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FTX Scandal: What Went Wrong?
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?
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
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.
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.
After the organization’s programmers announced a provisional date for its major system upgrade, Ethereum’s value continued to rise.
Ether was trading at $1,400, up about 40 per cent over the previous weeks.
In 2022, ETH has fallen short of expectations set by BTC, which experts attribute to rising expectations for the organization’s shift from PoW to PoS and a more significant market pullback from risky resources.
After the Fed Reserve forcibly increased loan rates, crypto groups announced restrictions and banned transactions, and the industry continued to experience administrative issues.
After several setbacks, another arrangement of successful testing provides assurance that the timeframes are still possible.
As August 2022 approaches, it may very well be worthwhile to keep up with these updates since, according to some, another bout of instability could occur if the upcoming testing plan fails to meet the presumptions.
According to experts, the cryptocurrency market is also reflecting the increased uncertainty that arises with conflict, continued financial expansion, and the shifting US fiscal system.
The crypto market’s reaction to the financial exchange, wider acceptance, and recent price declines are a few more factors that experts point out as contributing to the current trend in crypto prices.
Authorities have also started to address interest in tighter crypto regulations including, surprisingly, the potential of making an official digital currency.
Recently, the price of bitcoin has gone through a relatively terrible period.
Following a gain of $4,100 in December 2021, Ethereum has fluctuated between $2,100 and $4,000 over the following days.
Despite the slow commencement to 2022, many analysts are still positive and predict that Ethereum’s value may actually reach and beyond $12,000 in 2022.
Despite the latest downturn, Ethereum actually had a decent outlook for the year 2021.
When Ethereum hit $4,850 in November 2021, it set a new record. It continued that pace into December before dropping down before the month was done.
Indeed, despite the sudden slump, the price of Ethereum was still significantly higher in January 2021 than it had been earlier in the year.
After experiencing significant areas of strength on its own, bitcoin has also slowed down over the past month, similar to Ethereum.
One of the most significant barriers to using digital currencies is the exorbitant transaction costs.
A single transaction on the Ethereum blockchain can cost $10 or more – a hefty fee for transactions that may only be worth a few dollars.
The good news is that many cryptocurrencies have little or no transaction fees. In this article, we’ll disclose the cryptocurrency with the lowest transaction fees in 2022, as well as the top ten coins for fee reduction.
Let’s take a closer look at the 10 tokens highlighted by CoinWire below to help investors find the best coin with the lowest transaction fees.
IMPT – One of the Lowest Transaction Fee Crypto
IMPT has simplified the purchase procedure and maintained the expenses as low as possible.
However, one significant advantage of purchasing IMPT tokens is the price – $0.018 during the first round of the presale, then $0.023 during the second stage.
Since the beginning of October 2022, the project has raised more over $4 million and may sell out before its deadline of November 25th, 2022.
Participating in this project allows investors to have a good impact on the environment while earning benefits.
Investors receive IMPT tokens by shopping at retail giants with which IMPT has partnered.
These retail brands make donations to environmental initiatives.
Tamadoge (TAMA) – New-launched Favorited Crypto without Transaction Fees
Tamadoge is a new cryptocurrency investment.
The fact that there will be no taxes or fees is a big part of what makes this cryptocurrency so appealing.
This means that investors and token users can buy and sell TAMA at any time without incurring any fees.
Importantly, TAMA supply is deflationary.
When TAMA is used to make a purchase, 5% of the tokens involved in the transaction are burned.
This means that as more players join the game and demand rises, the supply of TAMA should decrease faster.
TAMA is therefore very appealing to investors, who do not have to pay any fees to increase or decrease their position in the coin as its price fluctuates.
TAMA is our top pick for the best cryptocurrency with the lowest transaction fee in 2022.
Battle Infinity (IBAT) – Top Metaverse Gaming with Tiny Transaction Fee
Battle Infinity is a new cryptocurrency ecosystem that aims to create a’multiverse of the metaverse.’
Players can find a variety of native play-to-earn crypto games as well as mini-games created by third-party developers in the metaverse on the Battle Infinity platform.
The potential range of experiences is vast, making Battle Infinity one of the largest metaverses in the crypto world.
Battle Infinity is currently holding a crypto crowdsale to distribute IBAT to early investors at a discounted rate of 1 BNB to 166,666 IBAT.
Lucky Block (LBLOCK) – Play-to-Earn Crypto Game with a Low Fee Token
LBLOCK is the Lucky Block platform’s native ERC20 currency, a play-to-earn crypto game with daily giveaways.
To participate in these giveaways, gamers must purchase NFT tickets with LBLOCK. The prizes change on a daily basis, keeping the game interesting over time.
The LBLOCK token currently comes in two flavors.
The original version, based on the Binance Smart Chain, has a 12% transaction fee.
This is certainly not a low-cost token; rather, it was designed to encourage long-term retention.
Furthermore, the original LBLOCK token awards holders from each day’s giveaway prize pool.
MIOTA (IOTA) – Cryptocurrency with no transaction fees for the Internet of Things
MIOTA is a completely fee-free cryptocurrency designed to facilitate Internet of Things transactions (IoT).
The MIOTA network can be accessed by anyone and on any device, making it an ideal platform for data sharing in an increasingly connected world.
MIOTA’s secret sauce is its Tangle network of nodes, which the nonprofit behind the project claims is faster and more efficient than most existing blockchains.
On the MIOTA network, all tokens are pre-mined, eliminating the need for costly mining operations.
Two existing transactions are verified for every new transaction on the network.
It’s a clever way to provide security while requiring little computational work.
As a result, IOTA transactions are and will likely always be completely free.
Dash (DASH) – Top Peer-to-Peer Digital Payments at the Lowest Cost
Dash is probably the altcoin with the cheapest peer-to-peer transaction fee.
It’s a Dash is arguably the cryptocurrency with the lowest peer-to-peer transaction fee.
It is derived from Litecoin, which is derived from Bitcoin.
Payments became faster and cheaper with each fork.
Another advantage of Dash is that it is available on practically all major cryptocurrency exchanges.
This makes it straightforward to acquire this coin or exchange it for dollars.
Dash exchange fees can be as low as 0.1%.
Dash is also really fast, which is important.
The network can process hundreds of times as many transactions per second as the Bitcoin network.
This decreases congestion frequency and keeps transaction rates as low as feasible.
Cardano (ADA) – DeFi Blockchain Capability with Minimal Transaction Fees
Cardano is a proof-of-stake blockchain that is designed to compete with Ethereum.
Cardano’s blockchain is significantly faster and less expensive than Ethereum’s.
Cardano’s developers recently added support for smart contracts, allowing it to become a hub for DeFi apps.
The Cardano blockchain’s native cryptocurrency is ADA. It is used on the Cardano blockchain for staking and to pay transaction fees.
Cardano users can expect to pay around 0.15 ADA for most transactions – the equivalent of $0.08 at today’s prices.
While the charge may climb slightly as Cardano’s popularity develops, ADA will remain one of the lowest fee cryptocurrencies in 2022.
Investors should expect a substantial increase in the value of ADA as more developers flock to this network.
Tron (TRX) – Platform for Running dApps at a Low Cost
Tron is a low-cost blockchain built for the execution of dApps and the processing of smart contracts.
In numerous ways, it’s a direct contender to Ethereum, but it offers sale freights as low as a bit of a cent.
Tron is an evidence- of- stake blockchain, so investors in the platform’s native cryptocurrency, TRX, can make plutocrat through DeFi staking.
The site also provides DeFi operations, play-to-earn crypto games, and other services.
EOS (EOS) – A Transaction-Free Ethereum Alternative
EOS is a blockchain network designed specifically for developers.
The network functions essentially as a decentralized virtual machine, providing processing power, dApp development tools, and other services.
EOS allows developers to scale up or down their projects at their leisure.
The EOS token is intended to inflate rather than deflate.
Users can generate new EOS tokens to validate transactions, and the platform also supports staking to help keep the cryptocurrency’s value stable over time.
Ethereum Classic (ETC) – The Original Ethereum with Cheaper Gas Fees
The Ethereum Classic blockchain is the original Ethereum blockchain.
After the Ethereum blockchain branched in reaction to a breach in 2016, it was renamed.
The majority of users switched to the new Ethereum (ETH), whereas Ethereum Classic retained a tiny but devoted development base.
Ethereum Classic employs the same proof-of-work technique as Ethereum.
However, because Ethereum Classic isn’t as popular, gas fees on this blockchain are significantly lower.
On Ethereum Classic, users may anticipate spending roughly $0.0002 for the average transaction.
Finding the cryptocurrency with the lowest transaction fee in 2022 can save crypto investors’ money and make it easier to take advantage of innovative new ventures.
IMPT is our pick for the best low-fee crypto in 2022. Not only are the transaction costs and token price minimal, but IMPT allows investors to lower their own carbon footprint while still receiving benefits.
Investors receive IMPT tokens for shopping with environmentally friendly retail companies.
That’s right, even in today’s bear market, retail investors have big opportunity right now.
If you’re a new investor or entered the market during the bull run, chances are your portfolio is down significantly.
But don’t let your first bear market shake you off because there are numerous opportunities out there that have the potential to yield big returns.
If you’ve been reading my blog for a while now, you’ve more than likely capitalized on opportunities such as AMC, HYMC, Shiba Inu Coin, Terra Classic, and Bitcoin during properly and fortunately timed moments.
So, what’s new?
In this article, I’m going to go over the opportunities I see that lie ahead for retail investors.
None of the information on my blog is financial advice but rather speculative content based on current information and trends in the market.
And with that being said, let’s get started.
Not Invested in The Markets Yet?
If you or someone you know are not invested in the markets yet, the two articles below are going to walk you through, step-by-step on how to buy stocks for the very first time and how to buy cryptocurrency for the very first time, too.
Much information on how to invest in the markets is outdated so I wanted to create easy guides for beginners.
Remember, one of the greatest wealth you can share with someone else is that of knowledge.
Opportunities in the Stock Market Today
During a bear market share prices tend to tumble, hence why many long-term investor’s portfolios tend to lose value.
And although we can’t entirely time the bottom, we know that at some point the stock market is at a massive fire sale.
Value investors such as you and I can pick up shares from our favorite companies at these low prices before the market reverses trend.
Economists, analysts, and entrepreneurs alike predict there is still room for another 10%-15% drop in the markets.
But for the record, these are just predictions after all.
The point here is for value investors to capitalize on this falling trend by purchasing low and holding during the next bull market.
Whether you choose to capitalize on opportunities presented in a bull market or not will ultimately be up to you.
However, capitalizing during a bull market will require value investors to buy during a bear market, not during the bull market.
After being involved in the retail community for almost three years now, there are stocks and crypto that just stand out as having big potential during the next bull run and I’m going to discuss them below.
Stocks Worth Buying During a Bear Market
None of the information provided below is financial advice, but rather speculative in nature based on market trends and current information at the time of publication.
AMC Entertainment Stock (AMC)
You’ve probably heard all the ruckus on AMC and ‘meme stocks’.
It’s true, the stock jumped from $5 per share to an all-time high of $72 per share.
AMC Entertainment stock is currently trading below $6 again due to this bear market.
What makes this stock such an interesting value investment is that it has a huge community made up of millions of people who plan to take its current price up again.
Plus, the company has beat earnings every quarter since 2021.
Investing in the largest movie theater chain in the world could prove to pay out big during the next bull market.
SPY Stock (SPY)
I’ve talked about SPY stock numerous times on my blog.