At last! Finally, a better than expected inflation report in the United States. What created a great bullish rally in the stock markets at the rate of this good news. This is what Wall Street has been waiting for: A great day. Yesterday Thursday has been an extraordinary day for the markets. The Dow rose 3.7%. The S&P 500 rose 5.5%, while the Nasdaq rose 7.3%. Something like this had not been seen since the spring of 2020. Let us remember that during those months of 2020 the monetary stimuli were announced to combat the ravages caused by the pandemic. Well, investors and traders yesterday they had a party.
Of course (in honor of the truth) deep down it is just a positive report. A battle has been won. And it is valid to celebrate the event as something good. However, to achieve the final goal of 2% per year, We need many reports of this type. Obviously this story is not over yet. In fact, the market is surely exaggerating its enthusiasm a bit. However, good news is good news.
Regarding the midterm elections in the United States, the Democrats performed better than expected. The Republicans surely won the majority in the House of Representatives. However, we are not talking about a red tide. A modest majority was obtained. The situation in the Senate is still not very clear. And it is possible that this final result will arrive by December. In general terms, it could be said that the moderates won: the centrists.
Meta was forced to reduce its workforce by 13%. We are talking about 11 thousand layoffs. Why? Because the company’s revenues have dropped considerably due to a drop in the advertising business. Mark Zuckerberg apologized for his mistakes. Meta’s “brand new and gallant” CEO totally took responsibility for him in the thick of it. Much expense. Few tickets. Apparently, his mistake was in not anticipating the change in consumer behavior after the pandemic. Okay, It has not been very easy to predict anything in such a changing and uncertain environment.
And now the disaster. The whole cake: The collapse of FTX. The wave of optimism caused by the inflation report fell like a glove on us. Because things were already turning ant-colored. Sam Bankman-Fried “SBF” was the patron saint of cryptonauts until recently. 30 years old. Disheveled “genius” image. Eccentric billionaire. When prices collapsed, the problems began. This supposed saint was presented as a JP Morgan during the panic of 1907. The knight errant offered to ransom the affections with his large checkbook. Today we know that Sam was selling us air. It was all theater. We will continue with this topic later…
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.
CBDCs are not a threat to crypto, says Binance CEO
The idiosyncratic bitcoiner does have a problem with CBDCs. But this bitcoiner has a problem with anything fiat. No need to go into details. If it comes from the state, it’s bad. In this case, it is more a matter of rejection and rivalry. However, the idiosyncratic bitcoiner is convinced of his ultimate victory in this epic battle. For other bitcoiners, however, CBDCs do not pose a threat. In fact, they become something positive for the ecosystem because the walls between the fiat world and the crypto world would be greatly reduced. In any case, CBDCs could indeed cause a shock for stablecoins. Of course, everything will depend on each project. And it will depend on the type of regulation.
Sergio “Kun” Agüero: “The metaverse is an immersive, interactive and active way of meeting my audience”
Every product and every service usually finds a market. Obviously the idea of the metaverse promises great things. Surely, there are many users who find utility in this new world. Nevertheless, the road to the metaverse is bumpy. I refer here to the metaverse as inversion. All these solutions need development. And development needs capital. The problem is that In times of crisis it is not very easy to find the necessary capital for the development of new ideas. Investors turn skeptical in times of crisis.
We have, for example, the case of Meta. When the core business has problems, the pressure is on to fix the problems in the core business first. And new projects are perceived as an unnecessary distraction.
Elon Musk faces class action lawsuit over wave of Twitter layoffs
Chaos and more chaos. Elon Musk is an agent of chaos. And this is the hero who proclaims himself as the “savior of civilization”. And I’m not just referring to the issue of layoffs. In my opinion, these layoffs were surely necessary, because it was already known that Twitter is one of the most inefficient technology companies in terms of its revenue/payroll ratio. What is chaotic is Musk’s style of governance. His strategy is to create chaos to take advantage of so much confusion. It is a style very similar to that of Trump or that of the late Hugo Chavez. Ladies and gentlemen, this is the lord and master of our “public square”. This is what “free speech” looks like a la Musk.
FTX, FTX US and Alameda file for Chapter 11 bankruptcy in the United States; SBF resigns
With the price collapse, platforms like Voyager and BlockFi fell. Then a hedge fund, Three Arrows Capital, fell. And, finally, the lender Celsius fell. Things got pretty ugly for a moment. But things didn’t go too far. Because the mourners were mostly independent retailers. So the crisis was limited to a few blocks.
The FTX bankruptcy is something a bit more worrying. We are talking about the third largest crypto exchange in the world. Sequioia, Soft-Bank and other funds had money on the spot. Many people will surely lose their savings with this bankruptcy. Which is extremely sad and unfortunate.
What happened? irresponsible accounting. Tricks. bragging. Lots of theatre. And many publicity stunts. Coindesk revealed on the second day of this November that Alameda, a Sam Bankman-Fried “SBF” firm, was the big whale of the FTX token. The curious thing is that the FTX exchange, also owned by Sam Bankman-Fried, allowed Alameda to take large loans from the platform using its own tokens as collateral. The SBF empire was a house of cards.
Disclaimer: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information set forth herein 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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