Crypto
In a flash, FTX Trading goes from crypto boom to bust
Till lately, FTX Buying and selling was the toast of the cryptocurrency world.
In 2021, the corporate’s income skyrocketed greater than 1,000% to $1 billion because it capitalized on public curiosity within the potential of digital currencies to construct wealth. FTX additionally trumpeted its model with splashy Tremendous Bowl adverts that includes quarterback Tom Brady and comic Larry David. Underlining its meteoric rise within the company world, the corporate purchased the naming rights to American Airways Enviornment in Florida for $135 million and renamed it FTX Enviornment.
A yr later, FTX now finds itself on the sting of chapter, dealing with billions of {dollars} in losses and a federal probe. The corporate’s blistering ascent and sudden plunge — together with the destiny of its revered founder and CEO, Sam Bankman-Fried — resembles nothing lower than the dizzying swings of cryptocurrency itself.
A deal gone unhealthy
The swift turnaround in FTX’s fortunes has shocked the cryptocurrency world. On Tuesday, the CEO of rival crypto trade Binance, Changpeng Zhao, mentioned his firm had struck a deal to purchase FTX. However he ditched the transfer a day later, elevating questions on FTX’s monetary viability.
In a subsequent name with buyers, Bankman-Fried mentioned FTX wanted about $8 billion to again up the crypto property customers have on the platform, Bloomberg Information reported. He additionally mentioned that, with out an imminent infusion of money, the corporate may need to file for chapter, based on Bloomberg.
FTX did not instantly reply to a request for remark. Bankman-Fried tweeted Thursday that FTX is “spending the week doing all the pieces we are able to to boost liquidity.”
“Each penny of that — and of the present collateral — will go straight to customers, until or till we have executed proper by them,” he tweeted.
A chapter of the world’s third-largest crypto trade would rock an trade that has lengthy attracted undesirable consideration from monetary regulators and lawmakers, consultants informed CBS MoneyWatch.
“That is going to be a psychological shock to the trade to say $8 billion value of consumer property are gone,” mentioned Josh Peck, an professional on crypto danger. “That is a giant deal. Persons are going to be distrustful. [and] they will say issues like bitcoin is over.”
Compounding FTX’s woes, the U.S. Securities and Alternate Fee is now investigating the corporate for doable violations, the Related Press reported. Regulators are attempting to find out if staff at FTX’s buying and selling arm Alameda Analysis used buyer funds to position dangerous bets in the marketplace.
Deluge of withdrawals
FTX’s liquidity points began months in the past when Bankman-Fried mentioned he used incorrect information to make firm monetary projections.
In a sequence of apologetic tweets, the CEO mentioned he had mistakenly believed the corporate had sufficient money available to pay 24 occasions the sum of money customers usually withdraw in a day; in actual fact, FTX solely has sufficient money to pay 0.8 occasions the quantity — a perilously dangerous cushion for a crypto trade. The miscalculation got here again to hang-out FTX this previous weekend in a deluge of withdrawals by customers.
“As a result of, after all, when it rains, it pours,” Bankman-Fried tweeted. “We noticed roughly $5 billion of withdrawals on Sunday — the most important by an enormous margin.”
A significant crypto sell-off that started late final yr can be partially accountable for what’s now taking place at FTX. In style tokens like bitcoin, ether and ripple have all misplaced worth in current months, inflicting casualties at locations like Celsius and Coinbase.
In response to the crypto disaster, FTX loaned $500 million to Voyager Digital in June, hoping to assist the crypto-lending platform climate a longer-than-expected downturn, CNBC reported. The transfer proved expensive for FTX as Voyager Digital filed for chapter a month later and FTX later paid $51 million to purchase out Voyager.
FTX took one other monetary hit when Binance offloaded its remaining FTX tokens, referred to as FTT, which it acquired as a part of its $2.1 billion exit from FTX final yr.
“Resulting from current revelations which have got here to mild, we’ve determined to liquidate any remaining FTT on our books,” Zhao tweeted Sunday.
Bankman-Fried did not point out chapter in his tweets, however he vowed to do proper by customers. Nevertheless, FTX suspended withdrawals on Thursday, a transfer that Peck mentioned hurts prospects even when the corporate would not go bust.
Regardless of the probably trade shockwaves if FTX collapses, the crypt sector has a few dozen different “prime quality” exchanges to soak up the demand, Peck mentioned. The worth of most cryptocurrencies probably will not budge both — except for one, he mentioned.
Alameda Analysis owns a considerable amount of solana, and a chapter would in all probability freeze these cash for an unknown time period.
“It’s going to nonetheless be a tragic circumstance as a result of prospects of FTX may have misplaced some huge cash,” Peck mentioned. “However finally, the trade will adapt to this.”
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
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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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