ResearchCrypto Three Things (11/10)

Crypto Three Things (11/10)

Nov 10, 2022

"Never use a token you created as collateral" - Changpeng Zhao 


1) FTX Facing Bankruptcy: Sam Bankman-Fried said his global crypto exchange FTX.com is staring at bankruptcy if it does not receive at least a $4B cash injection to cover an $8B shortfall. The acknowledgement of his firm’s troubles came after Binance scrapped acquisition plans, citing concerns about “mishandled customer funds.” On top of that, FTX is under intense investigation by the Securities and Exchange Commission.

Titan’s Takeaway: FTX seeking rescue financing is a tough pill to swallow for the entire industry. The white knight, stripped of his shining armor, is leaving behind ruins, destruction, and hundreds of questions that will need answers.

2) Alameda Bet FTX Loans: Alameda Research, the trading house founded by Sam Bankman-Fried, used billions of dollars belonging to FTX clients to fund risky bets on cryptocurrencies, The Wall Street Journal reported. Prior to its implosion earlier this week, FTX had more than $16B in customer assets, but had lent about $10B of them to its sister company Alameda. Earlier today, Bankman-Fried took to Twitter to announce the shutdown of Alameda Research.

Titan’s Takeaway: If Alameda traded billions from FTX’s client funds, we see why the crypto exchange had to halt withdrawals earlier this week when over $5B was requested for send-out. Its thin liquidity would’ve crunched and emptied all reserves.

3) Proof of Reserves Incoming: Crypto exchanges around the world are scrambling to publicly reveal their fund reserves in the heated mess that is now roiling the crypto industry. Small and big exchanges, among them Binance, Gate.io, Crypto.com, Huobi, Poloniex, and more, announced they will separately issue audited statements to show they are solvent.

Titan’s Takeaway: It’s a must to provide transparency amid the gripping fear of companies being secretly insolvent. With that fear eroding confidence in the crypto industry, users need to know their funds are safe.

Cash Management

Smart Cash

Smart Cash FAQs

Cash Options

Get Smart Cash

InstagramTwitterYoutubeLinkedIn

© Copyright 2024 Titan Global Capital Management USA LLC. All Rights Reserved.

Titan Global Capital Management USA LLC ("Titan") is an investment adviser registered with the Securities and Exchange Commission (“SEC”). By using this website, you accept and agree to Titan’s Terms of Use and Privacy Policy. Titan’s investment advisory services are available only to residents of the United States in jurisdictions where Titan is registered. Nothing on this website should be considered an offer, solicitation of an offer, or advice to buy or sell securities or investment products. Past performance is no guarantee of future results. Any historical returns, expected returns, or probability projections are hypothetical in nature and may not reflect actual future performance. Account holdings and other information provided are for illustrative purposes only and are not to be considered investment recommendations. The content on this website is for informational purposes only and does not constitute a comprehensive description of Titan’s investment advisory services.

Please refer to Titan's Program Brochure for important additional information. Certain investments are not suitable for all investors. Before investing, you should consider your investment objectives and any fees charged by Titan. The rate of return on investments can vary widely over time, especially for long term investments. Investment losses are possible, including the potential loss of all amounts invested, including principal. Brokerage services are provided to Titan Clients by Titan Global Technologies LLC and Apex Clearing Corporation, both registered broker-dealers and members of FINRA/SIPC. For more information, visit our disclosures page. You may check the background of these firms by visiting FINRA's BrokerCheck.

Various Registered Investment Company products (“Third Party Funds”) offered by third party fund families and investment companies are made available on the platform. Some of these Third Party Funds are offered through Titan Global Technologies LLC. Other Third Party Funds are offered to advisory clients by Titan. Before investing in such Third Party Funds you should consult the specific supplemental information available for each product. Please refer to Titan's Program Brochure for important additional information. Certain Third Party Funds that are available on Titan’s platform are interval funds. Investments in interval funds are highly speculative and subject to a lack of liquidity that is generally available in other types of investments. Actual investment return and principal value is likely to fluctuate and may depreciate in value when redeemed. Liquidity and distributions are not guaranteed, and are subject to availability at the discretion of the Third Party Fund.

The cash sweep program is made available in coordination with Apex Clearing Corporation through Titan Global Technologies LLC. Please visit www.titan.com/legal for applicable terms and conditions and important disclosures.

Cryptocurrency advisory services are provided by Titan.

Information provided by Titan Support is for informational and general educational purposes only and is not investment or financial advice.

Contact Titan at support@titan.com. 508 LaGuardia Place NY, NY 10012.