the ever-changing online landscape.
ZIUM
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A New Era of Digital Problem Solving
ZIUM’s services address real-world challenges in today’s digital ecosystem. Instagram, one of the largest and most influential social platforms, has become a critical tool for personal branding, business promotion, and community engagement. However, issues such as unavailable usernames or unfair account suspensions can hinder growth and cause frustration. ZIUM steps in to provide solutions that are fast, efficient, and tailored to each client’s needs.
Additionally, ZIUM excels in cryptocurrency marketing, offering projects and startups a strategic edge in the fast-paced blockchain industry. By combining deep knowledge of crypto trends with cutting-edge marketing strategies, the agency helps blockchain projects stand out in an increasingly crowded market.
Core Services Offered by ZIUM
-
Instagram Username Claims
In the crowded social media space, having the perfect Instagram username can make all the difference. Whether it’s for a brand, influencer, or business, ZIUM specializes in acquiring sought-after usernames to align with clients’ goals and identities. The agency handles the process from start to finish, ensuring a smooth and hassle-free experience. -
Instagram Account Unbans
Account suspensions on Instagram can be devastating, especially for businesses and influencers relying on the platform for engagement and revenue. ZIUM offers expert account recovery services, helping clients navigate Instagram’s policies to regain access to their accounts quickly and effectively. -
Cryptocurrency Marketing
The cryptocurrency space is highly competitive, and visibility is key. ZIUM provides end-to-end marketing strategies tailored to blockchain projects, ensuring they reach the right audience. From brand development to targeted campaigns, ZIUM helps crypto ventures grow and thrive in an ever-evolving market.
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