Crypto’s Crown Prince Stumbles • TechCrunch

welcome back to Chain reaction.

Last week on the podcast, we talked about the problems that are brewing for bitcoin miners. This week, we had to break our plans to cover just about anything else and turn our attention to what we think is the biggest story in crypto to unfold this year: the fall from grace of the once-revered crypto exchange FTX and its billionaire ex. founder Sam Bankman-Fried (SBF).

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this week on web3

Here are some of the biggest crypto stories TechCrunch has covered this week.

Sam Bankman-Fried Says FTX In Talks To Raise Capital, Alameda Research To Reduce Trading

Sam Bankman-Fried said Thursday that he is liquidating trading firm Alameda Research and is trying to increase liquidity for troubled FTX International, as he strives to keep the world’s second-largest crypto exchange alive after a bailout deal with Binance. failed earlier this week. Bankman-Fried said in a series of tweets that it is engaging with a “number of players” to raise capital for FTX’s international business and those talks are in various stages, including letters of intent and term sheet deliberations.

Troubled Cryptocurrency Exchange FTX Investigated by US Regulators for Client Funds

Cryptocurrency trading giant FTX fell from grace this week after the exchange experienced a liquidity crisis and agreed to give rival Binance the option to buy the company’s operations outside the US in what appears to be a bailout. Now US regulators, including the SEC and CFTC, are investigating whether FTX potentially mishandled customer funds on its platform.

Say hello to crypto startups from web3 Alliance DAO accelerator demo day

New cryptocurrency startups advanced during the Alliance DAO demo day on Wednesday amid the FTX implosion. The newest cohort, known as All9, for the Alliance DAO, a community of web3 builders and accelerators, presented their ideas Wednesday during a demo day, covered exclusively by TechCrunch. There were around 953 applications for this cohort, but only 17 teams were chosen and graduated from the program.

Sequoia Capital reduces its investment in FTX to zero dollars

Sequoia Capital just zeroed out the value of its stake in cryptocurrency exchange FTX, a stake that represented a smaller percentage of Sequoia’s capital but, as of last week, probably represented one of the largest unrealized gains. in the venture company’s 50-year history. . He alerted his limited partners in a letter he sent to them tonight, a copy of which TechCrunch obtained and shared in this article.

Some crypto VCs see decentralization as the future after FTX collapse (CT+)

As the crypto market digests the Past days of chaosVenture capitalists see the moment as a warning, but also as an opportunity for the growth of decentralization and the maturation of the larger blockchain space. TechCrunch spoke to some investors to understand their long-term view of the industry following this week’s FTX news.

the last pod

We had to talk about the news that shook the cryptocurrency world this week in our thursday episode: the Binance/FTX deal that never was. To kick things off, we gave you a rundown of WTF just happening with the feud between two of the world’s largest crypto exchanges and how the landmark Sam Bankman-Fried trade fell so far so fastknocking down investors, cryptocurrencies and other companies in the space falling with it.

As we review the background behind the situation that has been unfolding in real time this week, we share our thoughts on the massive implications this fiasco could have for the rest of the crypto industry, from venture capitalists and startups a regulation around the world.

It is a fascinating backdrop for our conversation in our crypto event in miami next week, where we will be chatting with Binance CEO Changpeng Zhao (CZ), the billionaire who is seen as the catalyst for FTX’s downfall. You can use the promo code REACT for 15% discount a general admission ticket to the event to hear from CZ and many other crypto market players about what the future of this tumultuous industry could hold in the coming months.

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follow the money

  1. Web3 messaging infrastructure platform Warning raised a $10 million seed round co-led by Hashed and Race Capital.
  2. Web3 API Provider Ramp secured $70 million in a Series B funding round, co-led by Exchange capital and Capital of Korelya.
  3. Blockchain Fraud Prevention Home TRM Laboratories expanded its Series B funding round by $70 million led by Thoma Bravo with participation from existing investors PayPal, American Express and Citigroup.
  4. of ether emerged from stealth with $4.5 million to develop web3 games for sports fans.
  5. Decentralized search engine Wrench raised $10 million from Hack VC, Pitango First and others.

This list was compiled using information from Messari, as well as TechCrunch’s own reporting.

Listen to CZ for free on TC Sessions: Crypto

Who better to give an inside look at recent Binance/FTX news than Binance CEO CZ himself? Get a free ticket, learn the details, and explore the many conversations and networking opportunities at TC Sessions: Crypto on November 17 in Miami. The first 25 readers to sign up will join us in Miami on November 17 for free!

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