Crypto Markets Today: More FTX Fallout as Traders Turn Defensive

Auros Global, the troubled crypto trading firm and market maker, disclosed Tuesday that it was granted a “Provisional Liquidation” request last month from a court in the British Virgin Islands, as part of efforts to restructure outstanding debt to lenders.

This article originally appeared in Crypto Markets Today, CoinDesk’s daily newsletter diving into what happened in today's crypto markets. Subscribe to get it in your inbox every day.

  • In a statement posted to Twitter, Auros said that the decision followed “the events that transpired around FTX,” the crypto exchange formerly helmed by Sam Bankman-Fried that imploded in November.
  • “The company found itself in a position where immediate liquidity was insufficient to satisfy recalls from lenders,” according to the statement. “Management and directors remained confident in the long-term prospects for the business.”
  • Auros said, "Upon the successful implementation of the restructuring, it is anticipated that Auros’ operations would resume as normal.”
  • The firm had $20 million of funds frozen on FTX, according to the intelligence site OffShoreAlert, which cited a Nov. 16 court filing submitted to the British Virgin Islands High Court. The news was previously reported by The Block.
  • Auros encountered liquidity troubles after the sudden implosion of FTX. Multiple trading firms held a part of their funds on the exchange for trading purposes, and were subsequently hit when FTX halted withdrawals on Nov. 8 and filed for Chapter 11 bankruptcy protection on Nov. 11. Funds on the exchange are now tied up in a lengthy court proceeding.

Token Roundup

(CoinDesk Research)

Bitcoin (BTC): The largest cryptocurrency by market value rose 1.5% over the past 24 hours, trading around $16,890. Equities markets also rose after the Bank of Japan surprisingly widened the target range for its 10-year government bond yield earlier Tuesday. The Dow Jones Industrial Average closed up 0.28%. The S&P 500 was up 0.10%, while the tech-heavy Nasdaq Composite was up 0.01%.

Ether (ETH): The second-largest cryptocurrency followed BTC’s trajectory, up 3.1% around $1,215.

Polygon (MATIC): The MATIC price was recently trading up 1.5% to 79 cents after Polygon co-founder Sandeep Nailwal unveiled Web3 accelerator Beacon, which aims to connect founders with potential investors. The accelerator’s first remote-first, 12-week cohort kicked off in October with more than 30 founders from 15 companies across decentralized finance (DeFi), infrastructure and consumer applications.

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BTC/ETH prices per CoinDesk Indices; gold is COMEX spot price. Prices as of about 4 p.m. ET

Crypto Market Analysis: Rotation Within CoinDesk Market Index Sectors Bears Similarities to Tradfi Trend

By Glenn Williams Jr.

Money is searching for quality in both traditional and digital assets, as investors appear to favor safety above all for right now.

CoinDesk Indices (CDI) data shows the Currency Select Index (CCYS), anchored by bitcoin (BTC), and the Smart Contract Platform Index (SCPX), anchored by ether (ETH), outperforming other select sectors within the CMI universe. CMI sectors represent comprehensive groupings of digital assets by sector, allowing for measurement of performance and a comparison.

What today’s data shows is that, similar to in past market cycles, flights to safety within the cryptosphere is translating to movement of capital into BTC and ETH, relative to other coins. On the other end of the spectrum, the more speculative Computing Index (CPU) and Culture & Entertainment (CNE) have lagged other sectors in both week to date and month to date performance.

Coindesk Indices 12/20/22 (Coindesk)

Read the full technical take here.

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