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Summary of Past Week Articles December 05, 2022

The amount of funds held by digital asset management firms has dropped to its lowest level since December 2020 – What exactly is going on?:

Digital asset management firms in the cryptocurrency had their assets under management (AUM) fall by 14.5% on average in November. It is the worst month for the industry since December 2020. 

Crypto researcher CryptoCompare published the data in a new analysis, which stated that concerns about exposure to the defunct crypto exchange FTX and the possibility of contagion to other companies in the market spurred the declines.

According to the most recent data, overall AUM in digital asset investment products decreased to $19.6 billion in November, the lowest level since December 2020.

As per the research, AUM for bitcoin-backed investment products plummeted 15.9% to 13.4 billion in November. It said this was the most significant reduction in the AUM of bitcoin-backed products since June this year.

Notably, the market share of bitcoin-backed products declined by under 1% in November to 68.9%.

At the same time, investment products powered by ethereum (ETH) raised their market share to 24.9% of total crypto AUM for the second month.

The research also noted that investment products produced by Grayscale continued to lead total AUM for crypto-backed products.

The latest Play to Earn game from Crypto Gaming is selling out quickly. Predictions of 10 times increase by 2023?:

Calvaria is a fresh new play-to-earn gaming ecosystem sweeping the world by storm, thanks to its novel form of gameplay that allows players to go head to head to win token distributions as prizes. 

The most successful players will be able to accumulate the most significant awards, granting them access to various new functionality within the game. In addition, the community can already participate in two mini-games in the Calvaria Telegram group.

There is a leaderboard for these two (Cabecitas and Cabezas Locas), and those that rank well on the leaderboard may be eligible for RIA awards once trade begins.

The Calvaria presale is being held in five phases. The price gradually increases at each step of the presale, allowing early participants to obtain tokens at the best possible price.

This has aided the quick sale through the first four stages, and the project currently has only 30% of its final stage remaining to sell, with 1 USDT purchasing 30.77 RIA.

Elon Musk is worried about a severe US recession and wants the Federal Reserve to do something to prevent it:

Elon Musk, CEO of Tesla and Twitter, has urged the Federal Reserve to lower interest rates to avoid a massive recession as the US economy confronts a severe downturn.

Musk agreed that the present economic trend is troubling in response to a tweet predicting an economic recession in 2023.

Other commentators quickly entered the conversation, including Sven Henrich, the founder and lead market strategist of NorthmanTrader.

While most of the social media platform’s users commenting on the thread seemed to agree with the entrepreneur’s assessment of the US economy, several critics disagreed.

According to one of them, the job of the Federal Reserve is not to defend billionaires’ portfolios but to help working families afford food and shelter.

Although the European Central Bank claims that “Bitcoin is rarely used for legal transactions,” on-chain data suggests otherwise:

According to the European Central Bank (ECB), Bitcoin (BTC) is on a “journey to irrelevance” and is primarily used for criminal reasons.

In a blog post published on Wednesday, the ECB stated that bitcoin is rarely utilized for legal transactions and that making payments on the network is cumbersome, slow, and expensive.

The ECB also stated that speculative bubbles, such as bitcoin, rely on new investments to sustain themselves.

More likely, it is an artificially generated last gasp before the road to irrelevance. According to ECB, the institution foresaw this before FTX went bankrupt and dropped the bitcoin price below USD 16,000.

Ulrich Bindseil and Jürgen Schaaf, both of the ECB’s Market Infrastructure & Payments division, wrote the essay, which also appeared as an editorial piece in the German business journal Handelsblatt.

Joel John, venture lead at crypto investment fund Ledger Prime, took to Twitter to refute the blog post. He claimed that the share of illegal transactions in crypto is much lower than the use of US dollars for illicit transactions, with a 0.15% versus a 5% share.

Finally, Joel pointed out that the argument that bitcoin and cryptocurrency are associated with crime is flawed. According to him, as technology evolves, an increasing proportion of events will inevitably be associated.

Binance has acquired 100% of the Japanese cryptocurrency exchange Sakura Exchange BitCoin, and here’s why:

Binance has bought 100% of Sakura Exchange BitCoin (SEBC), a Japanese crypto platform, to join the Japanese market in a regulated manner.

The world’s largest cryptocurrency exchange announced today that it would join the Japanese market as a Japan Financial Services Agency (JFSA) authorized firm through the acquisition.

The terms of the transaction were not disclosed in the exchange. However, Binance stated that by delivering Japanese-regulated services through SEBC, it hopes to promote a responsible global environment for cryptocurrencies, specifically Bitcoin. 

SEBC is a Tokyo-based JFSA-registered crypto exchange that provides brokerage and crypto-related advisory services, according to the release.

Currently, the site supports 11 trading currencies. Binance has acquired its first license in East Asia with the acquisition of SEBC. The company already attempted to enter the Japanese market in 2018.

However, Japanese authorities forced the exchange to relinquish its plans to establish a headquarters in Japan. At the time, inquiries by the security authority resulted in a notice to cease operations in Japan without a license.

Since then, the exchange has been attempting to penetrate the Japanese market in a controlled manner.

Sam Bankman Fried’s billion fortune has been depleted, leaving him only $100,000 in the bank:

Sam Bankman-Fried, the former CEO and founder of the defunct crypto exchange FTX, is now worth $100,000, down from almost $17 billion earlier this year. 

According to SBF’s Forbes profile, most of his fortune was invested in approximately half of FTX and a portion of its FTT tokens.

His fortune peaked at approximately $26.5 billion. Following the demise of FTX, Bloomberg referred to SBF’s fortune as one of history’s greatest-ever destructions of wealth.

Bankman-Fried owns approximately 70% of FTX’s US operations, which he included in the bankruptcy filings. 

Meanwhile, SBF stated that appropriate regulation may have prevented FTX’s demise, claiming that he hoped there had been someone other than myself in charge of addressing conflicts of interest.

SBF has received harsh criticism for its handling of FTX and user payments. Last week, James Bromley, a partner at Sullivan & Cromwell representing FTX, testified in Delaware Bankruptcy Court that the exchange was run as a personal fiefdom of Sam Bankman-Fried.

According to reports, FTX lent up to $10 billion in customer money to cover risky wagers by its associated trading firm, Alameda Research. As a result, FTX has lent over half its customer monies while having $16 billion in customer assets.

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