Krystal Newsflash (1st July 2022)
Welcome to our recap of the major stories in the crypto world! Here’s what has happened over the past week:
3AC Liquidated
After weeks of uncertainty around the hedge fund, 3 Arrows Capital (3AC) has been ordered by a court in the British Virgin Islands to liquidate its funds.
This means that 3AC’s non-liquid assets (like crypto) will be converted into cash.
The liquidation may have a significant impact on the crypto space, as 3AC has invested in numerous crypto projects.
Furthermore, 3AC has gotten into trouble with the Monetary Authority of Singapore (MAS).
As a fund management company registered in Singapore, they could only manage assets up to $250 million, and they exceeded this amount during periods between 2020 and 2021.
Anonymous sends warning to Do Kwon
After the crash of both LUNA and UST, Do Kwon has become an unpopular figure.
Now, he has drawn the ire of hacktivist group Anonymous.
Anonymous posted a YouTube video, where they vowed to track Do Kwon’s entire history ever since he entered the crypto space.
Interestingly, the price of UST Classic (USTC) shot up in price, which could have been attributed to this video.
USDC and USD merges on Coinbase
When you deposit USD on Coinbase Exchange, you can now convert it 1:1 to USDC, without any fees.
This will help to further increase liquidity for USDC, which is deemed to be one of the safer asset-backed stablecoins.
Circle, the company behind USDC, publishes frequent attestation reports on their reserves, which makes it rather transparent.
There have been concerns about USDT’s reserves (another asset-backed stablecoin), and you can view our analysis here.
Spot BTC ETFs rejected in US ❌
The SEC has rejected applications by Grayscale and Bitwise to provide a spot-based bitcoin exchange-traded fund (ETF).
A spot bitcoin ETF would provide retail investors with access to the cryptocurrency, as some may still be wary of buying BTC on a crypto exchange.
One of the reasons why the SEC rejected the application was because the ETF “didn’t do enough to prevent fraud and manipulation”.
This has led Grayscale to launch a lawsuit against the SEC to challenge this decision.
Meanwhile, Jacobi Asset Management received approval to list a spot bitcoin ETF on the Euronext Amerstdam exchange.
This could provide much-needed access to crypto exposures for investors in Europe!
Grey Glacier 💯
The Ethereum network recently pushed out the Grey Glacier update, which delayed the difficulty bomb for the Ethereum network.
The difficulty bomb increases the puzzle’s complexity for Proof-of-Work miners, which aims to encourage them to switch to Proof-of-Stake instead.
This proved to be a success.
Furthermore, Ethereum developer Tim Beiko mentioned that Ethereum’s public testnet, Sepolia, will begin The Merge.
https://twitter.com/TimBeiko/status/1542593831937273857
If you’d like to find out more about The Merge and what it means for Ethereum, you can check out our analysis here.
Bridging Web2 with Web3
Despite the market downturn, there have still been efforts to integrate the world of Web2 with Web3.
Following their partnership last week with Cristiano Ronaldo to create NFT collections, Binance will now be working with Tiktok superstar, Khaby Lame.
Khaby makes viral TikTok videos which are mostly silent, where he makes fun of overcomplicated ‘life hacks’ and suggests simpler ways to solve problems.
Meanwhile, Facebook also announced that they will be launching NFTs on their platform.
Many Web2 platforms have been experimenting with adding NFT integrations, such as Instagram, Twitter, and now Facebook.
Would we see a spot Bitcoin ETF approved in the US? How do you think 3AC’s liquidation will affect the crypto market? Do tweet us or send us a message on Telegram to let us know!
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