[Weekly Xangle] A Weekly Roundup of Latest Crypto News from FTX Chapter 11 Filing, Nike .Swoosh Platform, to Serum Emergency Fork

Translated by elcreto

Xangle’s Take on the Market This Week

• Persistent fears over contagion from FTX’s collapse have sent crypto indices tumbling across all sectors—with mainnet -6%, DeFi -4%, and NFT -2%
• The indices bounced back on the 14th snapping a 3-day losing streak, after Binance’s announcement of an industry recovery fund came much to the relief of investors
•  Yet, some of the increases in the market numbers were offset by the lingering liquidity woes that it may trigger a domino effect

Top Stories & Takeaways

FTX Chapter 11 Bankruptcy Filing Is Now Made Public

• The FTX fiasco portrays how failure in internal control, financial mismanagement, absence of oversight, and concentration of control in the hands of a few inexperienced decision makers add up to a perfect storm
• A failure most critical to the downfall was its slipshod accounting practices, where FTX did not recognize its obligations to its customers as liabilities in the balance sheet
• Shocking revelations include FTX’s use of corporate funds to purchase personal homes

Our Take: FTX scandal is the most egregious fraud in crypto history. Quite apparently, SBF and top executives are considered the biggest culprits of the crash, taking the heaviest toll on customers who have deposits with FTX and investors who trusted the company. Further risk contagion is likely as VCs and similarly structured exchanges are facing liquidity crunch. Put another way, the scandal was a serious blow to confidence across the entire crypto market and may put a strain on human and financial resources and slow the pace of growth of the industry.

Here’s a link to: FTX Chapter 11 Bankruptcy Filing (PDF)

Cosmos Hub Community Voted Against ATOM 2.0 Proposal

• On Nov 14, 2022, ATOM 2.0 proposal #82 was rejected by the Cosmos community with 37.39% voting No With Veto
• ATOM 2.0 is a governance proposal that has driven the community into a head-on collision up to a point where there has even been a suggestion of splitting the community into two
• After the ATOM 2.0 proposal was rejected, Cosmos co-founder Ethan Buchman said that the network is exploring alternate approaches to the concerns of the community, adding that the launch of Interchain Security will be at the top of its list next year

Our Take: Primarily, the ATOM 2.0 proposal pivots on ideas of i) enhancing ATOM utility through Interchain Security and liquid staking and ii) strengthening the role of Cosmos Hub through Interchain Scheduler and Interchain Allocator. For the most part, many ATOM holders raised questions over allocation of funds aimed at boosting Interchain Allocator because it could potentially centralize the network and dilute ATOM token’s value. Although ATOM 2.0 failed to pass, there are implications worth noting as it found: i) most were in favor of the proposal and ii) the proposal prompted a significantly high engagement as well as quality discussions.

Links: #82: ATOM 2.0: A New Vision for Cosmos Hub (Votes) | Tendermint Jae Kwon’s Statement | Xangle Originals: ATOM 2.0 Whitepaper | Ethan Buchman’s Twitter

Period of Investor Warning for WEMIX Extended

• The Digital Asset eXchange Alliance (DAXA) once again extended the period of investor warning for the WEMIX token to Nov 24, 2022.
• Inaccuracy of the data submitted by WEMIX during the explanation period was cited as the reason for the extension. The alliance will take stock of the materiality of the issue and its impact on the market

Our Take: Giving up on the revenue from WEMIX trading fees wouldn’t be palatable for the exchanges. Seemingly, the extensions aim to give WEMIX enough chance to be cleared of issues that may otherwise result in delisting. But if WEMIX fails to fix the issues this time again, the DAXA will be left with no choice but to delist it. There is also a possibility WEMIX may seek listing of its mainnet tokens after existing WEMIX tokens are delisted.

Link: Extended investment Warning Period for WEMIX

Mainnet

Starkware Debuts $STRK

- Starkware launched StarkNet’s native token $STRK on the Ethereum Network.

Link: $STRK Deployed on Ethereum

Solana Discloses Facts about Its Ecosystem Regarding FTX Bankruptcy

- The Solana Foundation released facts and updates about the state of the network related to the downfall of FTX and Alameda.

Link: Solana Ecosystem Facts Related to FTX Bankruptcy

Binance to Create Industry Recovery Fund

- Binance FTX will form an industry recovery fund to help minimize the fallout of FTX’s collapse and aid projects facing liquidity risks.

Link: https://twitter.com/cz_binance/status/1592044496174612482

DeFi

Maker Launches Maker Teleport

- Maker launched its own bridge infrastructure, Maker Teleport, to support transfers between L1 and L2.

Links: Maker Teleport Launch | Bankless Publishing on Canonical DAI

Serum Forked

- As Solana's developers have successfully forked the liquidity hub Serum, the operation is now put back to normal.

Link: Serum Forked After FTX Hack

NFT

Nike to Roll Out .Swoosh Platform

- Apart from RKFKT, Nike has announced the launch of its .Swoosh Web3 platform.

Link: Nike Unveils ‘Dot Swoosh’ Platform

Adidas to Launch Virtual Gear NFT

- Adidas is set to launch 16 pieces of virtual gears, the digital wearables that can be worn by PFP.

Link: Adidas Launches Virtual Gear

Sony Files NFT Patent

- Sony announced that it applied for a patent in 2021 for a system that tracks digital assets using NFTs.

Link: Sony applies for NFT Patent

F1 Race Car to Feature an Azuki NFT

- Azuki stands to become the first-ever NFT to appear on a Formula 1 race car.

Link: Azuki to Adorn F1 Race Car

Yuga Labs Acquires 10KTF

- On Nov 15, 2022, Yuga Labs acquired NFT project WENEW, the creator of NFT collection 10KTF.

Link: Yuga Labs Acquires 10KTF

Regulations

South Korea’s Financial Regulator to Set Forth Audit Guidelines

- The Financial Supervisory Service of South Korea unveiled its plan to lay out accounting procedures for crypto-related companies, i.e., newly established note disclosures and audit guidelines.

Link: S. Korea’s FSS to Formulate Audit Guidelines