The Scenius Sync (Issue #23)

The Senate Wants to Talk FTX, Contagion Hits Genesis & Gemini, Meanwhile Big Banks Test Digital Tokens

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. Crypto lender Genesis says no plans to file bankruptcy imminently

   • Days after the collapse of crypto exchange FTX forced it to suspend customer redemptions, cryptocurrency lender Genesis said on Monday it has no plans to file for bankruptcy imminently and is working to resolve the current situation consensually. Reports indicate that Genesis is struggling to raise emergency funds, that its fundraising target has been reduced from $1 billion to $500 million, and it reportedly warned investors it might need to file for bankruptcy.

2. Senate committee to hold FTX-related hearing in December

   • The Senate Agriculture Committee has scheduled a hearing on the recent high-profile collapse of crypto exchange FTX. Titled "Why Congress Needs to Act: Lessons Learned from the FTX Collapse," the hearing will take place on December 1 and feature testimony from Commodity Futures Trading Commission Chair Rostin Behnam.

3. Genesis’ Lending Arm, Gemini Earn, Halt Withdrawals as FTX Contagion Spreads

   • Genesis Global Capital, the lending arm of crypto investment bank Genesis and one of the top destinations for institutional clients, has suspended withdrawals and new loan originations. Hours after Genesis halted withdrawals, Gemini, an American crypto exchange, suspended its Gemini Earn product, which relies on Genesis.

4. 'FTX drainer' swaps another 20,000 ether for bitcoin

   • The individual or entity behind suspicious withdrawals from embattled crypto exchange FTX totaling approximately $600 million — commonly called the "FTX Drainer" — has continued to swap ether for bitcoin. It has now moved $72 million worth of value across both blockchains via the Ren BTC Gateway, a crypto bridge used to move transfer tokens from one network to another.

5. Uniswap's new privacy policy says it collects data tied to user wallets

   • Uniswap, the largest Ethereum decentralized exchange, published a new privacy policy to provide transparency on the data it collects. The privacy policy states that the DEX collects certain on-chain and off-chain data connected to users’ crypto wallets. This includes collecting and logging users’ publicly-available blockchain address to learn more about the use of services aand to screen for any prior illicit activity.

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Innovation & Adoption 💡📈

1. Big Banks, NY Fed Start to Test Digital Tokens for 'Wholesale' Transactions

   • Citigroup, HSBC, BNY Mellon, Wells Fargo and Mastercard, are among the financial giants starting to test the use of digital tokens representing digital dollars to improve how central bank money is settled between institutions.

2. Man Group close to launching crypto hedge fund despite FTX collapse

   • Man Group, the biggest publicly traded hedge fund, is reportedly close to starting a crypto hedge fund. After several months in development, Man Group’s AHL trading division plans to start the fund as soon as the end of this year.

3. Cardano-based decentralized stablecoin Djed will hit mainnet in January

   • Djed, Cardano's first decentralized stablecoin, will go live on the main network in January. Soft-pegged to the U.S. dollar, it will exist on Cardano’s Layer 1 blockchain and is designed to be overcollateralized, meaning that it is backed by excess collateral in the form of cryptocurrency held in a reserve. This is a similar design to that used by DAI, the most popular decentralized stablecoin in the Ethereum ecosystem. Each Djed will require more than 400% in collateral value to be minted. 

4. Billionaire Bill Ackman Does U-Turn on Crypto, Reveals Helium Investment

   • The founder and CEO of hedge fund management company Pershing Square has performed an about-face on his previously icy attitude towards crypto, saying that it is “here to stay.” He revealed that he is now a “small direct investor” in several crypto projects, including Helium, ORIGYN, and Goldfinch Finance. Ackman also said he has invested in seven blockchain venture capital funds and is a small-fry investor in companies that “reduce fraud in crypto,” which was one of the main reasons he was initially wary of the industry.

5. Sony files patents for NFT and blockchain integration

   • The Japanese multinational technology conglomerate known for its PlayStation gaming consoles wants to use a distributed ledger, or blockchain, to record digital media assets, gameplay, and video clips and include a unique token for the digital item with a unique identifier and metadata that would identify properties of the digital asset. While the filing is only for a patent, it clearly shows Sony is interested in entering the growing NFT gaming field.