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🍦SCOOPS OF THE WEEK

🍦SBF / FTX Update

🍦Opensea Re-Visits Royalties Position

🍦Trademark Stats Revealed

SBF / FTX Update

There is no other place to start, we are witnessing history in what will be one of the biggest stories of the Crypto Era.

We may as well pick up from where we left off and fill in the gaps.

SBF took to twitter to say that a competitor is coming after them with false rumours and the company is fine as are assets.

This was in the midst of a war with CZ where it was being suggested that the harm FTX was currently suffering was Binance's doing.

FTT which is FTX's token price had tanked following Binance's liquidating their position, the state of the token did not improve and it left FTX as an exchange extremely vulnerable.

FTX knew there was a huge liquidity crunch and thousands of customers were at risk of losing their money in the exchange. SBF approached Binance for help to put their differences to one side.

CZ agreed to assist in covering the liquidity crunch and then fully acquire FTX but would first be conducting a full due diligence task. Normally these tasks take a few days or even weeks, but to everyone's surprise, this one took less than 24 hours.

It was decided that Binance would no longer be pursuing the potential acquisition of FTX due to reports of mishandled customer funds and alleged US investigations.

At that time the FTT token was sitting at roughly $5, which was enough to wipe SBF's net worth from an estimated $14.6bn to $985m.

The most concerning aspect of what was going on was to those who have investments tied up with FTX. If Binance, the largest exchange in the world are unable to help then who can? With withdrawals being paused it was heavy rain turning into a full-blown storm.

It transpired that there was an $8bn dollar hole in terms of liquidity. How could this be possible in the form of an exchange which should have reserves? The answer is...It's been reported that FTX had lent billions of dollars worth of customer funds to finance risky bets by Alameda ((FTXs Trading Arm)

This was reported to the Wall Street Journal where they broke it down a bit more. It was reported that the $16bn FTX had in the form of customer assets they lent $10bn to Alameda who have blown it all.

The very latest position at the time of writing is that the debt owed to FTX by their trading arm still exists, the unfortunate position is that it appears all of the money sent is gone so where Alameda is going to get this money to ensure customers are protected is massively concerning.

It does appear that withdrawals on FTX have resumed for now but there's obviously not enough in the pool for everyone to get their money out so this one is continually changing minute by minute. It's claimed FTX users are fine, it's the international that will struggle.

SBF has taken to Twitter on the afternoon of the 10th of November to basically apologise and try to explain what he is trying to do. We attach a thread here.

The main point to take from it is the desperation to raise liquidity as currently all user's positions cannot be covered... that's the only position that should be of concern anyway.

It's being reported that SBF is seeking up to $9.4bn to rescue the company.

Alameda is being wound down in regards to trading...easy to do after blowing $10bn of funds they should never have had...winding down also doesn't mean cease so we are worried about what they could do next.

We don't take this lightly, SBF has a lot to answer for, customers' deposits have been used to leverage his personal trading, and questions are also being asked if their deposits have been used in the political donations made. There are many unanswered questions that will unfold. The SEC has confirmed they have opened an investigation into SBF so it may not be long before more answers are given.

Rumours as you could imagine are widespread and not stopping, credible sources are also putting their names to the story. It's been reported that the exchange itself was run by 10 people who lived together and were involved romantically....great

One of the biggest concerns we have however is the impact on the wider Crypto community is the safety of investments in exchanges that have ties to FTX. Blockfi is the first to come out publicly stating they are unable to operate business as usual. Similar rumours are flying about for Kucoin.

To protect your assets as best you can it may be prudent to move investments off centralized exchanges for now and put them into cold wallets.

Remember, if you are liquid there is no way of knowing how long this could go on for or how low it could go but generational wealth is made in is a crisis.

As things stand, REKT has been covered this week and it's probably straight to number 1 in the hall of shame we are yet to open.

We wish all readers who have investments in FTX the safe return of their money.

Opensea Re-Visits Royalties Position

We know about the "f" word well we now have the "r" word.

ROYALTIES...that 9-letter word that would get you 12 points minimum on Scrabble has taken over the NFT world in terms of the debate.

If you are slightly unsure of the latest position regarding Royalties, make sure to check out our newsletter earlier this week where L0rd Marlborough covered the topic in depth.

So what has Opensea done now?

They released their update on Twitter on the 9th of November where they confirmed that they will enforce creator fees on ALL existing collections.

We attach a link here to the full thread explaining why this decision has been made.

Our View

We are happy with this, we can't tell you enough and as L0rd put it the other day "We always talk about giving power back to the people, if in principle we don't give our all as a community to support creators we will never gain mass adoption"

Our concerns regarding optional royalties leading to a mass 0 for creators were well evidenced by Opensea, we hope to see a pullback and creators be rightly rewarded for all their efforts.

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Trademark Stats Revealed

Amongst all the worry surrounding the crypto world we want to ensure it's a safe place for all to enjoy.

We also want to see brands across the world large and small enter the Metaverse with huge ideas that'll change the world forever moving forwards but maintaining their brand identity.

The first indicator of brands' movements and intentions is Trademarks and stats have been revealed which make for a really positive feeling.

To start with some context, in the year 2021 a total of 1890 trademarks were filed for Metaverse and virtual goods/services.

Let's fast forward 10 months and to the end of October, 4997 trademark apps have been made this year which shows a 2.6x increase with 2 months of the year left.

This is a really bullish statement of intent and we are delighted to see it. There is no limit to where the Metaverse can go, we are seeing the big hitters steadily making moves but the best thing is that there is space for everybody.

Despite the doom and gloom that we have witnessed in terms of crypto exchanges and bear markets, there is a really exciting future ahead of us if we remove tunnel vision and look at the bigger picture.

🏆SCOOP'S WEEKLY WINNER

In times of bear markets, crypto crashes, global uncertainty, threats of recession and rising inflation, the cream rises to the top.

It's been a way of the Degens that Bored Apes have been the top dogs in terms of the NFTs. Well as you could tell from our video last week where we asked the question Rolex or Punk we knew who was heading for the top spot.

Following 4594 ETH of volume in the last 7 days, CryptoPunks has regained no1 spot on Opensea pushing Bored Apes all the way down to a mere 2nd place

It's worth noting that the surge of volume has been fairly consistent but following the FTX drama, ETH has tanked from $1639 to $1271 having hit a low of $1099. Those that timed the bottom well and aped in could very well be circulating ETH around the NFT economy leading to the dream of the pixilated punk.

As we said above, in times of crises cream rises to the top and regaining number one spot on Opensea when all we are seeing is fear is to be applauded.

Well done Punks, come get your trophy.

THE REKT SECTION 😡

Forbes described him as the next Warren Buffet.

He was the golden boy of the crypto world who was featured on the front page of Fortune magazine.

Fast forward to November 2022 and the same golden boy has lost 96% of his net worth overnight and is battling hard to save his company.

If you read the top news story you know who it is.

Sam Bankman-Fried - Welcome to REKT

Having lost the respect of the entire crypto industry & wiped out 1000's of traders' portfolios, the man really has F*&K'd up.

Having lost the respect of the entire crypto industry & wiped out 1000's of traders' portfolios, the man really has F*&K'd up.

We have seen groups, projects & individuals be able able to climb out of the REKT section, but Sam, we're not sure you will.

🤡 WHOEVER CONTROLS THE MEME CONTROLS THE UNIVERSE

The NFT Scoop newsletter or podcast, Youtube channel is not financial advice, it is provided for educational, informational, and entertainment purposes only.

NFT’s & can be highly illiquid markets, causing sharp drops in prices due to changes in narratives and trends.