Sam Bankman-Fried in JFK in BeInCrypto’s Weekly News Roundup

Crypto News: Sam Bankman-Fried headlines the preferred tales from throughout the cryptosphere, as featured on BeInCrypto this previous week.

The week’s greatest information is that Sam Bankman-Fried was spotted at a JFK enterprise lounge after his mother and father, two Stanford regulation professors, pledged their five-bedroom Palo Alto house as a part of a $250 million bond settlement. Bankman-Fried’s luxurious environment attracted controversy on social media for the reason that former crypto mogul faces $10 billion in fraud costs.

Sam Bankman-Fried Sighted After Signing Strict Bail Agreement

Litquidity tweeted photographs of Sam Bankman-Fried engaged on a laptop computer after signing a $250 million bond settlement that may enable him to dwell along with his mother and father in Palo Alto. Bankman-Fried was accompanied by mother and father Joe Bankman and Barbara Fried and several other FBI workers. 

His bail settlement is a non-cash recognizance bond that his mother and father and two non-family members cosigned.

Sam Bankman-Fried’s bail launch is contingent on his receiving psychological well being counseling, substance abuse therapy, and sporting a monitoring bracelet. Additionally, he could not bear a firearm or spend greater than $1,000 exterior authorized bills. 

If Sam Bankman-Fried violates his agreements of the bond, courts will seize his mother and father’ five-bedroom house in Palo Alto.

Investors Worry About BNB After FTT, a Token Created Sam Bankman-Fried

The collapse of Bankman-Fried’s crypto empire in Nov. 2022 was intently linked to a token referred to as FTT that was created by his defunct change, FTX. 

After a leaked monetary assertion revealed that giant components of the steadiness sheet of FTX affiliate Alameda Research have been made up of illiquid FTT, Binance CEO Changpeng Zhao stated Binance would promote its FTT holdings. His tweet sparked a financial institution run on FTX, inflicting FTT’s worth to break down. The SEC later dominated that the token was a security

This week, involved buyers speculated whether or not Binance’s BNB token might be handled equally as a result of crypto exchanges delist tokens deemed securities.

Zhao and the crypto neighborhood stated that BNB’s utility on the BNB Smart Chain distinguished it from FTT, which misplaced its utility after FTX fell.

The considerations from buyers got here after a court agreed with the SEC that LBC, the native token of the LBRY content material distribution platform, was a safety. 

The SEC can also be engaged in a battle with Ripple Labs and two of its executives for providing XRP as an unregistered safety in 2020.

Decentralized Applications Suffer 74% Decline in TVL

With the SEC having its arms full with centralized cryptocurrency issuers and civilly charging Sam Bankman-Fried, the decentralized finance trade additionally took a beating this yr.

The whole worth locked (TVL) in so-called layer one decentralized purposes (dApps) fell sharply after the May 2022 collapse of algorithmic stablecoin TerraUSD rattled investor confidence in crypto.

So-called layer two protocols like Arbitrum and Optimism fared higher, with Arbitrum NFTs gaining recognition in 2022.  Sometimes referred to as rollups, these layer-two chains execute transactions off the principle chain, compressing choose bits of transaction information and “rolling” them as much as the principle chain in a single batch.

On the upside, dApp builders’ weekly downloads of software program libraries have elevated tenfold since 2018. Despite this improve in developer curiosity, DeFi’s total TVL dropped from $211.4 billion to $55 billion in Dec. 2022.

Bucking the DeFi downtrend, NFT buying and selling quantity rose 0.41% in 2022, with the variety of distinctive merchants rising by 876%. NFT gross sales elevated by 10.6% as a number of Web 2 firms began integrating Web3 applied sciences into their merchandise. Twitter launched NFT profile image avatars, whereas PayPal launched help for the Web3 wallet MetaMask.

Despite having their foundations shaken by the TerraUSD collapse, stablecoins issued by centralized companies fared comparatively nicely in 2022.

Paxos-issued stablecoins Binance USD and the Pax greenback have a mixed circulation of $20 billion, whereas USDC issuer Circle holds $45 billion of the stablecoin. 

Ethereum Breakout Likely After Successful Merge

Ethereum made headlines in 2022 after builders modified its consensus layer from proof-of-work to proof-of-stake to avoid wasting power.

This swap took away revenue from miners, who beforehand acquired Ether for expending computing energy to safe the community. Instead, it allowed anybody who had “staked” Ether in the brand new consensus layer to take part in securing the community. 

As a end result, many miners migrated to different blockchains after the Merge to switch misplaced revenue.

Continuing with bullish Ethereum developments, its builders introduced this week that Ethereum stakers may withdraw their funds quickly. 

Additionally, BeInCrypto’s technical evaluation means that Ethereum will escape from inside a symmetric triangle to 0.094 BTC in Jan. 2023, very similar to an analogous breakout in July 2022 that noticed it attain 0.086 BTC.

SOL Holders Should Brace for Pain

Despite SOL buying and selling at roughly $9.80 at press time, technical analysis dooms Solana to a bearish destiny by the tip of Jan. 2023 since its subsequent help stage is at $4.30. A help stage is a value at which demand for a safety, commodity, or cryptocurrency prevents an additional value decline. 

SOL/USD Weekly Chart | Source: TradingView

At round 30, Solana’s Relative Strength Index signifies that the cryptocurrency is undervalued, one other bearish indicator.

Adding to Solana’s stress is the exit of two main NFT initiatives, DeGods, and y00ts, which will push its market out of the top 10 in 30-day gross sales quantity.

For Be[In]Crypto’s newest Bitcoin (BTC) evaluation, click here.


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About the Author: Daniel