Rough Times for the Biggest Crypto Firms

Be[in]Crypto has traveled the far end of the crypto ecosystem to select the most important stories for you from the Celsius freeze withdrawals, Jake Paul’s mockery of President Biden, the wave of BlockFi and shootings, the growing US adoption. UU. and Canada and the Russian oil giant. deal with BitRiver.

Don’t forget to subscribe to our weekly newsletter and receive our weekly summaries directly in your inbox.

A hot time for crypto lenders

The entire cryptocurrency industry received a loud wake-up call during the week after the Celsius lending platform announced the suspension of withdrawals. The firm said in a memorandum that the move was to “put Celsius in a better position to meet its withdrawal obligations,” but a deeper look revealed that the platform was suffering from liquidity problems.

Tron’s USDD stablecoin shook investors’ hearts after it briefly broke away from the US dollar. In what was feared to be a repeat of the TerraUSD (UST) fiasco, investors let out a sigh of relief after the USDD recovered while Tron opted for an overcollateralization strategy to keep the peg.

The negative streak continued for crypto after Babel Finance, a lending company, announced the suspension of withdrawals citing “unusual liquidity pressures”. The impacts of these suspensions have had an adverse effect on cryptocurrency prices, with bitcoin falling below $ 20,000 and global cryptocurrency market capitalization below $ 1 trillion.

Cryptocurrency prices are falling under the weight

As cryptocurrency prices plummet, space players seek to make sense of the chaos that surrounds them. Jake Paul, a cryptocurrency influencer, has blamed U.S. President Joe Biden for falling cryptocurrency prices. Paul blamed Biden for causing the worst inflation, the highest rents ever and the soaring fuel prices.

Cryptographic Crash: It Will Take Time for the Risk Appetite to Return Once Markets Crumble

Despite the chaos, a new breed of investors is benefiting from the differences in asset prices to accumulate billions. A PriceWaterhouseCoopers report indicates that the strategy is becoming the most preferred strategy among hedge funds.

However, analysts have warned that hedge funds cannot continue to benefit from arbitrage because it will harm markets. “As more institutional players enter the space, the opportunities for arbitration will be eliminated,” one expert said.

Dismissals and even more layoffs

Macroeconomic conditions have led Coinbase to freeze and then terminate job offers, a move copied by other companies. BlockFi announced that it would reduce the size of its workforce by 20% and the firm’s founders assured customers that there would be no “material changes in the quality of service they expected”.

Employment cuts: Technological and cryptographic ones show different reactions to the bear market announced a 5% layoff of the company’s workforce as the crypto winter was even harder. The cryptocurrency exchange has spent a fortune in recent months on acquiring the naming rights to stadiums and sports associations that have exceeded $ 1 billion.

On the other hand, Kraken countered the trend by revealing plans to bolster its workforce with 500 new employees. The firm has announced that the papers will be filled before the end of the year and Binance is playing a similar game in the face of declining cryptocurrency prices.

The adoption of cryptocurrencies is growing despite the downward trend

A Bank of America survey showed that 90% of respondents indicated a strong desire to buy cryptocurrencies before the end of the year. The report also revealed that 30% of current cryptocurrency owners keep their assets even as the winter of winter moves to 2023.

Staking: A new survey has shed light on why cryptocurrency holders are hesitant when it comes to betting on that cryptocurrency.

In Canada, the adoption of cryptography is reaching peak levels with the number of bitcoin holders going from 5% to 13% in less than a year. The Bank of Canada report highlighted several factors for the growing interest in cryptocurrencies and highlighted the growing correlation of cryptocurrencies with traditional financial markets. Canada’s interest in cryptography was deep when managers of the $ 326.7 billion Quebec Pension Fund invested in troubled Celsius despite warnings from U.S. regulators.

A rare Ferrari race car used by veteran driver Nigel Mansell in the 1989 Formula One season was auctioned at Sotheby’s for $ 3.6 million. The deal was facilitated by the stable currency of the Himalayan Dollar (HDO). The use of crypto by auction houses points to the growing proliferation of collectors of the new asset class.

Exploitation of rocks back and forth

Cryptocurrency mining had an interesting week with the most interesting story coming out of Russia. Gazprom Neft, the third largest oil producer, has reached an agreement with BitRiver to start mining Bitcoin in the oil fields.

Mining Disrupt Conference 2022

The move has been hailed by environmentalists for its ingenious use of burnt gas. Despite the company’s praise for the move, it has been widely criticized for its role in the Russian-Ukrainian conflict that ended with the company’s sanction by the U.S. Treasury’s Office of Foreign Assets Control.

New York Mayor Eric Adams has revealed his plans to ask Gov. Kathy Hochul to veto the state cryptographic mining bill, which was intended to ban working test (PoW) cryptocurrencies for two years. Adams stated that instead of absolute bans, lawmakers have to give miners goals to meet, and added that New York could lose its advantage in the cryptographic space due to the mining moratorium.

Exemption from liability

All information contained on our website is published in good faith and for general information purposes only. Any action taken by the reader on the information contained on our website is at your own risk.

Source link

Leave a Comment

Your email address will not be published.