Welcome back to Chain reaction.
Last week on the podcast, we talked about the FTX meltdown, which is still ongoing. We are taking a break from ours this week Thursday news episode for Thanksgiving, but we had a lot of stories for you on the TechCrunch website, including some from our crypto event in Miami last week.
Before going into the details, Anita wanted to share a personal note:
Hello everyone! It’s bittersweet to share that my time at TechCrunch has come to an end, and with it, my engagement with the Chain Reaction newsletter and podcast. I learned so much about the wild world of cryptocurrencies with you every week. Sorry to say goodbye, but I know you will be in great hands with Jacquelyn and the rest of the TechCrunch team. As for me, feel free to connect Chirping, where I share more about my next professional steps. Thanks for reading and listening each week. I appreciate you all so much!
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this week in web3
Here are some of the biggest cryptocurrency stories TechCrunch covered this week.
FTX Bankruptcy Hearing Outlines Details of Preemptive Checking by “Inexperienced, Unsophisticated Individuals” (TC+)
Hearings that will determine the fate of FTX, once one of the largest cryptocurrency exchanges globally, began Tuesday in the US Bankruptcy Court for the District of Delaware. “We are here on an unprecedented matter and I do not say these words lightly,” James Bromley, a partner at Sullivan & Cromwell and co-head of the firm’s global restructuring practice, said at the hearing. “This is a day one hearing well over a week after they were filed; which in itself is rare. But what we have here [ … ] it’s a different kind of animal.
Magic Eden NFT marketplace integrates with Polygon to grow blockchain gaming
NFT marketplace Magic Eden is integrating with Ethereum’s scalable Layer 2 Polygon blockchain to dive deeper into blockchain and NFT gaming ecosystems, the companies announced on Tuesday. The expansion aims to provide Magic Eden with the ability to support Polygon’s ecosystem of game developers and creators. The Polygon network hosts some of the largest web3 game projects and publishers such as Ubisoft, Atari, Animoca Brands, Decentraland, Sandbox, among others.
FTX processed billions monthly in Africa before going bankrupt
On November 14, Nestcoin, one of the leading cryptocurrency and web3 startups in Africa, announced the layoff of several employees. At least 30 employees in various departments were made redundant, while those who remained at the company saw their salaries cut by up to 40%, according to people familiar with the matter. The news is, in part, related to the downfall of cryptocurrency exchange FTX, according to CEO Yele Bademosi.
Crypto Firm Genesis Says It Has “No Plans To File For Bankruptcy Anytime Soon”
Genesis, a digital asset financial services company, may struggle as it tries to raise new capital for its lending unit or risk bankruptcy if it can’t, according to a Bloomberg report. “We have no plans to file for bankruptcy anytime soon,” a Genesis spokesperson said in an emailed statement to TechCrunch on Monday. “Our goal is to resolve the current situation by mutual consent without the need to file for bankruptcy. Genesis continues to have constructive conversations with creditors.
Binance’s CZ on FTX: “We were the last straw that broke the camel’s back”
Binance co-founder and CEO Changpeng Zhao, also known as CZ, commented on the collapse of FTX at TechCrunch Sessions: Crypto 2022. He downplayed his personal role in the series of events that ultimately led to FTX’s bankruptcy. “I still don’t think I have that much influence. I think we were the last straw that broke the camel’s back. It’s not a really strong straw,” she told TechCrunch’s Anita Ramaswamy.
the last pod
We skipped the news episode this week thanks to the good ol’ Thanksgiving we mentioned above. But, in Chain Reaction Tuesday episode we’re playing a super timely recording from Anita’s panel on stage last week with Binance founder and CEO Changpeng “CZ” Zhao. CZ has sent a number of shocks through the crypto ecosystem over the past few weeks, so Anita dived into:
- His tweets about rival exchange FTX sparking a firestorm and whether he anticipated their impact
- What Binance is doing to gain user trust and demonstrate transparency despite its worldwide regulatory issues
- Revenue streams and Binance’s strategy for weathering a crypto crisis that just got worse
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follow the money
- Carv is valued at $40 million as investors race to back web3 identity builders
- Zulu Raises $5M For Its LatAm Digital Wallet In Shaky Ground For Cryptocurrencies
- Game developer Thirdverse raises $15 million to set up web3 and VR game studio
- Privacy- and Ethereum-Focused Infrastructure Startup Nucleo Raises $4M Initial Round Led by Bain Capital Crypto and 6th Man Ventures
- Utility platform NFT Tropee has closed a €5 million seed round led by Tioga Capital
This list was compiled from information from Messari as well as reports from TechCrunch.