Sooooo what a mess this weekend has been. Zero grass has been touched and time spent on Twitter, watching what feels like an episode of Eastenders, has increased by over 9000%. The SBF conspiracy contagion continues to create the biggest crypto crisis in history.

This has probably been one of the most mentally draining, weeks we’ve seen in crypto for a long time. Just look at what’s happened in the last 72 hours from 9 figure money movements to all-time high spoofs being revealed (makes sense we hit $69,420 now) and the SBF hunters embark on a wild global adventure.

Let’s recap and what just happened so that next weekend we can hopefully go touch grass. Happy Monday anon.

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In Todays Enclosure

• The Big Topic - FTX, the contagion that keeps going• Bitesized bits - Gate.io & Huboi under fire, Curve in negotiations with BlockFi and Chilliz comes in hot with a 38m bailout​• Chart of the day - $SPX are we about to mid-term rally?• Ape Chasers - 🕵️‍♂️

🔥 The Big Topic - FTX, the contagion that keeps going

Like seriously, at what point does this actually stop? I never thought I would say this but it’s getting to the point where Twilight is actually a decent love story in comparison. Let’s have a look at what’s happened, what might be to come and, in Part Two on Friday, why defi is the solution that needs a couple of bandaids.

What the FTX just happened?!

If you’ve been living in the real world, on holiday or don’t have a Twitter account, Sam the CEO of FTX decided to play big boy games with Binance CEO, CZ. And he lost. In spectacular fashion, as we laid witness to a gangster-like move that put a nerd back in his place as they began to play billion-dollar big boy bag games which effectively is destroying the lives of regular people.

The Weekend TLDR recap

On Friday we began to see FTX wallets moving 9-figure bags around and dumping their bags in, what we can only assume, is an attempt to take the money and run (aka we got rugged bro!) It looks like this was just the beginning as “rogue” hackers have continued to siphon funds as the weekend has progressed.

Saturday we saw rumours of SBF jumping on a private jet (probably hooked up to some kind of amphetamine patch eating caviar on McDonalds hash browns) heading to Argentina. If that wasn’t enough we discovered that Bahamans KYC’d account holders were able to withdraw funds which, as you can imagine, led to a number of under-the-table deals going on which will likely have some very real implications. Be smart anon!

Sunday (time of writing) Crypto.com had a major woopsie daisy moment as they somehow managed to mistakenly misclick the Gate.io whitelisted exchanged address. Good news gate.io did a proof of reserve snapshot and sent the funds back. That is super nice of them!

For a deeper dive check out this short story and make your own judgment on what went down.

Oh and a media statement from the Securities Commission of Bahamas.

Was the price of Bitcoin reaching $69,420 mathematically programmed, a case of fomo from retail, or was this the biggest Rick Roll spoof in the history of crypto? You can decide for yourself but the evidence is looking fairly clear.

MONDAY UPDATE

Crypto.com CEO Kris Marszalek took to a live AMA to answer the big questions that are being fired at the exchange on Twitter. The question on all our minds right now is “Why is 20% of your reserves held in SHIB?”

Kris: “We store whatever our customers buy 1:1….A lot of people bought and are holding. Those are not our funds those are client funds.”

The biggest TLDR from the interview is “We are fully ok and will be the leader in transparency to prove the nay-sayers wrong.”

Only time will tell and check out the full interview below.

What the FTX is going to happen next?!

Honestly, this feels like it is still just the beginning. FTX and Alameda had fingers in too many pies, were leveraged to the point of industry collapse (afterall Caroline said they didn’t use stop losses) and all this whilst they were having drug-fueled orgies in a 9 figure mansion in the Bahamas which has left even more questions to be asked. Ok maybe we don’t want to ask those questions but you get my point!

Crypto.com looks like the next to fall from grace with Kucoin, Huobi, and Gate.io all coming into question. The rate at which the goblins are being flushed out has hit turbo speed which is painful to watch and a necessary evil at this stage.

Check it, here are the pies they had fingers in and, depending on their FTX exposure, could come crashing down but we hope that’s not the case.

Honestly, given the madness that has unfolded over the last few days, it is hard to say exactly what is going to happen. What we can say is to BE SMART, BE SAFE, and BE SECURE with your funds and, unlike us, go touch some grass whilst the contagion sorts itself out.

Our Take

Gobsmacked, speechless, and confused is how we are feeling right now as this has given the industry a shake-up and is creating, albeit an unfortunate, opportunity for the honest to lay down the next level of foundations in the space which, once all said and done, a very exciting space to be in.

It has also highlighted, once again, don’t trust god-tier figures as the industry has a way of throwing rocks at them to knock them down off their righteous pillars of metaphorical power. We had Do Kwon with Luna, Zhu Su with 3AC and now Sam with FTX.

And like any good 6 part action thriller with Mel Gibson in, the bad guy comes back with an ironic dose of hindsight….

Can we please go and touch grass next weekend!

🗞 The Bitesized News Bits

Gate.io & Huboi come under fire for falsifying snapshots using “loaned assets” which brings into question proof of reserves.

Curve bids for BlockFi’s credit card customers a spokesman confirms the payment company is in talks after BlockFi’s suspends its 87,000 customers’ cards.

Footy Fans Unite (again) as fan favourite Chilliz founder allocates more than 38M CHZ to help bailout those fans affected by FTX users just in time for the world cup.

Kraken kracks down on fraud, as the exchange puts the freeze on FTX and Alameda related accounts that are suspected to be participating in illegal activities.

Are the Bored Apes finished? Well they certainly won’t be climbing any trees too soon as the floor prices continues to slip on bananas with the ape royalties and treasury being stored on the FTX US exchange.

SOL devs still got soul as Solana devs are working around the clock to remove FTXs grubby hands from Serum as the SRM token accounts for $2BN of FTXs books.

David G discusses DOGE and why Elon loves trolling Bitcoin after an apperance, and Doge to the moon comment, on Mario Narwals epic marathon length FTX Twitter spaces.

LoL, despite the crypto world coming crashing down SBF still managed to have some me time to get a couple of quick games of League of Legends in. Wen Elon?!

🛡 Chart of the day: $SPX

Our Take

Has the midterm rally begun or are we in for more bull and bear traps? Week 1 of the midterms has seen a positive 5.9% increase in the SPX as we approach the 50 EMA and the downwards-sloping trend line. If we break and have a bullish retest then we maybe, just maybe will be in for that infamous Santa rally.

Bull Case, the mid-term bulls break, hold and full send over the 4000 mark with a bullish retest to finally break the downward trend we have been seeing since late last year.

Bear Case, we fail to break and hold the 50 EMA moving down towards the 200 EMA. A fail to hold the 200 EMA and we head down to test the infamous 3200 mark.

🤝 Here’s the Deel

and a quick word from our super awesome sponsors who help us make this all possible

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🦧 Updates from the bloc

The latest thread

Mates we have 2 hot threads for you today as it really isn’t all doom and gloom out there as there are plenty of projects looking after their communities. Our friends and partners at Handle.Fi and MetisDAO are doing just that.

The risks of trading right now have exponentially increased with market markers hunting your stops and liquidation points which is why taking a break and grabbing some swag might be the smartest way to play this especially those in the Metis ecosystem.

The latest podcast

Defi, the shift is coming. Handle.Fi is an on chain forex protocol that allows users to leverage trade, swap, borrow and earn from multi-currency stablecoins. We sit down with Trooper to find out more.

🕵️‍♂️  Ape Chasers

Cefi is collapsing.

TradFi is mid-term rallying (hopefully!)

…and Defi has just been thrown back into the spotlight…defi 6.9 szn soon ser?!

In Friday’s edition, we will look at “Why Defi is the solution” so in the meantime this week’s homework anon is to create a list of defi projects to keep an eye on such as GMX, DYDX, UniSwap, Sushiswap and AAVE.

🦍 The Ape Enclosure

We’re ready to ape in, at any time. Got a good idea that needs funding? Send us an email with all of the info to [email protected] - Equally, if you would like your project to be featured in our Sponsor Section, contact us and we will see if it is a good fit for our audience!