The Daily Encrypt https://www.thedailyencrypt.com Blockchain News, NFT News, Coin Prices, Charts and Data Mon, 21 Nov 2022 15:51:02 +0000 en hourly 1 https://wordpress.org/?v=6.1.1 https://www.thedailyencrypt.com/wp-content/uploads/2022/02/Dailencryptwhitelogo-50x50.png The Daily Encrypt https://www.thedailyencrypt.com 32 32 Recent Filing Shows FTX Owes Over $3 billion to 50 of its Top Creditors https://www.thedailyencrypt.com/recent-filing-shows-ftx-owes-over-3-billion-to-50-of-its-top-creditors/ Mon, 21 Nov 2022 15:50:00 +0000 https://www.thedailyencrypt.com/?p=41820 In a latest court filing, bankrupt crypto exchange FTX owes a staggering $3 billion to its top 50 creditors. The filing did not include the names of those creditors. $1.5 billion is owed to top 10 creditors.

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In a latest court filing, bankrupt crypto exchange FTX owes a staggering $3 billion to its top 50 creditors. The filing did not include the names of those creditors. 

The recent court filing for FTX’s chapter 11 bankruptcy case was revealed on Saturday, revealing the amount due to its unnamed creditors. One of the biggest creditors is owed $225 million. Based on the filing, the 10 companies FTX is liable for the most come in at $1.45 billion. The toal amount that FTX owes to creditors is around $3.1 billion, however the names of the creditors are unknown as of yet.

The report also shows that $1.5 billion is owed to top 10 creditors.

The filing states 50 of the largest unsecured claims must be filed in a chapter 11 and 9 proceeding. However these amounts are still pending further investigated to determine the final amount.

The list includes customer information that was allowed to be viewed but is not otherwise accessible at this present time. The debtors investigation continues in regards to the amounts that have been listed, including payments that have already been made but do not show in FTXs books.

In a previous filing, FTX could have more than a million creditors.

It has been two weeks since FTX filed for chapter 11 bankruptcy protection which held between $10 billion and $50 billion in assets and liabilities as well as more than 100,000 creditors. A report from the Financial times stated that FTX only had $900 million liquid against $8.9 billion in liabilities the day before the bankruptcy was announced. 

It has been evident from the filings that FTX’s corporate control has failed completely.

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BOE Doesn’t Think DeFi Can Help Financial Risks https://www.thedailyencrypt.com/boe-doesnt-think-defi-can-help-financial-risks/ Mon, 21 Nov 2022 14:45:00 +0000 https://www.thedailyencrypt.com/?p=41815 Cunliffe, Deputy Governor of Bank of England warns that decentralized finance protocols are not reliable in mitigating risk.

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Cunliffe, Deputy Governor of Bank of England warns that decentralized finance protocols are not reliable in mitigating risk.

Cunliffe stated that code can only be as good as the people, rules and processes that created it. Next year, the BoE will be consulting on a new regulatory framework to regulate digital assets.

The Bank of England deputy governor warned Monday that decentralized finance protocols are not yet an effective way of managing risk.

Jon Cunliffe stated that DeFi’s claim that a code can manage risks rather than intermediaries is not supported. He spoke to a crowd at Warwick Business School. He stated that he was still not convinced that finance’s risks can be managed effectively from the perspective of both a financial regulator and financial stability authority.

Cunliffe said that DeFi protocols were like driverless cars.

He claimed they are only as good and reliable as the rules, programs, and sensors that organize them.

He added that it was not clear how decentralized these platforms are. “These protocols often have firms and stakeholders that derive revenue from their operations. It is not always clear who controls the governance of these protocols.

Cunliffe stated that the Bank of England will host a consultation next spring on the regulatory framework for a digital asset payment scheme, which includes the use of services such as wallets.

Once the Financial Services and Markets Bill is passed through parliament and becomes law, the central bank and Financial Conduct Authority will be able to supervise stablecoins and other crypto related technologies.

Cunliffe stated that the UK Treasury will also consult on ways to increase investor protection, market integrity, and other regulatory frameworks to cover the promotion and trade of financial products to entities and activities involving crypto assets.

He added that at the moment, anti-money laundering legislation does not apply to these activities.

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BMEX Trading to Begin on Friday 11th November States Bitmex https://www.thedailyencrypt.com/bmex-trading-to-begin-on-friday-11th-november-states-bitmex/ Tue, 08 Nov 2022 10:35:00 +0000 https://www.thedailyencrypt.com/?p=41767 Popular crypto exchange Bitmex plans on taking its native token live on the 11th November. Users will be able to gain rewards from using the BMEX token.

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Popular crypto exchange Bitmex plans on taking its native token live on the 11th November. Users will be able to gain rewards from using the BMEX token.

On Tuesday, Bitmex stated that the token can be used to reward its users. After losing market share over the last few years, Bitmex hopes the token will re-gain traction in the derivatives market. Some of the rewards that Bitmex plans to give users are reduced withdrawal fees, and in some cases zero withdrawal fees. Customers will also be given access to enhanced products and services, trading fee discounts and better staking rewards.

Bitmex to launch BMEX trading on friday 11th November

The first time Bitmex announced the BMEX token was in December last year. Bitmex announced that it would start airdropping millions of BMEX tokens to customers in February 2022. Bitmex claims they have airdropped BMEX tokens to over 80,000 traders. Bitmex decided to delay its token listing due to rough market conditions. However, now is the right time to launch. Benjamin Usinger, Chief marketing officer at Bitmex also stated that the exchange is looking to pump some life into the crypto market.

BMEX will be paired with USDT and will be available to trade on Bitmex’s recently launched spot exchange on Friday. Bitmex plans to make BMEX/USDT and MEXUSD available to trade on its derivatives platform.

Bitmex was a leading crypto exchange until it was forced into a fair few legal battles over the last few years. This reduced its market share from 35% to as little as 2%. This is also due to other large exchanges taking over many formerly held territories Bitmex once held. The likes of Binance, and crypto.com have been expanding rapidly, which has also not helped.

Does Bitmex’s future depend on its BMEX token list? Only time will tell. However, analysts in the crypto space do have high hopes and believe the token launch will help Bitmex return to its larger market share.

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Digital Euro Legislation Soon to be Announced by The European Commision https://www.thedailyencrypt.com/digital-euro-legislation-soon-to-be-announced-by-the-european-commision/ Mon, 07 Nov 2022 10:20:00 +0000 https://www.thedailyencrypt.com/?p=41760 There will be a proposal from the European Commission soon for legislation to establish a digital currency central bank.

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There will be a proposal from the European Commission soon for legislation to establish a digital currency central bank. 

Digital currencies are currently being studied by the European Commission in order to determine whether they can be developed.

Christine Lagarde, President of the European Central Bank, stated that the European Commission would “soon” present a legislative proposal for a digital currency. She made this statement in a video statement to the conference “Towards a legal framework enabling a virtual euro for citizens and business”.

Lagarde stated that “the timely adoption of a legal structure for the digital euro would provide all stakeholders with the legal certainty they need to prepare for its eventual introduction and send a strong message of support.”

She added that she was looking forward to the European Commission’s legislative proposal to establish a digital euro.

The European Central Bank’s digital euros project focuses on making central bank money available digitally. The bank launched a study into the development of a digital currency central bank in 2021. It also sought outside opinions through public consultations from April to June.

In September 2023, the two-year digital euro examination will be completed. The European Central Bank will also announce whether it will launch a digital currency central bank.

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Wall Street Estimates Beaten by PayPal Q3 Revenue Report https://www.thedailyencrypt.com/wall-street-estimates-beaten-by-paypal-q3-revenue-report/ Fri, 04 Nov 2022 10:50:00 +0000 https://www.thedailyencrypt.com/?p=41754 As a result of the third quarter of 2022, PayPal, a digital payments company, reported a net revenue of $6.85 billion.

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As a result of the third quarter of 2022, PayPal, a digital payments company, reported a net revenue of $6.85 billion. This beat Wall Street’s estimates. The GAAP earnings per share were $1.15, compared with the Street estimate of $0.96. EPS increased 26% over the prior year.

PayPal, a digital payments company, reported net revenue of $6.85 Billion for the third quarter of 2022.

According to Factset, the Wall Street consensus was $6.82 trillion. PayPal’s earnings release stated that net revenue increased 11% year-over-year.

GAAP earnings per share were $1.15, compared with the Street estimate of $0.96. EPS increased 26% year-over-year.

PayPal said that its total volume of payments grew 9% quarter-over-quarter, reaching $337 billion for the period. Sixty-three billion dollars of that quarterly figure were contributed by Venmo.

“We delivered strong results in the third quarter,” said President and CEO Dan Schulman. “We will continue investing in our key priorities in order to improve our leading position in digital commerce and payments.”

PayPal added the ability to transfer funds between PayPal and other wallets earlier this year. This was a long-awaited feature. In late 2020, PayPal began selling crypto through a partnership agreement with Paxos.

As previously reported, PayPal received a virtual currency license from New York’s Department of Financial Services in June.

PayPal also has other crypto-related initiatives, including explorations of a stablecoin. However, the company has not disclosed much beyond confirmation by The Block that such work is underway.

After the close of trading, PayPal’s stock plummeted in value. PYPL has fallen more than 12% as of press time.

PayPal’s third quarter earnings call will be held at 5:30 p.m. ET.

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NFT Platform LooksRare Also Transforms to Zero Royalty Fee Option https://www.thedailyencrypt.com/nft-platform-looksrare-also-transforms-to-zero-royalty-fee-option/ Fri, 28 Oct 2022 17:12:00 +0000 https://www.thedailyencrypt.com/?p=41744 LooksRare, a token-based marketplace that rewards creators with tokens, will no longer enforce royalties. A portion of the protocol fees will instead be paid to creators as a portion of the proceeds.

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LooksRare, a token-based marketplace that rewards creators with tokens, will no longer enforce royalties. A portion of the protocol fees will instead be paid to creators as a portion of the proceeds.

A new domino has fallen amid rising trends of NFT marketplaces abandoning enforcer royalties. Ethereum marketplace LooksRare announced today that traders will no longer have to pay fees for transactions.

LooksRare stated that it would no longer support creator royalty payments by default when traders sell NFTs. Instead, it will allow buyers to “opt in to pay optional royalties.” This is similar to what Solana NFT market Magic Eden did when it made creator royalties optional.

LooksRare stated that 25% of its protocol fees, which it charges sellers for NFTs, will be directed to creators. LooksRare charges a total fee of 2% on the sale price. This means that 0.5% will be directed at creators instead of their respective royalty rates.

Many NFT creators have a royalty system that allows for a small percentage of secondary sales. This is usually between 5% to 10% and automatically sent to the creator or artist by the marketplace. These royalties cannot be enforced on-chain according to current NFT standards. This has led to loopholes used by some marketplaces to attract traders.

In the midst of the ongoing crypto market and NFT bear markets, Ethereum marketplaces such as Sudoswap have either removed or made creator royalties non-existent.

This effect is more evident on Solana where leading marketplace Magic Eden- which has approximately a 90% market share within Solana’s Solana network– gave in and followed other marketplaces . These moves were made in recent weeks. However, many NFT creators have rejected royalties and pushed back against “race to bottom”.

LooksRare announced today that “the growth of zero-royalty markets has eroded… the general willingness to payer royalties throughout NFT space,” in a statement. The good news for traders is mixed with a major downside: the removal of royalties has eliminated an important source for passive income for most creators.

LooksRare is removing the requirement for creator royalties and giving creators a portion of protocol fees. The platform has also changed its trading rewards model to benefit NFT sellers. In an effort to lower the trading fees for sellers, 95% of tokens earned via trading will now go to sellers, with 5% going towards buyers.

LooksRare launched in January. It made a huge splash by offering a rewards program that gave users their LOOKS token and Ethereum for trading and using its platform. Although the marketplace was able to trade billions of dollars worth of Ethereum NFT volume, it soon became apparent that its users were manipulating sales via a process called washing.

Wash trading is a practice in the NFT industry where users trade NFTs at artificially high prices back and forth between their controlled wallets. This is often done to manipulate reward models or increase visibility for a project. Similar token-gaming schemes were seen on marketplace X2Y2 earlier this year.

NFT analytics platform CryptoSlam reported in January that 87% of LooksRare’s trading volume up to that point over $8.3B worth, was due to wash trading.

LooksRare lost significant traction in the last year, as newer marketplaces offering their own reward models like Blur and X2Y2 have been launched. DappRadar reports LooksRare has traded less than $11,000,000 worth of genuine Ethereum NFT trades in the past 30 days, excluding wash trades.

OpenSea is still the largest NFT marketplace for all blockchains, based on trading volume. According to DappRadar, it has generated \$316 Million in NFT trades within the past 30 days.

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Unconfirmed Bug on THORChain Network Forces Platform Halt https://www.thedailyencrypt.com/unconfirmed-bug-on-thorchain-network-forces-platform-halt/ Fri, 28 Oct 2022 13:38:00 +0000 https://www.thedailyencrypt.com/?p=41737 As a cross-chain platform, THORChain allows token swaps as well as bridging between chains. After identifying a bug in its chain, it cuts off the chain.

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As a cross-chain platform, THORChain allows token swaps as well as bridging between chains. After identifying a bug in its chain, it cuts off the chain. 

Neither funds have been lost, nor have there been any issues with solvency on the part of the company.

THORChain is a cross-chain platform that allows token swaps and bridging. It has halted its chains.

THORCHain stated that its developers were aware of the chain halt, and likely have identified the problem. The team did not mention any theft of funds and stated that the bug had “nothing” to do with solvency.

THORChain tweeted that the cause of the chain halt was likely to be due to a “unique transaction type” error. THORChain didn’t provide any further explanations or details about what this means in its tweet.

Others protocols, such as Lends (a lending protocol that uses THORChain), tweeted warnings to users to stay away from the platform until the situation is resolved.

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It Has Been Confirmed That Binance Backed Elon Musk Twitter Takeover https://www.thedailyencrypt.com/it-has-been-confirmed-that-binance-backed-elon-musk-twitter-takeover/ Fri, 28 Oct 2022 10:35:00 +0000 https://www.thedailyencrypt.com/?p=41732 There has been a confirmation that Binance, a cryptocurrency exchange operator, is an equity shareholder in Elon Musk's bid to acquire Twitter.

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There has been confirmation that Binance, a cryptocurrency exchange operator, is an equity shareholder in Elon Musk’s bid to acquire Twitter.

“We are excited about helping Elon realize his new vision for Twitter. In a statement, Changpeng Zhao, Binance CEO and founder Changpeng Zhao stated that they aim to be a part of bringing web3 and social media together. This will increase adoption and use of blockchain and crypto technology.

According to reports, Musk fired Twitter’s CEO Parag Agarwal and its top executives after the $44 billion deal closed yesterday. Bloomberg reported today Musk will assume the role as chief executive officer of Twitter and reverse the lifetime account suspensions.

After months of saga between Musk, Twitter and Binance, the news of Binance’s investment is finally out. Binance committed $500,000,000 to invest in Twitter in May. This was alongside Musk’s purchase of the social media site. A Binance spokesperson said that the initial commitment is still valid and that the company looks forward to exploring new opportunities to expand the partnership in the near future.

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Meta Keeps Losing Money on it’s Huge Metaverse Bet – $9.5 Billion and Counting https://www.thedailyencrypt.com/meta-keeps-losing-money-on-its-huge-metaverse-bet-9-5-billion-and-counting/ Thu, 27 Oct 2022 15:32:00 +0000 https://www.thedailyencrypt.com/?p=41723 Meta's metaverse unit Reality Labs suffered a loss of $3.7 billion during the third quarter. This poor performance comes after a hiring freeze, an increase in shareholder scrutiny and a push to sell virtual-reality technology solutions to corporate clients.

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Meta’s metaverse unit Reality Labs suffered a loss of $3.7 billion during the third quarter. This poor performance comes after a hiring freeze, an increase in shareholder scrutiny and a push to sell virtual-reality technology solutions to corporate clients.

Meta, a Facebook owner, reported that Reality Labs, its metaverse division, suffered a loss of $3.7 billion in the third quarter.

Reality Labs’ total year-to-date losses now stand at $9.4 billion. Meta stated that Reality Labs’ operating losses are not expected to grow in the next year.

Meta reported Reality Labs’ revenue of $285 million for the quarter, a decrease from $558 million last year. The company’s “Family of Apps”, which includes Instagram and Facebook, generated $27.4 Billion in revenue.

Meta, which is not part of Reality Labs, continues to generate strong advertising revenues quarter-after-quarter through its core apps businesses, Facebook, and Instagram. Meta’s market capitalization dropped to \$350 million last year after it surpassed \$1 trillion.

As Meta continues to prioritize its metaverse ambitions over its core business, storm clouds have been gathering throughout the year.

Recently, Altimeter Capital Management’s CEO, Meta shareholder, suggested in a blog that the company reduce its workforce by at least 20%. This was in addition to reducing investment. Reality Labs should be limited to $5 billion per year. A month ago, Zuckerberg informed employees that he was stopping hiring and reorganizing teams in order to cut costs.

During an earnings conference call with analysts, Mark Zuckerberg explained that his metaverse strategy extends beyond the company’s efforts in developing its virtual reality business. He stated that Meta’s goals include research and development projects aimed at developing augmented reality technology and neural interface technologies.

Zuckerberg stated that while he understood that not everyone agrees with the investment in the metaverse, he believes it to be an invaluable thing. It would be a mistake to not pay attention to these areas that I believe are fundamentally important for the future.

Zuckerberg has worked tirelessly for over a year to promote his vision of Meta’s future. It all hinges on the company being able to create its own version of the metaverse. This immersive digital space, where people can socialize, work and play games, is what Zuckerberg wants.

Horizon Worlds is Meta’s virtual-reality platform flagship. It has struggled to attract large numbers. According to a report by The Wall Street Journal, less than 200,000 people visit Horizons each month.

The platform is just a little more than a year old. However, it seems small compared to Instagram and Facebook, which together boast over 4 billion users.

At the company presentation Meta Connect, Zuckerberg reiterated his desire to play a key role in building a Metaverse. This business idea is still in its infancy and will likely take many years to develop fully. He unveiled a new, better virtual reality headset that he hopes will attract more people to the metaverse.

Zuckerberg spent large of Meta Connect extolling the virtues and use of virtual reality for work. This included the announcement of strategic partnerships with Microsoft and Zoom.

Zuckerberg stated that there are approximately 200 million people who buy new computers each year. “Our goal for the Quest Pro range over the next several decades is to enable more people to do their work in virtual and mixed realities.” The new Quest Pro VR device from Meta will cost $1,499.

Analysts have predicted that the metaverse will be worth trillions, despite many criticisms of Meta’s strategy.

Meta’s problems dealing with regulators are not a new problem, aside from some disagreements about strategy. The Federal Trade Commission recently contacted the company. In July , the agency filed a suit vs. Facebook alleging that the company is trying to take over the metaverse.

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Kazakhstan Plan to Use BNB Chain as its Network of Choice for a CBDC https://www.thedailyencrypt.com/kazakhstan-plan-to-use-bnb-chain-as-its-network-of-choice-for-a-cbdc/ Thu, 27 Oct 2022 12:35:00 +0000 https://www.thedailyencrypt.com/?p=41718 A spokesperson for Binance said that Kazakhstan's central bank had agreed to test BNB Chain as a digital currency. This development follows Binance's recent Kazakhstan license.

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A spokesperson for Binance said that Kazakhstan’s central bank had agreed to test BNB Chain as a digital currency. This development follows Binance’s recent Kazakhstan license.

According to the exchange giant, the National Bank of Kazakhstan (NBK), has agreed to test Binance’s blockchain network BNB Chain in order for it to be integrated into the country’s central bank digital currency (CBDC).

Binance met recently with two NBK officials — Binance CEO Changpeng Zhao and Binur Zhalenov, the head of the payment and technological center. Zhao said that the company presented the two officials to BNB Chain to discuss the testing of blockchain integration in digital currency.

When The Block reached out to Binance, a spokesperson for the company said that NBK and Binance had agreed to test NBK CBDC (digital tenge) integration on BNB Chain. There are ongoing discussions on the specific use cases that will be tested.” The request for comment from The Block was not immediately answered by the central bank.

In 2021, the NBK launched the digital tenge pilot program to examine the costs and benefits of digital currency implementation. The central bank created a decision-making framework for digital tenge implementation in July. It is expected that it will make its final decision by the end of this year.

The bank stated that the implementation of electronic money would increase financial inclusion. It also allowed for the introduction of offline payments.


The digital tenge infrastructure will be an additional tool for participants in the financial market and government agencies. This will allow them to develop innovative services using smart contract technology. Future introductions of digital tenge are expected to increase cross-border payments. “

Zhao tweeted that Binance is eager to see NBK prepare CBDC use cases, and how it could integrate BNB chain.

This development follows shortly after Binance was granted a Kazakhstani operating license. The Astana Financial Services Authority granted Binance permission to trade crypto and provide custody services at the Astana International Financial Center in August. Binance signed earlier this month an agreement with Kazakhstan’s Financial Monitoring Agency in order to confirm their mutual interest in developing Kazakhstan’s digital asset market.

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