DeFi DeBrief #14: Business as usual ✍️

TL;DR:

• Elitium stands as strong as ever
• Binance pledges industry recovery fund 
• U.S. sees signs of cooling inflation

Onwards 👇

A slightly different headline story 💬

We’ve chosen to take over this week’s headline spot to share some thoughts about recent events. The FTX collapse caught many people off guard, and our hearts go out to all those affected.

If nothing else, these last ten days prove the need for more transparency and considered regulation, two areas Elitium supports wholeheartedly. But to reassure everyone with a vested interest in Elitium.

Our company has zero exposure to FTX (or any related entity).

Why should you care?

The immediate fallout of the FTX collapse has been severe. However, everyone in the industry is still waiting to see how far the contagion will reach. 

Many platforms and funds have exposure to FTX, and we’re already seeing the likes of BlockFi and Voyager Digital consider their next steps. At Elitium, however, we’ve always exercised an extremely rigorous risk-management policy.

Thanks to this strategy, we have managed to ensure that we have:

• Never had exposure to the likes of FTX, 3AC, UST, etc
• Never had to restrict client withdrawals
• Never needed emergency funding

This last year has shown Elitium to be one of the most reliable, robust platforms in the industry, a foundation we continue to build upon.

That’s why it’s business as usual here at Elitium.

Market steadies as Binance steps in🕴

While Binance couldn’t save FTX, it seems CEO CZ has another superhero play up his sleeve. He has suggested setting up an industry recovery fund, a project intent on helping select crypto projects overcome their liquidity squeeze.

“There are players that have strong financials and we should band together; we’ve got significant interest so far,” said the Binance CEO, seeking to reduce further cascading negative effects of the FTX collapse.

There are no details about the fund’s size, but you can expect more information to come to light in the next couple of weeks.

IN THE HEADLINES

Cooling inflation offers respite for crypto 😌

All things being equal, this could have been a positive week for crypto. The latest CPI report suggested inflation may finally be cooling in the U.S., opening the door for the Fed to soften its interest rate hikes.

The figures were enough to give the stock market a bump. However, despite a brief rally, crypto remains weighed down by the ongoing FTX saga. That said, if and when those clouds clear, there will be brighter times ahead.

Five short reads catching our eye this week:

1. Nike launches .swoosh platform on Polygon
2. Binance leads the way on Proof of Reserves protocol
3. U.S. government now holds ~$1 billion worth of bitcoin
4. An insight into the regulatory response to FTX
5. Crypto.com had over $1 billion in FTX

TEMPERATURE CHECK 🔥

• BTC: $16,717.71 (3.85%, 7 days)
• ETH: $1,232.52 (5.88%, 7 days)
• TVL in DeFi: $43.43bn (10.93%, 7 days)
• Fear & Greed: 23 (extreme fear)

*Data last updated at 08:00 on 16th November.

TWEET CHECK 🐦

There are honest mistakes you can recover from.

But once your credibility is gone, you are done.

— CZ 🔶 Binance (@cz_binance) November 16, 2022

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