Analysis
How Ordinals-inspired inscriptions caused outages and gas fee spikes across top chains
Want to work in crypto? University programs can give job seekers a leg up
There is a skills gap in the blockchain industry, and universities worldwide have created programs to help produce the next generation of blockchain professionals.
As talk of the Bitcoin halving, exchange-traded funds and other macro factors seem to point to the beginning of the next bull market cycle for crypto, many might be considering starting a career in this space. It happens to many people involved with Bitcoin (BTC), blockchain or cryptocurrencies.
At first, they are “investors” researching and buying assets in a new digital asset class. For some, this turns into a desire to enter the decentralized ledger technology and blockchain industry. Many have decided to find paths to employment and acquire the skills necessary to jump into careers in this space.
Since the beginning of the blockchain and cryptocurrency industry, most people have found jobs through informal connections or demonstrable skills.
FTX and Alameda Research cash out $10.8M to Binance, Coinbase, Wintermute
The latest transfer of $10.8 million was spread across 8 tokens, including Stepn (GMT), Uniswap (UNI), Synapse (SYN), Klaytn (KLAY), Fantom (FTM), Shiba Inu (SHIB), Arbitrum (ARB) and Optimism (OP).
Wallets linked to defunct crypto trading firms FTX and Alameda Research moved $10.8 million to accounts in Binance, Coinbase and Wintermute using eight cryptocurrencies.
Blockchain analysis firm Spot On Chain found $10.8 million worth of cryptocurrencies being moved from FTX and Alameda Research accounts to various crypto exchanges.
#FTX and #Alameda moved out $10.8M worth of 8 assets to #Wintermute, #Binance, and #Coinbase in the past 11 hrs:
— Spot On Chain (@spotonchain) December 1, 2023
10M $GMT ($2.58M)
407K $UNI ($2.41M)
5.23M $SYN ($2.25M)
8.76M $KLAY ($1.64M)
3.87M $FTM ($1.18M)
77.77B $SHIB ($644K)
and small amounts of $ARB and $OP.
Note… https://t.co/UZkn8bmQ89 pic.twitter.com/0jb5ZMHvC7
The latest transfer of $10.8 million was spread across eight tokens — $2.58 million in StepN (GMT), $2.41 million in Uniswap (UNI), $2.25 million in Synapse (SYN), $1.64 million in Klaytn (KLAY), $1.18 million in Fantom (FTM), $644,000 in Shiba Inu (SHIB) and small amounts of Arbitrum (ARB) and Optimism (OP).
On Oct. 24, the FTX and Alameda wallets transferred $10 million to a single wallet address, which was later redistributed to Binance and Coinbase accounts. 1, a similar transaction occurred between the parties involving $13.1 million being moved to Binance and Coinbase accounts.
Related: Ex-FTX execs team up to build new crypto exchange 12 months after FTX collapse: Report
Crypto ETP volumes surge 91%, outpacing underlying assets: Report
Bitcoin accounted for 75% of the total crypto ETP AUM between January and October 2023, according to the publicly-listed crypto firm Fineqia.
Global cryptocurrency exchange-traded products (ETP) have seen a significant uptick in 2023, reportedly outpacing the growth of underlying assets, according to a report by digital asset platform Fineqia.
Crypto-based ETPs issued by companies like 21Shares, Grayscale and CoinShares recorded a 91% increase in total assets under management (AUM) from Jan. 1 to Oct. 31, 2023, Fineqia reported.
The surge of crypto ETPs has outperformed the growth of underlying digital assets by 30%, as cryptocurrencies had comparatively slower growth of around 70% over the same period.
Fineqia’s study included all currently issued a total of 168 crypto ETPs, based on the ETP AUM data from sources like 21Shares, Grayscale Investment, VanEck Associates and others.
“The research includes all the products issued by 21Shares, Grayscale, CoinShares, ETC Group, VanEck, WisdomTree, and other issuers,” a spokesperson for Fineqia told Cointelegraph.
“The data is updated every first business day of the month, hence they express the data at the end of the previous month,” Fineqia’s research analyst Matteo Greco stated. He added that the data is collected from official sources and when not available on the issuers’ websites from data aggregators. “All the data is stored into a spreadsheet and stacked every month starting from August 2022,” the analyst noted.
Fineqia has attributed the difference between the crypto ETP AUM surge and the surge of the crypto market to Bitcoin’s (BTC) larger proportion within digital asset ETPs compared with its share in the overall market. According to the study, Bitcoin accounts for 75% of the total crypto ETP AUM. On the other hand, Bitcoin’s share of the crypto market has been around 50% over the past year, according to data from CoinGecko.
At the same time, Bitcoin has been one of the biggest gainers on the crypto market, surging 104% during a period from Jan. 1 to Oct. 31, 2023. Ether (ETH), the second-largest cryptocurrency by market cap, surged 50% over the same period, according to data from CoinGecko.
According to Fineqia, the crypto ETP AUM hit $38 billion in October, surging 25% month-over-month and hitting its highest figure since May 2022. The total cryptocurrency market capitalization also rose 17% in October, surging from $1.15 trillion to $1.35 trillion.
Related: CoinShares gets buying rights to Valkyrie’s crypto ETF unit
According to Fineqia CEO Bundeep Singh Rangar, the dynamics in the crypto ETP market and overall crypto markets are a signal of the excitement around a potentially coming spot Bitcoin exchange-traded fund in the United States. He said:
“The smoke signals are out for the very likely and near imminent approval of Bitcoin Spot ETFs. The market’s simply responding to this positive signaling.”
The news comes as 12 spot Bitcoin ETF applications from firms like 21Shares and WisdomTree await a decision by the U.S. Securities and Exchange Commission (SEC). In mid-November, the SEC delayed decisions on approvals for another three spot Bitcoin ETF applications by companies like Franklin Templeton, Hashdex and Global X.
On Nov. 15, Franklin Templeton and Hashdex — whose deadline was previously set for Nov. 17 — saw their deadlines delayed by the SEC to Jan. 1, 2024. Global X, whose deadline was scheduled for Nov. 21, also faced a delay as expected, with the SEC asking the firm to submit a rebuttal in the next 35 days or by Dec. 22.
Magazine: How to protect your crypto in a volatile market — Bitcoin OGs and experts weigh in
Crypto data platform Glassnode sells Bitcoin tax software to Blockpit
After acquiring the crypto tax platform Accointing in October 2022, Glassnode is selling the business to focus on DeFi and institutional offerings.
Cryptocurrency intelligence firm Glassnode has said it’s dropping crypto tax-related projects to focus on new solutions targeting institutional investors and decentralized finance (DeFi).
Glassnode, on Nov. 6 announced the sale of its crypto-focused tax platform known as Accointing to the European crypto compliance provider Blockpit. The firms declined to disclose the size of the deal to Cointelegraph, only revealing that the transaction was a “multimillion-dollar deal.”
“Glassnode will exit the crypto tax space with the sale of Accointing to Blockpit,” a spokesperson said, adding that the deal enables the firm to deepen its focus on delivering new Digital Asset Intelligence Solutions to its institutional clients.
“We have used the last months to reshape our infrastructure, enabling our move into DeFi data solutions and expansions into other digital asset ecosystem areas in the future,” Glassnode representative noted, adding:
“After having built the leading on-chain data platform for Bitcoin and Ethereum, we are currently expanding our product offering into DeFi. Our aim is to equip Institutions with DeFi data and tools that help them to trade in and navigate the DeFi space.”
The transaction came just a year after Glassnode acquired Accointing to introduce tax-reporting compliance tools into its platform in October 2022.
The acquisition of Accointing marks another foray by Blockpit into merging with competitors, as the platform previously merged with the German rival platform Cryptotax in 2020. With the latest acquisition, Blockpit reiterated its ambition and vision for a consolidated and unified crypto tax platform for Europe.
“Due to the very similar nature of the Blockpit and Accointing platform, the acquisition really is a perfect opportunity,” Blockpit co-founder and CEO Florian Wimmer told Cointelegraph.
Related: 5 nations challenge crypto experts and investigators to target tax crimes
Wimmer said that Accointing users could “easily migrate their profiles and data” to a new Blockpit account, which he promised would take just a few minutes. The account migration will allow Blockpit to focus all their joint resources on developing a unified platform, deliver more features and offer a better customer experience, the CEO said, adding:
“At the same time, Blockpit is doubling its revenue without increasing the cost — as we will shut down the Accointing infrastructure in the short term — massively increasing our cash flow.”
The deal’s timing is also perfect, Wimmer said, referring to the upcoming regulations like the Crypto-Asset Reporting Framework, or CARF, and the crypto tax reporting rule known as the Directive on Administrative Cooperation, or DAC8.
“Starting 2026, all crypto asset service providers, including custodians, exchanges, brokerages and others, will be forced to report user Know Your Customer data alongside transaction data to tax authorities,” Wimmer noted. According to the exec, the upcoming regulations will “massively increase the enforcement and prosecution of tax fraudsters.”
Formally adopted in October 2023, DAC8 aims to grant tax collectors the jurisdiction to monitor and evaluate every cryptocurrency transaction carried out by individuals or entities within any other member state of the EU.
Magazine: Best and worst countries for crypto taxes — Plus crypto tax tips
Moody’s unveils service that uses AI to predict stablecoin depeggings
Moody’s Analytics will use machine learning and a host of indicators to compile and analyze large-cap stablecoins and identify probable depeggings.
Moody’s Analytics is launching a new stablecoin service that will use AI to predict probable depeggings “in a 24-hour time horizon” while providing real-time insights about stablecoin issuers’ liquidity and stability.
The stablecoin market is getting stabler, Moody’s observed in its Nov. 6 announcement for the launch of Digital Asset Monitor.
So far in 2023, there have been 1,914 depeggings, of which 609 were of fiat-backed large-cap stablecoins. This compares with 2,847 in all of 2022, of which 707 were large-cap. While some correlation to rising interest rates can be observed, a number of coin-specific causes can also be detected, Moody’s said.
Moody’s DAM will track 25 fiat-backed stablecoins that represent over 92% of total stablecoin market capitalization. They include Tether (USDT), USD Coin (USDC), and PayPal Coin (PYUSD). More stablecoins will be incorporated into the service in time, according to its website:
“Digital Asset Monitor (DAM) is a machine learning model that combines on and off chain data, financial statements and economic indicators.”
Besides identifying depegging risks, the service will indicate “the stablecoin’s market and liquidity dynamics, the stability of the stablecoin issuer, the custodians that hold the stablecoin’s assets, and the quality of these reserves.” In addition, it will provide “a transparency index that will highlight the quality of disclosures made by the entities behind these fiat-backed stablecoins.”
Related: AI and blockchain will ‘reshape sectors’ and create new markets from scratch — Moody’s
“The tool was built in a year using agile-development frameworks to address customer needs,” Moody’s Analytics’ product innovation senior director, Yiannis Giokas, said in the announcement.
In 2023, Moody's Analytics reported 609 depegging instances among large fiat-backed stablecoins, down from 707 in 2022
— PakoCrypto₿ox (@PakoCryptoBox) November 6, 2023
Depegging indicates fluctuations of more than 3% in a day against their fiat pegs, highlighting the volatile nature of the sector
Sourcehttps://t.co/VaiTJsqE5x pic.twitter.com/EEv7MXa9CR
Reports that the company was developing the new service emerged at the beginning of the year. Moody’s Analytics is a separate company from Moody’s Ratings. It provides commentary on aspects of the crypto assets market on a regular basis.
Magazine: Unstablecoins: Depegging, bank runs and other risks loom
UK tops crypto activity in Central, Northern and Western Europe: Chainalysis
Crypto adoption in the United Kingdom has been growing as the country adopts more regulations targeting crypto and stablecoins, the study shows.
The United Kingdom has emerged as a major cryptocurrency economy worldwide and the biggest crypto country in terms of raw transaction volume in Central, Northern and Western Europe (CNWE), according to a new study.
The blockchain analytics firm Chainalysis released two new chapters of its 2023 Geography of Cryptocurrency report on Oct. 18, including its brand new CNWE study and the second edition on Eastern Europe.
According to the CNWE-focused report, the region was the second-largest crypto economy in the world over the past year, behind only North America. The region accounted for 17.6% of global transaction volume between July 2022 and June 2023, receiving an estimated $1 trillion in on-chain value during the time period.
The U.K. has topped CNWE’s biggest crypto economies list and ranked third in the world in terms of transaction volumes after the United States and India. According to Chainalysis, the U.K. received an estimated $252.1 billion in cryptocurrency transactions in the past year.
Other big crypto economies in the CNWE included Germany and Spain, which received around $120 billion and $110 billion in crypto transactions over the past year, respectively. These countries are followed by major crypto economies like France, Netherlands, Italy, Switzerland, Sweden and others.
Some crypto analysts have previously hinted at growing crypto adoption in the United Kingdom. In February, the crypto tax platform Recap reported that London was the world’s most crypto-ready city for business, beating Dubai and New York.
The significant level of crypto adoption in the U.K. comes amid the country adopting several cryptocurrency regulations. The U.K. government has been steadily progressing toward adopting the Financial Services and Markets Bill, which adds a definition of crypto assets to the existing financial services legislation and provides a regulatory framework for stablecoins like Tether (USDT).
Related: Chainalysis axes another 15% of staff, citing difficult market conditions
In October 2023, the U.K. Financial Conduct Authority enforced the Financial Promotions Regime, establishing a regulated standard for crypto firms to promote their business without hurting investors. Previously, the U.K. also adopted the U.K. crypto “Travel Rule” in September 2023, requiring crypto asset businesses in the U.K. to collect, verify and share certain information about certain crypto asset transfers.
In addition to the CNWE report, Chainalysis also released a detailed report on Eastern Europe, which is the fourth-largest crypto market, according to the firm. The region received $445 billion in crypto between July 2022 and June 2023, representing 8.9% of global transaction activity during the analyzed period.
Chainalysis did not immediately respond to Cointelegraph’s request for information about the methodology of its study and what types of crypto transactions were included in the analysis. This article will be updated pending new information.
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Alameda sent $4.1B of FTT tokens to FTX before crash: Nansen report
Nansen analysts observed “unusual transactions between FTX and Alameda” in the days leading up to FTX’s bankruptcy.
Blockchain data analysts from Nansen have revisited the days leading up to the collapse of FTX, including the transfer of $4.1 billion worth of FTT tokens between the exchange and Alameda Research.
A Nansen report shared with Cointelegraph reveals unique observations from the blockchain analytics firm, highlighting the close relationship between the two companies founded by Sam Bankman-Fried as the former FTX CEO appears in court to face a litany of charges relating to the collapse of the exchange.
The collapse of FTX is widely reported to have been sparked by initial reports that flagged the significant 40% share of Alameda’s $14.6 billion in assets held in FTT tokens in September 2022.
Nansen analysts revealed that they had observed dubious on-chain interactions between FTX and Alameda before these reports came to light. Between Sept. 28 and Nov. 1, Alameda sent $4.1 billion FTT tokens to FTX and several continuous transfers of United States dollar-pegged stablecoins amounting to $388 million.
On-chain data also indicated that FTX held around 280 million FTT tokens (80%) of the total 350 million FTT supply. Blockchain data reflects “considerable” proportions of FTT trading volume amounting to billions of dollars flowing between various FTX and Alameda wallets.
Nansen also highlights that most of the FTT token supply, consisting of company tokens and unsold non-company tokens, was locked in a three-year vesting contract. The lone beneficiary of the contract is an Alameda-controlled wallet, according to the analysts.
Given that the two companies controlled around 90% of the FTT token supply, Nansen suggests that the entities were able to prop up each other’s balance sheets.
The report also suggests that Alameda most likely sold FTT tokens over-the-counter, as well as for collateral for loans from cryptocurrency lending firms.
“This theory is backed by historical on-chain data where we observed regular large inflows and outflows between FTX, Alameda and Genesis Trading wallets with transfer volumes up to $1.7 billion as seen in Dec 2021.”
The collapse of the Terra ecosystem and subsequent bankruptcy of Three Arrows Capital (3AC) likely led to liquidity issues for Alameda due to the drop in value of FTT, which led to a covert, $4 billion FTT-backed loan from FTX.
“Our on-chain data indicates that this may have happened. Amidst the collapse of 3AC in mid-June 2022, Alameda sent ~163m of FTT to FTX wallets, worth ~$4b at that time.”
The researchers claim that the $4 billion transaction volume coincided with a $4 billion loan figure that close associates of Bankman-Fried had divulged in an interview with Reuters.
Blockchain data also reflects how Alameda would not have been able to make good on an offer to buy FTT tokens from Binance at $22 on Nov. 6. This was after Binance CEO Changpeng Zhao announced that the exchange would offload its tokens following disparaging reports about Alameda’s balance sheet.
Magazine: Blockchain detectives: Mt. Gox collapse saw birth of Chainalysis
How AI is changing crypto: Hype vs. reality
In the latest Cointelegraph Report, we assessed the value AI is bringing to the crypto industry, by separating the hype from real use cases.
In the latest Cointelegraph Report, we sought to find out the real value AI brings to the crypto industry beyond the hype surrounding the technology. To do so, we looked into three main areas where AI is impacting crypto: trading, data analytics, and user experience.
For many years, trading bots have allowed users to execute trades in an automated way based on certain pre-set parameters.
With the recent development of Large Language Models such as ChatGPT, AI-powered bots are capable of processing large amounts of historical data, which can be helpful in predicting future price movements.
However, despite the latest advancements, AI-powered bots are still not sophisticated enough to elaborate complex trading strategies.
“It's basically like having a bunch of dumb partners who can, who can adhere to very basic commands, but they can't do any like very complicated thinking themselves,” said Eric Crown, a professional crypto trader and YouTuber, sharing his personal experience with AI-powered bots.
Regarding data analytics, AI tools can process large amounts of public data scattered on the blockchain, providing valuable insights into the dynamics of the crypto ecosystem and assessing potential market risks.
However, a large amount of market data is kept off-chain by centralized exchanges and therefore is not publicly available. That limits the capability of AI to make accurate assessments.
To find out more about the real value at the intersection of AI in crypto beyond the hype, watch out full Cointelegraph Report on our YouTube channel and make sure to subscribe!