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Mooners and Shakers: Binance-fuelled concerns over FTX cool Bitcoin and crypto market surge

Well, it was a nice weekend for holders of Bitcoin and many other crypto assets. But it’s Monday, and fresh FUD (fear, uncertainty and doubt) has surfaced. This time about crypto exchange FTX and its FTT token.

How serious is it? It’s not entirely clear yet – it’s an unfolding story that we’ll touch on in a second, but fingers crossed it’s not another Terra LUNA or Celsius-like crypto-crash event.

The total crypto market cap rose more than 7% over the weekend, but has since cooled off a bit. At the time of writing, however, it’s still holding on to some gains, with Bitcoin hovering back above US$21k for the first time in nearly two months.

Binance vs FTX

But what is all this FTX noise then? Much of it actually comes from Binance CEO Changpeng Zhao, also known as “CZ”. We will try to summarize what we know so far in a nutshell.

• Binance, via CZ on Twitter, announced that it is selling over US$584 million in holdings of the FTX exchange/utility token FTT.

• CZ revealed that it will then gradually liquidate its entire position of FTT to minimize any market impact. He emphasized that this is not an attempt to hurt FTX.

• FTX is owned by another crypto-billionaire – Sam Bankman-Fried, who also owns the trading firm Alameda Research. The Binance announcement comes a few days after rumors about Alameda Research’s financial health. The trading firm (assets amounting to US$14.6 billion) is closely linked to FTX and has large exposure (US$3.6 billion) to the FTT token, according to crypto media outlet CoinDesk. This raised doubts among crypto industry commentators about the financial stability of Alameda Research and FTX more broadly.

• CZ also said this, alleging that FTX had secretly sided against other industry players:

• There is more to the story that the FT covers here. Meanwhile would an exchange giant spat between Binance and FTX hurt the crypto market? It’s definitely not the most helpful story right now, so we hope it blows over quickly.

Top 10 overview

With the overall crypto market cap at US$1.09 trillion, down about 1.7% since this time yesterday, here’s the current state of affairs among top 10 tokens – according to CoinGecko.

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Over the weekend, Bitcoin (BTC) peaked just above US$21,400, while Ethereum (ETH) also rose, trading above US$1,600 for most of the past few days.

Tell me why, I don’t like Mondays? Partly because it so often shows that exuberant crypto trading over the weekend is completely unreliable for the week ahead. As already mentioned, there are currently some profits retained, so we will see.

What’s coming up this week that could affect the story? US Consumer Price Index inflation data for the month of October. Landing on November 10th.

Thank you, Michael. Maybe the crypto market can join you in the mountains.

Other things to note in the top 10 by market cap… yes, Binance token BNB is up 14% in the past week, Dogegoin (DOGE) continues to slide after its Twitter/Musk fueled recent run, and Solana’s SOL token is the big daily loser (-10.8%).

What’s up with SOL? It’s clearly not much in price action, which is perhaps odd given that it had a pretty positive announcement (a Google-related partnership) over the weekend at its big, well-attended Breakpoint event in Lisbon, Portugal.

Google Cloud has announced a plan to become a validator on the Solana network, similar to its recent Ethereum node announcement. Validator nodes effectively verify, agree and maintain a record of transactions on a blockchain network.

And Google is kind of a big deal, we hear.

Tops and Bottoms: 11–100

Sweeping a market capitalization range of about US$10.1 billion to about US$427 million across the rest of the top 100, let’s find some of the biggest 24-hour gainers and losers at press time. (Statistics accurate at time of publication, based on CoinGecko.com data.)

DAILY POMPERS

BTSE Token (BTSE), (market cap: US$637 million) +2%

Chile (CHZ), (mc: US$1.46 billion) +2%

WhiteBit Token (WBT), (mc: US$977 million) +1%

Chain (XCN), (mc: US$1.1 billion) +1%

DAILY SLUMPERS

Tokenize XChange (TKX), (market cap: US$1.22 billion) -11%

Ghost (AAVE), (mc: US$1.23 billion) -10%

The Chart (GRT), (mc: US$670 million) -9%

Evmos (EVMOS), (mc: US$610 million) -8%

Ghost (FTM), (mc: US$678 million) -7%

Sub-shell casing

There is a lot of chaff the further you dig down the market cap list. Occasional grains of wheat too. Remember to DYOR.

Goldfinch (GFI), (market cap: US$29 million) +54%

Phala Network (PHA), (mc: US$113 million) 53%

Weird (RARI), (mc: US$44 million) +14%

Ocean Protocol (OCEAN), (mc: US$98 million) +32%

Mask network (MASK), (mc: US$244 million) +23%

DAILY SLUMPERS

OriginTrail (TRAC), (market cap: US$88 million) -14%

Ethereum Name Service (ENS), (mc: US$423 million) -9%

ImmutableX (IMX), (mc: US$343 million) -9%

Looks rare (LOOKS), (mc: US$118 million) -9%

Around the blocks

A selection of randomness and pertinence that stuck with us on our morning move through the Crypto Twitterverse…

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