Telegram to build decentralized crypto exchange, Apple blocks Coinbase NFTs, and SBF interviews attract less than stellar reviews. These stories and more this week in crypto.
New decentralized exchange via telegram
Privacy-focused messaging platform Telegram announced that the company would begin building “non-custodial wallets” and “decentralized exchanges” that would allow millions of users to securely trade their cryptos. Founder and CEO Pavel Durov said that this allows them to fix the bugs caused by over-centralization that failed hundreds of thousands of cryptocurrency users in the FTX fiasco.
Apple blocks Coinbase NFTs
Coinbase customers using Apple devices can no longer send NFTs through the exchange’s wallet. Apple requires gas fees for shipping NFTs to be paid through their in-app purchase system, meaning Apple would charge 30% of that fee. Coinbase said it is unable to meet this requirement because the in-app system does not support crypto.
Binance stops Ankr withdrawals
Binance has paused Ankr token payouts after a possible hack. A hacker managed to exploit a vulnerability in the code that allowed him to mint 6 trillion tokens, which were converted into BNB tokens and transmitted through a crypto mixer. Ankr instructed the decentralized exchanges to block trading and said it would reissue the tokens after assessing the situation.
BlockFi files for bankruptcy
Crypto lender BlockFi has officially filed for Chapter 11 bankruptcy after suspending payouts to attempt a restructuring. The company was the first to feel the effects of FTX’s collapse, telling a US bankruptcy judge that it was “the opposite of FTX” and would try to repay client funds as quickly as possible.
Crypto broker Genesis owes $900 million
US crypto lender Genesis says it is trying to avoid bankruptcy and is working with restructuring lawyers to avoid bankruptcy. They began talks with potential investors and their biggest creditors, including popular crypto exchange Gemini. The Financial Times reports that Genesis and its parent company Digital Currency Group owe up to $900 million to Gemini customers.
Kraken Exchange cuts 30% of staff
Kraken will shed 30% of its global workforce — around 1,100 employees — in response to the crypto winter. The company said macroeconomic and geopolitical factors have resulted in significantly lower trading volumes and fewer customer sign-ups since earlier this year, and that they have exhausted preferred options that could have avoided layoffs to match costs with demand.
The European Central Bank announces the demise of Bitcoin
The European Central Bank has claimed that Bitcoin is on its way to irrelevance. Senior ECB officials published a blog titled “Bitcoin’s Last Stand” stating that Bitcoin does not appear to be viable as either a payment system or an investment vehicle, and therefore should not be regulated or legitimized.
Sam Bankman-Fried speaks openly in interviews
Speaking to ABC, FTX founder Sam Bankman-Fried said he wasn’t aware of customer deposits being used to pay creditors at his affiliated trading firm, Alameda Research. He added that he only has $100,000 left in his bank account — a drastic drop from his previous net worth of $20 billion. Reactions to interviews with SBF ranged from delusions to adamant demands that he be thrown in prison.
That’s what happened in crypto this week, see you next week.
