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Dear country without banks
Things are starting to calm down a bit after November when the FTX contagion seemed to be lurking around every corner.
Although the industry is still unclear, There are many reasons to be optimistic.
This week’s roundup:
SBF keeps talking.
BlockFi is booming.
Miners struggle with costs.
MetaMask puts users at ease.
L2 is killing it.
– bankless team
Here’s a recap of the biggest crypto news of the last week of November.
Sam Bankman-Fried had an unstoppable desire to detail what went wrong with FTX without directly answering the questions his customers wanted to know.
His blasting is so cinematic that Marvel filmmakers will soon create a miniseries for Amazon out of the FTX debacle. No, this is no joke.
This week, we caught Sam at the NYT’s annual Dealbook Summit doing an hour-long interview with journalist Andrew Ross Sorkin and a fairly friendly audience who probably wouldn’t have lost a lot of money on FTX. I witnessed The interview is fairly widely derided as a toneless attempt by Sam to (poorly) explain himself without showing much genuine remorse for his actions.
Some excerpts from the interview…
When Sorkin read a letter to Sam describing the financial pain many FTX users are currently facing as a result of FTX’s actions, Sam didn’t do much to answer their questions.
When asked about the mingling of funds between FTX and Alameda, Sam denied it was intentional and attributed the problem to mismanagement of funds.
“I didn’t mix funds on purpose. One of this was margin trading where clients were borrowing from each other. I can’t quite put my finger on how big Alameda’s position is.” This shows another failure of oversight on my part and not appointing someone I was mainly going to be in charge of it but I’m trying to mix the funds I didn’t… Also, I made a mistake that, frankly, I’m pretty embarrassed that I made. What it looks like and how it correlates.
When asked if his lawyer had approved his public appearances, Sam replied, “No, they hardly. I don’t know what benefits you can get by just being there.”
When asked why he deleted the following tweet on November 7th:
“Things were changing quickly. I was nervous on November 6th, but I felt like I was probably okay. I don’t remember, but at some point I do remember things that shouldn’t be there.”
When asked about a leaked personal message with a Vox reporter claiming his philanthropy was really fake:
“Yes, we all did. FTX did as well. There are some things that I felt I had to do for my business… I wish the world didn’t work this way. I wish it had nothing to do with my ability to get paid and get a bank account, but it did and there were promotional campaigns and marketing slogans. But I also thought about what we can do to make sure our image reflects that.”
When asked about the $515 million transferred from FTX’s wallet after filing for bankruptcy:
“I believe the U.S. team took steps to seize and hold some of the assets. At that point, I was cut off from the system. It was announced that there was both, plus improper access to the assets of the exchange. No. Find out who is behind that third party.”
The crypto community didn’t give much thought to Sam’s public stance, especially after the interview followed by an on-air An interview with ABC’s George Stephanopouloslong Twitter Spaces calls, and extensive Bloomberg Feature.
For many, they were just an excuse from a man who should have kept quiet.
In July, FTX extended a $400 million line of credit to BlockFi with an option to buy it for $240 million. Without FTX, BlockFi would of course collapse. BlockFi will file for Chapter 11 bankruptcy this week.Read the full press release here.
BlockFi owes $1 billion to $10 billion in both assets and liabilities to over 100,000 creditors. One of which he is FTX US. The troubled cryptocurrency lender reportedly has $257 million in cash liquidity on hand.
BlockFi is also suing FTX holding company Emergent Fidelity Technologies over shares of Robinhood (HOOD) pledged as collateral.
Ethereum staker basic business model In other words: buy a hardware node like Avado for $1000-2000, wager 32 ETH and get rewards without rounding.
The Bitcoin miner business model is basically energy arbitrage: Borrow millions of dollars, buy an ASIC mining rig, mine bitcoin, pay your electricity bill (which represents a whopping 80% of a miner’s operating costs), sell your bitcoin on the market, Process the loan and reap the rest as profit.
Unfortunately, that business model has proven unsustainable for many Bitcoin miners. Rising electricity prices, a massive influx of his Ethereum miners prior to the merger (leading to increased mining difficulties), and a falling Bitcoin price in a bear market have left many miners unable to repay their loans and surrender. is approaching
The past few months have been full of bad news for Bitcoin miners. America’s largest publicly traded bitcoin mining company, Core Scientific, posted a $1.7 billion loss last week and warned it could soon go bankrupt in October.
Antminer S19j Pro – Considered the most energy efficient Bitcoin mining machine – Cash flow is negative at current electricity rates.
As a result, miners are selling aggressively and Bitcoin’s hashrate is dropping.
MetaMask’s Dan Finlay claims that MetaMask is no different than any other cryptocurrency wallet.
ConsenSys management also said that concerned users can always keep their wallets away from Infura, although some users pointed out that this was not an easy process.
FTX is on the decline, DeFi is not. And the Ethereum Layer 2 ecosystem has the numbers to prove it. The number of Arbitrum’s own contracts and wallets is growing exponentially.
Avalanche’s Largest DEX Trader Joe’s appears in Arbitrum!
Arbitrum’s decentralized exchange GMX has earned more daily commissions than Uniswap for the first time on November 28th.
Here is the line-up for next week.
William shows you how to do Christmas shopping the Web3 way.
Ben is considering a permanent replacement
Saagar Enjeti joins the pod!
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It is not financial or tax advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell assets or make any financial decision. This newsletter is not tax advice. Please consult your accountant. Please do your own research.
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