Market Update

## Did crypto just go mainstream?


Did Bitcoin just cross the rubicon? Is it now officially a BoomerFi-ed asset? A legitimate financial asset in the U.S. financial system? Yes. In the wake of the historic [approval](https://www.afr.com/companies/financial-services/bitcoin-etf-decision-opens-can-of-worms-to-invest-in-new-form-of-money-20240111-p5ewly#:~:text=Australia%20is%20also%20ready%20to,is%20preparing%20a%20similar%20product.) of the first Bitcoin Spot Exchange Traded Funds ([ETFs](https://www.investopedia.com/terms/e/etf.asp)), the market finds itself at yet another critical juncture. Flat lining on the news of SEC approval.

Let’s analyse shall we? Both tech stonks and crypto had a great 2023, back to near all time highs. Bitcoin itself [surged 163%](https://www.wsj.com/livecoverage/stock-market-today-dow-jones-12-26-2023/card/bitcoin-and-crypto-stocks-had-a-good-2023-mVnJmt2NySt7CCzosnMH) in 2023, rebounding sweetly from the 2022 [FTX saga](https://www.coindesk.com/policy/2023/11/02/sam-bankman-fried-guilty-on-all-7-counts-in-ftx-fraud-trial/) lows.

While debates arise on whether the debut of Bitcoin ETFs signal the top of the 2023 bull cycle, it’s important to maintain a measured perspective on the evolving world market. The big enchilada? Bitcoin is now accessible on the U.S. stock market, trillions of dollars.

Now, financial advisors with short and long time allocation horizons, tens of millions of retirement accounts; can entertain crypto exposure in their portfolios. 1-5-10% or more. Bitcoin exposure could serve as both a risk diversifier and a performance enhancer.

But Bitcoin is down? Why? As usual, a nice combination of fear and uncertainty, plus a healthy helping of people taking profit. Grayscale played a role, with approval to convert its GBTC fund that [already](https://ycharts.com/companies/GBTC/total_assets_under_management) has $28 billion in assets under management into it’s spot ETF.

![Screen Shot 2024-01-17 at 12.07.10 pm.png](https://strapi-service-execution-strapibucketc6c2af7f-xqyd4w1cm74e.s3.ap-southeast-2.amazonaws.com/Screen_Shot_2024_01_17_at_12_07_10_pm_cf24b8e6b9.png)
*Spot Bitcoin ETF Volume Source:* [The Block Data](https://www.theblock.co/post/272460/day-two-of-spot-bitcoin-etf-trading-tops-3-1-billion-as-grayscale-and-blackrock-lead)

While we ponder the price trajectory forward, perhaps looking at the chart below (**Disbelief:** This a sucker’s rally.) A steadfast belief echoes within the crypto community – the initial stages of the bull market are unfolding.

![Group 1597878879.jpg](https://strapi-service-execution-strapibucketc6c2af7f-xqyd4w1cm74e.s3.ap-southeast-2.amazonaws.com/Group_1597878879_c7847eb91f.jpg)
*Psychology of a Market Cycle - Not Financial Advice, Please Read Disclaimer Below.*

As we enter 2024 at around 60/100 - Neutral/Greed [Crypto Fear & Greed Index](https://alternative.me/crypto/fear-and-greed-index/) uncertainty, increasing notes of cautious optimism prevail on [crypto twitter](https://twitter.com/blockearner). Despite the potential for sharp volatile market fluctuations that introduce an element of fear, the overarching sentiment remains positive.

## BTC Spot ETFs


The largest players in traditional finance just bought Bitcoin within the fold. The creation and U.S. SEC approval of highly liquid, highly accessible spot ETFs, mirroring the tactics applied to the gold market with the approval of gold ETFs in 2004. Today, gold is priced at around [A$3,085](https://abcbullion.com.au/products-pricing/gold), up well over 350% on a nearly 20-year timeframe.

The most anticipated aspect of this ETF lies in its potential to revolutionise access to Bitcoin. Essentially, BTC is now available on the NASDAQ, backed/provided by the largest institutional money management firms in the history of mankind. Bullish?

## What does it mean for crypto?


Did you know the Winklevoss twins sought approval for a Spot Bitcoin ETF [back in 2013](https://www.businessinsider.com/winklevoss-bitcoin-etf-2013-7), encountering a prolonged denial from the SEC that spanned over a decade. Unlike big old [BlackRock](https://www.ishares.com/us/products/333011/ishares-bitcoin-trust), who submitted its application and secured approval within a mere six months. Circumstances that raise intriguing questions as to the nuances of the U.S. regulatory landscape.

Diving deeper, the underlying fear for the crypto community is that this is blurring the line between the traditional financial system and the decentralised world of permissionless peer-to-peer money. 

Where believers see Bitcoin as a way to escape the global fiat debasement. Many on Wall Street will be buying with fiat [to earn more fiat](https://twitter.com/BitcoinMagazine/status/1747239076565045666). Just another quick call with your broker.

Regardless of fears that may arise, there is a collective anticipation in crypto that, by the close of the year, the market will experience a glorious resurgence, potentially reaching or surpassing its all-time high in both Bitcoin's market capitalisation and the alt-coin ecosystem.

This outlook rests on the understanding that the world is rapidly evolving. Central bankers and governments worldwide are heavily tied to the ongoing [fiat currency debasement](https://fred.stlouisfed.org/series/M1SL), also known as the "[brrr](https://youtu.be/O1hCLBTD5RM?si=HaD8KcJelOO8YXL2)" of the "[infinite](https://twitter.com/AltcoinDailyio/status/1747623558489034848)" money printer.

As this narrative remains an underlying point for a renewed inflow of capital into crypto. BlackRock’s CEO Larry Fink put it best, “a flight to quality”. Hopefully one that can break the cycle and [Update The System](https://youtu.be/a4F9u8Z84YI?si=bU3EHaqByh4cgbhk).

![Coinbase_-_UTS_-_Broken_System.jpg](https://strapi-service-execution-strapibucketc6c2af7f-xqyd4w1cm74e.s3.ap-southeast-2.amazonaws.com/Coinbase_UTS_Broken_System_cc595b46cd.jpg)
*Video Source: [Break The Cycle | Update The System](https://youtu.be/a4F9u8Z84YI?si=xXynwm4geNtjgCal)*

“An ETF in the US is the best combination of things you could possibly have. The world's best capital market and the world’s best financial innovation product ever created. It's an ETF in the US, and it's got a great narrative, and all the big boys are joining.” - [Beimnet Abebe](https://twitter.com/BeimnetAbebe), Director, Principal Trading at Galaxy Digital

The year 2024 will be a continuation, another great chapter in the ongoing story of the digital revolution. One should be prepared for a journey of fluctuations, bumpy and unpredictable. However, we may soon find ourselves on the cusp of new all-time highs once more, ready to explore the boundless possibilities in the ever-evolving world around us.


*DISCLAIMER: The information on this blog post is for general information purposes only. It is not intended as legal, financial or investment advice and should not be construed or relied on as such. Before making any commitment of a legal or financial nature you should seek advice from a qualified and registered legal practitioner or financial or investment adviser. No material contained within this website should be construed or relied upon as providing recommendations in relation to any legal or financial product. Block Earner does not recommend or endorse any particular token.*














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Did crypto just go mainstream? Did Bitcoin just cross the rubicon? Is it now officially a BoomerFi-ed asset? A legitimate financial asset in the U.S. financial system? Yes.

The Catalyst: Bitcoin Spot ETFs Approved

If you're like us, you're probably wondering wen crypto makes another move on the mainstream. It often feels like the mainstream sees crypto as "dead" ([again](https://99bitcoins.com/bitcoin-obituaries/)…). It's been 11 months since the collapse at FTX, and 17 months since Elon Musk shilled Dogecoin at the top on Saturday Night Live – what a time to be alive.

![6ukt25gu-1920.jpeg](https://strapi-service-execution-strapibucketc6c2af7f-xqyd4w1cm74e.s3.ap-southeast-2.amazonaws.com/6ukt25gu_1920_8438b42c2f.jpeg)
*Elon Musk jokes about [Dogecoin](https://blockearner.com.au/supported-cryptocurrencies/doge/) on SNL*

So, where are we today? Many of your friends and family who jumped into crypto at its peak have moved on, perhaps even forgetting the names of the crypto apps they got $10 free Bitcoin to sign up with... You might even recall your grandparents chiming in with quotes like "I don't have crypto; I have Bitcoin" – classic Grandma.

But if you're still on crypto twitter, whether you're HODLing tight, dollar-cost averaging into BTC and ETH, accumulating alt coins, or storing meme tokens in your hot wallet (steady lads). You can rest assured, the crypto community is alive and kicking.  

The last 12 months have been a time for reflection, and refocusing. While we're patiently awaiting the Bitcoin Spot ETF SEC approvals, from big names like BlackRock, VanEck, WisdomTree, Invesco, Galaxy Digital, Ark Invest, Bitwise, Valkyrie, Fidelity and GreyScale, just to name a few. (Combined AUM of over [$16 Trillion](https://4822441.fs1.hubspotusercontent-na1.net/hubfs/4822441/HDX%20-%20Q323%20Market%20Pulse.pdf), something to think about). Our team has been laser focused on delivering 3 things to our customers.


**1. Security.**

If the last bull market taught us anything it was this: Centralised systems should not be trusted. Yes, Block Earner is a centralised company. However, we made the commitment to provide [access](https://blockearner.com.au/products/defi-access/) to Decentralised Finance. Why? Because, despite all the greed, turbulence and criminal (Sam Bankman-Fried) behaviour in the CeFi space. DeFi smart contracts ticked on unphased. That’s 1.1. of Security. If we stuck to the original ideals of crypto, none of this would’ve happened. It was humans that failed us, not crypto.

**1.2 Insurance.**

Digital assets stored in Block Earner are not covered by the Australian government's A$250,000 dollar deposit guarantee. Introducing Coinbase Custody Trust Company. One of our partners, Coinbase Custody Trust Company empowers Australian crypto holders with access to an institutional-grade digital asset cold storage vault, fortified by insurance coverage of up to $320M USD (approximately $475M AUD as of November 1st, 2023).

This first-of-its-kind insurance cover for Australian customers elevates security and trust in the crypto ecosystem. The Block Earner [Crypto Vault](https://blockearner.com.au/crypto-vault/secure-your-spot/), powered by Coinbase, offers an additional security option for users holding crypto in Crypto Buy/Sell, and is also audited by Deloitte and Touche. Very nice.


**Accessibility.**

Sometimes I wonder if builders in the crypto industry make DeFi interfaces so technically complex inorder to delay mainstream adoption, so they can stack more stats for their grandchildren, before boomer retirement portfolios send the price upwards without even knowing they hold BTC. *Removes tinfoil hat*. 

Is buying Bitcoin accessible? [Yes](https://blockearner.com.au/supported-cryptocurrencies/btc/). If you have a smartphone (you do). If you know how to find a pub on Friday night (you do). You can watch the AFL, NRL or F1 for free and see crypto advertisements smack bang in the middle of the field. Then, the only barrier from there is downloading an app, passing KYC and finding the buy button. However, is Decentralised Finance accessible?

Unless you're a proper degen, you're going to struggle accessing and managing DeFi. It is complex. Private key self custody and no support awaits you. This is a massive problem, and it's the problem that Block Earner was built to solve. We provide access to global, decentralised, permissionless, open-source, math-based financial markets.


**Utility.**

While Memecoin Summer in April of 2023 kept many on crypto Twitter moderately entertained. In anticipation of the next wave of crypto adoption (wen), hopefully on the horizon. At Block Earner, we recognise the need for the crypto industry to mature and transition from speculation to mainstream everyday blockchain utility.

The good news is, Australians stack stats. Australians have proven to have diamond hands. Australian investors currently hold over [$20 billion worth](https://www.roymorgan.com/findings/over-1-million-australians-now-own-cryptocurrencies-such-as-bitcoin-ethereum-ripple-cardano-dogecoin-and-shiba-inu) of crypto assets. However, the value of these holdings remains locked for two primary reasons: first, we're reluctant to part with our crypto, and second, traditional financial options don't permit us to use our digital assets as security to borrow AUD. Essentially, traditional finance (BoomerFi) doesn't recognise our assets yet...

Enter [Crypto-Backed Loans](https://blockearner.com.au/crypto-backed-loans/secure-your-spot/) (November 2023). Our mission at Block Earner is to democratise blockchain-based finance, making it accessible to everyday Australians. Block Earner Crypto-Backed Loans represent a significant milestone for the industry.

![Crypto-Backed Loans Australia.jpg](https://strapi-service-execution-strapibucketc6c2af7f-xqyd4w1cm74e.s3.ap-southeast-2.amazonaws.com/Crypto_Backed_Loans_Australia_e198debf7f.jpg)
*See how much you could borrow using our [calculator](https://blockearner.com.au/crypto-backed-loans/secure-your-spot/)*

Now, depending on their loan application and personal circumstances, Australian crypto investors can tap into their wealth without parting ways with their assets. They could borrow up to A$250,000 AUD within 24 hours, with fixed interest rates for 12 months, flexible repayment options, and lightning-fast approval times (we're so back).

Click [here](https://blockearner.com.au/crypto-backed-loans/secure-your-spot/) to join the Crypto-Backed Loans waitlist.


*DISCLAIMER: The information on this blog post is for general information purposes only. It is not intended as legal, financial or investment advice and should not be construed or relied on as such. Before making any commitment of a legal or financial nature you should seek advice from a qualified and registered legal practitioner or financial or investment adviser. No material contained within this website should be construed or relied upon as providing recommendations in relation to any legal or financial product. Block Earner does not recommend or endorse any particular token.*

*Loans made by Web3 Loans Pty Ltd ACN 668 516 952 and managed by Web3 Ventures Pty Ltd trading as Block Earner (ACN 655 090 869) authorised representative 551024 of Mortgage Direct Pty Limited ACN 075 721 434 Australian Credit Licence 391876. Crypto-backed loans are high risk financial products, and include risk of significant or a total loss on any crypto assets. Additionally, make sure that you also read the target market determination (“[TMD](https://strapi-service-execution-strapibucketc6c2af7f-xqyd4w1cm74e.s3.ap-southeast-2.amazonaws.com/Block_Earner_Target_Market_Determination_b23f66a1eb.pdf)”) on the Block Earner website.*


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Where are we today? We’re so back.

Bringing crypto back to life

Company

Trust is a powerful yet fragile emotion. It takes years to establish and can vanish in the blink of an eye. At Block Earner, we understand the importance of trust and work tirelessly to create an environment where every user feels secure and confident on our platform.

**Foundation Built on Compliance & Expertise:**
Block Earner is proud to be a fully licensed and compliant Australian company, with our headquarters based in Sydney. We’re registered with AUSTRAC as a Digital Currency Exchange and Independent Remittance Provider and operate under an Authorised AFS License representative, with an Australia Credit License in progress – demonstrating our commitment to following regulations and maintaining the highest standards of operation.

**Experienced and Reliable:**
We follow strict risk diligence policies by partnering with industry-leading third-party providers to deliver our products and services. Thousands of users have trusted Block Earner to move millions of dollars through our platform, and we have yet to lose or misplace a single cent. Our track record speaks for itself, showcasing our dedication to providing a reliable and secure experience for all.

**Advanced Security Measures:**
We've developed proprietary technology to protect our platform from brute force attacks, DDoS, and other malicious hacking activity. Our cutting-edge security systems ensure that your assets remain safe from potential threats.

**Safeguarding Crypto Holdings with Fireblocks:**
Your crypto holdings are protected using advanced sharding technology known as Fireblocks. This system requires a minimum of 3 out of 6 signatures to authorise a transaction that hasn't been whitelisted or to add contracts and wallets to the whitelist. This added layer of security ensures your assets are protected at all times.

**A Team of Industry Specialists:**
Our founders both have a rich background in Australia's most successful DeFi platform – Synthetix and our team is formed by the smartest and brightest minds in the industry. Bringing a wealth of experience from backgrounds including, finance, technology, telco and e-commerce to drive Block Earner's success. We’re also proud to say we’ve built a team that is culturally diverse and gender-balanced, representing more than 10 nationalities and recently increasing our female headcount by 30%.  

At Block Earner, we are honoured to have earned your trust and will do everything in our power to maintain it. We're dedicated to providing a safe, secure, and reliable platform for our users, backed by a team of experts who share our commitment to excellence. With Block Earner, you can invest with confidence, knowing your assets are in good hands.

The future of finance is in your hand, [tap in today](https://app.blockearner.com.au/register)! 


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At Block Earner, we understand the importance of trust and work tirelessly to create an environment where every user feels secure and confident on our platform.

Our commitment to your peace of mind

It has been an exciting start to 2023 for the Block Earner team – from launching exciting new products, successfully expanding to Turkey – to being recognised as a finalist in** FinTech Australia's annual Finnie Awards** for the second year running!

This year we have been recognised again for **‘Excellence in Crypto and Digital Currencies’** and added a new badge of honour for **‘Excellence in Establishing Global Market Presence’** following our successful launch in Turkey late last year.

The Finnie Awards celebrate achievements across the Australian fintech ecosystem and this year it received over 300 entries from 250+ fintechs across 19 categories. Being recognised by  one of the most prestigious awards in the space is a testament to the hard work and dedication of our team, who have been working tirelessly to build a world-class platform that provides users with simple access to blockchain-powered financial tools and services.

Since launching in 2022, we have been dedicated to providing a secure and reliable next-gen finance platform for everyday users that combines the best of both traditional and blockchain finance offerings.

For many, Block Earner is the first foray into the world of DeFi and blockchain-powered finance, and we are committed to making this experience as smooth and user-friendly as possible. Being a Finnies finalist in x2 leading categories is a huge honour, and we are grateful for the recognition. It motivates us to continue pushing the envelope and finding new ways to innovate, forever. 

The Finnie Awards will take place in Melbourne on 31 May 2023. We’d like to thank Fintech Australia for the recognition and we look forward to celebrating another year of success in our ecosystem. Congratulations and good luck to all the finalists!

Thousands of customers are at the forefront of experiencing the convergence between traditional and digital currencies in one simple platform. Are you ready to [tap into next-gen, blockchain finance](https://app.blockearner.com.au/register)?

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This year we have been recognised again for ‘Excellence in Crypto and Digital Currencies’ and added a new badge of honour for ‘Excellence in Establishing Global Market Presence’ following our successful launch in Turkey late last year.

Block Earner is a ‘Finnies 2023’ finalist —  Australia’s most prestigious Fintech Awards 

UN Women and the United Nations are celebrating International Women’s day this year under the theme “DigitALL: Innovation and technology for gender equality”. We asked some of our incredible team to share what this means to them by reflecting on their own experiences as women that are reshaping the future of finance. Read their inspiring responses below.

![RASHI.jpg](https://strapi-service-execution-strapibucketc6c2af7f-xqyd4w1cm74e.s3.ap-southeast-2.amazonaws.com/RASHI_a5e42189f2.jpg)

**Rashi Goel, People and Culture Manager** - The key to building DE&I 

Hiring for diversity, equity and inclusion isn’t just about ticking off a box on a checklist. To truly create an environment that fosters equity and excellence, we must interrupt unconscious bias and not shy away from reassessing our people processes on an ongoing basis.

All employees, irrespective of gender, value similar attributes at work – a safe work environment, pay for merit, fair growth opportunities and flexibility. These attributes should form the DNA of any organisation and people practices should be built with non-homogeneity in mind. Processes that recognise individual needs and meet people where they are, is the key to truly cracking the code.

![LINA (1).jpg](https://strapi-service-execution-strapibucketc6c2af7f-xqyd4w1cm74e.s3.ap-southeast-2.amazonaws.com/LINA_1_06245e702b.jpg)

**Lina Lukosiunaite, CRM Manager** - Empowerment through female allyship

Women in tech have achieved great things but women in emerging technologies and Web3 especially are highly underrepresented. As a female leader in the space, I feel it's important to give back through mentorship and share my career learnings to help other female leaders grow and be a part of building the future. 

I encourage all women to be an ally to both themselves and others, to continue pushing the norms and to believe they deserve to succeed.

![ANGIE.jpg](https://strapi-service-execution-strapibucketc6c2af7f-xqyd4w1cm74e.s3.ap-southeast-2.amazonaws.com/ANGIE_9a51b97eef.jpg)

**Angie Liu, Product Owner** - A first step worth taking

Steering my career into Web3 is one of the best choices I’ve made. Every day, I feel that I’m surrounded by so many talented women, contributing to the industry and playing vital roles in shaping the future of the technology. They are the driving force behind excellence and making a true impact in STEM.

My advice to women considering a career in Web3 is to be resilient, bold, and proactive. Seek out mentors and allies, build support networks, and be unafraid to challenge the status quo. Taking the first step is always the hardest part but when you do, you will not only have the opportunity to build a successful career, but you’ll also be able to pave the way forward for future generations.

![DAN.jpg](https://strapi-service-execution-strapibucketc6c2af7f-xqyd4w1cm74e.s3.ap-southeast-2.amazonaws.com/DAN_f1ae5d973e.jpg)

**Dan Vu, Finance Analyst** - Driving change starts from within 

Entering the world of finance as a woman can be daunting, despite the many of us who have already paved the way by chipping away at the “glass ceiling”. Closing the gender gap in finance starts from within, by realising your full potential and breaking down unconscious bias in the workplace. 

Despite working in a male-dominated industry, I know that I have been given every equal opportunity and support to succeed in my career. That’s why I am proud to be working at a fintech startup that is leveraging technology and innovation to lead the way in valuing the diversity and inclusivity of women!

![NIDHI (1).jpg](https://strapi-service-execution-strapibucketc6c2af7f-xqyd4w1cm74e.s3.ap-southeast-2.amazonaws.com/NIDHI_1_795264e9b8.jpg)

**Nidhi Gorai, Brand & Comms Lead** - Allyship isn’t a privilege

In the span of my career in Comms I’ve had the privilege of working closely with some incredible founders and CEOs building game changing tech companies. Albeit they’ve been mostly male, I’ve felt trusted and supported to counsel them and tell their stories. Although, i think receiving allyship shouldn’t be a privilege it should be a given – in any role, across any function and by all genders. 

I’m proud to have worked with some incredible female leaders too and have to say, it's pretty powerful when you get to draw inspiration, firsthand from women that are fearlessly leading the charge on driving innovation.

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We asked some of our incredible team to share what this means to them by reflecting on their own experiences as women that are reshaping the future of finance.

Celebrating ‘Innovation and technology for gender equality' at Block Earner #IWD

What is?

Wrapped Bitcoin (WBTC) is a token that runs on the Ethereum (ETH) blockchain. WBTC is backed 1:1 with Bitcoin (BTC) by a decentralised network that warrants its price is pegged to that of Bitcoin.

Wrapped cryptocurrencies were created to mirror the underlying asset's value they represent because cryptocurrencies like Bitcoin also exist on their own unique blockchain. 

Why wrap Bitcoin? Simply, Bitcoin itself exists on its own blockchain, one that is separate from the programmable blockchain Ethereum. Ethereum's ecosystem is the home of decentralised applications and smart contracts. So wrapping Bitcoin in Ethereum means that consumers can interact with Ethereum-based decentralised finance (DeFi) platforms using the underlying asset Bitcoin in its wrapped form.

**Who created WBTC?**

WBTC was [launched](https://wbtc.network/assets/WBTC_Press_Release_Jan_2019.pdf) on October 26 2018, as a collaborative effort by BitGo, Kyber Network, Ren (previously Republic Protocol), and other community partners to bring Bitcoin's liquidity to Ethereum’s decentralised ecosystem and improve the decentralised application. 

The WBTC whitepaper was released in January 2019. In the same month, the token was launched with eight merchants facilitating Bitcoin-to-WBTC conversions.

**The purpose of WBTC**

The WBTC token was built using Ethereum’s [ERC-20 token](https://ethereum.org/en/developers/docs/standards/tokens/erc-20/) standard to provide bitcoin liquidity to the DeFi ecosystem. Cryptocurrency users who only owned Bitcoin were previously unable to access and use the decentralised applications being built on the Ethereum protocol, and DeFi projects identified an opportunity to tap into the larger market capitalisation and higher trading volume of the Bitcoin community through WBTC tokens.

The typical use for WBTC is as collateral, or a pledge for loan repayment, when taking out a cryptocurrency loan on DeFi platforms. Upon repayment of the crypto borrowed, the collateral, in the form of WBTC, is returned. If the collateral is liquidated, the WBTC is recouped by the platform.

**Who manages or issues it?**

The WBTC protocol is currently controlled by a decentralised autonomous organisation (DAO), that consists of 17 stakeholder members within the DeFi space. According to the WBTC website, there are more than 40 participants — including DAO members, wallets, merchants, and exchanges — in the WBTC ecosystem as of December 2020.

One way of acquiring WBTC is by using a platform like Block Earner. Converting bitcoin into WBTC typically comes without a cost, but when converting WBTC back into Bitcoin, merchants generally charge a fee. Users of WBTC also accrue Ethereum transaction fees as they transact within the DeFi ecosystem.

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Wrapped Bitcoin (WBTC) is a token that runs on the Ethereum blockchain. WBTC is backed 1:1 with Bitcoin.

What is Wrapped Bitcoin? (WBTC)

The past week has been a whirlwind for cryptocurrency markets and the news cycle has spiralled over the ongoing FTX contagion. In case you missed it or just can’t keep up with it all, we’ve put together a quick summary of everything that has gone on between Binance, FTX and other parties involved that is currently impacting the market and industry as a whole.

On Sunday 6 November, Binance co-founder and CEO Changeng ‘CZ’ Zhao announced Binance was liquidating its holdings in FTT tokens, the cryptocurrency native to crypto exchange FTX setting off a massive wave of sell-offs in FTT.

As the events unfolded on Monday 7 November, it was revealed FTX is facing a liquidity crisis (based on FTX reportedly using its FTT token to inflate assets against liabilities) and CEO Sam Bankman-Fried sought funding from various investors. Binance agreed to buy FTX’s business outside of the U.S.

Two days after the acquisition announcement, on Wednesday 9 November reports confirmed Binance had backed out of the potential deal, citing “mishandled customer funds and alleged U.S. agency investigations.”

The speculative crisis became a reality on Friday 11 November with FTX filing for bankruptcy and Bankman-Fried confirming his resignation. The days following this have seen the Manhattan U.S. Attorney’s office launch an investigation into FTX and Bankman-Fried amid reports that it lent customer funds to a linked fund, Alameda Research without their consent.

Without a doubt, these events have raised some concerns amongst crypto investors  and have been disappointing to witness for the industry.

**Here is a quick snapshot:**

- Last week we witnessed one of the largest global digital currency exchanges FTX experience a liquidity crisis. 
- Further developments over the weekend revealed FTX and its subsidiaries have announced bankruptcy.
- There is now an international investigation underway into business practices by FTX and Alameda Research (a fund linked to FTX founders) that is at the core of FTX’s liquidation.

**Where do things stand now? **

At Block Earner, we have no exposure of any kind to FTX, its subsidiaries or connected parties. Protecting our customers is our highest priority and our team is carefully monitoring market conditions.

We are operating business as usual and our customer's fiat and digital currency assets are secure with us and 100% in our control.

We built Block Earner to bridge the gap between traditional finance, and a new, fairer, financial world powered by blockchain technology. We strive to offer our customers a great user experience, best-in-class security, and competitive returns.

Looking to the future, we’re laser focused on building the future of finance and we’re constantly evolving our offerings and product suite.

Our top priority will always be to keep your assets safe, and this is something that we will never compromise on.

If you have any questions, please feel free to reach out to our [support team](https://blockearner.com.au/contact-us/).

*Last Updated: 15/11/22*

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At Block Earner, we have no exposure of any kind to FTX, its subsidiaries or connected parties. Protecting our customers is our highest priority and our team is carefully monitoring market conditions.

Market Update: Everything we know about FTX (so far) 

Blog Earner
Read the latest

The Catalyst: Bitcoin Spot ETFs Approved

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The Catalyst: Bitcoin Spot ETFs Approved

Bringing crypto back to life

Our commitment to your peace of mind

Block Earner is a ‘Finnies 2023’ finalist — Australia’s most prestigious Fintech Awards

Celebrating ‘Innovation and technology for gender equality' at Block Earner #IWD

What is Wrapped Bitcoin? (WBTC)

Market Update: Everything we know about FTX (so far)

Blog Earner
Read the latest