Crypto Biz: Bear market claims another casualty
Three Arrows Capital. Celsius. Voyager Digital. The listing of crypto bankruptcies, shutdowns and buying and selling freezes has been countless in 2022. And the yr isn’t over yet. This week, German crypto financial institution Nuri advised its customers to withdraw price range in advance of the company’s deliberate shutdown in December — as a minimum Nuri’s customers have been given right notice. The crypto endure has been relentlessly cleaning the marketplace of excess, leverage, terrible chance control and outright scams. If enterprise prognosticators are to be taken seriously, the marketplace should see one very last capitulation earlier than situations start to improve. This week’s Crypto Biz chronicles Nuri’s shutdown, the contemporary drama surrounding Voyager Digital and Silvergate Capital’s hard quarter.
Voyager Digital won’t sue its executives for incompetence, will declare coverage on them
Voyager Digital’s saga took another surprising turn this week after the company decided not to sue its executives for their incompetence over their role in facilitating the Three Arrows Capital debacle (and the Voyager debacle). On the drama: Voyager made a $675 million loan to Three Arrows Capital without proper due diligence. This loan was never repaid and became a key element in Voyager’s bankruptcy. Why aren’t executives sued? Loud They reportedly received immunity from lawsuits when the Voyager assets were purchased by FTX US through an auction in late September.
Silvergate Capital’s crypto-to-fiat transfers decrease by $50B compared with Q3 2021
Few statistics show how brutal the crypto winter has been for Silvergate Capital’s crypto-to-fiat transfers. The company announced this week that remittances on its network fell $50 billion year over year in the third quarter, which is an alarming sign. for those championing the massive adoption of cryptocurrencies among financial institutions. But there was a bright spot: Silvergate’s earnings soared 84% year over year to $43.328 million. Investors reacted to the news by dumping Silvergate shares, which fell 20% on 18 October.
Binance launches $500M lending project to support crypto miners
Cryptocurrency exchange Binance launches new $500M loan project to fund cash-strapped bitcoin miners (BTCtickers down $19,155) during bear market.
The new Binance Pool will give miners access to 18-24 month loans where they pay 5%-10% interest and offer physical or digital assets as collateral. Miners can qualify for the loan. “One of the requirements is that the applicant must be ranked as a Binance VIP user and connect at least 500 PH/s to the Binance pool for at least 24 months after the loan is issued,” a Binance spokesperson told Cointelegraph.
Before you go: When will the crypto bear market end?
Fed up with the cryptocurrency bear market? How long does it take for the market to change? While no one has a crystal ball, I remain steadfast in my belief that Bitcoin is likely to see a cyclical bottom in the coming months, followed by an extended period of accumulation. In this week’s market report, I sat down with analysts Marcel Pechman and Benton Yaun to discuss the near-term outlook for cryptocurrencies. You can watch the full replay below.
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