Wednesday 28 September 2022
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Celsius moved $529M worth of wBTC to FTX exchange: Should we be worried?

Embattled lending platform Celsius has transferred nearly 25,000 Wrapped Bitcoin (wBTC), worth $528.9 million to crypto exchange FTX, prompting concerns from some in the community about whether a dump may soon follow. The huge transfer to the exchange comes after the lending platform paid off its remaining $41.2 million of debt to Maker (MKR) protocol, freeing up its loan’s entire wBTC collateral. However, the community is unsure what to make of the transfer, with some fearing that a dump of the wBTC on the exchange could soon follow, pushing Bitcoin prices down. Others have been more hopeful that the move may be in preparation for Celsius to swap their wrapped Bitcoin for BTC, which may be a good sign for depositors who’ve been hoping for Bitcoin withdrawals to eventually reopen on the Celsius platform. Bitcoin is up 8% in the past 24 hours to trade above $22,100, suggesting market participants are taking the news in their stride. The 25,000 wBTC sent to FTX follows the news earli..

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Bombshell allegations of fraud as KeyFi takes Celsius to court

Staking software and investment firm KeyFi Inc. has filed a complaint against beleaguered crypto-lending firm Celsius, alleging the company had been operating in a “Ponzi” style fashion and that it failed to honor a profit-sharing agreement “worth millions of dollars.” The complaint, filed on July 7, alleges that Celsius has refused to honor a “handshake agreement” in which KeyFi would receive various percentages on the profits it made on Celsius behalf via a number staking and DeFi strategies. The complaint also accuses Celsius of “negligent misrepresentation” over its risk management controls and “fraud in the inducement” via misleading information of its business operations, which were deployed to induce KeyFi to work with Celsius. The plaintiff is Jason Stone, CEO of KeyFi. He founded the company in January 2020 and has a background as an investor/investment advisor. According to the court documents KeyFi served as an investment manager to Celsius between August 2020 and March 20..

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Marathon Q2 Bitcoin production down 44% as fleet remains crippled

Bitcoin (BTC) mining company Marathon Digital Holdings experienced a steep 43.8% decline in Bitcoin production over the second quarter of 2022, with June registering as the company’s least productive month in over a year following the fall of its Montana facility. In its latest mining operation update released on July 7, Marathon reported that it produced 707.1 Bitcoin in Q2 2022, down 43.8% from 1258.6 Bitcoin mined in Q1 2022. Marathon’s Bitcoin productivity has been on the decline through Q2 2022.The company’s Bitcoin production took a particular hit in June, after Marathon’s Hardin, Montana facility was hit by a massive storm on June 11 which knocked out the power station that fed 75% of its active fleet. The outage made June the company’s least productive month since March 2021, and threatens to continue into July, as to date, the Montana facility is yet to return online, and no new blocks have been mined from the MARA mining pool since June 12. Marathon CEO Fred Thiel acknowl..

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Bitcoin price surges to $21.8K, but analysts warn that the move could be a fakeout

Hope springs eternal for many crypto investors after the market saw positive price movement on July 7, alongside gains in the traditional market. Daily cryptocurrency market performance. Source: Coin360The green day in the markets comes amid a backdrop of increasing jobless claims in the U.S., which is a possible signal that “the pressure on wages may have now peaked” according to Harris Financial Group Managing Partner Jamie Cox. According to Cox, a continuation of this trend could result in financial conditions that are “tight enough to allow the Fed to throttle back on the scale of rate increases." Data from Cointelegraph Markets Pro and TradingView shows that after trading near $20,400 for a majority of the day on July 7, the price of Bitcoin (BTC) spiked nearly 7% in the afternoon hours to hit a daily high of $21,860. BTC/USDT 1-day chart. Source: TradingViewAs the crypto faithful attempt to navigate the choppy waters of the crypto winter in search of a market bottom, here’s wha..

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VC firm Konvoy launches new $150M fund, eyes blockchain-based games

Venture capital firm Konvoy Ventures is set to fork out at least $30 million to back various cryptocurrency and blockchain-based games. The American firm announced the launch of Konvoy Fund III, with $150 million in capital that it plans to invest in a variety of platforms and technologies in the global gaming sector. According to Bloomberg, up to 30% ($45 million) of the fund will be allocated to the crypto and blockchain gaming space. Konvoy is no stranger to the world of cryptocurrencies and blockchain-based games. The firm boasts an impressive portfolio of gaming companies and projects which it has funded, including the likes of Axie Infinity creators Sky Mavis, Metaverse avatar platform Ready Player Me and open-world NFT game Genopets. Related: Animoca, WeMade, Samsung Next back Web3 studio to develop open-source games The firm has invested in a total of 35 companies to date through its first two funds across North America, Europe, the Middle East, Africa and South-East Asia. Int..

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FDIC reportedly scrutinizing Voyager Digital marketing; complex SBF ties come to light

Some Voyager Digital account holders were surprised when they discovered that their deposits did not have the protection they thought they did after the crypto brokerage and lender filed for bankruptcy Tuesday. This could mean additional consequences for Voyager Digital. Voyager Digital filed for bankruptcy under Chapter 11, citing debts of up to $10 billion to 100,000 creditors in a crisis brought on after Singaporean hedge fund Three Arrows Capital (3AC) default on a loan of 15,250 Bitcoin (BTC) and 350 million USD Coin (USDC) a week earlier. According to Voyager Digital’s website, “Your USD is held by our banking partner, Metropolitan Commercial Bank, which is FDIC insured, so the cash you hold with Voyager is protected.” The bank holds $350 million in Voyager Digital customers’ deposits. The United States Federal Deposit Insurance Corporation (FDIC) insures accounts for up to $250,000 per depositor in case of the failure of the bank, the Metropolitan Commercial Bank explained in ..

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US Treasury issues framework addressing engagement on crypto with foreign regulators

The United States Department of the Treasury has delivered to President Joe Biden a framework on crypto for U.S. government agencies to work with their foreign counterparts. In a Thursday announcement, the U.S. Treasury said it had reported on a regulatory framework for cryptocurrencies in consultation with the Secretary of State, the Secretary of Commerce, the Administrator of the U.S. Agency for International Development and other government agencies as required by President Biden’s executive order on digital assets issued in March. According to the Treasury Department, the framework aimed to encourage the development of digital assets while respecting “America’s core democratic values” and ensuring the stability and safety of the global financial system and international monetary system. President Biden’s executive order required the Treasury Department to lead an interagency effort in developing policy recommendations for mitigating risks associated with crypto. The government depa..

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Survey shows 55% of crypto investors chose to HODL as Bitcoin and altcoin prices collapsed

Crypto and equities markets are down and aside from the positive news of Celsius repaying all of their debt and avoiding a massive liquidation, there are few on the spot reasons that are prompting investors to buy Bitcoin and altcoins. The collapse of numerous decentralized finance (DeFi) protocols, crypto investment funds and BTC trading 60% below its all-time high continue to weigh on sentiment but a few positive tidbits of data could be a sign that the market is ready to enter a consolidation phase. Crypto investors HODLAccording to a recent survey conducted by Appinio, despite the collapse in crypto prices and start of the bear market, “more than half (55%) of crypto investors held their investments in response to the recent crypto-asset market sell-off with just 8% selling their investments.” This suggests that the the investment conviction of a majority of crypto investors remains strong. The study also found that “33% of American investors are invested in crypto-assets,” an “40..

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Bitcoin miners sell their hodlings, and ASIC prices keep dropping — What’s next for the industry?

Crypto companies are going belly up left and right, and Bitcoin mining companies also appear to be taking on water faster than they can bail. In mid-June, Compass Mining CEO Whit Gibbs and chief financial officer Jodie Fisher abruptly resigned after allegations that the Bitcoin mining hardware and hosting company had failed to pay hundreds of thousands of dollars in overdue electricity bills to Dynamics Mining, a facility provider for Compass. Bloomberg recently reported that many industrial-size Bitcoin miners took on a significant amount of debt by leveraging their equipment and BTC as collateral for loans to either acquire additional gear or expand their operations. According to the report, and data from Arcane Research, miners owe some $4 billion in loans and now that Bitcoin price trades near its 2017 all-time high, the trend of miners liquidating their BTC holdings at swing lows to cover capital costs and operational costs is expected to pick up speed. In the last month Marathon..

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