Trakx Weekly Update: November 27
Key Crypto Market Figures
CTIs Weekly Performance
Crypto prices remained range bound last week, with the Trakx Crypto Top 10 CTI essentially unchanged (-0.4% w/w). The best performer was the Lending CTI, which rose 5% on the back of continued strong gains by MKR. Similar gains were also seen in the Top10 Defi CTI helped by a 14% rally in Uniswap. The weakest performance was in the Centralized Exchange (CEX) CTI, which fell 5% over the past seven days.
One does not have to look very hard to see what caused the drop in the CEX CTI. BNB, the largest constituent of the index, dropped more than 7% last week after the US charged Binance with violating money-transmitting laws, sanctions evasion and failing to maintain a proper AML programme. To settle the allegations, Binance agreed to pay fines totalling more than $4.3bn. Separately, Binance founder Changpeng Zhao (CZ), pleaded guilty to violating the Bank Secrecy Act and was fined $50mn by the CFTC. As well as agreeing to step down as CEO (his replacement was named as Richard Teng, Binance’s former Head of Regional Markets) he will be sentenced on February 23 next year and faces up to 10 years imprisonment. As part of the settlement, Binance was forced to exit all operations in the US and provide the US Treasury with access to all of Binance’s records and systems.
CZ was not the only former crypto high flier who was in court last week. In Montenegro, the High Court approved the extradition of Do Kwon, the former founder of Terraform Labs, to either South Korea or the US where he faces charges related to last year’s collapse of the algorithmic stablecoin Terra – a key catalyst behind last year’s crypto winter.
To those unfamiliar with the industry, such news flow may appear to be just further confirmation that cryptocurrencies are vehicles for illegal activity. However, the reality is this cleaning up of crypto makes it more likely that the SEC will approve a spot Bitcoin ETF. Such optimism would explain why the seminal cryptocurrency, whose hash rate has been surging over recent months, hit a fresh 18-month high above $38,000 late last week and also why the discount on Grayscale’s Bitcoin Fund’s has fallen to less than 9% - its narrowest since July 2021.
Sources: Trakx, Coingecko, Alphavantage
- U.S. prosecutors argue CZ may face up to 10 years and should be detained in the U.S.: CryptoSlate.
- Binance Dies, And Crypto Is Birthed: Forbes.
- Do Kwon extradition approved by Montenegro court: Cointelegraph.
- Grayscale's GBTC Discount to NAV At Narrowest Since July 2021 on ETF Optimism: CoinDesk.
- Uniswap X volume crosses $1 bln, thanks to these market makers: AMBCrypto.
- Bitcoin Sender Struck With $3.1M Transaction Fee, Largest in History: CoinDesk.
- The Trakx team will be at Finnov’ in Paris, on the 7th of December. Come and listen to Lionel Rebibo on the panel: “Between standardisation, regulation, and attractiveness: what challenges exist for the cryptocurrency ecosystem?” You can register here.
Trakx CTIs Performance
Sources: Coingecko and AlphaVantage
*Return of bitcoin is calculated since 01/05/2020, while CTIs performances were calculated since their respective launch date.
**Includes simulated performance.
***The risk signal is determined according to the historical volatility level, the higher the riskier.