Investments

Nickel Digital, Metaplex and others continue to feel the impact of FTX collapse

Some companies have resulted in layoffs to deal with their million-dollar losses.

Nickel Digital Asset Management is not the only company feeling the effects of FTX’s collapse and bankruptcy. NFT protocol Metaplex also laid off “several members of the Metaplex Studios team” due to the “indirect impact” from the collapse of crypto exchange FTX. The co-founder and CEO of Metaplex Studios, Stephen Hess, shared in a thread on Twitter:

“While our treasury wasn’t directly impacted by the collapse of FTX and our fundamentals remain strong, the indirect impact on the market is significant and requires that we take a more conservative approach moving forward.”

The Ontario Teachers’ Pension Plan has also had to swallow some losses. According to an announcement made by the Canadian-based teachers’ pension fund, it invested $75 million into FTX International and its US entity, FTX.US. The Ontario Teachers’ Pension Plan shared that the investment “represented less than 0.05%” of its total net assets and “equated to ownership of 0.4% and 0.5% of FTX International and FTX.US, respectively.” Although disappointed by its losses, the pension plan asserts that “the financial loss from this investment will have limited impact on the Plan, given its size relative to our total net assets and our strong financial position.”

Related: Crypto Biz: FTX fallout leaves blood in its wake

On Nov. 18, Cointelegraph reported that Genesis Block, a frontrunner for providing cryptocurrency retail services in Hong Kong, separate from the institutional cryptocurrency trading services Genesis, will begin closing down its over-the-counter (OTC) online trading portal starting Dec. 10.

London-based crypto investment firm Nickel Digital Asset Management reported on Nov. 18 that it has around $12 million of its funds stuck on FTX. According to founder and chief investment officer Michael Hall, the company has been unable to withdraw funds, which allegedly account for an estimated 6% of its $200 million in assets under management.

$138B investment manager Man Group to launch crypto hedge fund: Report

Institutional investors still see a future for Bitcoin and cryptocurrencies despite the epic collapse of FTX and Alameda Research.

London-based investment manager Man Group Plc is preparing to launch a cryptocurrency hedge fund, signaling continued investor appetite for digital assets in the wake of FTX’s monumental collapse earlier this month. 

Bloomberg reported on Nov. 18 that Man Group is preparing to launch its crypto-focused hedge fund through its computer-led trading unit AHL. Citing private sources, Bloomberg disclosed that the new hedge fund could be ready by the end of the year. 

A spokesperson for Man Group declined to comment on the matter when asked by Cointelegraph.  

Man Group already has exposure to digital assets through AHL, which actively trades crypto futures. By the end of September, Man Group had $138.4 billion in assets under management, down slightly from $142.3 billion during the previous quarter.

The company trades publicly on the London Stock Exchange and is a component of the FTSE 250.

Institutional appetite for digital assets like Bitcoin (BTC) has grown over the past two years, driven partly by the recognition that crypto represents a new investment class. However, broad institutional exposure to crypto has been hindered by a lack of clear regulations and the perception that fiduciary standards prevent fund managers from openly advocating for the sector.

Related: Amid FTX collapse, crypto funds see largest inflows in 14 weeks

Crypto’s push for mass adoption may have been hindered by the recent collapse of FTX and the firm’s subsequent Chapter 11 filing. Some believe that FTX’s failure will put more regulatory scrutiny on the industry at a time when investors were anticipating clearer and perhaps more favorable guidelines.

Tim Draper still positive on $250K Bitcoin price prediction in 2023

The collapse of FTX crypto exchange has nothing to do with the success of Bitcoin because BTC is decentralized and FTX was not, Tim Draper said.

Billionaire venture capitalist and serial blockchain investor Tim Draper is not giving up on his near-term Bitcoin (BTC) prediction despite the recent issues in the cryptocurrency industry.

Draper continues to stick with his optimistic prediction that Bitcoin will hit $250,000 in 2023 despite the ongoing crypto crisis fueled by FTX.

“No change in the price prediction. Still $250,000 by early next year,” Draper stated in an interview with Cointelegraph on Nov. 15.

The collapse of the FTX crypto exchange has nothing to do with the success of Bitcoin because Bitcoin is decentralized, and FTX was not, according to Draper.

“FTX was centralized, reliant on a single founder,” the billionaire investor stated, referring to FTX creator and former CEO Sam Bankman-Fried. “When a currency is centralized — a central bank for instance — it has a single point of failure, and can also be manipulated,” he added.

According to Draper, the fall of FTX would only trigger more decentralization in crypto as the latest events have once again demonstrated the biggest vulnerabilities of centralization:

“I think this fiasco is going to bring on a lot more Bitcoin maximalists. Note that your money is not secure in a centralized system, whether crypto or fiat.”

Draper also emphasized the importance of self-custody, which comes in line with principles of decentralization. A the same time, he also expressed confidence centralized exchange Coinbase, stating, “I also custody my tokens with Ledger and Coinbase. Neither of them are using my tokens to borrow or invest.”

As previously reported by Cointelegraph, Draper first made his famous Bitcoin prediction back in 2018, forecasting that BTC would reach $250,000 by the end of 2022 or early 2023.

The investor has reiterated his prediction multiple times since, ignoring major bear markets and the fallout from the collapse of major crypto exchanges and investment firms. 

Related: Bitcoin will shoot over $100K in 2023 before ‘largest bear market’ — Trader

Not everyone holds the same amount of optimism about Bitcoin’s price in the near future though. One Bitcoin advocate took to Twitter on Nov. 7 to criticize Draper’s prediction, arguing that it’s clear that Bitcoin is not going to hit $250,000 by mid-2023. He also called for learning from the past, referring to the failed Bitcoin prediction by the late John McAfee.

According to Binance CEO Changpeng Zhao, the FTX fiasco has set the crypto industry back a few years, with more regulatory scrutiny coming.

Additional reporting by Rachel Wolfson.

SEC pushes deadline to decide on ARK 21Shares spot Bitcoin ETF to January 2023

“The Commission finds that it is appropriate to designate a longer period within which to issue an order approving or disapproving the proposed rule change,” said the SEC.

The United States Securities and Exchange Commission, or SEC, has extended its window to decide on whether shares of ARK 21Shares’ Bitcoin exchange-traded fund could be listed on the Chicago Board Options Exchange BZX Exchange.

In a Nov. 15 announcement, the SEC issued a notice for a longer designation period for the application of ARK 21Shares’ Bitcoin (BTC) ETF, originally filed with federal regulator on May 13. The SEC twice extended its window to approve or disapprove of the crypto investment vehicle in July with an extension and in August with a comment period.

“The Commission finds that it is appropriate to designate a longer period within which to issue an order approving or disapproving the proposed rule change so that it has sufficient time to consider the proposed rule change and the issues raised therein,” said SEC assistant secretary Sherry Haywood. “Accordingly, the Commission […] designates January 27, 2023, as the date by which the Commission shall either approve or disapprove the proposed rule change.”

Ark Invest originally partnered with Europe-based ETF issuer 21Shares to file for a spot Bitcoin ETF listed on the Cboe BZX Exchange in 2021, but the SEC rejected the application in April. With the Nov. 15 announcement, the federal regulator has effectively exhausted its ability to continue to delay a decision on the crypto ETF under current SEC rules.

Related: Chamber of Digital Commerce says ‘the time has come’ for the SEC to approve a Bitcoin ETF

To date, the SEC has never approved a spot crypto ETF in the United States but gave the green light to investment vehicles linked to BTC futures with a fund from ProShares starting in October 2021. Upon having its application rejected, digital asset manager Grayscale pursued legal action against the SEC, arguing its refusal to approve a BTC ETF was “arbitrary, capricious and discriminatory.” Other firms including VanEck have continued to pursue applications with the SEC for a crypto spot investment vehicle.

Binance’s CZ says users share blame for placing trust in FTX, should take responsibility

The Binance CEO was responding to a questioner who accused the company of profiting from FTX’s downfall while normal users suffered.

During an ask-me-anything (AMA) session on Twitter Spaces on Nov. 14, Binance CEO Changpeng Zhao, also known as CZ, urged crypto users to take responsibility for their investment decisions and not put all of the blame on others when things go south.

“As a user, you also have responsibility — you can’t just blame all of the responsibility to other people. When bad things happen, if you blame all of the responsibility, if it’s always to other people, you will never be successful. You are also always looking at the most responsible person to yourself, which is yourself.”

The statement came in response to a question about whether Binance should reimburse users who have lost money in FTX. A participant in the AMA alleged that Binance gave credibility to FTX and may have also profited from funds that belonged to users. The questioner asked CZ whether Binance should give back the money it recently made from selling its bag of FTX’s utility token, FTX Token (FTT).

Binance first invested in FTX in December 2019. In July 2021, the company sold its shares for $2.1 billion worth of Binance USD (BUSD) and FTT. Last week, Binance announced that it would be selling all of its FTT over the next few months. However, Binance was unable to complete the sale before FTX suffered a liquidity crisis and filed for bankruptcy.

CZ responded by emphasizing the public nature of Binance’s trades, noting that the company entered early and exited early, and both transactions were publicly visible. “We did not hide it, and we did not, not disclose it,” he said.

He also stated that Binance only sold a small amount of its FTT, claiming that the rest is still in the company’s possession and that it has taken losses on the holding like everyone else:

“We had $580 million worth of FTT. We sold a small portion of it. We still have a large bag. So, I think we acted in very ethical ways.”

Despite this defense of Binance’s actions, CZ also sought to find common ground with the questioner. He said that Binance would try to help FTX users as much as it could in the spirit of growth within the industry. On the other hand, he said he did not want to “create a situation where anything that goes down in the industry, Binance has to pay for it.”

At the end of his answer, CZ admitted that large, institutional investors do share some responsibility for giving credibility to FTX:

“The VC [venture capital] investors, including us, why did we invest in them? I think that accusation was actually somewhat accurate. All the VC investors that invested in FTX made a mistake, and many of them are very professional investors. Why did they not discover this problem?”

Crypto token supplies explained: Circulating, maximum and total supply

Circulating, maximum and total supply are all essential metrics for an investor’s price discovery. Find out here what they are and how they can be used.

Total supply vs. maximum and circulating supply

Circulating and maximum supply are equally important in their own use, and understanding their implication vs. the total supply can help assess their impact on the cryptocurrency’s price.

How a price may change in the future is a crucial assessment for an investor who could plan a different strategy depending on how each metric performs against the total supply. Total and circulating supply can change over time, so it’s essential to keep up to date with the latest developments of a project.

A summary of differences between total supply, maximum and circulating supply can be found in the below table:

Total supply vs. maximum supply vs. circulating supply

Cryptocurrency coins or tokens can be easily compared to publicly traded shares in the stock market, as their price reflects supply and demand conditions. The more coins are in existence, the more demand there needs to be for a price to increase.

A low supply means that the token (a share) is scarce and if in high demand, its price will likely rise. On the other hand, if the demand for a cryptocurrency is low but has a large supply, its price may drop.

What is a total supply?

A token’s total supply is calculated by adding the circulating supply to the number of coins that have been mined but not yet distributed in the market.

In the case of coins reserved for staking rewards, for instance, they have already been minted. Still, they are locked up in the project’s protocol and are only distributed when the staker meets a particular condition.

Another instance occurs when a new cryptocurrency project is launched, and the number of tokens issued is not equal to the one being distributed. These types of measures are usually taken to follow demand and not oversupply a cryptocurrency that could, as a result, affect the price negatively.

It could also be the case of tokens created by developers at a blockchain’s launch as premine to use as development funds but have not been circulated yet. Moreover, burned coins or tokens are not calculated in the total supply, as they are tokens sent and permanently locked up in a burned address that nobody will ever be able to access and are therefore eliminated forever.

It is possible to increase the total token supply, depending on the crypto protocol’s rules. With Bitcoin, for instance, unless there is maximum consensus to change the protocol, its total supply of 21 million coins can’t ever be changed. With other tokens, developers could potentially change a protocol’s supply rule by planning in advance a variable in the smart contract.

What is the maximum supply?

A cryptocurrency’s maximum supply is the total number of tokens that will ever be mined, and it is usually defined when the genesis block is created.

Bitcoin’s maximum supply is capped at 21 million, and although anything is possible, its strict protocol and code are built so that no more BTC can ever be mined. Other cryptocurrencies do not have a maximum supply but may have a cap on the number of new coins that can be minted with a specific cadence, like in the case of Ether.

Stablecoins, on the other hand, tend to keep the maximum supply constant at all times to avoid a supply shock that could affect and fluctuate the price too much. Their stability is guaranteed by collateral reserve assets or algorithms created to control supply through the burning process.

Algorithmically-backed coins are designed to maintain a stable price, but they have drawbacks as they are vulnerable to de-pegging risks. Also, non-algorithmic stablecoins like Tether may risk de-pegging, as happened in June 2022, showing that even coins that should provide more certainty may be at risk.

The other two metrics — circulating and total supply — also affect a token’s price, but to a lesser extent than the maximum supply. When a cryptocurrency hits maximum supply, no more new coins can ever be created. When that happens, two main results are produced:

  • The cryptocurrency becomes more scarce and as a result, its price may increase if demand exceeds supply;
  • Miners have to rely on fees to get rewards for their contributions.

In the case of Bitcoin, the total supply gets cut in half through a process called the halving, so it is calculated that it will reach its maximum supply of 21 million coins in the year 2140. Although Bitcoin’s issuance increases over time through mining and is therefore inflationary, block rewards are cut in half every four years, making it a deflationary cryptocurrency.

What is a circulating supply?

A cryptocurrency circulating supply refers to the number of tokens in circulation in the market at any given time that are available for trade.

The circulation supply metric is used to define the market capitalization of a given cryptocurrency and accounts for the size of its economy. A cryptocurrency’s market cap is obtained by multiplying the price per unit by the number of all the existing coins in a blockchain, even the ones that have been lost or confiscated.

Somewhat emblematic is the example of Bitcoin and its creator, Satoshi Nakamoto, who mined millions of BTC in the early years but never moved them. Whatever the reason behind such a decision, all those Bitcoin are still included in the total circulating supply of the cryptocurrency.

There is a sub-metric of market cap, denominated realized market cap, which calculates the price of a coin when it was last moved as opposed to the current value. Realized market cap does not include coins that have been lost or are dormant in a blockchain, reducing their impact on the price.

Some cryptocurrencies, like Bitcoin, have a finite supply, and their circulation is only increased through mining. On the other hand, developers of some more centralized tokens can increase their circulation supply through instantaneous minting, a bit like central banks.

Circulation supply can also decrease by a process called burning, which means destroying the coins by sending them to a wallet whose keys are not available to anyone. For this reason, the circulation supply metric should be considered somehow approximate.

What is the crypto token supply?

The crypto token supply establishes how many cryptocurrency coins will exist at any particular time and could be the circulating, maximum or total supply.

The total supply of a cryptocurrency refers to the sum of the circulating supply and the coins that are locked up in escrow, a smart contract where a third party temporarily keeps an asset until a particular and agreed condition is met. The maximum supply is the upper limit on the number of tokens that can be created, while the circulating supply is the number of tokens that exist and are available for trade in the market.

All the cryptocurrency supply metrics are crucial for determining token distribution, demand and market capitalization. They can impact the price of a cryptocurrency and are essential criteria for investors who want to assess a project’s worth.

Unlike fiat currencies, which central banks can print at will, most cryptocurrency tokens have a predetermined supply that cannot be increased or decreased freely. A token’s supply can be released at once, but most cryptocurrencies are mined such as proof-of-work (PoW) coins or minted in the case of proof-of-stake (PoS) coins over time.

Some cryptocurrencies have a limited supply, like Bitcoin (BTC), which will only ever have a finite supply of 21 million coins. Other cryptocurrencies have a maximum supply but not a finite supply. Ether’s (ETH) supply, for example, is not hard-capped like Bitcoin, but the issuance of new coins was fixed at 1,600 ETH per day after the Merge occurred.

Binance CEO CZ on FTX crash: “We’ve been set back a few years”

With one of the biggest crypto businesses falling overnight after getting caught misappropriating user funds, CZ believed the episode was devastating for the industry, which took away a lot of consumer confidence.

Crypto exchange FTX joined many other fallen projects — including Terra (LUNA), 3AC, Celsius and Voyager — in filing for bankruptcy in 2022. Owing to the devastation caused by multi-billion dollar losses suffered by businesses and investors, the man running the biggest crypto exchange, Binance CEO Changpeng “CZ” Zhao, envisions an era of greater regulatory scrutiny in the near future.

With one of the biggest crypto businesses falling overnight, CZ believed the episode was devastating for the industry, which took away a lot of consumer confidence. Speaking at Indonesia Fintech Summit 2022, he said:

“I think basically we’ve been set back a few years now. Regulators rightfully will scrutinize this industry much, much harder, which is probably a good thing, to be honest.”

Regulations in crypto historically circled around Know Your Customer (KYC) and Anti-Money Laundering (AML). However, CZ reiterated his long-standing belief that regulations must focus on exchange operations, such as business models and proof of reserves. As a result, he believed that tighter regulatory scrutiny around crypto business operations is around the corner.

CZ sharing his thoughts on FTX and the future of crypto during Indonesia Fintech Summit 2022. Source: YouTube

While FTX’s collapse is bound to have a short-term impact on retail investors, in the longer term, this is a wake-up call for discussions about how to handle risks across crypto ecosystems. Speaking specifically about FTX, he said:

“The last three days is just a revelation of problems. The problems were there way longer. This problem wasn’t created in the last three days.”

CZ pointed out that the biggest red flag about FTX was Alameda Research’s financials, which were full of FTX Tokens (FTT) that made him finalize the decision to sell off Binance’s FTT holdings worth over $2 billion at the time.

The following day, FTX CEO Sam Bankman-Fried reached out to CZ with a deal that “did not make sense from a number of fronts”. At the same time, CZ hoped to get an over-the-counter (OTC) deal for protecting users:

“Original intention was let’s save the users, but then the news of misappropriating user funds, especially U.S Regulatory Agencies investigations (made us realize) we can’t touch that anymore.”

CZ believes that increasing transparency and educating regulatory agencies about crypto audits and cold wallet information will make the industry much healthier. Finding the right balance of rules is not ask, he said.

The entrepreneur highlighted the need for easy tools for saving private keys and other security functionalities but argued that the crypto ecosystem will grow in incremental steps and not giant leaps.

Related: Binance Proof-of-Reserve pledge gains support following FTX crisis

Taking a proactive approach in regaining investor confidence, Binance published a new page titled “Proof of Assets,” which displays details about the exchange’s on-chain activity for its hot and cold wallet addresses.

“Our objective is to allow users of our platform to be aware and make informed decisions that are aligned with their financial goals,” said Binance in an official statement.

Binance CEO CZ on FTX crash: ‘We’ve been set back a few years’

With one of the biggest crypto businesses falling overnight after getting caught misappropriating user funds, CZ believed the episode was devastating for the industry, which took away a lot of consumer confidence.

Crypto exchange FTX joined many other fallen projects — including Terra (LUNA), 3AC, Celsius and Voyager — in filing for bankruptcy in 2022. Owing to the devastation caused by multi-billion dollar losses suffered by businesses and investors, the man running the biggest crypto exchange, Binance CEO Changpeng “CZ” Zhao, envisions an era of greater regulatory scrutiny in the near future.

With one of the biggest crypto businesses falling overnight, CZ believed the episode was devastating for the industry, which took away a lot of consumer confidence. Speaking at Indonesia Fintech Summit 2022, he said:

“I think basically we’ve been set back a few years now. Regulators rightfully will scrutinize this industry much, much harder, which is probably a good thing, to be honest.”

Regulations in crypto historically circled around Know Your Customer (KYC) and Anti-Money Laundering (AML). However, CZ reiterated his long-standing belief that regulations must focus on exchange operations, such as business models and proof of reserves. As a result, he believed that tighter regulatory scrutiny around crypto business operations is around the corner.

CZ sharing his thoughts on FTX and the future of crypto during Indonesia Fintech Summit 2022. Source: YouTube

While FTX’s collapse is bound to have a short-term impact on retail investors, in the longer term, this is a wake-up call for discussions about how to handle risks across crypto ecosystems. Speaking specifically about FTX, he said:

“The last three days is just a revelation of problems. The problems were there way longer. This problem wasn’t created in the last three days.”

CZ pointed out that the biggest red flag about FTX was Alameda Research’s financials, which were full of FTX Tokens (FTT) that made him finalize the decision to sell off Binance’s FTT holdings worth over $2 billion at the time.

The following day, FTX CEO Sam Bankman-Fried reached out to CZ with a deal that “did not make sense from a number of fronts”. At the same time, CZ hoped to get an over-the-counter (OTC) deal for protecting users:

“Original intention was let’s save the users, but then the news of misappropriating user funds, especially U.S Regulatory Agencies investigations (made us realize) we can’t touch that anymore.”

CZ believes that increasing transparency and educating regulatory agencies about crypto audits and cold wallet information will make the industry much healthier. Finding the right balance of rules is not ask, he said.

The entrepreneur highlighted the need for easy tools for saving private keys and other security functionalities but argued that the crypto ecosystem will grow in incremental steps and not giant leaps.

Related: Binance Proof-of-Reserve pledge gains support following FTX crisis

Taking a proactive approach in regaining investor confidence, Binance published a new page titled “Proof of Assets,” which displays details about the exchange’s on-chain activity for its hot and cold wallet addresses.

“Our objective is to allow users of our platform to be aware and make informed decisions that are aligned with their financial goals,” said Binance in an official statement.

Binance CEO CZ on FTX crash: ‘We’ve been set back a few years’

With one of the biggest crypto businesses falling overnight after getting caught misappropriating user funds, CZ believed the episode was devastating for the industry, which took away a lot of consumer confidence.

Crypto exchange FTX joined many other fallen projects — including Terra, Three Arrows Capital, Celsius and Voyager — in filing for bankruptcy in 2022. Owing to the devastation caused by multi-billion United States dollar losses suffered by businesses and investors, the man running the biggest crypto exchange, Binance CEO Changpeng “CZ” Zhao, envisions an era of greater regulatory scrutiny in the near future.

With one of the biggest crypto businesses falling overnight, CZ believed the episode was devastating for the industry, which took away a lot of consumer confidence. Speaking at Indonesia Fintech Summit 2022, he said:

“I think basically we’ve been set back a few years now. Regulators rightfully will scrutinize this industry much, much harder, which is probably a good thing, to be honest.”

Regulations in crypto historically circled around Know Your Customer (KYC) and Anti-Money Laundering (AML). However, CZ reiterated his long-standing belief that regulations must focus on exchange operations, such as business models and proof of reserves. As a result, he believed that tighter regulatory scrutiny around crypto business operations is around the corner.

CZ sharing his thoughts on FTX and the future of crypto during Indonesia Fintech Summit 2022. Source: YouTube

While FTX’s collapse is bound to have a short-term impact on retail investors, in the longer term, this is a wake-up call for discussions about how to handle risks across crypto ecosystems. Speaking specifically about FTX, he said:

“The last three days is just a revelation of problems. The problems were there way longer. This problem wasn’t created in the last three days.”

CZ pointed out that the biggest red flag about FTX was Alameda Research’s financials, which were full of FTX Token (FTT), that made him finalize the decision to sell off Binance’s FTT holdings worth over $2 billion at the time.

The following day, FTX CEO Sam Bankman-Fried reached out to CZ with a deal that “did not make sense from a number of fronts”. At the same time, CZ hoped to get an over-the-counter (OTC) deal for protecting users:

“Original intention was let’s save the users, but then the news of misappropriating user funds, especially U.S Regulatory Agencies investigations (made us realize) we can’t touch that anymore.”

CZ believes that increasing transparency and educating regulatory agencies about crypto audits and cold wallet information will make the industry much healthier. Finding the right balance of rules is not asked, he said.

The entrepreneur highlighted the need for easy tools for saving private keys and other security functionalities but argued that the crypto ecosystem will grow in incremental steps and not giant leaps.

Related: Binance Proof-of-Reserve pledge gains support following FTX crisis

Taking a proactive approach to regaining investor confidence, Binance published a new page titled “Proof of Assets,” which displays details about the exchange’s on-chain activity for its hot and cold wallet addresses.

“Our objective is to allow users of our platform to be aware and make informed decisions that are aligned with their financial goals,” said Binance in an official statement.

Bitfinex CTO releases proof of reserves amid FTX bankruptcy fiasco

Over the past few days, major crypto exchanges, including Binance, OKX, Kucoin and Crypto.com, committed to sharing their proof of reserve to regain investor confidence.

The fall of major crypto ecosystems — such as FTX and Terra — this year highlighted the importance of transparency around the true reserves held by crypto exchanges and businesses. Amid the ongoing fear, uncertainty and doubt (FUD) across the crypto space, crypto exchange Bitfinex revealed its proof of reserves to the general public.

Over the past few days, major crypto exchanges, including Binance, OKX, Kucoin and Crypto.com, committed to sharing their proof of reserve to regain investor confidence. Walking the talk, Bitfinex chief technology officer Paolo Ardoino shared the list of the main Bitfinex wallets, last updated on November 11.

GitHub repository containing Bitfinex proof of reserves. Source: GitHub

As shown above, Ardoino shared Bitfinex’s proof of reserves on GitHub, wherein he listed a total of 135 cold and hot wallet addresses. Sparing users the trouble of going through the addresses, he listed down some of the company’s significant holdings, which included 204338.17967717 Bitcoin (BTC) and 1225600 Ether (ETH) among top holders.

Bitfinex developed an open-source library called Antani back in June 2018, which was aimed at providing transparency around proof of solvency, custody and off-chain delegated proof of vote. While overlooked in the past, Ardoino confirmed Bitfinex’s plans to revive the system that would allow users to verify their balances without compromising privacy.

Goals set by Bitfinex’s open-source library,  Antani. Source: Antani white paper

Antani’s white paper suggests that users will be able to verify their balances cryptographically, allowing Bitfinex users to confirm the existence of their funds and eradicate depegging risks.

While the revelation saw a warm welcome from the community, members pointed out that the data is incomplete as the information excludes Bitfinex’s liability figures.

Related: OKX, Kucoin say proof of reserves will be ready in a month

As a result of the massive outflows from crypto exchanges amid the FTX bloodbath, hardware-based cryptocurrency wallet provider Ledger suffered from a temporary server outage.

“​​​​After the FTX earthquake, there’s a massive outflow from exchanges to Ledger security and self-sovereignty solutions,” reasoned Ledger chief technology officer Charles Guillemet while revealing that the systems were back running soon after.