Ada will persevere. Will you?

Good morning! Welcome to The Daily Moon. You remember the hacker who stole from FTX to become one of the world’s largest ETH whales? Yes, this person is now dumping the entire load for Bitcoin. It has caused pressure on Ethereum’s price. The chaos is real. 

The markets were in the red. Bitcoin was at ~$16,210 levels while Ethereum was below the $1,200 mark. Nasdaq was down in early trade. Back home, Sensex and Nifty fell on weak global cues. 

The FTX Pain Is Still To Come

How bad can the FTX saga get? Really bad. A filing by the bankrupt exchange states that it owes its 50 biggest creditors an astounding $3 billion. The top 50 creditors are owed anywhere between $21 million and $200 million. The third largest creditor is owed $174 million, which lines up with what Genesis said. 

How deep does the hole go?Genesis, a crypto-based lender, had frozen withdrawals and was looking for a bailout worth $1 billion from existing investors. Reports insist the attempt has failed. This is a second blow for the lender who had somehow stayed afloat when 3 Arrows Capital filed for bankruptcy after the meltdown caused by Terra/Luna. This time, it seems, it may not be able to survive. 

What about the customers?The company, with its newly installed management group, has not said anything about customers who have not been able to access their own money. But what makes it worse is that in the filing the company states that it doesn’t have a system robust enough to track which customer had how much money locked in the exchange. So if the time comes to pay back, it may not even know how much.

 Life comes at you fast, eh, SBF?

Cardano Won’t Give Up

Cardano has been on a slide for a week. But that hasn’t stopped it from shrugging off the market and working on creating new use cases to attract customers. An interesting one is called Midnight. 

What is it?Midnight is a data protection-based blockchain that creates a screen so unauthorised individuals cannot get access to sensitive data. It will also allow developers to plug in apps and not fear leaks or censorship. This announcement, too, didn’t really enthuse investors. It did, however, help its social mentions. 

There are a few positivesADA’s exposure to FTX was limited, which means the fallout won’t hurt it as much. NFTs seem to be performing well on the platform, despite the royalty controversy. There is another positive. Even though the price has been trading downwards, the number of addresses trading ADA has appreciated. 

Are We At A Regulatory Tipping Point?

Quite possibly. The US has been trying to regulate crypto for a long time. Now, things are about to change.

What’s on the table?At least two bills that are seen as progressive. Both propose that the US commodities regulator looks at crypto instead of the securities regulator. Why, you ask? Because the SEC has burnt enough and more in the industry. The problem largely has been its inconsistent stand on similar issues. 

Nothing will happen before all the new year champagne has been consumed because Congress is already winding down. 

We have believersLike Bill Ackman. The billionaire investor and hedge fund manager is a recent convert from a crypto sceptic to a believer and has interesting new use case ideas for tokens. 

This could be the silver lining in the vast expanse of grey. 

Did You Catch The SNM Dump?

An almost-forgotten altcoin, SNM, had an eventful weekend. It surged 4,000% on Sunday. And some are calling it a likely pump-and-dump. 

Whoa, 4000%?Yeah, it was wild. SNM debuted in 2017. And its previous highs involved breaching the $0.50 mark. But on Sunday, it shattered all previous records. The coin’s 24-hour trade volume was also just over $720 million. 

At the time of writing, the dust had settled, more or less. No clue about how much money people lost. But that’s coming, for sure. 

Talking about shitcoinsThere is another altcoin, with little to no use case, that made the news on the internet over the weekend. 

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Who are we? This newsletter’s ambition is to educate (and to entertain). The world of money is changing everyday and we want to help you decode what’s happening in the world of crypto, public markets in the US and India.