Here are the latest developments from the world of crypto over the past few days
ByteX, a zero collateral crypto loan and exchange platform, has announced the launch of a non-custodial set-up that allows users to choose between an exchange wallet and a Metamask wallet to store their digital assets. This comes in the wake of the FTX collapse that wiped out approximately $100 billion from the crypto market cap.
While the crypto market is still reeling from the hit, ByteX, along with several other projects, is working to regain the lost faith and keep its wheels on track. With measures like proof-of-reserve, non-custodial, or self-custodial setups, these projects are going above and beyond to gather and display all their resources to the public and reinstate trust and transparency in the space.
Sherlock Might Lose 4 Million USDC In Aftermath Of FTX Collapse
M11 Credit, a staking pool, has notified Sherlock, a smart contract auditing platform, that Orthogonal Trading will be unable to repay their loans.
Sherlock now holds five million USDC in the non-permissioned USDC Maple pool maintained by M11 Credit.
Sherlock has been warned that this pool will recover around 20-25 per cent, resulting in a loss of four million USDC for the Sherlock staking pool. This incident is expected to cost investors around 33-35 per cent of their capital, according to a blog post by Sherlock.
CoinAgenda Launches Self-Custodial Wallet
MegaMask is an innovative crypto wallet that aims to redefine the standard for cross-chain interoperability and asset transfers. The wallet allows users to easily store, display and transfer non-fungible tokens (NFTs), cryptocurrencies, and other digital assets from various Blockchains into one wallet.
To do this, Megamask leverages the Wire Network. The network’s new universal polymorphic address protocol (UPAP) enables cross-chain transactions without requiring a traditional bridge.
“This is a major pivot point in the Blockchain technology, as we step away from the vulnerable fragmentation of traditional crypto architecture,” said Ken Dicross, CEO, Wire Network.
Gate.io To Set Up $100M Fund
To mitigate the detrimental effects of a crypto winter and ecosystem breakdowns, Gate.io, a crypto exchange, has established a liquidity support fund with a $100 million initial contribution.
Market liquidity worries are an urgent threat to faltering crypto businesses, as investors shift their cash away from exchanges and into self-custody wallets. The $100 million pledge from Gate.io is intended to help enterprises restructure and adapt to shifting market dynamics.
Fir Tree Capital Management Sues Grayscale
A New York based hedge fund, Fir Tree Capital Management is suing Grayscale, a crypto investment firm, according to a Bloomberg report.
Their Bitcoin Grayscale Bitcoin Trust is down by 65.83 per cent in the last 12 months, according to Grayscale’s website. Fir Tree Capital wants to get its hands on the book of Grayscale to review if the firm is using any malpractices in light of the recent FTX collapse.
Grayscale is a US Securities and Exchanges Commission (SEC) regulated product. The hedge fund claims in its complaint that about 850,000 retail investors have been “harmed by Grayscale’s shareholder-unfriendly actions.”