Cryptocurrency is seeing massive changes and centers on many controversies in the present, with some titans of the industry aiming to make a change for all and assuring a future in digital assets.
CryptoWatch is bringing you a weekly round-up of the new things in the blockchain industry, with Binance's assurance via its proof of reserves for Bitcoin, FTX's former CEO apologizing to ex-employees, and Genesis Global's debts.
The world is adapting more but the industry is seeing one of its challenging moments as well, with many coins and companies struggling in the market.
Binance: Proof of Reserves for Bitcoin is an Assurance to All
Binance is assuring the public and all its investors regarding their Bitcoin holdings, centering on the new "Proof of Reserves" system that centers on a 101 percent and 1:1 ratio for the top crypto holdings. It means that even if the crypto-exchange platform fails or closes down, people may still withdraw their funds and have them waiting for them in the end.
This was a massive move for Binance, especially as its reserves center on giving the public their rightful stakes in their money, especially in this crucial time in the cryptocurrency industry.
It also aims to avoid any problems in the future, especially as a massive platform like FTX shut down, with it also seeing hardships in returning the public's assets to withdraw their rightful funds.
The famed crypto company said that more coins will see Proof of Reserves applied to them, giving the public sure access to their funds in case of problems.
FTX's Former CEO Apologizes to Ex-Employees
Sam Bankman-Fried issued an open-letter apology to its ex-employees, one in which he admits that he has faults for the company's downfall and shutdown, leaving a massive number of its workforce out of jobs. It is known that Bankman-Fried had a massive hand in the company's operations, serving as its former CEO and leader.
The co-founder, however, stated that the $8 billion loss of the company had nothing to do with him, as per his words in the said open letter.
As per the letter (via The Guardian), Bankman-Fried said that his decision to file for bankruptcy could have been avoided if he waited eight minutes more, as potential investors came flooding in with their request for funds.
Genesis Global is in Massive Debt
Genesis Global, the brokerage and lending company under the Digital Currency Group, sees massive debt on its company, incurring these from multiple sources accumulating up to $2.8 billion. The funds were used to share with other subsidiaries, and also to Barry Silbert's DCG, one that would keep the company afloat amidst its recession.
Moreover, this problem is not yet the end, as the company also claimed that it forecasted that its annual revenue would fall this year.
The company sees an estimate of 20 percent lower than last year's results, with it collectively seeing $800 million in its earnings.
Related Article : FTX Reveals 8 Percent of Customers Come From Mainland China Amidst Beijing Crypto Ban
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Written by Isaiah Richard
