Preparing for Proof or Reserves
In an official tweet, OKX stated, “We’re hiring Armanino for auditing & will publish an auditable Merkle POF asap.”
The company then listed 23 BTC addresses and 13 Ethereum addresses containing some of the exchange’s reserves.
— Cointelegraph (@Cointelegraph) November 12, 2022
Casting Suspicion
Suspicion of CryptoCom and GateIO.
Agreed. These exchanges of concern I’m eyeing are crypto dot com and gate io.
— Eunice D Wong 🦄 (@Eunicedwong) November 13, 2022
Broad Based Suspicions
There broad suspicion on any other exchange linked with ArmaninoLLP
Asset Swap
The Cobo founder questioned whether Gate and https://t.co/1UfOlEiERj were assisting each other in forging asset certificates. However, there are also views that Gate issued an audit report before the transfer. https://t.co/YgmMihwGp8
— Wu Blockchain (@WuBlockchain) November 13, 2022
Finger Point Back at Binance
You LITERALLY moved 2.7 BILLION Tethers out of binance TRON cold wallet 2 into a wallet NOT listed as part of reserves within 24 hours of publishing the reserves.
By his own admission now Binance isn’t safe. This is the same telegraphing as SBF did.
Stay away from Binance! https://t.co/DjGCgOWJZd
— Deso,GoV – Gaming vacation! New PC has arrived! (@DesoGames) November 13, 2022
An Audit Flashback
https://t.co/P55OKNfD6W never released the auditor name nor published the audit.
Does anyone know if the CFTC (primary regulator here) requires filing an audit for DCO/DCM license holders like FTX US Derivatives? If yes, is it FOIA-able? pic.twitter.com/UmZk0DVQAZ
— Ben Hunt (@EpsilonTheory) November 13, 2022
The exchanges say there is nothing abnormal in their swaps, just other exchange swaps.
A Sanity Check on 17.5 Percent Interest
Also consider an Increasing max APR sanity check for Oracle Lido report (emphasis mine).
On 9 Nov, 2022, due to the extreme market conditions Lido has bumped into previously set conservative 10% APR limit for the stETH rebase after Oracle report. That happened due to the fact that the Oracle limit was set before the Merge hadn’t accounted for potential Execution Layer rewards spikes.
No user funds or rewards are at risk. Under the current set of constraints, the rebases most likely won’t happen daily before the parameters change in Lido Oracle contract. The proposed change is increasing allowed APR for Oracle report from 10% to 17.5% (1750 basis points).
The 10% yearly threshold had been chosen before the Merge and hadn’t accounted for potential spikes in daily rewards accrued by the protocol. In order to prevent potentially economically vulnerable large token rebases 20, only 2 basis points of the stETH total supply can be accounted for rebase daily (~940 ETH at the time of writing). So, in order to accommodate for those extra 2 daily basis points, the threshold increase should be ~7.5% yearly (2 basis points * 365 days ≈7.5%). According to analysis provided in github issue 20, that number is considered safe enough as it’s lower than the ≈28% yearly threshold.
Understanding stETH
Staked ether, or stETH, is a cryptocurrency token that represents an equivalent amount of ether (ETH) that has been staked.
We are told that 17.5% interest for stETH is “conservative” because it’s lower than the ≈28% yearly threshold.
Bear in mind that interest is not paid in dollars it’s paid in crypto. And once staked you are locked in for the duration.
The claim “no user funds or rewards are at risk” is laughable because it presumes appreciation in the underlying coin.
If the underling coin drops in value, you can get killed on the transaction. Ethereum is down 65 percent on the year. 10 percent interest paid in Ethereum is not much of a benefit.
And if you staked for a year, you are still stuck in the transaction.
Hooray! you have 10% more crypto, it’s just worth 90% less. Meanwhile, the rush is on to prove what’s there is really there.
Helping the Democrats
His donations helped Abigail Spanberger and Maxwell Frost among other Democrats in this election cycle – @stef_palma
@courtney_ft @caitlinsgilbert https://t.co/iUMwJoQBzH— James Politi (@JamesPoliti) November 13, 2022
Irony of the Day – Begging for Regulation
Crypto investors, pre-FTX: “Crypto doesn’t need regulation. Hands off, SEC/CFTC.”
Crypto investors, post-FTX: “Regulators have delayed too long. We demand crypto regulation NOW.”
— Frances ‘Cassandra’ Coppola (@Frances_Coppola) November 13, 2022
Another Mad Scramble is On
BREAKING: A potential bank run on https://t.co/SCDLOM8zTW may be in progress.
Nearly 90,000 unique transactions have been processed in the last few hours, suggesting that users are scrambling to get their funds off the exchange 👇#CryptoCom pic.twitter.com/5XRELFgmyC
— The Chainsaw (@chainsawdotcom) November 14, 2022
Quote of the Day
https://twitter.com/QTRResearch/status/1591987327395631104
In case you missed it, please see FTX US Declares Bankruptcy Too, What About the FTX Arena?
The FTX parade keeps on rolling.
This post originated at MishTalk.Com.
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Mish
Who could have seen this coming? Ummmm, you can’t trust the government so trust the man behind the curtain. What a bunch of bozos. Sorry I am usually not so dismissive of people’s misfortune but this was obvious. We go from mania to mania. At least with tulip bulbs you got a pretty garden.
typically done by transferring the tokens in question to a burn
address, i.e. a wallet from which they cannot ever be retrieved. This is often described as destroying tokens.
A
project burns its tokens to reduce the overall supply. In other words,
it creates a “deflationary” event. The motivation is often to increase
the value of the remaining tokens since assets tend to rise in price
whenever the circulating supply falls and they become more scarce.”
Kiting is the fraudulent use of a financial instrument to obtain
additional credit that is not authorized. Kiting encompasses two main
types of fraud:
What has been will be again,