You could say that, in the midst of everything, we have been very lucky. The FTX implosion has come during a bullish wave for the stock markets. The FTX crisis did indeed have its impact on prices. However, suddenly, the pain would have been much greater, if the epicenter of the crisis had coincided with a more general fall. I mean, The optimism of the markets, in a certain way, served to soften the capitalization of Bitcoin.
Of course, these bear market “bullshit” tend to be fleeting. In fact, the minutes of the United States Federal Reserve have already been published. And again) investors are being forced to modify their expectations regarding a quick turn in monetary policy. The market (again) is anticipating and is reading the situation under wishful optimism. But the last few minutes reminded us of this mistake. Apparently, we will have monetary hardness for a while. This could be announcing to us that the sentiment pendulum, after an optimistic wave, could seek areas of greater skepticism.
FTX now owes more than three billion dollars to thousands of creditors around the world. The problem is that, according to the lawyer for the company’s new administrative team, that money is gone. Due to theft or mishandling, but it’s gone. Apparently, Sam Bankman-Fried ran the company like a poorly run family winery. Now it turns out that so much “genius” and “eccentricity” was nothing other than irresponsibility. What reigned in FTX was inexperience, recklessness and chaos.
The confident ignorance of amateur It is a widespread evil in this space. In the crypto community, many, after watching a couple of documentaries on YouTube, already feel more knowledgeable about money issues than any Nobel Prize winner in Economics. The experience of hearing for the first time the old propaganda of the gold beetles, libertarians and conservatives becomes, for some, an epiphany: “I understand money!” Selling Herbalife does not make you a nutritionist. Well, I’m afraid dogma is not financial education. Assuming an ideological bias around the concept of money is not enlightenment.
The energy crisis in Europe continues to wreak havoc. The job market in the United States remains overheated. And inflation is still a big headache. On the other hand, everything seems to indicate that China is relaxing its zero-covid policy. Nevertheless, the uncertainty is such that it is not entirely unreasonable to anticipate more volatility and declines for the first quarter of next year.
Now, let’s talk about the top crypto news of the week according to Cointelegraph in Spanish. This is not a news summary. This is an opinion article. The intention is to reflect on the following headlines in a skeptical and critical way. This is an article for free thinkers.
Twitter closes offices, staff resigns, and users seek decentralized options
Elon Musk is an agent of chaos. What happens is that his improvisation and his volatility are interpreted by many as signs of genius. That characteristic “creative disorder” sells it as a manifestation of his genius. Then, his fans make the respective celebrations. That is his great talent: Making people believe in his promises. But this “savior of civilization” and “champion of free speech” is a monkey with a blade.
It’s not uncommon for these larger-than-life subjects to bite off more than they can chew out of overconfidence.. Elon Musk also has problems at Tesla. The electric vehicle maker issued another recall (recall) due to software bugs. On this occasion, we are talking about 321 thousand units. The latter recall It is number 19 this year. And this is happening during a very bad year for Tesla stock. In fact, Tesla shares have fallen by almost 55% since last December. With so many problems at Tesla, and now Twitter comes as another problem to solve. Definitely, there are people addicted to chaos looking for what has not been lost.
Brazil continues to be the largest target of computer attacks in Latin America
You have to invest in digital security. I mean, cybersecurity must be a priority in budgets. Otherwise, vulnerabilities become a magnet for attacks. How much has Brazil invested in cybersecurity?
Texas will investigate endorsements that Tom Brady, Stephen Curry and other celebrities made of FTX
Obviously it is not a good idea to listen to financial recommendations from a footballer or an actor. FTX was obviously looking to appeal to the unsophisticated investor. And that is the public that is most “manipulable” with advertising. It is well known that most of the celebrities sell their image to the highest bidder. After all, advertising accounts for a significant percentage of your revenue. The matter is a business. Now, are they responsible for the collapse? Are they complicit in the collapse? Or are they as much victims as the users of SBF’s hoaxes?
MetaMask will start collecting users’ IP addresses
Every successful project sooner or later has to deal with its own contradictions. At first, everything is about the ideal. But, over time, more pragmatism is required. And that usually implies that we are forced to make concessions for the greater good. This is not easy to digest for the most extremists. But, in most cases, a more moderate stance is a necessary evil.
Binance Aims to Allocate $1 Billion for a Cryptocurrency Recovery Fund
The trust problem is not fixed with a recovery fund. Why? Well, because Sam Bankman-Fried also came forward as a JP Morgan in the panic of 1907. And then our supposed hero became a villain overnight because of another”bank run”. That of being a “lender of last resort” (but private) works very rarely. A “bank run“It’s not very easy to stop. And I’m afraid the billion figure is an understatement.
Is Binance trustworthy? Binance has been one of those exchanges that has largely avoided the issue of regulation. Apparently, at this time, the exchange has some solvency. But, unfortunately, it is not strong enough to restore the reputation of the entire crypto industry by creating a fund. Is a fund enough? No, it’s not enough. It could be said that it is a gesture to project a public image. But a final and definitive solution to the problem is not.
Disclaimer: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information presented here should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
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