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Solana NFT Protocol Metaplex announces layoffs after FTX’s collapse

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Solana NFT Protocol Metaplex announces layoffs after FTX’s collapse

Stephen Hess, Co-founder and Chief Executive Officer (CEO) of the Solana NFT protocol Metaplex, has announced that it is laying off several individuals in the wake of FTX’s collapse.

Hess added that Metaplex, the base layer of the Solana NFT ecosystem, is required to let go of its employees, even though its treasury isn’t directly impacted by the collapse of FTX. Worth pointing out, however, that the number of discontinued employees hasn’t been specified.

Can Metaplex survive the second crypto-crash?

Metaplex is the protocol that powers NFTs on Solana, which has taken root as an alternative NFT network to dominant Ethereum. In January 2022, the Metaplex Foundation raised $46 million, funded by the likes of Multicoin Capital, Jump Crypto, and NBA legend Michael Jordan.

The collapse of the Terra stablecoin system in May 2022 led to a market crash with very long-term repercussions. During the bear market following this debacle, Metaplex launched its native governance token, MPLX, in September 2022. The token has since continued to fall below its opening price of $0.88, with the same trading at 0.056 at press time.

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On 10 November, the Solana Foundation revealed that it had around $1 million in assets on FTX before the company paused processing customer withdrawals. These assets are now trapped on the platform, awaiting the outcome of FTX’s bankruptcy proceedings. The funds amount to less than 1% of its funds.

In addition, the Solana Foundation owns around 3.24 million shares of FTX Trading LTD common stock, 3.43 million FTT tokens, and 134.54 million SRM tokens from Project Serum. As of 7 November, its FTT and SRM tokens were worth $75.5 million and $101 million, respectively.

Sam Bankman-Fried “SBF” founded Project Serum, the Solana-based DEX in 2020.

SOL falls by 60%

As the NFT industry is facing the consequences of debates over creator royalties, NFT sales on the Solana ecosystem have continued to fall over time.

Solana was one of the favorite networks of FTX founder SBF. Once FTX collapsed, the price of Solana’s native token SOL dropped by over 60% on the charts, falling from $32.74 on 7 November to $13.55 at press time. In fact, the said depreciation was 3x the percentage fall registered by the likes of BTC and ETH.

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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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What Huobi’s latest report means for its crypto-holdings worth…

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What Huobi’s latest report means for its crypto-holdings worth…

Chinese cryptocurrency exchange Huobi Global yesterday published an asset transparency report. It announced its total estimated value of reserves to be $3.5 billion. The exchange reassured its users that their funds are safe, despite the crypto-market witnessing a collapse over the past week due to the FTX debacle.

The exchange noted in its report that it performed a Merkle Tree Proof of Reserves audit early last month when the exchange’s founder sold his controller stake to About Capital. Huobi will publish a third-party Merkle Tree Proof of Reserves audit within 30 days to boost user confidence even further.

Report or not, HT dips on the charts

Huobi Global not only holds HT tokens, but some of them are also held by Huobi Global users.

Huobi’s report, on the other hand, couldn’t manage to assuage a bearish market sentiment. HT, at press time, was trading at $4.82 – A 40% drop over the last seven days.

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Following the publication of the report, Huobi reportedly saw outflows of 10,000 ETH. According to the exchange, these outflows were part of routine operations.

According to Huobi’s team, the addresses it listed include some hot wallets. The on-chain deposits and withdrawals are part of normal operations, they added. The exchange is operating normally, with the exchange assuring the safety of users’ assets. Finally, there are no and there will be no withdrawal restrictions for users.

Exchanges to publish Proof of Reserves

With the FTX debacle unfolding, cryptocurrency exchanges around the world have announced their plans to publish their proof of reserves. This, in order to reassure users that their funds remain safe.

Changpeng Zhao, CEO of Binance, claimed that all crypto-exchanges should do merkle-tree proof-of-reserves. Binance will begin the process soon. Binance also disclosed that it holds crypto-reserves worth $69 billion.

Seychelles-based KuCoin will be publishing its Merkle tree proof-of-reserves within a month. Another Seychelles-based crypto-exchange OKX also said that it is hiring an auditor and will publish an auditable Merkle POF soon.

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Bitget will also be launching a Merkle Tree proof-of-reserves to promote complete transparency and comprehensive asset auditing.

Deribit also took to Twitter to announce that it will be publishing its Merkle POF soon. ByBit CEO Ben Zhou also announced the same on Twitter.

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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Bitcoin’s energy usage

Ethereum Co-Founder Vitalik Buterin Discusses Bitcoin’s Long-Term Security

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Ethereum Co-Founder Vitalik Buterin Discusses Bitcoin’s Long-Term Security

On September 1, Vitalik Buterin conducted an interview with the economics author Noah Smith and the co-founder of Ethereum spoke an awful lot about Bitcoin and the network’s long-term security. Buterin also discussed the crypto economy’s crash and he insisted he was “surprised that the crash did not happen earlier.”

Buterin: Bitcoin Is ‘Not Succeeding at Getting the Level of Fee Revenue Required to Secure What Could Be a Multi-Trillion-Dollar System’

Ethereum’s co-founder Vitalik Buterin recently did an interview with the economics author Noah Smith and Buterin had a lot to say about the current state of crypto. Smith first asked Buterin about his thoughts about the recent crypto crash and Buterin said he thought that it would have crashed sooner.

“I was surprised that the crash did not happen earlier,” Buterin said during the interview. “Normally crypto bubbles last around 6-9 months after surpassing the previous top, after which the rapid drop comes pretty quickly. This time, the bull market lasted nearly one and a half years,” the developer added.

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Buterin also talked a great deal about the Bitcoin (BTC) network and The Merge, Ethereum’s highly anticipated transition from proof-of-work (PoW) to proof-of-stake (PoS). He claims Bitcoin is not cutting it when it comes to fee revenue from block subsidies.

“In the long term, Bitcoin security is going to come entirely from fees, and Bitcoin is just not succeeding at getting the level of fee revenue required to secure what could be a multi-trillion-dollar system,” Buterin said.

When Smith asked Buterin about Bitcoin’s energy usage, the Ethereum co-founder noted that PoS will not only reduce harm to the environment it’s also about keeping the blockchain secure.

“A consensus system that needlessly costs huge amounts of electricity is not just bad for the environment, it also requires issuing hundreds of thousands of BTC or ETH every year,” Buterin stressed. “Eventually, of course, the issuance will decrease to near-zero, at which point that will stop being an issue, but then Bitcoin will start to deal with another issue: how to make sure that it stays secure.” Buterin added:

And these security motivations are also a really important driver behind Ethereum’s move to proof-of-stake.

Ethereum Co-Founder Insists Early Proof-of-Work Era Is ‘Unsustainable and It’s Not Coming Back’

Buterin understands that Bitcoin won’t change its consensus mechanism, at least for now, but if the chain was attacked, he believes the discussion of a hybrid PoS algorithm could come into play.

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“Of course, if Bitcoin actually gets attacked, I do expect that the political will to switch to at least hybrid proof of stake will quickly appear, but I expect that to be a painful transition,” the software developer told Smith. The Ethereum co-founder said that he thinks people have the wrong idea about PoS giving the largest stakeholders control over the network.

“There are also people who try to claim that PoS allows big stakeholders to control the protocol, but I think those arguments are just plain wrong,” Buterin said. “They rest on a misconception that PoW and PoS are governance mechanisms, when in reality they are consensus mechanisms. All they do is help the network agree on the right chain.”

Buterin continued by noting that he thinks the early version of PoW was a good starting point but nowadays he believes it’s antiquated, on its way out the door, and likely won’t return.

The highly democratized early proof-of-work era was a beautiful thing, and it helped tremendously in making cryptocurrency ownership more egalitarian, but it’s unsustainable and it’s not coming back.

Tags in this story

Bitcoin’s energy usage, Blockchain security, Buterin, consensus mechanisms, crypto bubbles, crypto crash, Fee revenue, governance mechanisms, interview, network, network shift, Noah Smith, PoS, PoW, Proof of Work, Proof-of-Stake, Security, stakeholders, The Merge, transition, unsustainable, Vitalik Buterin

What do you think about Vitalik Buterin’s comments about the crypto crash, the Bitcoin network, and PoW vs. PoS? Let us know what you think about this subject in the comments section below.

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Jamie Redman

Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 5,700 articles for Bitcoin.com News about the disruptive protocols emerging today.

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Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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Investor Sentiment Falls As Crypto Market Sheds $100 Billion

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Investor Sentiment Falls As Crypto Market Sheds $100 Billion

The crypto market has now been put under another challenge. In the past day, bitcoin prices have dropped about $2,000, which has seen the crypto market lose a significant amount of value. As it now stands, the crypto market cap is down more than $100 billion and is now dangerously close to falling below $1 trillion once more. This has expectedly affected the market sentiment, triggering more fear in the market.

Market Turns To Fear

The crypto market had been seeing some recovery with the anticipation around the Ethereum Merge. But as the excitement has worn off, the market has started to see a drastic correction in price. Bitcoin had hit $25,000 at its peak this last recovery cycle. However, it has since shed the majority of those gains.

With this, the crypto market sentiment recovered for a time after bitcoin began its rally. At its highest point, the Fear & Greed Index has a score of 42, the highest point in four months. This put it as close to greed as it has been, but the market had other ideas.

The price of bitcoin had retraced back below $22,000, and with it, the market sentiment had declined. It closed Thursday with a low score of 30, which put it firmly back in the fear territory. The retracement is reflected in the crypto market, falling from $1.1 trillion to about $1 trillion at the time of this writing. 

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Crypto market cap losses $100 billion | Source: Crypto Total Market Cap on TradingView.com

As fear has seeped back into the market, investors are warier when it comes to investing in the crypto market. Perp traders had shown fatigue in the market last week, causing bitcoin funding rates to decline below neutral. Now, the rest of the market is following suit.

Recovery In Crypto Market?

With the market only just starting to retrace, it is likely that the correction is not over. Such corrections are expected when the market grows so much in such a short time. This helps prices to adjust to values that reflect their current market state.

This means that bitcoin’s price may still have some declining to do. For now, it is speculated that the bottom has been established at a price of $17,600, so bears will want to try to test the support at this point. Historical movement also supports such movements as was done with previous bear markets.

Additionally, the weekend is already here, and it is a period known for low liquidity. This means that it is likely that bitcoin will continue to trend low through the weekend. If Bitcoin’s price falls below $21,000, then the crypto market will fall below $1 trillion.

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Featured image from Coinmama, chart from TradingView.com

Follow Best Owie on Twitter for market insights, updates, and the occasional funny tweet…

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