Tag: Crypto Market (Page 1 of 4)

How to Invest In The Stock Market For Beginners

How to invest in the stock market for beginners
How to invest in the stock market step by step for beginners

There comes a point when you realize that in order to build wealth it will require you to build multiple streams of income. The average millionaire has seven. The stock market is one way you can invest your earned income in order to start earning passive income and multiply your money. Here’s how to invest in the stock market step by step for beginners.

franknez.com

Welcome to Franknez.com – the blog where you can digest content on personal finance, entrepreneurship, market news, and trending investing topics.

Lets get started!

I’ve been investing in the stock market since 2019.

When I learned how to open a brokerage account and buy company stock, I knew I had to show people how to do it too.

Everything I found online was outdated so I wanted to make it easy for people to start.

Benefits of investing in the stock market

One of the greatest benefits of investing in the stock market is that you get to hedge against inflation.

Inflation is at an all-time high right now and simply letting your money lose its value isn’t going to create wealth.

The stock market also provides an average return of 7%-8% annually which means those CDs and high yielding savings accounts are a thing of the past.

Even so, you can always create a portfolio bringing in 20%+ annual returns!

In June of 2021, AMC shareholders saw a whopping 3000% return on their investment at its high.

GameStop shareholders saw about half!

Although these trades are much different anomalies then traditional long-term investing, it paints a picture of the power of the market.

Let’s get you started!

#1. Set a Budget When Planning to Invest

set a budget when investing

Before you begin to invest you will need to set a budget on your first investment(s).

The great thing about the stock market is that you can invest with as little as $50 or so depending on the cost of a share.

A share is a fraction of a company you can own and earn money from as the company grows and profits over a period of time.

Example

If you set a budget of $200 and the share of a company you want to invest in costs $50 then you can purchase (4) four shares of said company.

If a month later the shares you purchased are worth $60 each then your shares would now be worth $240, resulting in a $40 gain.

This is how investing in the stock market works.

Note: I highly recommend having your emergency fund built prior to proceeding with investing in the stock market.

It is important to highlight that the money you invest in the stock market will need to be money you can tolerate losing.

The stock market is volatile meaning the value of your assets is constantly going up and down.

Something to keep in mind is that the value of your investments can go down just as fast if not faster than they went up.

Now, this is not addressed to scare you. The stock on average has an annual return of 6-8% per year.

Why should you invest in stocks?

Investing in stocks is a great way to diversify your portfolio.

You don’t want to keep all your eggs in one basket.

For this reason, the wealthy invest in companies they believe have long-term potential to thrive and to multiply their investment.

#2. Know What to Invest In

Now that you’ve set a budget you’ll need to know what you want to invest in.

Once you do, find the stock market symbol of the company on Google search engine.

If you wanted to invest in Coca-Cola for example, you’d search ‘stock market symbol for Coca-Cola’ on Google.

You’ll see that the NYSE (New York Stock Exchange) symbol for Coca-Cola is KO.

This is how you will identify and search for companies to invest in when you’re in the market to buy stocks.

Here are some different type of investments you can invest in within the NYSE.

Stocks

Invest in stocks coca cola stock
How to invest in stocks for beginners

A stock is a share of a company just like Coca-Cola.

Buying a share from one specific company is a stock.

Stocks are good to purchase if you strongly believe in the continued success of your choice of company.

Invest in companies that have room to grow and are constantly innovating.

Stocks I personally favor are Tesla, Apple, and Amazon.

These tech companies are always innovating therefore I have strong conviction towards their continued growth and success.

Index Funds

Invest in index funds
How to invest in the stock market

An index fund is a fund that tracks and follows the index (growth) of a group of companies.

When you own a share of an index fund, you own a percentage of a pool of companies oppose to just one company.

What makes an index fund great is that if a company within an index fund isn’t performing very well there are other companies that may balance the overall performance of the fund resulting in a fair return.

A popular choice is the S&P500.

This index fund tracks the performance of the top 500 companies in the United States.

This type of investment tends to be a less risky and yield great profits over the long run.

It’s an investors favorite and I personally hold shares in the S&P500.

Bookmark: Retire a millionaire with the S&P500: is it possible?

REITS

Invest in REITS
How to buy REITS

A REIT (Real Estate Investment Trust Fund) is very similar to an index fund.

The only exception is that it invests exclusively in real estate companies oppose to other businesses.

If you want to invest in real estate without the hassle of learning the game, using cash up front, or getting into debt, REITs are a great way to diversify your portfolio into the real estate sector.

A great REIT I’m invested in is VNQ with Vanguard.

Which investment is right for you?

Each of these investments has their own benefits.

My suggestion is to research them individually as all of our needs are very unique.

As your skills develop as a retail investor, you’ll find yourself having a diversified portfolio consisting of all three.

Invest in the stock market and learn to identify which investment is best for you.

Price is what you pay. Value is what you get.

Warren buffett

#3. Choose a Brokerage Firm to Begin Investing in The Stock Market

This is the fun part.

Choose a reputable online brokerage firm.

A brokerage firm is a platform where you will be doing all of your investing through the NYSE.

Here you’ll be able to purchase stocks and sell them.

Each brokerage firm has their own customer advantages but are very similar to use.

Here is a list of brokerage firms you can open an account with and sign up for free.

Check out each brokerage firm’s website and see which feels more comfortable for you to navigate.

Do some research on each of them to see which has the strongest potential for your needs. I personally use Vanguard.

Vanguard investment - brokerage for investing
How to invest in the stock market for beginners

Note: When you purchase investments, there are small commission fees your investments will pay out to the firm.

They are very small in most cases and don’t hinder your earnings like you’d think. Vanguard has the lowest fees.

Each brokerage firm will have different commission fees and the percentage will vary in each firm.

For example: Coke (KO) will have a slightly different commission fee in every firm despite having the same share cost.

#4. Open your account

For this step-by-step on how to invest in the stock market I’m going to use Vanguard.

Vanguard is one of the most reliable brokerage accounts you can use.

how to invest with Vanguard
Franknez.com
How to invest in stocks for beginners

Head over to Vanguard and select ‘Open an account’.

how to open an account with vanguard
How to invest in stocks with Vanguard

Select ‘Start your new account’ to get started.

Vanguard Account

Choose the method you will be funding your new account. You can choose between:

  • Electronic bank transfer or another Vanguard account
  • Rollover from an employer plan (e.g., 401(k) plan)
  • Transfer investments from another financial firm

Most new retail investors will be choosing the first option, using an electronic bank transfer to fund your account.

Open a vanguard account

Before you open your account to begin investing in the stock market you’ll need your bank account and routing number as well as other personal information.

Once you’re in it’s time to transfer funds into your account.

#5. Transfer Funds into Your Brokerage Account

Congratulations! Now that you’ve chosen a brokerage account to invest with, you’ll have the tools at your disposal to begin investing.

Navigate throughout your brokerage website. Get comfortable with where things are.

Things might seem very new at first, intimidating even.

Don’t worry, now that you’ve begun something new, you’ll begin to take the first steps toward self-education.

First, you’ll want to learn how to transfer funds into your brokerage account.

I will be demonstrating step by step how to do this using Vanguard.

Toggle the settings to connect your bank account with your brokerage account so you can start to invest in the stock market.

This direct line will allow you to transfer funds into your account so you may begin to purchase shares.

Once you have this set up you may transfer the money from your budget to invest in.

Vanguard investment

#6. Make Your Very First Investment in The Stock Market

Now that you’ve transferred your funds over to your brokerage account, navigate through the site to make your very first purchase.

Search the symbol of the stock, index, or REIT you will be investing in.

Note: Before purchasing, make sure you thoroughly navigate the website to get comfortable using it.

This will make the purchase experience a lot easier.

Once you pull up the investment, go through the details provided on the page.

You should be able to see its history, it’s projected return, its risk level, and so much more information about the investment.

Invest Vanguard

Purchase the investment!

Purchase the investment with the option set to ‘Market’.

This option will allow you to purchase the investment instantly at the price it’s worth.

We suggest doing a test purchase since this is your first time investing in the stock market.

This will help you get a feel for it. Purchase one share so you understand the process.

It will serve as good practice and experience.

Congrats on buying your first share!

Follow up on your investment the following day and see whether your investment had gains or losses.

You’ll see for the very first time how your investment grew in value or decreased in value.

You now have a taste of what it’s like to invest in the stock market.

Bookmark: My top picks of stocks to invest in right now

Final thoughts

franknez.com

I have personally invested in stocks since 2019 and have learned a lot about the stock market.

In fact, I’m still learning today.

I published an article on the best tips and advice for beginners investing in stocks to further help you on your journey.

Stock investing is all about strategy.

When you make money in the stock market you may let it sit and accumulate over time, or you may cash in your profits and allocate those gains towards other opportunities.

This is why I believe investing in stocks is extremely important to someone who wants to build wealth.

The stock market allows you to multiply your hard-earned money so you may further invest it in other assets.

If you received value from this post please be sure to share it with someone who’s working towards becoming financially independent and who is also building their financial future.

My mission is to help people all around the world attain financial stability in order to live their best lives possible.

Here’s how you make money trading the S&P 500.

Need a financial advisor? Click here.

You can follow me on: Twitter | Facebook | Instagram


What is The Ethereum Merge? What Institutions and Investors Should Expect

what is the Ethereum merge?
Educational: What is the Ethereum merge?

Introduction

The adoption of Cryptocurrency is on the rise.

It is because institutional investors have been showing interest.

The leading institutions have decided to step into the Defi and the Web3 ecosystem.

This further impacts the Crypto Ecosystem positively.

Reports say that these institutions invested $9.3b in the Crypto market in 2021.

It marks a complete technological shift as the Crypto market increased to around 36%.

Now, one of the major reasons that triggered the change is attributed to a shift in technology called Merge.

Ethereum, the second largest Cryptocurrency, undertook a major shift from the Proof of Work to the Proof of Stake.

Now investors and institutions have their own expectations. Let’s seep deep into the study to have a better understanding.

What Is Ethereum Merge?

what is Ethereum merge?

Ethereum, the world’s second-largest Cryptocurrency, shifted from energy-intensive technology offering sustainability systems to play.

They are calling it “Merge.”

The community built a new engine and a hardened hull.

They shifted from the Proof work system to proof-of-stake.

Proof of work involves a wide network of computers.

Under the system, if investors are to mine crypto, they must solve puzzles to mine crypto.

The level of the puzzles increases with mining.

This complex and energy-intensive technology was used to add new blocks to the system.

The Proof of Stake mechanism is an alternative technology that consumes less energy and computing power.

According to findings, POS consumes one-tenth of the energy to mine Ethereum.

Here one needs not to devote less energy and fuel consumption to run the illustrious computer systems.

What Institutions And Investors Should Expect

With a major technological shift, Ethereum has attained a paradigm shift, at least in terms of adoption-friendly technology.

They attained an advantage against Bitcoin, their rival and the largest Cryptocurrency in terms of market value.

Are you trading in Ethereum?

You can use trading software like q-Profit. Visit the website q-profitapp.com to know more.

Now this change will bring in positive into the business ecosystem.

The institutions and the investors now have different expectations of the change. The section focuses mainly on the changes. 

1. Reduced Carbon Footprint

As discussed above, POS technology consumes a 99.5% decrease in energy consumption.

Now, the reduction of Carbon foot printing has a significant impact on institutions.

Our world is grappling with a carbon footprint, and its rapid increase in power negatively affects the environment.

You might have heard about the Paris 2015 environment summit, where it was found out the stakeholder had constructive planning, including the Net Zero programs, to stop the rise of the sea water level.

Now, with the Proof of stake, the stakeholders can mine Cryptocurrency with lesser power consumption, which syncs with the Net Zero targets of individual nations.

Hence the step provokes to be helpful for institutions, government, and the environment.

With this major technological high long jump, the companies are able to obtain their own sustainability goals and objectives.

2. Improved Security

Economic and trading democratization has always been the need of the hour.

The business entities investing heavily in Cryptocurrency needs are all driven by energy security and sustainable development.

They are always looking for alternative energy to increase their business opportunities.

But the traditional system economy, centralized in nature, stopped them from this.

With Cryptocurrency, they were able to get the technological shift.

With Proof of stake, the use of Blockchain became more common.

We all know that the Blockchain is an advanced data maintenance system storing data in a decentralized network.

Once the information is entered, it is entered forever. It can’t be manipulated.

Another reason for the improved technology is that the cost of attacking networks has dramatically increased.

Presently more than 45000 Ethereum have been staked so far.

Even 51% of the attacks would cost over $11B.

With improved security, more new investors are expected to join the system and gain growth in this ecosystem.

Closing The Discussion

The Ethereum merger has more for the investors and the institutions.

Now with the merger, cross-team economic collaborations have increased. It is good for increasing business opportunities.

This produces an ecosystem for business growth and stability.

The induction of POS has enabled client diversity and interoperability. They are important steps toward the growth of Cryptocurrency.

These are the advantages the institutions and investors are going to get with the help of the Merge.


How Much Bitcoin Should You Buy: Factors to Consider in 2023

how much bitcoin should you buy
Educational: How much Bitcoin should you buy?

Introduction

Bitcoin has been the bread and butter of the Cryptocurrency world for quite some time.

Even if people cannot get into other Cryptocurrencies like Ether or Dogecoin, Bitcoin will still remain the king.

Many call it an achievement once they start trading through Bitcoin.

Therefore, it is understandable that there are novice investors who are still asking this question, “How much Bitcoin should I Buy.”

Afterall among all the Cryptocurrencies out there, Bitcoin is the most volatile one.

Probably because of its hot & cold reputation.

At one point, it is high in demand, and the next day everyone is against Bitcoin, and the prices seem to fall drastically.

We are here to rescue you from evergreen curiosity.

Once you read this article, you should understand the amount you should be investing and the other factors to keep in mind when investing.

How Much Should You Invest?

how much bitcoin should I buy

Let’s pull over some percentage here, shall we?

When it comes to your first-time investment, then you should always have a total investment amount set with you.

Without this, you can start treating this as a gamble when you get a taste of big profits.

Once you have this investment amount set aside, it is time to place only 10% of that amount in your first investment.

Some might even prefer a total of $100 investment in your first year and begin with a mere $10.

Do not invest it all at once and have a scheduled time for investing.

For example, the first investment, and then after every three months.

This will essentially prevent you from giving in to tempting offers with nothing to base them upon.

Related: How to Invest in Bitcoin Cryptocurrency for Beginners

Other Factors to Keep in Mind

Here are the other factors which you should keep in mind while investing in Bitcoin for the first time.

1. Do Not Give Into FOMO

FOMO is the Fear Of Missing Out.

This is when a novice investor gets too excited about any new investment.

Especially if they see their fellow pals earning major profits; however, you should remember that not every piece of knowledge is the same.

When you find someone earning thousands from one move, there is a lot you need to factor in.

How many years have they been investing, was any calculation involved in this move, or was it plain luck?

No matter what you do, do not blindly believe in someone.

Sometimes when you get a higher profit from one investment, it is easier to get blinded by temptation.

This is why a set amount of investment rules is perfect to start with.

2. Strategize Loss Tolerance

If you are not strategizing your loss, you can never learn from them.

The very first rule of Cryptocurrency is always invest the amount you can lose.

This is known as “loss tolerance,” i.e., how much loss you can tolerate.

If the loss is too much, neither will you be able to learn from it nor have the confidence to invest again for a very long time.

So, before investing, understand the amount you will be okay with losing, and then start investing through profit-maximizerapp.com.

This is a smart move upon anticipating that you will be losing your very first investment, and you are doing so to educate yourself.

What About Minimum Investment?

Upon reading the last point, many might think of investing very little in their first investment in Bitcoin.

Some might even think about investing as little as $2.

But we, along with experts, would suggest otherwise.

No matter the platform you choose for investing, there are fees attached to trading and Crypto investment.

Upon trading with a meager amount, you will end up paying more fees than your investment.

Another crucial suggestion would be not to put all your eggs in one basket.

Cryptocurrency losses are inevitable, so divide your capital and invest in different digital coins.

In this way, you will have another to fall into in the event of a big loss for one.


More People Are Adding SHIB to Their Watchlist Than Dogecoin

SHIB News Today.
SHIB News Today.

1.8 million people have now added SHIB to their watchlist on CoinMarketCap beating Dogecoing (DOGE) by more than 200,000.

SHIB is currently trending on Twitter as SHIB news was released that developers had launched an updated version of their ecosystem website today.

The Shiba Inu community has now grown to an astonishing 3.6 million on Twitter.

The community had achieved its first million milestone in October of 2021 when SHIB reached its second all-time high.

Some of the biggest SHIB news leading to the new year included the cryptocurrency getting listed on Kraken and eventually trading on Robinhood.

Today, the SHIB community is waiting for the next major gainer during the next bull run.

Here’s what’s happening with SHIB.

SHIB Army Expansion

Shib Army

The SHIB army continues to expand, sharing its uniqueness with other likeminded communities.

PlaySide Studios has partnered with Shiba Inu Games in such an early phase of the cryptocurrency and gaming development.

PlaySide said it continues to collaborate with strategic partners to develop games using the latest trends that are shaping the future of the gaming industry.

“With booming global trends such as the metaverse and the growing popularity of new technologies including cryptocurrencies, nonfungible tokens (NFTs), and blockchain gaming; new opportunities in games continue to emerge.”

Gaming seems to be a big niche where blockchain technology is headed to grow the industry.

Companies such as GameStop have now begun to dive into this process through their NFT Marketplace.

SHIB Price Changes in the Last 24hrs

SHIB Price Chart today.
SHIB price chart today.

Shiba Inu coin is currently up 3.20%.

Its market cap is up 3.25%, with trading volume at 109 million.

The ‘meme token’ currently ranks at #15 on CoinMarketCap and #12 on Coinbase.

Are you holding SHIB?

If so, how many millions?

What are you most excited for the community in 2023?

Leave a comment down below.

You can follow me on Twitter for daily market news and updates.


AMC FTX Token Was Used to Manipulate Real Stock Prices

FTX AMC - AMC FTX Token stock
Market News: Short sellers used FTX to manipulate AMC stock price.

On Dec. 4, 2022, a report details that FTX-based synthetic stocks may have been used to manipulate the value of AMC shares.

In May 2021, FTX offered 36 tokenized stocks, but speculators believe it’s questionable whether or not the firm actually held the real stocks in the first place.

FTX has been under the microscope ever since the exchange collapsed during the first week of November 2022.

Since then, there’s been a lot of information to process, and new information released.

On Sunday, a report details that tokenized stocks listed on FTX may have been used to “manipulate the price of AMC shares.”

The publication thechainsaw.com and its report show that while FTX’s terms of service said the firm’s synthetic stocks were backed 1:1, that may not have been the case.

“FTX listed wrapped AMC token[s] for trading on its synthetic derivatives trading platform,” The Chainsaw said on Twitter.

Additionally, thechainsaw.com published another report that details that Gamestop and Tesla shares could have been manipulated as well.

Furthermore, the researchers note that the leaked FTX balance sheet disclosed by the Financial Times (FT) shows the company only holds Robinhood (HOOD) shares.

There’s no documentation (as of right now) that’s been made public that shows FTX actually owned any of the 36 tokenized stocks it listed.

Source(s): Bitcoin.com.

No Proof of AMC Ownership

Market News: AMC Token was used to manipulate stock price.
Market News: AMC Token was used to manipulate stock price.

There are no signs of AMC Entertainment signing an agreement to the AMC FTX Token listed on the FTX crypto exchange.

When viewing the terms of service and terms of the tokenized stock product (AMC), users are prompted to error pages.

Now, there is no official FTX website as it has been changed to a ‘help concierge‘.

The sale of an AMC token was a scam.

But I’m curious to know your thoughts on this matter.

Leave a comment down below.

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Ken Griffin Speaks Out on Retail and FTX Collapse

Ken Griffin Speaks on FTX and retail investors
Market News: Ken Griffin speaks out on FTX and retail investors.

Billionaire investor Ken Griffin, the founder and CEO of multinational hedge fund Citadel, warned that the collapse of cryptocurrency exchange FTX could weaken confidence in financial markets at large and hurt the ability of younger investors to save for retirement.

Ken Griffin told Fox Business, “FTX is one of these absolute travesties in the history of financial markets.” 

His remarks come less than a week after the implosion of FTX, which at its peak was the third-largest cryptocurrency exchange.

The firm’s bankruptcy may affect up to 1 million creditors and comes amid reports that at least $1 billion in client funds disappeared.

The Wall Street Journal is now reporting that ex-CEO Sam Bankman-Fried cashed out $300 million during a $420 million raise from several investors last year for personal use.

Sam Bankman-Fried is now facing a class-action lawsuit that was filed on November 11th, 2022.

Celebrities named in the lawsuit include Steph Curry, Shaquille O’Neal, Shohei Ohtani, Naomi Osaka, Larry David, and Kevin O’Leary who allegedly helped Bankman-Fried promote the exchange.

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Citadel’s Ken Griffin Says Retail Investors May Likely Ditch the Markets

Griffin expressed concern that losses sustained by younger investors who lost money due to FTX may make them less likely to invest their savings in capital markets, including traditional instruments like stocks and bonds.

“The confidence, though, of a generation in financial markets has also been shaken. That’s really awful because the 20-some-year-olds to 40-year-olds who are so engaged in crypto — they’ve got to save for their retirement, and if they don’t believe or trust in financial markets, this is a huge problem. They need to own stocks, they need to own corporate debt, they need to partake in our global capital markets,” Griffin said.

Citadel is currently partnering with Virtu, Schwab, Paradigm, Sequoia, and other Wall Street giants to form EDXM Crypto Exchange.

A cryptocurrency exchange that is supposed to provide transparency and lower transaction costs through the use of high liquidity and tight spreads.

But concerns are growing within the retail investor community as Citadel enters the crypto space, calling it an outrage due to the hedge funds’ long history of abuse of power.

“The bottom line is American investors have really gotten hurt here to the tune of hundreds of billions of dollars in decline in market cap in crypto over the last two years. I mean that really strikes at the entire core essence of what investor protection is all about,” Griffin said.

Source: Fox Business.

Read More Market News and Updates Here

Stock Market News, Crypto News, Franknez.com.
Stock Market News, Crypto News – Franknez.com.

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Was The AMC FTX Token a Scam to Launder Money?

Sam Bankman-Fried | Crypto News: AMC FTX Token a scam?
Sam Bankman-Fried | Crypto News: AMC FTX Token a scam?

There are no signs of AMC Entertainment signing an agreement to the AMC FTX Token listed on the FTX crypto exchange.

When viewing the terms of service and terms of the tokenized stock product (AMC), users are prompted to error pages.

The AMC FTX token is also showing as an ‘invalid symbol’ on the platform with no live chart as we’ve seen in the past.

The tokenized stock was trading at $4 (USD) but has lost all its value since the company collapsed and filed for bankruptcy.

Retail investors are digging deep and are concluding that the crypto exchange could have potentially been using these tokens to launder money.

The FTX scandal only goes deeper into the rabbit hole.

Let’s discuss what happened.

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FTX Scandal: What Went Wrong?

What happened to FTX? FTX Scandal
What happened to FTX? FTX scandal | Crypto News.

Cryptocurrency exchange FTX filed for Chapter 11 bankruptcy on November 11, 2022, after the company’s valuation dropped from $32 billion to bankruptcy in only a matter of days.

The collapse of the cryptocurrency exchange dragged founder and CEO Sam Bankman-Fried’s $16 billion net worth to near-zero.

FTX was responsible for dropping the crypto industry below $1 trillion.

On November 16, a class-action lawsuit was filed in a Florida federal court, alleging that Sam Bankman-Fried created a fraudulent cryptocurrency scheme designed to take advantage of unsophisticated investors from across the country.

Which celebrities were affected by FTX?

Steph Curry FTX
Steph Curry FTX promotion | Celebrities affected by FTX crypto scandal.

Celebrities named in the lawsuit include Steph Curry, Shaquille O’Neal, Shohei Ohtani, Naomi Osaka, Larry David, and Kevin O’Leary who allegedly helped Bankman-Fried promote the exchange.

FTX became one of the largest crypto exchanges in just three years with a valuation of $32 billion.

Bankman-Fried used aggressive marketing, including a Super Bowl ad campaign, and the purchase of naming rights to the home of the Miami Heat basketball team.

He became known for his political lobbying and donations as well as for working to support the cryptocurrency industry more broadly.

As values plunged in early 2022, he facilitated deals totaling about $1 billion to bail out cryptocurrency companies struggling as a result of the declines in token prices.

Conflict of Interest Created Mass Selloff in FTX

How did Binance play a role in FTX collapse? Binance FTX news.
How did Binance play a role in FTX collapse? Binance FTX news.

FTX’s collapse took place over a 10-day period in Nov. 2022.

The catalyst for the crisis was a Nov. 2 scoop by CoinDesk that revealed that Alameda Research, the quant trading firm also run by Bankman-Fried, held a position worth $5 billion in FTT, the native token of FTX.

The report revealed that Alameda’s investment foundation was also in FTT, the token that its sister company had invented, not a fiat currency or other cryptocurrency.

That prompted concern across the cryptocurrency industry regarding SBF’s companies’ undisclosed leverage and possession of assets.

Here’s when things really started going downhill for FTX.

Binance, the world’s biggest crypto exchange, announced on Nov. 6 that it would sell its entire position in FTT tokens, roughly 23 million FTT tokens worth about $529 million.

Binance CEO Changpeng “CZ” Zhao said the decision to liquidate the exchange’s FTT position was based on risk management, following the collapse of the Terra (LUNA) crypto token earlier in 2022.

By the next day, FTX was experiencing a liquidity crisis.

Bankman-Fried attempted to reassure FTX investors that its assets were stable, but customers demanded withdrawals worth $6 billion in the days immediately following the CoinDesk report.

Bankman-Fried searched for additional money from venture capitalists before turning to Binance.

The value of FTT fell by 80% in two days.

Sources: Investopedia.

FTX: A Pyramid Scheme Created from Mass Marketing?

FTX Pyramid Scheme
Was FTX a pyramid scheme? Crypto news and more.

Within hours of filing for bankruptcy, FTX was hacked.

The exchange noted that ‘unauthorized transactions’ close to half a billion dollars in total were stollen from several wallets during a period of days.

Since the incident, regulators of the Bahamas have frozen FTX’s assets, and the company has strongly advised against customer deposits.

What’s occurred with FTX is an ongoing investigation and lawsuit against now ex-CEO Sam Bankman-Fried.

So, was FTX just a scam to laundering money through the use of unauthorized stock tokens and covered by the hack that occurred?

Or was this just a poorly managed incident that occurred without motive?

I’d love to hear your thoughts on this.

Leave a comment down below.

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Citadel to Launch Crypto Exchange After FTX Collapse

Crypto News: Citadel and Partners to launch EDXM Crypto Exchange.
Crypto News: Citadel and Partners to launch EDXM Crypto Exchange.

Citadel is partnering up with Charles Schwab, Fidelity, Sequoia, Paradigm, and Virtu to launch EDXM, a cryptocurrency exchange.

The fall of FTX was primarily due to centralized players so what’s to say EDXM won’t be subject to such errors?

EDXM’s custody and wallet technology is being provided by crypto custody and infrastructure company Paxos, the companies announced in October.

Paxos, which is a custodian regulated by New York state, holds customer accounts in fully segregated accounts and has signed up large consumer-facing clients to enable crypto trading.

Its customers include PayPal, broker dealers such as Interactive Brokers, and others such as Nubank and Mastercard.

Crypto is still a taboo area for most of Wall Street, but with companies such as Citadel and its partners, it could attract big institutional money.

Here’s the latest crypto news.

Related: How to Invest in Cryptocurrency for Beginners

What is EDXM?

Citadel to launch crypto exchange EDXM
Citadel to launch crypto exchange EDXM.

EDXM is a new crypto exchange being developed by Wall Street giants such as Citadel, Virtu, and Fidelity for digital assets such as cryptocurrencies.

EDXM plans to offer delivery settlement versus payment settlement, a settlement method that’s used in traditional securities trading.

Other promises include extremely low transaction fees due to tight spreads enabled by greater liquidity.

The crypto exchange is also supposed to be different from some other crypto providers that are the market maker, exchange, and custodian all in one, which can be a conflict of interest and is typically not done in traditional markets.

Sort of like how Citadel is a market maker, hedge fund, and dark pool.

The head of strategy at Paxos says EDXM will provide transparency for the crypto market.

Some investors might argue that Citadel and its partners should provide more transparency in the stock market first before making such claims for the cryptocurrency market.

While some on Wall Street might think EDXM could lift the crypto industry, others look at the partnership as a means for Wall Street to take advantage of investors elsewhere.

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Crypto is Collapsing: Should You Take Your Money Out?

Market News | Crypto News: Should You Take Your Money out of Crypto?
Market News | Crypto News: Should You Take Your Money out of Crypto?

Crypto is collapsing and it’s been a very tough year for cryptocurrency holders as exchanges face the possibility of bankruptcy.

BlockFi is preparing for potential bankruptcy after halting withdrawals of customer deposits and acknowledging it has significant exposure to the now bankrupt exchange FTX, per the WSJ.

BlockFi paused withdrawals and limited activity on its platform last week, saying it couldn’t operate business as usual given the uncertainty surrounding FTX.

The exchange is now planning to lay off workers as the troubled firm prepares for a possible chapter 11 bankruptcy, said people familiar with the matter.

The Coinbase Pro cryptocurrency platform is also shutting down for good, per NerdWallet.

And a Hong Kong-based AAX crypto exchange is suspending all of its operations, per Watcher. Guru.

Crypto has had its ups and downs, but what’s occurring today seems like it’s going to have a longer effect on investors.

Should investors take their money out of crypto now?

Let’s discuss it.

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Bitcoin Magazine Warns Investors

Should you sell your crypto? Should you sell bitcoin?
Should you sell your crypto? Should you sell Bitcoin?

Just $3.7 billion Bitcoin were taken off exchanges last week per Bloomberg.

Bitcoin had fallen below $16K and is now trading just below $17K.

Now venture capitalists who invested in FTX are considering suing Sam Bankman-Fried for alleged fraud.

Confidence in the crypto space has fallen amidst the collapse of these exchanges.

The worst part is the number of investors who have been caught up in this mess.

According to the Washington Examiner, celebrities such as Tom Brady have lost most if not all of their investment in FTX.

Other athletes include Stephen Curry who had also signed previous agreements with FTX to promote the company.

Now Bitcoin Magazine and Unusual Whales are saying to get your money out of Bitcoin and crypto exchanges, signaling that matters could get worse before they get better.

Related: How to Invest in Cryptocurrency for Beginners

Will Crypto Go Back Up?

why is crypto collapsing? Will Crypto go back up?
Why is Crypto collapsing? Will Crypto go back up?

The current crypto crash we’re seeing today has been the result of centralized financial errors, according to CoinDesk.

“The meltdown of Sam Bankman-Fried’s crypto trading empire could not, and would not, have happened to a decentralized and transparent protocol”, says the Amanda Cassatt.

JP Morgan has also identified centralized players as the root cause of recent crypto collapses.

Will cryptocurrencies go back up?

With time and with investor confidence, the crypto market will eventually recuperate.

Should investors take their money out today?

This is going to depend on the individual’s need for liquidity.

With an economy that is currently fighting inflation, and unemployment rates rising, having capital at hand might just prove to be useful as today’s uncertainty only becomes more uncertain.

But I’d love to hear your thoughts on this.

Let’s start a discussion, leave your thoughts below.

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Related: List of 4 Best Crypto Exchanges for Beginners


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