The FTX saga continued to take the spotlight over the weekend after the past week’s disclosures and the subsequent bankruptcy filing by the cryptocurrency exchange. Crypto backers and bashers took to social media platforms and chatrooms to offer their take on the unraveling of FTX.
As a new trading week starts, here's a recap of a few major headlines that hit the wire over the weekend:
1. Déjà vu For Investors As FTX Collapses: The past week’s development in the crypto market gave a sense of déjà vu as investors began drawing parallels with the collapse of Lehman Brothers in 2008 that set off a series of events culminating in the global financial crisis of 2008. Just as greed and financial exuberance drove Lehman to go overboard with its mortgage-backed securities investments, FTX issued FTT FTT/USD, its native tokens, to cover up losses at its Alameda Research proprietary trading firm. Investors also feared a domino effect, fearing more skeletons may be waiting to roll out of cupboards.
2. Apple Working On Its Version Of Metaverse: Recent job postings and management changes at Apple Inc. AAPL gave hints at what could be cooking with regard to its mixed reality headset, which is likely to be launched in 2023. Bloomberg columnist Mark Gurman said Apple could be working on a virtual environment similar to the metaverse, although he does not expect the company to use the same term. The company could also be building a video service for the headset featuring 3D content that can be played in virtual reality, he added.
3. Disney Reacts To Economic Uncertainty: Walt Disney Co. DIS is looking to freeze hiring and cut jobs, CEO Bob Chapek said in an internal memo, according to Reuters. The decision was reportedly precipitated by economic uncertainty, with the company stating that it would hire for a small subset of the most critical, business-driving positions while putting all other roles on hold. The CEO also flagged job cuts.
4. Musk Reminds ‘Not Your Keys, Not Your Wallet:’ Joining a Twitter Space early on Saturday, Elon Musk agreed with the view that people should move their crypto holdings out of exchanges. “I would reaffirm that, if you have crypto, you should have it in a directly-accessible cold wallet. Not in an exchange,” he said.
5. Tesla Involved In Car Crash In China: Musk’s flagship electric car company Tesla Inc. TSLA found itself amid negative headlines after its Model Y SUV was involved in a car crash that killed a motorcyclist and a high school girl in the southern Guangdong province in China.
What Else: Federal Reserve Governor Christopher Waller said the U.S. central bank is on the right path, given its rate increases so far haven’t “broken anything.” The Fed official was talking at an economic conference organized by the investment bank UBS in Australia.
Even before the dust around the 50% job cuts announced by Twitter could settle down, it has emerged that the social media platform has fired about 4,400 of its 5,500 contract employees.
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