Cardano will launch a new algorithmic stablecoin; The monthly amount of BTC withdrawn from exchanges broke a record; and FTX subsidiary Liquid will cease all operations.
Cardano will launch a new algorithmic stablecoin
Proof-of-Stake platform Cardano has partnered with COTI to launch an over-collateralized algorithmic stablecoin. COTI is a DAG-based Layer 1 protocol.
The stablecoin Djed will be launched in Japan in January 2023 if it passes a series of audits and stringent stress tests. According to the developers, Cardano (ADA)-backed Djed will be pegged to the US dollar. It will also use SHEN as its Reserve Token.
The algorithmic stablecoin will reward users who provide liquidity by using Djed and will be integrated with Decentralized Exchanges (DEXs).
The monthly amount of BTC withdrawn from exchanges broke a record
FTX’s declaration of bankruptcy seems to have driven investors away from centralized exchanges. According to Glassnode’s Week on the Chain report published on November 21, a net of 172,700 Bitcoin (BTC) has been withdrawn from exchanges in the past 30 days. This value represents the highest monthly value ever withdrawn from cryptocurrency exchanges.
Withdrawals from exchanges mostly mean that investors are not planning to sell anytime soon and are interpreted as an expectation of a price rise. Still, after FTX’s bankruptcy, those metrics may not work that way for a while.
Glassnode data also shows an increase in the transaction rate associated with exchanges. Over the past two weeks, daily transactions have exceeded 246,000. Nearly half of them are transactions related to exchanges.
FTX subsidiary Liquid ceases all operations
In an announcement on its Twitter account on November 20, Liquid said it had stopped all trading on its platform in line with FTX Trading instructions.
Liquid said, “We’ve done this since then when assessing the company’s situation. […] We are working on these issues and will update more extensively when the time comes.”
Liquid’s operational halts come 5 days after the company suspended all withdrawals on its platform. On the other hand, Japan Financial Services Corporation had previously requested FTX Japan, the Japan arm of FTX, to suspend placing orders for trading on November 10.
According to reviews by financial services firm Perella Weinberg, many of FTX’s subsidiaries, like FTX Japan, FTX Turkey Technology and Trade, Quoine, FTX EU, FTX Exchange FZE, and Zubr exchange, are in debt.