🧠 Must Read: Market Analysis Post FTX

We do all the research, so all you need to do is read.

November 16, 2022

Seedphrase Daily Nation 👋 If crypto were the Kardashians, we'd be keeping up the most.

Today's Agenda 📓:

  • New Podcast!

  • 💔 The full effect FTX had on the market.

  • 🧠 Community theories.

  • 👇 What projects will plummet?

  • 😂 Meme if the day

We cooked up an amazing podcast with 0xJosh:

We talked about:

  • the Web3 creator economy

  • how to build community

  • Domains: ENS vs. Unstoppable

  • Alpha for content creators

You can also check it out on Spotify & Apple Music.

FTX has been a rollercoaster of emotions ☔️

We've been covering it every day, but here's a recap:

-> FTX announces liquidity crunch and moves to sell to Binance. FTX websites then go dark, and withdrawals are not possible.

-> FTX withdrawals millions of funds from users, making it looks like a textbook inside job, where FTX is trying to cover their tracks and minimize the damage done.

-> FTX, FTX US, and Alameda file for Chapter 11 bankruptcy in the US and SBF resigns.

-> SBF is under supervision in the Bahamas and is not allowed to leave. Rumours had it he and other FTX executives were trying to fly out and flee to Dubai.

Alex Becker on Defi

JP Morgan has come forward to praise Defi.

The Cold Hard Truth

DeFi is the only thing in crypto that has remained liquid, secure, unaltered, and running efficiently and not corrupted.

What is corrupted is the centralized institutions that keep repeatedly failing us.

Ironically, centralization of money management is the problem that crypto was originally meant to solve. (we go deeper into CeFi Vs. DeFi in the premium edition of today)

The space needs time to recover and rebuild. Will the crypto market ever learn to go back to the fundamentals of crypto? It seems every cycle this lesson has to be taught again and again.

What exchanges are most likely to go under next?

Watch out for:

All in deep shit.

Crypto.com is the next exchanges to be insolvent. They are claiming to do proof of reserves but might be front-running money to make the accounts appear complete and correct when they are just taking a fast loan for the audit and returning the funds right away.

  • According to Nansen, the platform holds 31% of its assets in BTC, followed by 20% in SHIB.

  • ETH makes up 17%.

  • USDC and Tether hold about 5% of exchange reserves.

  • Various other coins make up 5%.

The CEO of crypto.com took to Twitter to verify this information was correct.

And they are being accused of fake reserves.

Crypto.com “accidentally” sent 320,000 ETH of user deposits to Gate.io on October 21st.

And Oct 28 Gate.io has proof of reserves and then sends 285,000 ETH back

This is a glaring red flag.

Holding 20% of its reserves in a shitcoin.

What excellent risk management (sarcasm)! It's almost as if a third grader is running the company—pure idiocracy.

The fact that only 5% is in stables is the most alarming red flag. Why don't they have stablecoins?! It's the most traded pairing in the crypto markets, USDC and USDT trading. 😨

They do not have proper reeves and are just another house of cards ready to collapse.

To add onto this, crypto.com also sent $400M in ETH to the wrong address, and the CEO called concerns "FUD."

So, they are on the way to insolvency and will likely halt withdrawals next.

How the market reacted to FTX. ⏳

  • Binance has seen a lot of withdrawals in fear of further exchanges being liquidated. But Binance is confident that they can handle all transactions and withdrawals. CZ Binance has even confirmed that it encourages users to withdraw to self-custody.

Shit is genuinely about to hit the fan.

The price of crypto is going to continue to plummet and collapse.

$10k BTC seems likely with altcoins following. Many of the alts we love will die.

But, the coins that survive will see beautiful profits come the next bull run.

FTX's reach. Which projects will die?

In the red:

Stay away from out for these projects that will be affected by the crash.

  • The funds, 11,184 tokens of PAXG—Paxos' native stablecoin, which is backed by physical gold bars—were worth just over $19 million at the time of the action over the weekend.

  • Travis Kling, the founder of the Ikigai fund, talks about how it's his fault he put his trust in FTX. He publicly endorsed them several times.

  • But he had a massive portfolio being traded on FTX and lost all of his assets.

  • He has yet to set a timeline or answer of when he will know what will happen to the money.

...and 6 more companies are in deeeeeeep trouble. We cover it all in our premium edition of Alpha Wednesdays.

When it comes to crypto, mainstream media has its own set of agendas and precomposed beliefs. They are biased, untrustworthy, and often times flat out wrong. Just look at the controversy around the New York Times coverage of SBF.

10 hours of cold hard FTX research has gone into our premium newsletter today. We explain in plain English exactly what's going on with FTX, so you don't have to read 200000 twitter threads and articles from mainstream media, who are clearly bias.

We cover:

  • ⏳ Easy-to-follow FTX Timeline

  • 💭 Narratives in the Crypto Community

  • ❌ Avoid these Crypto Exchanges

  • 🤦‍♂️ FTX Exposures: What Projects are Safe and What Projects to Avoid?

  • 🔐 Tips on Keeping Your Funds Safe and if you should hold or sell

Try it for two weeks- FREE!

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😂 Meme of the Day

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research

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