Weekly Crypto Roundup: Attention seeking, job cuts and sideways momentum

Bitcoin and Ether prices are not changing fast, but the crypto and NFT sector is certain

Bitcoin and Ether prices are not changing fast, but the crypto and NFT sector is certain

seeking attention

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Crypto supporters have been fighting for years to bring their new technology to the mainstream. Now the crypto industry is in the spotlight for all the wrong reasons.

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This week, the controversial cryptocurrency company Celsius Network, which froze all user transfers and withdrawals, filed for bankruptcy protection in the United States. A legal document showed the company had a deficit of nearly $ 1.2 billion.

The company also plans to spend its $ 167 million in cash to support certain operations while undergoing financial restructuring.

Celsius said it had about 1.7 million registered users and $ 6 billion in assets by the beginning of this month.

“The beginning of ‘crypto-winter’ combined with the much-discussed Luna collapse and the failure of several crypto funds / exchanges has led to a growing reluctance to do business with companies in the industry, such as Celsius, which had crypto assets,” a legal document signed by Celsius CEO Alex Mashinsky said Thursday.

Several U.S. state regulators are currently investigating Celsius’ activities, and one regulator said it believes the platform is “deeply insolvent.”

Other cryptocurrencies are also in the crosshairs. This week, the Financial Stability Board (FSB), an organization that advises countries on international financial issues, promised to push for the regulation of stack coins, cryptocurrencies linked to the value of dollars, pounds and coins. A report on possible approaches is currently scheduled for October.

In addition, the US Treasury Department is working on a report to President Joe Biden on the risks and opportunities that digital assets can bring through mass adoption.

Overall, the current krypton meltdown is not the time when many proponents would have opted for international groups and official bodies to start paying more attention to the sector.

Jobs cut down

The NFT community got a shock on Thursday when OpenSea, which claims to be the “first and largest” NFT marketplace, announced it would cut 20% of its team.

OpenSea co-founder and CEO Devin Finzer accused an “unprecedented combination of cryptocurrency and general macroeconomic instability.” However, he stressed that the company had a “very strong” balance sheet.

The move shows how more and more crypto companies that have grown aggressively over the past year are unable to maintain the same momentum during the bear market in 2022, with customers withdrawing their investments in droves. It triggered liquidity crises in the industry.

The question now is whether less rival NFT marketplaces will follow in OpenSea’s footsteps and cut staff – or spend the time recruiting from a growing pool of crypto-professionals desperate for new jobs.

Lateral momentum

With Bitcoin just below $ 21,000, while Ether was above $ 1,200 on Friday, little has changed in terms of price performance over the last few weeks.

Data from the cryptanalysis platform Glassnode showed that the amount of Bitcoin held by long-term investors and / or lost by traders hit a new 19-month high of 7,376,212,666 BTC. This could mean that traders are waiting for the bear market to close, or that many have somehow lost access to their assets.

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