Sunday 7 August 2022
Home / 3AC / Crypto Biz: Crypto broker goes bankrupt, Bitcoin miner capitulates and China VC funding soars

Crypto Biz: Crypto broker goes bankrupt, Bitcoin miner capitulates and China VC funding soars

Those of us anxiously awaiting a summer relief rally for Bitcoin (BTC) may have to wait a little while longer. The bear market is still cleansing us of our excess — and revealing the most toxic players in our industry. I’ve talked to you about Terra (LUNA) — now renamed Terra Classic (LUNC) — Celsius, Three Arrows Capital, BlockFi— what about Voyager Digital? The crypto broker filed for Chapter 11 bankruptcy this week, putting hundreds of thousands of creditors on high alert.

This week’s Crypto Biz newsletter dissects Voyager’s bankruptcy proceedings and offers some potentially good news regarding Celsius. We also look at the latest high-profile miner to force-sell their Bitcoin and chronicle new capital raises for one of China’s most prominent venture firms.

Celsius pays down 143M in DAI loans since July 1

Celsius appears to be inching closer to repaying its outstanding debt to Maker (MKR) protocol after the crypto lender posted $142.8 million worth of Dai (DAI) stablecoins over a four-day period. Celsius paid back another $34.4 million in DAI on July 5, effectively boosting its collateralization ratio and significantly lowering its liquidation price to below $3,000 worth of Bitcoin (BTC). In other words, Bitcoin’s price would now need to fall below $3,000 for Celsius to default on its loan. Although some observers took the news as cautious optimism that Celsius is headed in the right direction, the firm hasn’t issued any new updates in weeks and user withdrawals are still frozen as of June 13.

Voyager Digital files for Chapter 11 bankruptcy, proposes recovery plan

Another one bites the dust: Crypto broker Voyager Digital filed for Chapter 11 bankruptcy in the Southern District Court of New York mere days after the firm halted all trading activity. Voyager’s bankruptcy filing stated that the firm owed more than 100,000 creditors anywhere from $1 billion and $10 billion in assets. If you’re a Voyager account holder, there may be a silver lining: The company is filing for bankruptcy as part of a “reorganization” plan that should eventually pave the way for clients to reaccess their accounts. Crypto market contagion is a real thing — and it may not be over just yet.

Core Scientific sold $167M worth of Bitcoin holdings in June

Miner capitulation is upon us. Earlier this week, United States crypto mining operation Core Scientific revealed that it was forced to sell more than 7,000 BTC in June to pay for ongoing business expenses. The digital gold was offloaded at an average price of $23,000, some 67% lower than Bitcoin’s all-time high from last November. The good news is miner selling is often seen as a reliable indicator of the bottom. But, fewer investors are prepared to call the bottom as the Federal Reserve plots several more aggressive interest rate hikes this year.

Crypto investor Sequoia Capital China reportedly raises $9 billion

In the depths of crypto winter, at least one venture capital firm continues to grow its war chest. Sequoia Capital China, the Chinese affiliate of crypto-focused venture firm Sequoia Capital, is reportedly raising $9 billion for four startup funds. Although details remain sparse, it was reported that 50% of the raise was oversubscribed. It remains to be seen how the funds will be deployed, but given that Sequoia China has already backed blockchain plays such as Babel Finance and DeBank, we can expect blockchain and crypto startups to be well represented.

Don’t miss it! What’s the current state of the crypto market?

Is the bear market affecting your psyche? How much longer until we hit bottom, or have we already? In this week’s Market Report, I sat down with fellow analysts Jordan Finneseth, Yashu Gola and Benton Yaun to discuss the current state of the crypto market and why July is going to be a pivotal month for risk assets. You can watch the full replay below.

Crypto Biz is your weekly pulse of the business behind blockchain and crypto delivered directly to your inbox every Thursday.

About Sean Patterson

Check Also

STEPN Kickstarts Gamers’ Interest As GMT Capitalizes On Bullish Retracement

And the game is on for STEPN as the GMT token plays in sync with other cryptocurrencies amplified for the bull run. In the past couple of weeks, STEPN has been making upgrades on its network to rekindle the waning interest of gamers. And the token seems to be making a lot of progress. The move-to-earn game has recently rolled out Health Points that set a certain life cycle for STEPN sneakers. They also were brewing an exciting STEPNrun Contest that is scheduled to kick off from July 25 to August 8 which is meant to get the word out about STEPN on social media. The contest is designed to run on both Instagram and Twitter. Related Reading: Cardano Pulls Up 5% In 24 Hours, Unfazed By Vasil Hard Fork Delay GMT Token Price Warms Up At $1.01 The GMT token price is currently at $1.01 and is forecasted to take off in the past couple of days. It looks like STEPN is just warming up at this point with its recent updates. 5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every..

Leave a Reply

Your email address will not be published. Required fields are marked *