How Are Businesses Using Blockchain To Revolutionize Their Industries

To put it simply, it is a computerized ledger of all crypto currency transactions. It keeps growing as more recordings are added to “completed” blocks. Each block has a timestamp, a cryptographic hash of the previous one, and transaction data. Bitcoin nodes use the blockchain to distinguish between legitimate transactions and attempts to respond to previously spent currency.

Blockchain technology was invented in 2008 by Satoshi Nakamoto, a mysterious individual or group. Blockchains are distributed public ledgers where network nodes record and cryptographically validate transactions. In 2009, the cryptocurrency bitcoin was developed as a blockchain application.

There are many places where you can learn about blockchain technology. One excellent resource is cryptowhale. This website provides comprehensive information about blockchain technology and how businesses use it to revolutionize their industries.

Businesses Using Blockchain To Revolutionize Industries

Blockchain is becoming increasingly popular among businesses of all sizes and industries. Its advantages are many, including increased security, transparency, and efficiency. As a result, businesses are finding new and innovative ways to use blockchain to revolutionize their industries.

One example is the food industry. The global food supply chain is notoriously complex, with many participants involved in bringing food from farm to table. This complexity leads to a high vulnerability to contamination, spoilage, and fraud. Blockchain could help solve these problems by providing a secure and transparent record of the food supply chain. This would let consumers know where their food comes from and how it was produced. It would also help reduce the incidence of foodborne illness and fraud.

Another example is the financial industry. Blockchain has the potential to revolutionize the way financial transactions are processed. By creating a secure and tamper-proof record of all transactions, blockchain could help reduce the risk of fraud and theft. It could also speed up the settlement of transactions, making it easier for businesses to do business with each other.

Overall, blockchain has the potential to revolutionize many different industries by providing a secure and transparent record of transactions or activities. This could lead to increased efficiency and reduced fraud and corruption. As more businesses adopt blockchain technology, we can expect to see even more amazing innovations in this exciting field.

Future Of Blockchain And Its Impact On Business

A blockchain-distributed database enables safe, open, and unchangeable transactions. Businesses are already starting to apply it in various ways, and it has the potential to change several industries. Here are just a few examples of blockchain implementation:

  1. Supply Chain Management: Blockchain can track goods moving through the supply chain, from manufacturer to retailer. This allows for greater transparency and efficiency and reduces the risk of fraud or product tampering.
  2. Banking and Finance: Blockchain can streamline the banking process and reduce transaction costs. It can also be used to create digital currencies and smart contracts, which could revolutionize the banking industry.
  3. Healthcare: Blockchain can store patient data securely, streamline medical record-keeping, and reduce fraud and error. It could also be used to create a universal healthcare ID system.
  4. Retail: Blockchain can be used to create tamper-proof digital receipts, which could reduce fraud in the retail industry. It could also be used to track inventory and shipping routes.
  5. Real Estate: Blockchain can manage property titles, deeds, and other real estate documentation. It could also be used to create a global real estate database.

The potential applications of blockchain are endless, and its impact on business is only beginning to be felt. In the future, we can expect to see even more businesses adopt blockchain technology to improve efficiency and security.

Getting approval for a financial loan, insurance coverage otherwise home financing are stressful

 

By Lydia Kibet

  • Exactly what a keen Underwriter Try
  • What a keen Underwriter Does
  • Sorts of Underwriters
  • Underwriters compared to. Representatives and Brokers

Your application needs to go through a strict process to verify that the monetary risk the firm is going to grab are well worth giving. This is where an underwriter will come in. Underwriters play the role of gatekeepers to suit your monetary qualities acceptance.

Underwriting is one of the most important services regarding the monetary world, skilled primarily when you look at the insurance policies, loan and you will investment companies. An enthusiastic underwriter evaluates debt health insurance and determines whether or not to just take their package predicated on the quantity of risk.

What’s an enthusiastic Underwriter?

An enthusiastic underwriter is an individual or group that evaluates various other party’s economy and you can assumes the risk at a fee. Constantly, an enthusiastic underwriter gets commission in the form of a paid, fee, otherwise each other a made and commission.

If you are talking about an enthusiastic underwriter, you may be probably applying for approval for the majority types of higher get in just one of multiple marketplace, eg mortgage loans, insurance coverage, fund otherwise security locations. All of the community has its own underwriters who concentrate on specific industries.

These people use the assistance to assess the degree of exposure of each applicant ahead of and if the danger. If your team identifies the risk is actually far rates, the fresh underwriter try held responsible.

Role out-of a keen Underwriter

An underwriter uses the systems to check whether or not the chance they go for about when deciding to take is definitely worth they. According to the particular economic provider you might be seeking recognition for – let’s say a loan – an enthusiastic underwriter often assess yours recommendations just like your credit score to find the superior amounts so you’re able to charges.

The latest part regarding an underwriter was risky. Considering their chance comparison, an enthusiastic underwriter has to assess an acceptable level of exposure so you’re able to see whether you be eligible for recognition or otherwise not.

Sort of Underwriters

As mentioned, for each and every industry possesses its own underwriters one to play an important role from the monetary business. It include the following items.

Insurance coverage Underwriter

Insurance rates underwriters determine and you may analyze the risks in providing acceptance for an agenda. They consider an excellent organizations risk within the guaranteeing a home, vehicle or driver or health and life insurance for individuals. After determining the dangers on it, the brand new underwriter kits an amount energized when it comes to an advanced in return for the chance drawn.

Insurance coverage underwriters are benefits which have certified studies from inside the exposure assessment. They incorporate its assistance to choose if an applicant is eligible having approval or otherwise not. When they determine an enthusiastic applicant’s qualification for the coverage, then they present the sort of rules.

To own outstanding circumstances, an enthusiastic underwriter spends automated application – a computer-made process – to find the level of exposure and whether or not an applicant try qualified to receive the policy in accordance with the insurer’s specific conditions. Insurance coverage underwriters understand the dangers and you can know how to prevent them.

Mortgage Underwriter

Mortgage loan underwriters are the typical type of underwriters, and reasonable. To acquire a house try a risky venture, even though you have a great credit rating otherwise higher earnings. A home loan underwriter can do a thorough research to decide if the chance is down.

Best that you See

A home loan underwriter could possibly get feedback your own personal information, as well as your credit history, credit score, yearly income and you will complete offers to determine your eligibility to possess mortgage mortgage approval. They will certainly as well as measure the possessions you should get.

The new underwriter next uses their exposure review to weighing certain activities of real estate loan software to determine the acceptable number of chance. Your loan underwriter ‘s the latest individual that decides whether or not otherwise perhaps not you could qualify for a mortgage.

Bonds Underwriter

Ties tend to be personal carries and you can personal debt securities, including bonds, which are tradable economic tools that provides control rights to people. Ties underwriters regulate the brand new issuance and you can distribution regarding ties. They often times manage initial social offerings to check the chance and determine a fair price to have particular ties. The fresh underwriting techniques is frequently performed with respect to a possible trader, usually an investment financial.

A financial investment financial buys (underwrites) ties provided from the providers trying IPO and then deal people bonds in the market. This means the fresh issuers of your shelter can raise the fresh full quantity of money they want when you find yourself making this new underwriters good advanced in exchange for their service. Underwriting securities, not, occurs that have dangers – as an example, the newest funding bank is likely for the difference in the first valuation and also the actual rates.

Financing Underwriter

Financial underwriting is one of prominent particular financing underwriting, in which an underwriter analyzes your financial updates to decide if or not you qualify for loan recognition. Included in the acceptance procedure, banks have a tendency to make use of the mortgage underwriter’s human investigations and you can automatic software with her to evaluate the risk of lending.

The loan underwriting processes just assesses the creditworthiness plus the ability to pay off the mortgage but whether your meet all of the conditions of financing system. A loan underwriter fundamentally approves or rejects a loan.

Difference in Underwriters, Representatives and Agents

There can be usually an agent or representative with regards to monetary products. Underwriters will often have the last say, plus they are the ones to decide whether or not you will get recognition or not. Likewise, agencies and you can brokers act as salespersons. They promote products to people and you can enterprises – however, just with new underwriter’s consent.

Latest Get

If you find yourself trying to recognition getting an economic provider, be it home financing, financing or insurance, then you may need an underwriter. An enthusiastic underwriter often determine your current finances to determine the acceptable level of chance according to research by the organizations certain standards. Getting what things to avoid better, talk about the underwriting techniques along with your broker, agent or company to higher comprehend the techniques.

All of our inside the-house look cluster and on-site financial experts interact to make blogs which is perfect, unbiased, or more thus far. We truth-examine every single figure, quote and you can reality playing with leading number one info to ensure this new recommendations we provide is correct. You can discover a lot more about GOBankingRates’ process and you may requirements inside our article plan.

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Sri Lanka central bank holds rates steady, says mkt interest rates must fall

Sri Lanka cenbank holds rates steady as expected amid slowing inflation By Reuters

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(C) Reuters. FILE PHOTO: People walk past the main entrance of the Sri Lanka’s Central Bank in Colombo, Sri Lanka March 24, 2017. REUTERS/Dinuka Liyanawatte

COLOMBO (Reuters) – Sri Lanka’s central bank held rates on Thursday, adding it expects a moderation in market interest rates in line with the prevailing policy interest rates.

The Standing Lending Facility rate was held steady at 15.50% while the Standing Deposit Facility Rate was kept unchanged at 14.50%.

“The Board was of the view that the prevailing tight monetary policy stance is necessary to rein in any underlying demand pressures in the economy,” the central banks said in a statement.

Sri Lanka cenbank holds rates steady as expected amid slowing inflation

Dollar slips as risk sentiment improves after Fed minutesBy Reuters – Nov 23, 2022

By Ankur Banerjee SINGAPORE (Reuters) – The U.S. dollar was broadly weaker on Thursday as investors, encouraged the prospect of a slower pace of interest rate hikes from the…

 

Brazil’s electoral court rejects Bolsonaro election challengeBy Reuters – Nov 23, 2022

BRASILIA (Reuters) -The head of Brazil’s electoral court Alexandre de Moraes on Wednesday rejected a complaint from President Jair Bolsonaro’s allies to challenge the presidential…

 

S.Korean central bank hikes rates by 25 bps, slows tightening paceBy Reuters – Nov 23, 2022

By Cynthia Kim and Jihoon Lee SEOUL (Reuters) – South Korea’s central bank raised interest rates by a more modest 25 basis points on Thursday, slowing the pace of policy…

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What it would mean for Tesla to buy back shares

 

Tesla investors are begging CEO Elon Musk and the board of Tesla to consider buying back shares as the company’s stock price slumps to a two-year low. Tesla stock was trading at $183.20 after hours on Wednesday, and its market capitalization has plunged by almost $700 billion since its peak a year ago.

Musk said during Tesla’s Q3 earnings call that the company is likely to do a “meaningful buyback” next year, possibly between $5 billion and $10 billion. Last week, he said it would be “up to the Tesla board” to decide.

Buying back shares from the marketplace would reduce the number of outstanding shares available, which increases the ownership stake of current shareholders. That’s because reduced supply of shares often causes a price increase. Tesla bull and influencer Alexandra Merz recently put up a petition on Change.org to advocate for a swift buyback before the end of the year. Merz said this would allow Tesla to “benefit from a currently very unvalued stock price” and avoid the 1% excuse tax that any buybacks exceeding $1 million will be subject to by January 1, 2023.

Merz and other investors have also argued a stock buyback would be a show of confidence in Tesla’s future results and would return wealth to shareholders.

“I’m a huge Tesla fan and past stock holder but in order to preserve my capital I’ve been forced to go to the dark side,” commented one petitioner, of which there are currently 5,807. “I’ve recently began to short the stock and have earned back roughly half my loses. I believe in Tesla’s long term growth but I need to see some action from the board before going long again. A nice buy back would show confidence from the board that Tesla is still a good investment.”

Tesla’s stock has taken a hit lately for a variety of reasons, including decreasing investor confidence in Musk to run the company effectively. Many have complained that Musk is, at best, distracted by his recent purchase and takeover of Twitter, a social media platform on which the executive has lately been airing his politics even more than usual. Musk and certain members of Tesla’s board are currently in court over the CEO’s $56 billion pay package after a Tesla shareholder accused Musk of being a “part-time CEO.”

Drops in Tesla shares also followed massive stock sales by Musk who needed liquid cash to finance the $44 billion Twitter deal.

Some analysts, like Adam Jones at Morgan Stanley, worry the Twitter fiasco and Musk’s rampant tweeting could hurt consumer demand for Tesla, as well as commercial deals and government relations.

Musk’s involvement in Twitter isn’t the only reason for plunging shares. While Tesla still remains the market leader of electric vehicles in the U.S., the company is rapidly losing market share to other automakers as new models come online. In the third quarter, Tesla held 64% market share in EVs, which is down from 66% in Q2 and 75% in Q1. Ford, GM and Hyundai brands are quickly catching up as they scale production of popular EV models like the Mustang Mach-E, the Chevy Bolt and the Ioniq 5.

Tesla is also losing ground to Chinese EV makers like BYD and Wuling Motors in China, where the automaker recently slashed prices to lure buyers, receiving reportedly lackluster enthusiasm. On top of that, Beijing is now on lockdown and more restrictions have been imposed in China as coronavirus cases surge. This might not only affect Tesla’s ability to run its gigafactory in Shanghai, but further restrictions will affect China’s weakened economy further and reduce demand for luxury products like Teslas.

Then there are the back-to-back recalls that Tesla issued over the weekend — over 350,000 vehicles from U.S. customers with software glitches that disable tail lights or activate air bags during minor collisions in some cars. That’s on top of the 17 other recalls this year.

Finally, Tesla has gotten plenty of bad press this year around its advanced driver assistance systems Autopilot and “full self-driving,” or FSD, which have been tied to some fatal crashes in the worst case and in the best case have simply not performed as expected. In September, drivers filed suit against the company for falsely advertising the autonomous capabilities of its tech.

All of the above, coupled with a down market, have resulted in Tesla’s market cap going from $1.2 trillion last November to $574 billion as of Wednesday’s close.

Billionaire Leo Koguan, who says he’s the third largest individual shareholder in Tesla, has been advocating for a buyback for months. Last week he tweeted that Musk should stop selling shares and should take advantage of the “right timing” to buy back shares “before Q4.” Musk responded to the tweet saying it was “up to the Tesla board.”

In October, Koguan called on Tesla to buy back at least $5 billion worth of stock, and in the past has argued for up to $15 billion worth of buybacks, saying Tesla should use its free cashflow to fund the buyback.

As of the third quarter, Tesla has a free cash flow of $3.3 billion.

Koguan has said Tesla can still invest in FSD, its Optimus bot and new gigafactories while also buying back “undervalued stocks.”

Marketmind: COVID vs RRR

 

Another central bank pivots. The Bank of Korea on Thursday slowed its pace of tightening to a modest 25 basis point hike, becoming the latest central bank to step down from outsized rate increases.

This has aided the risk-on mood in the market, with Asian shares mostly advancing and U.S. dollar broadly weaker.

Overnight, markets rejoiced at the prospect of the U.S. Federal Reserve downshifting to a smaller 50 basis point hike at its next policy meeting in December, ignoring warnings that rates might still have to peak above 5% by mid next year.

The minutes of the Fed's November policy meeting showed a "substantial majority" of policymakers reckon it will "likely soon be appropriate" to slow the pace of rate hikes.

Long-term Treasuries jumped. Yields on 10-year notes dropped to be a huge 79 basis points below two-year yields, a curve inversion on a scale not seen since the dotcom bust of 2000 and, on the face of it, a signal investors expect a deep economic downturn in coming months.

However, much U.S. economic data remains healthy, regardless of what the bond market says. The Atlanta Fed's GDPNow showed the economy expanding at an annualised rate of 4.3% so far in the fourth quarter, implying growth is speeding up, not slowing down.

Elsewhere, China's new economic stimulus – a likely cut to the banks' reserve requirement ratio and a rescue package for the battered property sector – helped real estate stocks but failed to lift the wider mainland market, which fell 0.3% as surging COVID cases still dominated investor sentiment.

China's COVID infections hit a record high, with Beijing, which has the strictest rules, failing to contain the spreading virus. In fact, the author's old community building in Beijing has been sealed off for at least three days, its first such shutdown.

Ting Lu, chief China economist at Nomura, says a RRR cut is likely to be of little use, as the biggest roadblock lies in the government's zealous approach to dealing with COVID, rather than insufficient loanable funds.

"In our view, ending zero COVID as soon as possible is the key to raising credit demand and bolstering growth."

Key developments that could influence markets on Thursday:

Germany Ifo Business Climate index

Riksbank likely to raise rates by 75 basis points, with risk of 100 bp

Speakers: ECB officials including vice president Luis de Guindos, Board member Andrea Enria, Executive Board Isabel Schnabel, and Bank of England's Dave Ramsden and Huw Pill

Why FTX Implosion Is Not Good News for Coinbase

 

Coinbase isn’t directly exposed, but the scandal further erodes trust in cryptocurrencies.

Less competition may seem like a good thing for cryptocurrency exchange Coinbase (COIN -7.23%). A major competitor essentially disappearing overnight would be a godsend in nearly every industry. Imagine if Pepsi just packed it in. Or if FedEx decided that packages just weren’t its thing.

The cryptocurrency industry, if you can even call it an industry, is not like this. Coinbase makes most of its money by charging fees when its customers trade. For customers to want to trade, they need to believe that they can turn a profit. And for customers to believe they can turn a profit, they must have at least some confidence in the crypto economy.

The collapse of FTX, which turned out to be a toxic stew of fraud and sloppy accounting, is the latest hit to the collective confidence of crypto speculators. It’s still not known how many billions of dollars in client funds are missing, or if those funds will ever be recovered. Worse, other crypto companies that custodied assets with FTX are now facing their own crises. Cryptocurrency lender BlockFi, for example, is reportedly preparing a bankruptcy filing of its own, according to The Wall Street Journal.

The king of nothing

Coinbase doesn’t appear to be directly exposed to FTX in any meaningful way. The company said it had little exposure to FTX and no exposure to the FTT token, which has collapsed in value. The real problem, though, is not direct exposure.

Cryptocurrency was a bonanza during the first two years of the pandemic. Not only did the price of Bitcoin soar, but so did the price of myriad other tokens. Non-fungible tokens tied to images were fetching millions of dollars each . Companies popped up promising too-good-to-be-true rewards for depositing cryptocurrency. It all worked as cryptocurrency prices continued to soar.

As cryptocurrency prices began to sink earlier this year, the fragility of the crypto economy started to rear its ugly head. Companies started to fail. Crypto lender Celsius filed for bankruptcy in July after freezing customer assets; the $60 billion Terra network imploded when its crypto backed stablecoin collapsed; and crypto hedge fund 3AC fell apart after once managing $10 billion in assets.

Each failure individually is not particularly problematic for crypto as a whole. What is problematic is when these failures cause a cascade. Counterparties to failed companies face crises of their own, then counterparties to those companies come under pressure, and so on and so forth. Those who hold and trade crypto currencies have no idea who to trust.

One bull case for Coinbase is that the company can emerge as the last man standing. Presumably, it’s not doing anything shady with its customer deposits, and it has around $5 billion in cash to ride out the current storm. As other cryptocurrency exchanges collapse around it, Coinbase can act as a beacon of stability.

The problem with this argument is the assumption that this storm doesn’t mark the end of the cryptocurrency industry as we know it. Bitcoin will still be around, but at this point, trust has been shattered. The era of easy profits trading nonsense digital currencies is probably over. And if that’s the case, Coinbase will sit on its throne as the king of nothing.

Coinbase could fail, too

Coinbase is no immediate risk of failing, assuming its financial statements are accurate, and that it doesn’t have some outsized exposure to something yet to collapse. But its entire business depends on retail investors being willing to pay a premium to buy and sell cryptocurrencies. All its other revenue from services is also ultimately dependent on continued interest in cryptocurrency trading.

Coinbase has been catering to institutional investors, but it generates very little revenue from those transactions. And institutions burned by a never-ending stream of scandals may start to think twice about getting involved in the cryptocurrency markets at all.

 
 

Despite Coinbase’s cash-rich balance sheet, the bond market is screaming at the top of its lungs that something is wrong. Notes issued by Coinbase in late 2021 that mature in 2028 are currently selling for 56 cents on the dollar. Rising interest rates explain part of this collapse, but not all of it. Bond investors clearly don’t like what they see.

Coinbase has made progress cutting costs, but it’s still burning through its cash as revenue tumbles. Cash and cash equivalents declined by $2.1 billion during the first nine months of this year. Even if Coinbase gets through this “crypto winter,” the idea that interest in cryptocurrencies will surge anew like it has in the past requires a leap of faith.

My guess: Bitcoin will stick around as a novelty, but certainly not as “digital gold”, and everything else will fade away. That’s not an environment where Coinbase can succeed.

Binance CEO CZ begins working on Vitalik Buterin’s ‘safe CEX’ ideas

 

The collapse of numerous major crypto ecosystems in 2022 revealed the urgent need for revamping the way crypto exchanges operate. Ethereum co-founder Vitalik Buterin believed in exploring beyond “fiat” methods to ensure the stability of crypto exchanges, including technologies such as Zero-Knowledge Succinct Non-Interactive Argument of Knowledge (zk-SNARKs). 

Following a discussion with angel investor Balaji Srinivasan and crypto exchanges such as Coinbase, Kraken and Binance, Buterin recommended options for the creation of cryptographic proofs of on-chain funds that can cover investor liabilities when required, also known as safe centralized exchanges (CEX).

The best case scenario, in this instance, would be a system that does not allow crypto exchanges to withdraw a depositor’s funds without consent.

Fellow crypto entrepreneur CZ, who has been vocal about Binance’s intent for complete transparency, acknowledged the importance of Buterin’s recommendations, stating:

“Vitalik’s new ideas. Working on this.”

The earliest attempt to ensure fund safety was proof of solvency, wherein crypto exchanges publish a list of users and their corresponding holdings. However, privacy concerns eventually fueled the creation of the Merkle tree technique — which dampened the privacy leakage concerns. While explaining the inner workings of the Merkle tree implementation, Buterin explained:

“The Merkle tree technique is basically as good as a proof-of-liabilities scheme can be, if only achieving a proof of liabilities is the goal. But its privacy properties are still not ideal.”

As a result, Buterin placed his bets on cryptography via zk-SNARKs. For starters, Buterin recommended putting users’ deposits into a Merkle tree and using a zk-SNARK to prove the actual claimed value. Adding a layer of hashing to the process would further mask information about the balance of other users.

Buterin also discussed implementing proof of assets for confirming an exchange’s reserves while weighing the pros and cons of such a system, considering that crypto exchanges hold fiat currencies and the process would require crypto exchanges to rely on trust models better suited for the fiat ecosystem.

While long-term solutions will need the involvement of multisignature and social recovery wallets, Buterin pointed out two alternatives for the short-term — custodial and noncustodial exchanges, as shown below:

“In the longer-term future, my hope is that we move closer and closer to all exchanges being non-custodial, at least on the crypto side,” added Buterin. On the other hand, highly centralized recovery options can be used for wallet recovery for small funds.

Related: Crypto self-custody a ‘fundamental human right’ but not risk-free: Community

On Nov. 4, Buterin added a new category of milestones to the Ethereum technical roadmap — aimed at improving censorship resistance and decentralization of the Ethereum network.

The updated technical roadmap now inserts the Scourge as a new category, which will run parallel to other previously-known segments — the Merge, the Surge, the Verge, the Purge and the Splurge.

Ripple to consider deals for FTX assets: Brad Garlinghouse

 

Ripple CEO Brad Garlinghouse is reportedly interested in buying certain parts of collapsed crypto exchange FTX.

On the sidelines of Ripple’s Swell conference in London — was held on Nov. 16 and 17 — Garlinghouse told The Sunday Times that former FTX CEO Sam Bankman-Fried called him two days before the company filed for bankruptcy as he sought to round up investors to rescue the business.

The Ripple CEO said that during the call, the two discussed if there were FTX-owned businesses that Ripple “would want to own.”

“Part of my conversation was if he needs liquidity, maybe there’s businesses that he has bought or he has that we would want to own […] Would we have bought some of those from him? I definitely think that was on the table,” he said.

However, Garlinghouse admits that now that FTX has filed for Chapter 11 bankruptcy in the United States, a potential transaction for an FTX business will be “very different than it would have been one-to-one.”

“I’m not saying we won’t look at those things – I’m sure we will. But it’s a harder path to transact,” he added.

Approximately 130 companies affiliated with FTX, including FTX.US, were included in the bankruptcy filing in Delaware.

Some subsidiaries not included in the proceedings include crypto clearinghouse LedgerX, FTX Digital Markets, FTX Australia Pty, and payments processor FTX Express Pay.

Garlinghouse said he would be interested in buying the parts that served business customers.

Cointelegraph has reached out to Ripple for additional comment but has not received a response by the time of publication.

Related: Sam Bankman-Fried updates investors: ‘We got overconfident and careless,’ claims $13B leverage

It appears that Ripple’s executives, like many in the industry, are following the latest developments of the FTX saga.

On Nov. 10, Ripple chief technology officer David Schwartz directed a message on Twitter toward employees of FTX, suggesting that there would be room at Ripple for them, so long as they aren’t involved in compliance, finance or business ethics.”

FTX has recently appointed restructuring administration firm Kroll as its agent to track all claims against FTX and ensure interested parties are notified of developments throughout its Chapter 11 bankruptcy case.

 

South Korea Freezes $104 Million in Assets Belonging to Terra Co-Founder – Bitcoin News

 

South Korea’s prosecutors have reportedly obtained a court order to freeze assets worth about $104 million belonging to Terraform Labs co-founder Daniel Shin. The authorities allege that he unfairly profited from selling cryptocurrency LUNA at high prices before the token crashed. Shin has denied the allegation.

South Korean Authorities Freeze Terraform Labs Co-Founder’s Assets

The Seoul Southern District Court reportedly approved local prosecutors’ request Thursday to freeze about 140 billion won ($104 million) in assets belonging to Terraform Labs co-founder Shin Hyun-seung, aka Daniel Shin. The pre-indictment freeze order is a precautionary measure to prevent a suspect from disposing of criminal proceeds before a trial.

The prosecutors have accused the Terra co-founder of making “unfair” profits of about 140 billion Korean won by selling pre-issued cryptocurrency LUNA, now known as luna classic (LUNC), without proper disclosure to investors. However, Shin reportedly told the prosecutors Thursday that he did not sell the crypto at its peak price before the token crashed.

Hwang Suk-jin, professor of information security at Dongguk University and a regular speaker on crypto policy at South Korea’s National Assembly, was quoted by Forkast as saying:

It’s a problem with pre-mining. It’s because they did not make proper disclosure in issuing the tokens.

The professor added that for example, if investors “thought 1,000 tokens have been issued and in fact 10,000 have been issued, investors inevitably suffer losses.”

Shin and Chai corp., a local payments tech company he founded, are currently under investigation for allegedly using customer information without consent in launching Chai’s Terra payment services. The payments company was reportedly raided by local authorities on Thursday.

South Korean prosecutors have also been investigating the collapse of LUNA since May and have issued an arrest warrant for Kwon Do-Hyung, aka Do Kwon, who co-founded Terraform Labs with Shin. Interpol has also issued a Red Notice for him. Last month, South Korean authorities said they have frozen crypto assets belonging to Kwon. However, Kwon denied that the frozen coins were his.