Category

Crypto

Daily Brief Crypto: Crypto.com and more

By | Crypto, Daily Briefs

In today’s briefing:

  • Crypto.com, Independent Reserve in Top 5 for Strong AML; Binance Places 42nd
  • The Long and Short of Aave

Crypto.com, Independent Reserve in Top 5 for Strong AML; Binance Places 42nd

By Tech in Asia

  • Familiar names in Singapore landed in the top five of a list featuring crypto exchanges with strong anti-money laundering (AML) systems.
  • Blockchain.com and Independent Reserve, which are both licensed to operate in Singapore, ranked first and third place respectively. Crypto.com, which has in-principle approval, placed fifth.

  • Binance, the largest crypto exchange in the world, in the 42nd  spot.


The Long and Short of Aave

By Kaiko

  • Lending and borrowing in DeFi follows the same basic principles as it does in traditional finance: I supply some asset as collateral and I am able to borrow a certain amount of some other asset.
  • However, this being DeFi, there are some important differences from TradFi.
  • The most important is that the protocol has no way of knowing how trustworthy I am, and thus will require any loan to be overcollateralized.

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Daily Brief Crypto: Wrapped Assets Under Scrutiny and more

By | Crypto, Daily Briefs

In today’s briefing:

  • Wrapped Assets Under Scrutiny

Wrapped Assets Under Scrutiny

By Kaiko

  • Price Movements: The stETH discount worsened after a whale withdrew $100m ETH from Curve. 
  • Market Liquidity: BUSD’s market share of volume on centralized exchanges is approaching all time highs. 
  • Derivatives: The ratio of futures to spot volume has experienced a 5x drop, meaning fewer derivatives are being traded relative to spot.

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Daily Brief Crypto: Zero-Knowledge Rollups and more

By | Crypto, Daily Briefs

In today’s briefing:

  • Zero-Knowledge Rollups

Zero-Knowledge Rollups

By Etherbridge

  • Over the past few weeks, we have covered some of the leading projects trying to help Ethereum scale, including Polygon, Optimism and Arbitrum.
  • Optimism and Arbitrum have used optimistic rollups as a scaling solution, while Polygon has taken a broader approach and allows developers to choose which solution suits them best.
  • Yet, they are all exploring how they could use Zero-knowledge rollups (ZK-rollups) to scale Ethereum in one form or another. 

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Daily Brief Crypto: How to Manage Risk in Crypto and more

By | Crypto, Daily Briefs

In today’s briefing:

  • How to Manage Risk in Crypto

How to Manage Risk in Crypto

By Kaiko

  • We’ve seen enough incidents over the last few months, let alone years, to conclude there is a complete lack of adequate risk management in crypto.
  • Throughout the Terra collapse, crypto credit crisis, and spectacular implosion of FTX we have collectively witnessed the industry’s largest (and most opaque) firms become insolvent in an instant. 
  • This begs the question: where were the basic financial risk controls that are mandatory in any other industry? 

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Daily Brief Crypto: Implication for Decentralized Exchange Amid the FTX Collapse – A Case of Uniswap and more

By | Crypto, Daily Briefs

In today’s briefing:

  • Implication for Decentralized Exchange Amid the FTX Collapse – A Case of Uniswap
  • Markets Dip Lower as FTX Contagion Spreads

Implication for Decentralized Exchange Amid the FTX Collapse – A Case of Uniswap

By Edward Wu

  • Despite Centralized exchanges (CEX) being unregulated and opaque in operation, over 90% of crypto transactions happened on CEXs.
  • DeFi exchanges are transparent and impossible for appropriation, but gain market share very slowly due technically difficult of building on blockchain.
  • Uniswap is the largest spot decentralized exchange that stands to benefit from capital relocation from CEX to DEX, Uniswap token is a pure governance token without value capture.

Markets Dip Lower as FTX Contagion Spreads

By Kaiko

  • Price Movements: DEX tokens have been least impacted by the market collapse while L1 tokens have been the worst performers, led by SOL.
  • Market Liquidity: Uniswap v3 recorded one of its highest volume days ever, although both CEX and DEX volumes have since tumbled.
  • Derivatives: Binance and Bybit captured FTX’s market share of perpetual futures since the exchange collapsed.

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Daily Brief Crypto: The 2022 Crypto Debt Crisis and more

By | Crypto, Daily Briefs

In today’s briefing:

  • The 2022 Crypto Debt Crisis

The 2022 Crypto Debt Crisis

By Etherbridge

  • Over the past week and a half, we witnessed the unravelling of the $32 billion empire that was FTX and the fall of its “benevolent” leader Sam Bankman-Fried, otherwise known as SBF.
  • This story of overleveraging and outright fraud has formed a part of the bigger crypto debt crisis of 2022.
  • This article will explore how this debt crisis has unfolded and how all parties were closely interlinked. 

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Daily Brief Crypto: An Arbitrage Opportunity? Evaluating the GBTC Convergence Trade and more

By | Crypto, Daily Briefs

In today’s briefing:

  • An Arbitrage Opportunity? Evaluating the GBTC Convergence Trade

An Arbitrage Opportunity? Evaluating the GBTC Convergence Trade

By Rose Choy

  • Recent concerns on Genesis’ solvency arose after the broker/dealer halted redemptions on its lending unit and was reportedly looking to raise $1 billion of loans from investors.
  • Contagion fears have extended to Genesis’ parent company, DCG, and its wholly owned Grayscale subsidiary, which has a steady fee generating business via its Bitcoin and ETH trust products.
  • We analyze the potential arbitrage opportunity for the controversial GBTC convergence trade with its 42.7% discount to NAV.

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Daily Brief Crypto: Defending the Gold Premium and more

By | Crypto, Daily Briefs

In today’s briefing:

  • Defending the Gold Premium
  • The Winners and Losers in a Post-FTX World

Defending the Gold Premium

By Kaiko

  • When you look around the world for a big, liquid, globally accepted safe haven, there is only one, and that is gold, which continues to reassert its status as the asset of last resort.
  • Pre-1970, in the days of the gold standard, gold formally enjoyed this role.
  • Today, after a 50-year break, the free market is putting gold back onto the pedestal where it belongs. 

The Winners and Losers in a Post-FTX World

By Kaiko

  • The aftershocks of the FTX fraud continue to ripple through crypto, with entities such as Genesis Trading and the FTX-owned exchange Liquid halting withdrawals over the last couple of days.
  • It’s likely that it will take months or years to determine who the real winners and losers of the biggest scandal in crypto history will be, but there are some interesting market dynamics to be aware of in the immediate aftermath of the collapse of FTX.
  • Using Kaiko’s CeFi and DeFi data, we have identified some important trends that give an indication as to who may stand to win and lose in the future.

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Daily Brief Crypto: FTX Fallout – A Quick Update and more

By | Crypto, Daily Briefs

In today’s briefing:

  • FTX Fallout – A Quick Update

FTX Fallout – A Quick Update

By Rose Choy

  • FTX filed for bankruptcy on 11/11 after halting client withdrawals in the previous week, despite SBF (the ex-CEO) tweeting 2 days prior that it had $1 bn of excess cash.
  • With over 130 affiliates included in the filing and no first day documents in the Delaware Court, the bankruptcy filing seems disorderly. The fallout is far-reaching in the industry.
  • As we await the top 50 creditor list and more details, we have compiled a hit list of some of the major affected players in the industry. 

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Daily Brief Crypto: #40 The Contagion Vectors of the FTX debacle and more

By | Crypto, Daily Briefs

In today’s briefing:

  • #40 The Contagion Vectors of the FTX debacle
  • Sporting Crypto – Nov 14th: Leading Sports Crypto Sponsor FTX File for Bankruptcy
  • Crypto Liquidity in a Post-Alameda World

#40 The Contagion Vectors of the FTX debacle

By Carbono Insights

  • Time flies in crypto. If you swap “years” for “hours” in this quote from Marvin, the Paranoid Android from The Hitchhiker’s Guide to the Galaxy, you get a glimpse of what crypto has been like in recent weeks. 
  • “The first ten million years were the worst,” said Marvin, “and the second ten million years, they were the worst too. The third ten million years I didn’t enjoy at all. After that, I went into a bit of a decline.”
  • In the last few weeks, FTX has exploded, and somehow it keeps exploding. 

Sporting Crypto – Nov 14th: Leading Sports Crypto Sponsor FTX File for Bankruptcy

By Sporting Crypto

  • FTX blowing up has been seen by many as the most shocking thing to happen in crypto.
  • I’ve spoken to people who have been in the space for longer than me (5 years) and there’s consensus that this really is the craziest thing that has happened – in an industry that is already labelled as the ‘digital wild west’.
  • But how did FTX, a crypto exchange making 8 figures in trading fees *per day* and a modestly sized team blow up?

Crypto Liquidity in a Post-Alameda World

By Kaiko

  • The FTX saga keeps entering new levels of strange.
  • On Friday, both FTX and FTX US filed for bankruptcy, along with 134 related entities, highlighting just how tangled the exchange’s corporate web had become.
  • Just a few hours later, the exchange suffered what now appears to be a massive hack, with more than $600mn siphoned from both FTX and FTX US wallets, instantly triggering rumors of an inside job. 

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