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Is Genesis the latest victim of the FTX contagion? Here’s the unsaid truth

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Is Genesis the latest victim of the FTX contagion? Here’s the unsaid truth

  • Genesis announced it was pausing its withdrawals but other features running
  • A couple of crypto projects have come out to state their exposure or lack of it to Genesis

Another blow has been dealt to the cryptocurrency industry just as it was beginning to recover from the ripple effects of the FTX crash and apparent bankruptcy filing.

This November has been a brutal one for cryptocurrencies, and now Genesis has stated that it would no longer be processing withdrawals. How far does this go and what aspects of Genesis were impacted by this?

Explaining the Genesis

On 16 November, Genesis Global, an institutional crypto lender, announced that it would temporarily halt redemptions and new loan originations. Genesis Global claimed unusual market instability connected to the collapse of the ailing cryptocurrency exchange FTX as the reason for the decision.

This turmoil led to abnormally high withdrawals, which the company alleges depleted its liquidity.

Genesis Global further asserted that all of its businesses, including derivatives trading, custody, and spot trading are running normally. Digital Currency Group, the company’s parent company, had stated, categorically, that the news had no bearing on its own operations since the release.

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Gemini and Circle exposed, Tether covered 

Well, Gemini, a cryptocurrency exchange, posted on 16 November that there could be withdrawal delays for its Earn product. The Earn product on the cryptocurrency exchange is serviced by Genesis.

This product allows users to earn interest on their idle cryptocurrency deposits. The announcement went on to say that the cryptocurrency exchange was making efforts to return Earn program customer funds as soon as possible. The company also assured customers that the move had no negative effects on any other Gemini offerings.

The Gemini platform’s users appeared to be terrified by the suspension of withdrawals for the Earn program. This may have been made worse by the brief outage that the exchange experienced on 16 November.

Interestingly, on the same day, Tether published a brief statement claiming that the company was not involved with Genesis Global or the Gemini Earn program. This meant there was no USDT on deposit with the institutional lender for the project.

On the other hand, Circle claimed to have exposure to Genesis. In response to the Genesis announcement, the project issued a statement revealing the existence of a product dubbed Circle Yield.

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It also mentioned Genesis as a counterparty in Circle Yield, which was described as an overcollateralized fixed-term yield contract. The loans’ total value was listed as $2.6 million by Circle, who added that “robust collateral agreements” had been put in place to safeguard the loans.

There are still rumors of an additional impending collapse connected to the FTX catastrophe. The cryptocurrency industry appears to be on guard at the moment, bracing for the worst. The longest month ever for investors and enterprises could be this November.

Ser Suzuki Shillsalot has 8 years of experience working as a Senior Investigative journalist at The SpamBot Times. He completed a two-hour course in journalism from a popular YouTube video and was one of the few to give it a positive rating. Shillsalot’s writings mainly focus on shilling his favourite cryptos and trolling anyone who disagrees with him. P.S – There is a slight possibility the profile pic is AI-generated. You see, this account is primarily used by our freelancer writers and they wish to remain anonymous. Wait, are they Satoshi? :/

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Everything latest about EthereumPoW’s hashrate and mining difficulty

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Everything latest about EthereumPoW’s hashrate and mining difficulty

  • EtherePoW’s hashrate and mining difficulty are currently at their lowest levels since the launch of the network.
  • Miners have gradually exited the network.
  • Less than 1% of the total addresses on the network are active.

Almost three months after the fork of the Ethereum proof-of-work [ETHPOW] from the Ethereum mainnet, its hashrate recently touched an all-time low, data from 2Miners.com showed. 


Read EthereumPoW Price Prediction 2023-24


As of this writing, the proof-of-work network’s hashrate stood at 19.7 TH/S, the lowest point since the network was forked from the Ethereum mainnet following the merge on 15 September.

For context, on the day of the merge, the ETHPOW network had a hashrate of 68.17 TH/S, after which it declined steadily.

Source: 2Miners.com

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Typically, a steady decline in a network’s hashrate is an indication that less computing power is required to verify and add transactions to that blockchain, thus depicting the state of security on that network.

In addition, a constant fall in a hashrate also depicts miners’ exit from the network due to little or no profitability levels. 

ETH POW’s incessant decline in hashrate might be due to the gradual exit of miners from the network. Since its launch, ETHPOW’s price has declined steadily, meaning that the value of revenue paid to miners on the network has fallen over the months. 

Chandler Guo, the miner that led the push for the fork of the Ethereum mainnet network, told a crypto news outlet in an interview in September that 90% of miners on the forked network might go bankrupt. Guo said,

“Some people (miners) have free electricity and can (continue) to work on that. The other 90%, bankrupt.” 

Likewise, the network’s mining difficulty touched its lowest level since launch, data from 2Miners.com revealed. The mining difficulty is correlated to the hashrate as the former adjusts based on changes to the latter. Therefore, the higher the count of miners working on a network, the higher the mining difficulty. 

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The freefall in ETH POW mining difficulty since 15 September further confirmed the fact that several miners have left the network. At press time, this stood at 259.98 T. 

Source: 2Miners.com.

On-chain performance since the fork

According to data from OKLink, since the ETH POW network was forked, 1.67 billion transactions have been completed. To complete the same, 142.6 million ETHW tokens worth around $516.21 million have been spent by network users.

In addition, 274.58 million addresses have been created on the network since its launch. In the last 24 hours alone, over 300,000 addresses have been added. Of the total addresses on the network, only 474,677 addresses were active, at press time. This showed that less than 1% of the total addresses on the network were active. 

Source: OKLink

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Reasons why LUNA could fail to pursue investors despite these ‘Terra’fic updates

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Reasons why LUNA could fail to pursue investors despite these ‘Terra’fic updates

  • The new alpha package for TerraDart was ready
  • A new on-chain proposal also went available for voting recently, named Knowhere/Soil Protocol Grant Proposal

 Terra [LUNA]’s alpa package for TerraDart was ready to be used and this was stated by TheArchitect123 via Twitter. According to the tweet, the new alpha package for TerraDart was ready. This package could be used to communicate with LUNC Blockchain in Flutter or Dart environments.

#LUNC #LUNCCcommunity $LUNC #flutter
The new alpha package for TerraDart is now ready!
Use this package to communicate with LUNC Blockchain for Flutter or Dart Environments. https://t.co/SCkWqkBQde

— TheArchitect123 | CC & CCI (@AlphaGenius1237) December 5, 2022


Read Terra’s [LUNA] Price Prediction 2023-24


TerraDart is a Dart SDK that offers straightforward abstractions over fundamental data structures, serialization, key management, and API request creation. This would enable developers to create apps that interact with the Terra blockchain from either the Web, Mobile, or Flutter environments.

Not only this, but a new on-chain proposal named Knowhere/Soil Protocol Grant Proposal also went up for voting recently. According to the proposal, developers were asking for 187,500 LUNA in community support to keep running and maintaining their platforms and to release new features over the following six to eight months.

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However, these updates did not reflect on LUNA’s charts, as it registered negative weekly and daily gains. As per CoinMarketCap, at the time of writing, LUNA was trading at $1.57 with a market capitalization of more than $200 million.

The dark days might extend

According to Santiment data, after registering an increase, LUNA’s development activity chose to move southwards, which was negative for the network. Moreover, the crypto community also seemed to show less interest in the token as its social volume went down over the last month.

According to LunarCrush’s data, LUNA’s volatility experienced a nearly 40% decline over the last week, which too might be troublesome.

Source: Santiment

Investors can expect this

LUNA’s daily chart strengthened the bearish notion, as most market indicators suggested that the token’s price might go down in the coming days. For instance, the Exponential Moving Average (EMA) Ribbon revealed that the 20-day EMA was resting way below the 55-day EMA, which was a bearish signal.

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The Relative Strength Index (RSI) also registered a downtick. Additionally, the Bollinger Bands (BB) revealed that LUNA’s price was in a less volatile zone. This could decrease the chances of a northbound breakout. Nonetheless, the Moving Average Convergence Divergence (MACD)’s reading gave hope as it displayed a bullish crossover.

Source: TradingView

Ser Suzuki Shillsalot has 8 years of experience working as a Senior Investigative journalist at The SpamBot Times. He completed a two-hour course in journalism from a popular YouTube video and was one of the few to give it a positive rating. Shillsalot’s writings mainly focus on shilling his favourite cryptos and trolling anyone who disagrees with him. P.S – There is a slight possibility the profile pic is AI-generated. You see, this account is primarily used by our freelancer writers and they wish to remain anonymous. Wait, are they Satoshi? :/

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Ethereum may consider DAO stablecoins for the future as ETH slides

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Ethereum may consider DAO stablecoins for the future as ETH slides

  • Ethereum considered DAO-backed stablecoins as part of its future plans.
  • ETH progressed towards strong buying momentum even though sell pressure thrived.

Ethereum’s [ETH] co-founder, Vitalik Buterin, said in his 5 December blog post that DAO stablecoins could be integral to the project’s future. The crypto bigwig noted that the ability of these coins to allow collateralization makes them the most qualified.

Vitalik also mentioned that governance-backed stablecoins like RAI might have been considered. However, its negative interest rate and vulnerability made it out of the option. 


Read Ethereum’s Price Prediction 2023-2024


Choose DeFi, get efficiency

In further defense of his opinion, the founder pointed to MakerDAO [MKR] and its stablecoin, DAI, as a suitable project to lead the charge. Still, he noted that MKR had some flaws even with its innovation. He added that MKR might only be ideal long-term unless the project improves efficiency. Vitalik said,

“Maker is a fine model to get a stablecoin started, but not a good one for the long term. Hence, making decentralized stablecoins work long term requires innovating in decentralized governance that does not have these kinds of flaws.”

Further examination showed that the FTX collapse had not helped matters with exchange deposits, especially from the Ethereum community. According to Santiment, the supply on exchanges has significantly dropped.

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At press time, the ETH exchange supply was down to 14.82 million. So, this explains the notion that investors might align with Vitalik’s opinion by taking advantage of the decentralization perks.

Source: Santiment

In spite of that, recent transactions using the Ethereum blockchain were not impressively active. This was because the gas used as of this writing had slid to 16.78 billion. Hence, this was part of the reasons ETH had struggled to remain profitable.

Skating on the charts

For ETH, CoinMarketCap showed that the 24-hour performance was a 3.08% decrease in the last 24 hours. Based on the four-hour chart, the Relative Strength Index (RSI) was 49.65. This point meant that ETH was at a solid buying momentum. 

Having exited its previous oversold situation, quite a significant volume ignored flowing into Ethereum. This was because the On-Balance-Volume (OBV), showed a weak signal. With the OBV down at 1.757 million, it implied that ETH had not been able to overcome selling pressure.

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Source: TradingView

The Directional Movement Index (DMI), as seen above, signaled agreement with the OBV’s indication of seller control. This conclusion was because the negative DMI (red) lay station above the positive DMI (green).

But with the Average Directional Index (ADX) at 28.38, it could be challenging for ETH to recover. Even so, investors should not lose hope.

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Ser Suzuki Shillsalot has 8 years of experience working as a Senior Investigative journalist at The SpamBot Times. He completed a two-hour course in journalism from a popular YouTube video and was one of the few to give it a positive rating. Shillsalot’s writings mainly focus on shilling his favourite cryptos and trolling anyone who disagrees with him. P.S – There is a slight possibility the profile pic is AI-generated. You see, this account is primarily used by our freelancer writers and they wish to remain anonymous. Wait, are they Satoshi? :/

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