FTX Wallet Activity Sparks Solana Price Fears

FTX wallet activity sparks token dump fears

Concerns have arisen regarding significant fund transfers linked to FTX, indicating a potential sell-off of tokens and other assets held by the platform.

According to Arkham Intelligence, since August 31st, approximately $10 million worth of tokens associated with projects on the Solana ecosystem have been sent from an FTX wallet to another FTX wallet through the Wormhole bridge.

The movement of these tokens has sparked worries about possible token sales that could lead to price drops. However, it is unlikely that any major sales will occur in the immediate future. In a recent filing, FTX debtors proposed limits on selling digital assets to mitigate price impact: a weekly cap of $100 million and a maximum limit of $200 million. It is important for investors and users to closely monitor this situation as further developments may impact market conditions related to FTX holdings.

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Crypto funds hit $342 million outflow streak

In the past week, crypto investment products offered by asset managers like Grayscale, 21Shares, Bitwise, and ProShares experienced a total outflow of $11.2 million. This adds to the ongoing streak of outflows that has reached a total of $342 million over several weeks.

However, there is some positive news amidst this trend. The outflow has significantly decreased compared to the previous week's figure of $168 million. In fact, bitcoin products have managed to defy this trend and are showing signs of improvement.

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Binance head of product quits the company

Binance's global head of product, Mayur Kamat, has stepped down from his position. This comes at a time when several other executives have also left the cryptocurrency exchange. Among them are Chief Strategy Officer Patrick Hillmann and General Counsel Hon Ng.

The departure of Kamat and other executives coincides with increased regulatory scrutiny in the United States. Authorities there have been cracking down on activities they consider to be illegal within the cryptocurrency industry.

It is worth noting that Binance has been subject to job cuts and executive exits recently due to these challenges. The company's spokesperson confirmed Kamat's resignation to Reuters on Monday.

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Australia Senate Committee rejects crypto bill

In a recent development in Australia, the Australian Senate Economics Legislation Committee has rejected a cryptocurrency regulation bill proposed by opposition senator Andrew Bragg, criticizing it for lacking in detail and congruency with international standards.

The current Labor government has been accused of delaying the regulation of the crypto industry, with calls intensifying for a more collaborative approach to formulating guidelines. As anticipation builds within the industry for clear directives on crypto-custody and licensing, it's clear that decisive moves towards establishing a central bank digital currency in Australia are still a few years away.

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Chinese court looks to treat crypto as property 

According to the People's Court Daily newspaper, a court in Xiamen, China has determined that cryptocurrency should be regarded as property within the country's legal system. This decision comes despite Beijing's ongoing efforts to regulate digital assets. The court emphasized that crypto has economic characteristics such as utility and exchange value.

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Other breaking news

• Singapore's new president calls crypto “slightly crazy”
• Synthetix posts 12.5% gain despite Binance exodus
• Ripple opposes SEC's request for appeal
• The London Stock Exchange musing a different entity for crypto products 
• Gala Games CEO sues co-founder

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Wrapping up

That’s all for today’s edition, folks. Today’s drop covered Chinese court looking to treat crypto as property, while Australian Senate Committee rejected the proposed crypto bill. Exodus of talent from Binance continues with the head of product quitting the company, with crypto fund outflows hitting $342 million streak. Stay tuned for more updates in our rapidly evolving space.