Crypto exchange Binance recently listed the ORDI token, tied to the Bitcoin Ordinals protocol, as an emerging project under the “seed” tag. Within 24 hours of being listed, ORDI experienced a 50% surge in price. In a Tuesday announcement, Binance emphasized the higher risk and potential for price volatility associated with ORDI, urging traders to exercise sufficient risk management and conduct their own research before engaging with the token. The exchange added that the “Seed Tag” would be applied to ORDI, representing innovative projects with increased volatility and risks compared to other listed tokens.
In other news, Proof Group, a Silicon Valley investment firm and part of the Fahrenheit consortium that successfully bid for bankrupt cryptocurrency lender Celsius, is reportedly in the running to relaunch FTX. FTX, previously one of the largest crypto exchanges, faced a collapse almost a year ago, causing significant disruption in the industry. Perella Weinberg Partners, an investment bank involved in the relaunch process, revealed that multiple bids have been received, with a shortlist of three options currently under consideration. These options include selling the entire exchange along with its valuable customer list or bringing in a partner. A decision is expected by mid-December.
According to a report by digital asset management firm CoinShares, crypto funds experienced their best run of inflows since the 2021 crypto bull market. Investment vehicles holding cryptocurrencies saw $261 million of net inflows last week, marking six consecutive weeks of positive influx totaling $767 million. CoinShares head of research James Butterfill noted that this run of inflows matches the July 2023 run and is the largest since the end of the bull market in December 2021.
The accompanying chart depicts Bitcoin’s average monthly volatility since 2014. Despite doubling in value this year amid weak liquidity conditions, the market has experienced relatively low volatility. This could be due to macro and leverage traders remaining cautious.
Crypto exchange Binance’s listing of ORDI highlights the platform’s willingness to support emerging projects, even those with higher risk profiles. However, it also emphasizes the need for traders to perform their due diligence and exercise caution when engaging with such tokens. The potential relaunch of FTX by Proof Group demonstrates the continued growth and evolution of the crypto industry, as well as the resilience of major players in the face of adversity.
Furthermore, the recent inflows into crypto funds, as reported by CoinShares, underscore the sustained interest and confidence in the cryptocurrency market. The relatively low volatility in Bitcoin, despite its significant increase in value, may indicate a maturing market with more cautious and informed traders.
In conclusion, the crypto exchange Binance continues to play a crucial role in supporting and promoting innovative projects within the cryptocurrency space. The ongoing developments in the industry, such as the potential relaunch of FTX and the strong inflows into crypto funds, highlight the resilience and growth potential of the cryptocurrency market. As the market matures and traders become more informed, it is essential for investors to remain vigilant and conduct thorough research before engaging with high-risk tokens like ORDI.
