🌎 Was FTX Downfall Triggered By Terra’s?

Discover the news of the week [View in Browser]( [Gif Ledger Bites]( 18/11/2022 Your ETH Staking experience has just been made easier! [Kiln]( which allows you to earn rewards while contributing to the decentralization of the Ethereum network, has just joined [Ledger Live](. Learn more [here](. [Stake Your ETH With Kiln →]( [In the know] [FTX downfall was triggered by Terra collapse, per Nansen.]( The blockchain analytics firm said that the Luna/Terra collapse revealed a deep flaw between Alameda and FTX’s muddled relationship, adding that there were significant FTT outflows from Alameda to FTX around the Terra-Luna situation. [Genesis Global halts withdrawals amid market turmoil.]( The institutional crypto lender said it would temporarily suspend redemptions and new loan originations in the lending business amid abnormal withdrawals level following the FTX episode. It’s time for self-custody. [Cardano’s stablecoin to hit the market in early 2023.]( USDA will be the first fiat-backed, regulatory-compliant stablecoin in the Cardano ecosystem. It is the next step in realizing the future for our community, wrote Emurgo Fintech Managing Director Vineeth Bhuvanagiri. [A complete failure of corporate controls’ may have precipitated FTX collapse.]( FTX’s financial statements reveal that a series of red flags should have led to more third-party scrutiny of the crypto exchange’s activities. The first red flag anyone receiving these reports should have seen is that there were two different audit firms producing them, said Coindesk. [Crypto users increasingly jump to DeFi platforms.]( MakerDAO, DeFi’s largest protocol, has increased user addresses by a third last week. Other top 10 protocols have also attracted users' attention. Aave, a lending protocol, saw a 70% increase, and Curve, a DEX, a 63% jump. [Crypto stocks have traded down this week.]( Silvergate dipped 6% shortly after the opening today, according to Nasdaq data, while Coinbase fell 5% to $46.24. [Stake Your ETH With Kiln →]( [Figures] [image 1]( [image 2]( [Insight of the week] If Not Self Custody, Why Crypto? [self custody] Last week, FTX, a world-leading crypto exchange, filed for bankruptcy amid a solvency & liquidity crisis. Some believe the reputational damage to Web3 will be profound. They miss the point. Web3 will keep changing the world. This episode is rather a severe blow to custodians, highlighting more than ever that putting your trust in centralized players bears inherent risks of mishandling and hacks. The FTX episode is much more than a liquidity and solvency crisis. It’s a custody crisis. You never know what can happen when a centralized entity handles your funds. When you give your [private keys]( to a third party, you lose control over them, and you lose your grip over your digital life. Figures never lie. In the wake of this crisis, we have recorded the [highest volume]( of Nano hardware sales ever, showing that more and more people realize the necessity of self-custody. Towards the Next Digital Chapter The FTX meltdown is a brutal reminder of something fundamental: crypto has been invented to be decentralized, secure and transparent, not to rely on centralized custodians prone to mismanagement or hacks. Blockchains have emerged to give us more digital sovereignty, not to create new forms of digital banks. Web3’s most significant promise is to shift how people think about ownership, to usher in a world not underpinned by centralized entities, but by distributed networks. This world has nothing to do with centralized entities freezing your tokens when something goes wrong. There will be more and more digital tokens representing your money, assets, identity, belongings, and data. You don’t want them to belong to someone else; you want them to be yours. And that’s what Ledger stands for. We enable you to experience Web3 securely and with full ownership. Our[Nano devices]( keep your private keys offline, away from hackers. They never leave the secure enclave of your device. And your Nano devices enable much more than storing your digital assets. By pairing your Ledger Nano with Ledger Live, our all-in-one digital asset management app, you can safely explore an ever-expanding range of Web3 apps with your coins truly yours. The FTX bankruptcy will accelerate the dawn of a new digital era. More decentralized, more user-centric, and more secure. This is Web3’s next chapter. [I wanna know more] Cryptonovae, an all-in-one trading tool for beginners and experts, is now available on your [Ledger Live]( desktop. [Cryptonovae]( lets you analyze crypto prices from multiple pairs and exchanges. It also gives you access to charts, trading tools, custom timeframes and indicators. Start trading like a pro [now]( Hacks and mismanagement can be prevented by self-custody and governance. Businesses and Exchanges need self-custody too. That’s what [Ledger Enterprise]( stands for. What happened with FTX is a governance problem. Intermediaries need to upgrade their security scheme’ said Pascal Gauthier on [CoinDesk](. A silver lining to recent market events is an understanding of the importance of self-custody. Still, a common question arises, what happens if Ledger ceases to exist? Learn everything [here](. [Images of the week] That’s Drake flexing his iced out Ledger Nano. Pretty cool, right? [image of the week]( [@Drake]( [unsubscribe]( [Ledger]( Follow us on: [Ledger YouTube]( [Ledger Twitter]( [Ledger Instagram]( [Ledger Facebook]( [Ledger TikTok]( & listen to our podcast [here](. This email was sent to you because you signed up at Ledger.com or purchased a Ledger product. We respect your right to privacy. 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