Some large crypto companies have to stop making obvious, avoidable mistakes that destabilize the industry, says deVere Group CEO.
Nigel Green, who runs one of the world’s largest advisory, asset management and FinTech organizations – as well as the cryptocurrency exchange deVere Crypto – says they are causing financial chaos for investors and job losses.
Bitcoin, the largest cryptocurrency in the world, has lost 57% so far this year. It dropped below $ 20,000 over the weekend for the first time since December 2020.
“I don’t usually cast a shadow over other companies, but lately we’ve seen a lot of the biggest players make big, unnecessary mistakes,” Green said.
“They went after hugely expensive TV commercials, jumped on higher profile sponsorships, rolled lending models with astronomical interest rates on crypto deposits, and launched unprecedented hires.
“What do we have now?” Companies fire entire sections of their staff, manage customer withdrawals, and make investments.
He continued: “Unfortunately, these brands made classic, obvious and unavoidable mistakes from the DotCom era.
“These mistakes are destabilizing the industry because of the contagion effect, exacerbating the financial chaos for investors and the pain of job losses for so many who were hoping for rewarding careers in the finance of the future.
“These crypto companies would be better placed – for the sake of their customers and the industry as a whole – to grow by investing in top talent, innovation and development and pushing for sensible regulation with financial watchdogs.
Green, who says he will continue to buy Bitcoin “because fundamentals have not changed,” believes the crypto sector will turn stronger. “I’m sure the experience will be gained and the industry – the future of finance – will be more robust as a result,” he said.
NFT Marketplace Magic Eden Awards $ 1.6 billion
NFT Marketplace Magic Eden raised $ 130 million in Series B financing, valuing the company at $ 1.6 billion.
The round was led jointly by Electric Capital and Greylock, while Lightspeed Venture Partners emerged as the new lead investor. Other participants reveal former investors Paradigm and Sequoia Capital.
Series B funds will be used to grow the company’s primary and secondary markets, explore multi-channel opportunities, invest in the team as well as in technology to enhance the user experience through insights, analytics and enhanced trading tools.
Magic Eden’s goal is to support the next generation of digital creators and bring Web3 to one billion users.
Magic Eden was launched in September 2021 and claims to receive an average of 22 million unique sessions per month and see over 40,000 NFTs traded daily.
“We know NFTs are the best way to get people on the blockchain,” said Jack Lu, CEO and co-founder. “NFTs are exciting, social and cultural experiences that bring connection to the world.
“Since our inception, we have made a conscious decision to support both our creators and our users through this huge era of growth for business and industry. The best thing is that we have just started.
Magic Eden’s Launchpad has launched 250 projects to date, while the company’s secondary market covers over 7,000 listed collections and sees over 92% of all NFT volume on Solana.
Zhuoxun Yin, COO and co-founder of Magic Eden, added: “We were pioneers in a number of areas: such as combining NFT key features via Launchpad with an aftermarket, integrating gameplay with NFT games directly on the platform, and creating a decentralized autonomous organization ( DAO) to enable greater involvement in the Magic Eden community.
“We are pleased to have the continued support of our investors and our community and look forward to delivering Solana and beyond.”
Mike Duboe, Partner at Greylock, said: “Magic Eden is one of the top 1% teams that just shoots on all cylinders – product execution, community growth, transaction volume – and speed. In less than a year’s existence has been exceptional.
Crypto Exchange FTX has rescued the crypto-lending platform BlockFi – which has recently frozen withdrawals due to liquidity problems – with a revolving credit facility of $ 250 million.
Securities and Exchange Commission Commissioner Hester Peirce – known as “crypto mom” – has criticized rescue operations from crypto companies. She told Forbes: “[It’s better to] let these things unfold … when things are a little tougher on the market, you will find out who is actually embedding something that can last in the long run and what will disappear.
Former SEC senior adviser Howard Fischer told CoinDesk that several U.S. states’ steps to open an investigation into cryptocurrency lender Celsius Network’s withdrawal stop will eventually lead to new federal regulation.
Uniswap Labs has acquired market aggregator NFT Genie and aims to support non-fungal token trading “soon”.
Neol, a Web3-compatible learning and work platform, raised $ 5.2 million in start-up funding. The round was led by kyu Collective and Global Ventures along with Learnstart, FJ Labs and Paribu Ventures. The participating angels include Tony Xu, co-founder and CEO of DoorDash; Tim Brown, President of IDEO; Emin Gun Sirer, Founder and CEO of Ava Labs; and Sota Nagano, associate director at Abies Ventures.
A study by the Bank for International Settlements showed that around 90% of central banks around the world study the effectiveness of using central bank digital currencies (CBDCs).
European crypto exchange Bitpanda is now regulated in Spain after previously registering with regulators in Austria, France, Italy and Sweden.
The total market value of over 19,900 coins is $ 902 billion at the time of writing (7 am UK), a decrease of 2.2% within the last 24 hours.
Market leader Bitcoin – the original cryptocurrency created by the mysterious Satoshi Nakamoto – fell 2% to around $ 20,430. BTC has fallen 4% in one week.
Ethereum, the second most valuable cryptocurrency – created as a decentralized network for smart contracts on the blockchain – fell 5% to less than $ 1,100. ETH drops 3% in one week.
Binance Coin is a cryptocurrency created by the popular crypto exchange Binance to help its goal of becoming an infrastructure service provider for the entire blockchain ecosystem. Its BNB token lost 3% to $ 216, leaving it up 2% over seven days.
Cardano is an open source network that facilitates dApps that see themselves as an updated version of Ethereum. Its ADA token, designed to allow owners to participate in the operation of the network, dropped 6% to 47 cents and increased 2% in one week.
Ripple’s XRP token, an exchange and remittance system for payment settlement assets, acts as a bridge for transfers between other devices. XRP lost 1% below 32.5c as the price has risen 6% from seven days ago.
Solana is a blockchain designed to make decentralized financing available on a large scale – and capable of processing 50,000 transactions per second. Its SOL token lost 7% to $ 34.67 and has risen 23% from a week ago.
The Meme DOGE coin was created as a satire on the hype involving cryptocurrencies, but is now a major player in space. DOGE climbed 3% to 6.4c and rose 22% in one week.
Polkadot was founded by the Swiss-based Web3 Foundation as an open source project to develop a decentralized web. Its DOT token, which aims to connect blockchains securely, fell 8% to $ 7.55 and rose 5% from the price a week ago.
Avalanche is a lightning-fast auditable platform for institutions, companies and governments. Its AVAX token lost 6% to $ 16.54 and rose 7% in one week.
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