Crypto Guides, Knowledge & Insights

Genesis Files for Bankruptcy on Day One, Alleging Liabilities of $5.1 billion

According to bankruptcy court records submitted by interim CEO Derar Islim, crypto lending company Genesis owned $5.1 billion in liabilities in the days after its deposit halt in November.　　In his initial move in the United States, Islim gave a summary of Genesis financial situation prior to its reorganization in bankruptcy proceedings for the Southern District of New York. By applying for bankruptcy protection through Chapter 11 late on Thursday, three of Genesis entities—Genesis HoldCo, Genesis Global Capital LLC, and Genesis Asia Pacific PTE. LTD—became the third cryptocurrency company to be affected by the rapid aftereffects of FTXs collapse.　　　　Due to Genesis $1.2 billion stake to cryptocurrency hedge fund Three Arrows Capital (3AC), which failed in the summer of 2022, at least some of the liquidity crisis started months before. That loss originated from the Genesis Asia Pacific division, which oversaw Genesis financing arrangement with 3AC and filed for bankruptcy. Based on the complaint, Genesis had $2.4 billion in unpaid loans to the fund at the moment of 3ACs bankruptcy, of which Genesis was really only able to recoup half.　　Last year, DCG took on a large portion of that risk by exchanging a 10-year promise to pay for Genesis $1.2 billion in

2023-01-24Deep Dive

Crypto Trading: Five Tips For Better Trades

Crypto trading can be a highly lucrative venture, but it also requires a certain level of knowledge and strategy to be successful. The crypto market is incredibly volatile, and the value of different coins can fluctuate wildly in a short period of time. As a result, its important to approach crypto trading with a level of caution and to have a solid plan in place before you begin. Here are five tips to help you make better trades in the crypto market:　　Do your research. Before making any trades, its essential to thoroughly research the crypto coins youre interested in. Look at their historical performance, current market trends, and any news or developments that may affect their value. Its also important to understand the technology behind the coin, its use case and the team behind it. This will help you make more informed decisions about when to buy and sell, and will also give you a better understanding of the crypto space as a whole.　　Set clear goals. Before you begin trading, its important to have a clear idea of what you hope to achieve. Are you looking to make a quick profit, or are you more interested in long-term gains？ Knowing

2023-01-24Deep Dive

Nearly all of the bitcoins mined by 1Thash were sent to Binance.

5,600 BTC or nearly $124 million worth if converted in fiat was transferred to Binance. Blockchain data conclude that it might be due to a step to sell the assets.　　1Thash gave most of its BTC holdings to Binance in a consecutive record of transactions that were marked by analysis firm CryptoQuant. The said Cryptocurrency exchange is the prominent and biggest exchange by daily trading volume.　　　　According to accepted knowledge among cryptocurrency traders, significant BTC transfers from miners to platforms like Binance are a bearish indication, possibly indicating that miners are getting ready to sell BTC. The conclusion is that, particularly with profit margins squeezed in previous months by the crypto winter, the previous crypto rebound may well have driven prices to a point thats too difficult to ignore.　　　　According to Julio Moreno, a senior consultant at CryptoQuant, 94% of the 2,396 BTC moved on January 17 sat in 3 separate wallets before arriving at Binance, whereas 3,336 BTC received on January 19 was transmitted directly to Binance.　　In the two and a half year history of CryptoQuants surveillance of 1Thash, which began in July 2020, the transfers on those two days represented the greatest outflows.　　 According to data from CryptoQuant, 1Thashs withdrawals reduced

2023-01-24Deep Dive

Ether Turns Deflationary Again Led by Spike in NFT Sales

As the market strives to recover in 2023, ether has been deflationary once more.　　According to data from ultrasound.money, ethers net issuance, or annualized inflation rate, has plummeted to -0.07%, indicating that the volume of ether being burned exceeds the amount being coined.　　Marcus Sotiriou, market analyst at digital asset broker GlobalBlock, linked the recent jump in ether torched to a surge in non-fungible token (NFT) sales fueled by the overall crypto markets optimistic attitude.　　According to ultrasound.money, around 14,700 ethers (ETH) worth approximately $24 million have been burned in the last seven days. Approximately 3,400 ETH were burned during NFT trading. According to ultrasound.money, NTF marketplace OpenSea is the top seven-day and 30-day gas-guzzler among platforms.　　According to cryptoslam statistics, NFT sales volume increased by more than 5% in the last week to $242 million, with the Ethereum network accounting for 80% of sales volume, or roughly $195 million.　　“More NFT sales on Ethereum means more transactions, which results in more ETH being burned,” Sotiriou explained.　　The Ethereum Merge, which switched the platforms architecture from a proof-of-work (PoW) protocol to a more energy-efficient proof-of-stake (PoS) protocol last fall, was generally predicted to become ether deflationary.　　Ethers inflation rate is also determined by a distinct mechanism known

2023-01-24Deep Dive

What is a bull or bear market

A bull market in crypto refers to a period of time when the overall value of cryptocurrencies is on the rise. During a bull market, investors are generally optimistic and optimistic, and the prices of cryptocurrencies tend to increase steadily over time. This type of market is often characterized by a steady increase in trading volume and a growing interest in crypto investment opportunities.　　On the other hand, a bear market in crypto refers to a period of time when the overall value of cryptocurrencies is on the decline. During a bear market, investors are generally pessimistic and the prices of cryptocurrencies tend to decrease over time. This type of market is often characterized by a decrease in trading volume and a decrease in interest in crypto investment opportunities.　　The crypto market is known for its volatility and rapid fluctuations, making it difficult to predict when a bull or bear market will occur. However, there are certain indicators that investors can look for to determine the current market conditions. For example, a bull market is often characterized by an increase in trading volume, a growing number of new investors entering the market, and positive news and announcements from major players in the

2023-01-24Deep Dive

BitMart, a Crypto Exchange, Will Participate in Custodian Copper's ClearLoop Network

By collaborating with digital asset custody provider Copper, cryptocurrency exchange BitMart plans to provide off-exchange resolution to its institutional clients, the business announced in a press release on Thursday.　　Following the conclusion of technical integration and subject to contracts, BitMart will join Coppers ClearLoop network. Once finished, Coppers institutional customers will be able to participate on the BitMart exchange with the security of knowing that their digital tokens are in Coppers care.　　　　Several exchanges are linked by Coppers ClearLoop network in a single, secure trading loop that allows for real-time settlement over multiple connections. A research report released on Tuesday by brokerage firm Bernstein predicted that the potential for custody income might reach $8 billion by 2033 as a consequence of the bankruptcy of cryptocurrency exchange FTX.　　“Institutional crypto investors are, above all, seeking out ways to better safeguard their assets and optimize their trading,” Thus according to BitMarts Victor Wei, vice president of institutional clients, ClearLoop meets these demands and in so doing is contributing to the maturing of the ecosystem.　　A $500 million insurance contract was signed by London-based Copper and the UK. As one of the largest such agreements in the business, insurance giant Aon (AON) in November arranged coverage for

2023-01-24Deep Dive

The New FTX Head Implies That the Crypto Exchange Could Resurrect

According to a conversation he gave to the Wall Street Journal, the new leader of FTX is looking into the potential of reviving the insolvent cryptocurrency exchange. This was the first appearance he had since taking over FTX in November.　　Notwithstanding the allegations of criminal wrongdoing against former CEO Sam Bankman-Fried and other top execs, John J. Ray III, who previously oversaw Enrons restructuring, claimed that customers have praised FTXs technology and suggested that it might be worthwhile to revive the exchange despite the allegations.　　As per Ray, “everything is on the table.” “If there is a path forward on that, then we will not only explore that, well do it.” 　　　　On Binance, the FTX coin FTT was up 33% in response to the announcement.　　The choice would depend on whether clients would benefit more from resuming FTXs global exchange than they would from just disposing of their assets or selling the platform, according to Ray.　　In the discussion, Ray also blasted Bankman-Fried for making damaging remarks to the media and everywhere else. Bankman-Fried has criticized Rays choices and said that FTX did not necessitate Chapter 11 bankruptcy relief.　　“We don‘t need to be dialoguing with him,” The new chief said. “He hasn’t told us

2023-01-24Deep Dive

Genesis' Crypto Trading Division Is Transferring Money Around, a Signal of Normalcy

Early in 2022, falling prices started to snowball into a landslide when Terras stablecoin network collapsed, affecting the massive hedge fund Three Arrows Capital, which then foreclosed on its creditors in the linked crypto realm, sparking a credit crisis. Genesis, which already joins companies like Voyager Digital and Celsius in declaring bankruptcy, found that the failure of FTX and Alameda Research was simply too much to bear.　　Genesis cryptocurrency loan operation sought bankruptcy proceedings protection, but its trading division, which remained outside of Chapter 11, continued to move money about on blockchains, indicating that the operation still was operating at least partly normally.　　　　Blockchain information gathered by Etherscan shows that on Thursday, the day of the bankruptcy case, a wallet managed by the Genesis OTC trading desk delivered around $125 million in ETH, FTM, and USDT to Coinbase, Binance, Bitstamp, and Kraken. The wallet has made a number of more transactions in the last few hours, receiving nearly $50 million USDC.　　Its still early to tell how the bankruptcy of Genesiss lending organizations will end up affecting the spot and derivatives businesses, but the moves are consistent with holding company Digital Currency Groups (DCG) assurance that the Genesis trading business will “continue to

2023-01-24Deep Dive

What is the difference between IPO, ICO, ISO, STO?

An Initial Public Offering (IPO) is the process by which a private company raises capital by selling shares to the public on a stock exchange. This allows the company to raise money while also giving investors an opportunity to own a piece of the company.　　An Initial Coin Offering (ICO) is similar to an IPO, but instead of issuing shares, the company issues digital tokens or coins, which are typically based on blockchain technology. These tokens can be used to buy goods or services within the companys ecosystem or can be traded on cryptocurrency exchanges.　　An Initial Stablecoin Offering (ISO) is similar to an ICO, but instead of issuing tokens, the company issues stablecoins, which are digital assets that are pegged to a fiat currency (such as the US dollar) or a commodity (such as gold). These stablecoins can be used to buy goods or services within the companys ecosystem or can be traded on cryptocurrency exchanges.　　A Security Token Offering (STO) is a form of fundraising similar to an ICO, where a company issues digital tokens that are backed by a tangible asset, such as a share of stock in the company. These tokens can be traded on a blockchain and are

2023-01-22Deep Dive

Who controls cryptocurrencies?

Cryptocurrencies, such as Bitcoin and Ethereum, are decentralized digital assets that operate on a peer-to-peer network, meaning there is no central authority controlling them. Instead, they rely on complex algorithms and cryptography to secure transactions and ensure the integrity of the blockchain, the digital ledger that records all cryptocurrency transactions.　　One of the key features of cryptocurrencies is that they allow for direct, peer-to-peer transactions without the need for intermediaries like banks or governments. This is made possible through the use of public and private key encryption, which ensures that only the parties involved in a transaction have access to the funds.　　While there is no central authority controlling cryptocurrencies, there are a few key players who play important roles in their development and operation. These include:　　Miners: Miners are individuals or groups of individuals who use specialized hardware to validate and record transactions on the blockchain. They are rewarded with small amounts of the cryptocurrency for their work.　　Developers: Developers are responsible for creating and maintaining the software that runs the cryptocurrency. They often work on open-source projects, meaning the code is freely available for anyone to use and contribute to.　　Exchanges: Exchanges are platforms where users can buy and sell cryptocurrencies. They often

2023-01-21Deep Dive

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