fbpx
Connect with us

Ethereum

Jump Crypto Debunks Insolvency Claims After Days Of Speculation Regarding Its Finances

Published

on

Jump Crypto Debunks Insolvency Claims After Days Of Speculation Regarding Its Finances
  • Jump Crypto has clarified that it is well-capitalized and will not be shutting down.
  • The crypto trading firm had revealed considerable exposure to FTX.  
  • Recent transactions suggested that the firm was liquidating its positions.
  • Jump Crypto has had to pour hundreds of millions into its projects this year. 

The downfall of FTX has had a devastating impact on several firms operating in the crypto space. Several projects including BlockFi have been forced to turn to bankruptcy in a bid to limit the damage dealt by Sam Bankman-Fried’s reckless business practices.

Those who haven’t suspended withdrawals or filed for bankruptcy yet have had to face questions regarding their finances amid calls for greater transparency in the industry. Crypto Twitter has ramped up its scrutiny of blockchain firms, especially those associated with the infamous FTX.  

Jump Crypto is not shutting down

Following days of speculation over its solvency, Jump Crypto, the cryptocurrency arm of TradFi giant Jump Trading, has clarified that its finances are in order and that investors have nothing to worry about. In fact, it revealed that it was actively pursuing opportunities to invest and encouraged those looking for funding to contact them. 

“Jump Crypto is not shutting down. We believe we’re one of the most well-capitalized and liquid firms in crypto. ” the firm tweeted. 

The speculation around Jump Crypto’s solvency started going around after on-chain sleuths pointed out several suspicious transactions that suggested that the firm was liquidating its positions, most likely due to losses faced following FTX’s collapse. On 13 November, Jump Crypto revealed exposure to FTX, adding that it was well managed and in line with their risk framework. Data from Etherscan shows that the firm allegedly withdrew almost $300 million from FTX a day before the latter suspended withdrawals. 

Meanwhile, users on Twitter have been posting details of the firm’s investment record this year, shining a light on several hundred million that it has lost in 2022. This includes the $320 million that it paid to bail out Wormhole after the latter fell victim to a $325 million exploit in February, not to mention the loss it had to take in the LUNA episode, in addition to the hit its portfolio has likely taken due to the stark decline on SOL’s price. 

Go to Source

Ethereum

SushiSwap Will Run Out Of Money In 1.5 Years

Published

on

SushiSwap Will Run Out Of Money In 1.5 Years
  • The funds in SushiSwap’s treasury can only sustain it for another 1.5 years.
  • The decentralized exchange is currently burning through $5 million a year. 
  • CEO Jared Grey has proposed to divert all fees to the exchange’s treasury for one year.
  • A new tokenomics proposal is in the pipeline.  

Decentralized exchange (DEX) SushiSwap has seen an alarming depletion in its treasury. Mounting expenditures paired with uncertainty in the crypto market pose a threat to the decentralized exchange’s operation. Jared Grey, the CEO or “Head Chef” of SushiSwap has spent the past two months analyzing the exchange’s finances. The DEX used to operate with an annual runway of $9 million. That figure has been brought down to $5 million, but that still translates to a runway of just 1.5 years. Grey has come out with a controversial remedy for this situation.

Proposal to divert all of SushiSwap’s fees to the treasury

The Head Chef has proposed that the Kanpai i.e. the portion of the fees that are sent to the exchange’s treasury, be increased to 100%. This would effectively divert all fees from the exchange to the treasury at the expense of Sushi stakers. This diversion of funds would last for a year or until the DEX implements new tokenomics. The SushiSwap chief has indicated that new tokenomics are currently in the works and may come into effect between Q2 and Q3 of 2023. 

An additional benefit of Kanpai’s solution to the Treasury is the diversification of assets, which limits the need for market selling Sushi, which is a net positive for all stakeholders.”

Speaking on the native token SUSHI, Grey revealed that it is currently near full distribution of its supply, ruling out the possibility to use it to fund SushiSwap’s expenses. According to data from CoinMarketCap, the token is currently trading at $1.25. The price has taken a significant hit of 9.5% since the CEO’s proposal came out. Head Chef Jared Grey had posted the same proposal back in October, but it was withdrawn shortly after. It was reinstated following a thorough analysis of the DEX’s finances. 

Go to Source

Continue Reading

Ethereum

Ledger Taps iPod Designer For New Hardware Wallet Amid FTX Debacle

Published

on

Ledger Taps iPod Designer For New Hardware Wallet Amid FTX Debacle

Summary:

  • Apple iPod creator Tony Fadell worked on the design for Ledger’s new hardware wallet.
  • The so-called Ledger Stax wallet will feature an e-ink display for users to view NFTs and crypto transactions directly on the device.
  • Stax’s release was announced amid increased interest in self-custody solutions following FTX’s crash.

Ledger, a popular crypto hardware wallet company, teamed up with Tony Fadell for its Stax self-custody solution expected in Q1 2023. Fadell is credited for designing Apple’s iPod device. 

The wallet maker’s CEO and chairman Pascal Gauthier expanded on the approach taken by the company for its Stax hardware wallet. CTO Charles Guillemet affirmed that the aim was to achieve mass adoption with a device that features accessibility and self-custody security for crypto users. 

When we designed Ledger Stax, our biggest requirement from a security standpoint was to fulfill those 3 security properties while improving user experience. What we did was reuse our Ledger Nano security architecture, then we improved the trusted display property.

– Charles Guillemet, CTO.

Fadell designed the Stax hardware wallet with an e-ink display wrapped around the body of the device. Sources said users will be able to view their NFTs and transaction history from the interactive display. 

On the inside, there are built-in magnets to allow users to hold multiple devices securely together. Stax’s size is roughly the same as a regular credit card and features a USB-type C port. Ledger will offer its Stax wallet for $279 come 2023.

Ledger’s Key Timing

The company designs hardware wallets – crypto wallet solutions that allow users to directly manage their digital tokens and private keys. Following FTX’s crash in November, advocacy for self-custody among crypto participants and proponents alike increased. 

Notably, FTX was an investor in the hardware wallet maker before the centralized crypto exchange went belly up. Ledger was however not exposed to the bankrupt platform and was not included in the Chapter 11 filing. 

Ian Rogers, chief experience officer at the wallet maker, told CoinDesk that sales increased as the FTX spiraled down. “We were ready,” Roger said, disclosing that the company set a new record for product sales on November 14, three days after FTX filed for bankruptcy in Delaware on November 11. 

Ledger Taps iPod Designer For New Hardware Wallet Amid FTX Debacle 10
Stax Wallet

Go to Source

Continue Reading

Ethereum

Crypto Declared Dead Yet Again As Bitcoin Hits All-Time High In Long-Term Investor Holdings

Published

on

Crypto Declared Dead Yet Again As Bitcoin Hits All-Time High In Long-Term Investor Holdings
  • BTC Conviction is at an all-time high as long-term investors keep adding to their BTC stack unfazed by the recent news and fallouts according to data from Glassnode.
  • Crypto has been declared dead quite a few times as Fear and Uncertainty is at highs in the crypto industry.
  • Although low conviction holders may have left, sellers may still be here due to miner capitulation, taxes or inflation fears.

We have witnessed one of the most intense months in the crypto industry, with FTX’s fallout and other key players that followed, such as Genesis, Voyager, and BlockFi. Fear, uncertainty, and doubt are at high levels within media outlets as Bitcoin is once again declared dead, and the BTC price dropped to levels as low as $15,700.

“Crypto is now dead: FTX, a cryptocurrency exchange, collapsed last week, proving a lot of cool guys horribly wrong,”. Tweets like this were all over social media when one of the largest crypto exchanges, FTX, collapsed, taking many prominent players with them.

But amid all this uncertainty, long-term Bitcoin holders remain undeterred, and in fact, the pattern is as such that they are currently increasing their long-term Bitcoin holdings.

According to the GlassNodes chart, Bitcoin Hold Waves, this November marked an all-time high of BTC long-term holders, who are now at 66% percentage on the chart. The long-term holders, 3yr to 10 yr, have been holding at a rate like never before, as the percentage of their holdings keeps increasing.

Crypto Declared Dead Yet Again As Bitcoin Hits All-Time High In Long-Term Investor Holdings 13

FTX’s fallout did not move the BTC markets as much as expected, and this could be due to the low-conviction holders already selling and leaving the crypto industry. It is yet to be confirmed whether this is the bottom of the markets; however, it appears that “bad news” is not necessarily affecting BTC price as dramatically as before. This could be because there are no low-conviction sellers in the market currently.

This is not to say that sellers won’t be there in a further fallout due to other factors such as miner capitulation, taxes and inflation.

Bitcoin Miners Due Capitulation?

According to CryptoQuant analyst Kripto Mevsimi, a further miner capitulation is due to reappear. Mevsimi posted his last capitulation analysis on 6th of June 2022, when the price of BTC was $31,500 and within 1 to 2 days, the price became $18,000. According to him, hte same setup is now forming on the hash ribbon metric.

Crypto Declared Dead Yet Again As Bitcoin Hits All-Time High In Long-Term Investor Holdings 14

“So right now bitcoin difficulty is really high for miners so that means; costs are getting higher and doing business in this kind of environment is getting harder,”

“That’s why miners do not work in full force. If they have efficient- new generation mining machines, they put them into work but that’s all. Inflation is high and people feels effect of living costs, bitcoin price is declining, mining cost and difficulty is getting higher. Tough environment for miners.” wrote Kripto Mevsimi in his most recent blog post.

Kripto Mevsimi confirms that a change in mining difficulty could potentially help the situation.

According to data from BTC.com, mining difficulty is set to drop at 7.08% at the time of writing.

Go to Source

Continue Reading
Home | Latest News | Cryptocurrency | Ethereum | Jump Crypto Debunks Insolvency Claims After Days Of Speculation Regarding Its Finances
a

Market

Trending