The Scenius Sync (Issue #22)

An FTX Nightmare Gut Punches Crypto

Scenius: The intelligence and the intuition of a whole cultural scene. The communal form of the concept of genius.

Welcome to The Scenius Sync.

Our mission with this concise publication is twofold:

1. Share the essential stories driving the crypto industry and markets.

2. Highlight innovative applications and mainstream adoption of crypto and blockchain technology.

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Essential News 🗞

1. What’s Next for FTX and its Customers After Bankruptcy Filing?

   • FTX is now putting its trust in new CEO John J. Ray III — brought in years ago to oversee the liquidation of collapsed energy company Enron following its accounting scandal — as it seeks next steps following bankruptcy.

   • Here’s a timeline of events on the FTX saga via CoinTelegraph

2. How FTX’s Sam Bankman-Fried Went From Crypto Golden Boy to Villain & How the Fall of Washington’s Favorite Crypto Billionaire Will Change Regulation

   • FTX’s founder, once seen as a steady hand in the world of digital assets, is under investigation and his company filed for bankruptcy.

3. Major crypto exchanges commit to sharing their proof of reserve to regain investor confidence

   • Nine leading crypto exchanges have announced that they will publish proof-of-their-reserve holdings within the next month. They include Binance, Gate.io, Kucoin, Poloniex, Bitget, Huobi, OKX, Deribit, and Bybit. Kraken already publishes proof of reserves.

4. Crypto.com Accidentally Sent $400M in Ethereum to Wrong Address, CEO Calls Concerns ‘FUD’

   • Despite the return of all funds, Crypto.com’s $400 million mishap leaves its token down 50% and raises doubts over the exchange’s transparency following FTX’s collapse.

5. Binance US, Coinbase and Curve in Bidding War for BlockFi Credit Card Customers

   • BlockFi, the crypto lender bailed out by FTX earlier this year, suspended withdrawals, on November 12 only two days after assuring users that it was fully operational, saying that it was not able to operate as usual due to the “lack of clarity” over the evolving situation at FTX and Alameda Research. Binance US and Coinbase are among the bidders for the BlockFi credit card program and its associated customers, Blockworks has learned, while smaller fintech competitor Curve is also in the hunt for the approximately 87,500 BlockFi accounts.

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Innovation & Adoption 💡📈

1. Crypto Execs Ask for Clearer US Regulatory Policy After FTX Collapse

   • The CEOs of Coinbase, Ripple and Circle called for clearer policy framework in a tweet thread started by Sen. Elizabeth Warren.

2. What You Need to Know About Exchange Tokens After FTX's FTT Meltdown

   • Exchange tokens are the backbone of many top exchanges, but what are they, what they are used for, how are they purchased, and how much risk is involved?

3. Binance will launch a new ‘industry recovery fund’

   • “To reduce further cascading negative effects of FTX, Binance is forming an industry recovery fund, to help projects who are otherwise strong, but in a liquidity crisis. More details to come soon,” said Changpeng Zhao, Binance’s CEO, adding that qualifying projects can contact Binance Labs, the exchange’s venture capital arm.  

4. OpenSea Pledges to Enforce NFT Royalties After Creator Backlash

   • OpenSea, the largest NFT marketplace by trading volume, announced today that it will continue to enforce creator royalties on NFTs following significant pushback from the community.

5. Ether Turns Deflationary as Amount of ETH Burned Spikes Amid FTX-Induced Market Volatility

   • Ether's net supply increase has turned negative for the first time since Merge.