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JPMorgan analysts suggest that centralized exchanges will continue to control most of the world’s digital asset trading volume.
According to the bank, the low transaction speeds on decentralized exchanges (DEXs), asset pooling and order-tracking features will do nothing to attract the attention of institutional market participants.

Analysts also noted that the DEX lacks limit order/stop loss functions, and the exchanges themselves are often dependent on price oracles that receive data from centralized exchanges.
The widespread adoption of such exchanges is also hampered by their vulnerability to hacks and exploits, the need for over-provisioning, and systemic risks due to the cascade of automatic liquidations.
“While there has been some increase in DEX’s share of total cryptocurrency trading activity in recent weeks, this likely reflects the collapse in cryptocurrency prices and the decline in leveraged/automatic liquidations that followed the collapse of FTX,” the bank’s analytics team said.

Decentralized lending protocol Aave has temporarily frozen credit markets for 17 assets: yearn finance, Curve DAO, 0x, Decentraland, 1inch, Basic Attention Token, Ampleforth, DeFi Pulse Index, renFIL, Maker, Enjin, xSUSHI, sUSD, GUSD, RAI, USDP and LUSD
The decision was made because the assets are “volatile” due to the low liquidity profile on Aave.
“In response to recent market events and the continued reduction in liquidity in the markets, this proposal seeks to reduce the risk profile of many of the higher volatility assets,” said Aave.

Earlier, a Mango Markets hacker opened a large short Curve DAO (CRV) position on Aave, resulting in $1.6 million in bad debt for the record.
Aave stressed that it has enough funds to pay off the bad debt, but the project wants to prevent such incidents by freezing pools of assets with low liquidity.

Decentralized lending protocol Aave has temporarily frozen credit markets for 17 assets: yearn finance, Curve DAO, 0x, Decentraland, 1inch, Basic Attention Token, Ampleforth, DeFi Pulse Index, renFIL, Maker, Enjin, xSUSHI, sUSD, GUSD, RAI, USDP and LUSD
The decision was made because the assets are “volatile” due to the low liquidity profile on Aave.
“In response to recent market events and the continued reduction in liquidity in the markets, this proposal seeks to reduce the risk profile of many of the higher volatility assets,” said Aave.

Earlier, a Mango Markets hacker opened a large short Curve DAO (CRV) position on Aave, resulting in $1.6 million in bad debt for the record.
Aave stressed that it has enough funds to pay off the bad debt, but the project wants to prevent such incidents by freezing pools of assets with low liquidity.

According to Nikkei Asia, U.S. and South Korean companies have filed more than 75% of the world’s patent applications related to the meta universe, virtual reality (VR) and augmented reality (AR) since 2016.
According to the publication, a total of 7,760 such applications have been filed, of which 57% belong to American companies, 19% to South Korean companies, 12% to Chinese companies and 8% to Japanese companies.
The survey evaluated about 20 categories of patents in Japan, the U.S., Europe and other countries related to the meta-universe, virtual reality and augmented reality.
South Korea’s LG Electronics has filed for the most patents aimed at the meta universe since 2016, followed by its local competitor Samsung Electronics.

U.S. tech companies Meta, Microsoft, Intel and Apple are also among the top 20 holders of similar patents, along with China’s Huawei and Japan’s Sony.

Earlier this week, ConsenSys said it would collect certain user IP address data and financial information from MetaMask customers who use RPC Infura.
However, faced with negative reactions, the company began to argue that the update in no way weakens the privacy of MetaMask users.
“The policy updates do not result in more intrusive data collection or processing and were not made in response to any regulatory changes or requests. Our policy has always indicated that certain information about how users use our sites is automatically collected, and that this information may include IP addresses. When users interact with Ethereum or other blockchains – for example, sending a transaction or requesting a balance – through an RPC like Infura, the provider receives both the user’s IP address and the wallet address to provide the service. This does not apply only to Infura and is consistent with the way the web architecture works in general, although we continue to look for technical solutions to minimize this risk, including anonymization techniques,” the developers wrote.
ConsenSys said the privacy policy update was more of a reminder to users about how their data is handled.
“As more and more users are exploring ways to store their crypto assets non-custodially, our policy has been updated to inform users about how MetaMask works, including emphasizing the use of Infura as the default RPC provider in MetaMask. Users can also use a third-party RPC provider in MetaMask. However, the updated policy makes it clear that users should know that their information will be collected by the RPC provider they use,” ConsenSys reported.

Ava Labs CEO John Wu says the possible collapse of Genesis Global Capital is far more dangerous to the digital asset market than the bankruptcy of the FTX exchange.
“In my shoes, I really think Genesis is a much bigger problem than FTX in terms of cryptocurrency capital markets. Genesis was the biggest lender. They made both unsecured and secured loans. No one else was providing this kind of lending. Without them in the markets, all the people who are involved in the value chain, all the companies, like market makers, who just need to borrow to supply the market, will suffer. You’re going to see liquidity leave the markets, spreads widen, investors won’t be there. Genesis is a very important part of the cryptocurrency markets,” he said.
Earlier this month, Genesis suspended withdrawals due to liquidity issues.

As of 6/11/22, when FTX stopped processing withdrawals, Solana Foundation held about $1 million in cash on the exchange, which is less than 1% of the firm’s reserves.
The company said it did not store SOL coins on the exchange.
The company also held on the exchange: 3.24 million shares of FTX Trading LTD common stock; 3.43 million FTT tokens; and 134.54 million SRM tokens.

In addition, FTX and its subsidiary Alameda Research acquired 50.5 million SOL coins between August 2020 and January 2021. Linear unlocking of these assets is scheduled through 2028.
Solana Labs also sold more than 7.56 million SOLs to Alameda Research in 2021 – these coins will be unlocked in 2025.

According to Arkham Intelligence, Alameda Research withdrew about $204 million from the FTX US exchange before filing for bankruptcy.
The withdrawals were made from eight addresses in the form of various crypto assets, including USDT, USDC, BUSD, TUSD, ETH and wBTC.
Of the total assets withdrawn, Alameda sent $142.4 million to wallets owned by FTX International. Another $10.4 million was sent to the Binance exchange.

Earlier, new FTX CEO John Ray III described the situation with the exchange as the worst he has seen in his corporate career.

Binance CEO Changpeng Zhao said the industry is now in a “healthier” state after an “unpleasant” 2022.
“I expect a recovery. I believe 2022 was a really unpleasant year, too many things happened in the last six months. The industry is healthier now. The trick for us is to keep an eye on the industry and then try to support it no matter what happens,” he said.
The entrepreneur also commented on the collapse of FTX and compared the company to Madoff’s fraudulent empire. However, he stressed that not all companies are as bad as FTX.
Zhao added that Binance is in a fairly strong position and is focused on growing the market, not making money.
“We have enough revenue today. We’re not trying to maximize profits. We want to be sustainable,” he said.
According to the head of Binance, the blockchain startup industry is also back to normal, since just a year ago they were astronomically overvalued.

According to Barron’s, regulators in several U.S. states have launched an investigation into Genesis Global Capital. Authorities are probing whether the company violated securities laws.
According to Joseph Borg, director of the Alabama Securities Commission, his agency and several other state agencies are participating in the investigation.
Earlier, Genesis faced a liquidity crisis.