Crypto companies are in trouble, the EU tries to bring order to the Wild West of crypto and TikTok’s biggest creator joins forces with a major crypto exchange. These stories and more this week in crypto.
Three Arrows Capital Files for Bankruptcy
Crypto investment firm, Three Arrows Capital, which managed around $10 billion in assets has filed for bankruptcy. The slump in digital asset prices in recent weeks has exposed a liquidity crisis at the company that is known for its highly leveraged bets. The bankruptcy filing is a move that aims to protect its US assets.
Coordinated Attack on Tether
Tether CTO, Paolo Ardoino, confirmed rumors that the Tether stablecoin has been the subject of a coordinated attack by hedge funds. Genesis Global Trading also revealed that hedge fund clients have used its services to make hundreds of millions of dollars in short trades on Tether. So far though, the stablecoin remains closely pegged to the dollar.
CoinFlex: Bitcoin.com Founder Owes $47M
Coinflex exchange halted customer withdrawals because of liquidity issues stemming from one large account with a negative balance of $47 million that they claim belongs to high-profile bitcoin cash evangelist Roger Ver. Bitcoin.com founder Ver has denied owing anything to the exchange and claimed in a tweet that CoinFlex actually owes him money.
Another Crypto Lender In Trouble
As the contagion continues to spread through the crypto market, Voyager Digital has become the latest crypto lender to suspend withdrawals, trading and deposits. The move comes days after the company issued a default notice to hedge fund, Three Arrows Capital, for its failure to make loan repayments.
EU Attempts to Regulate Digital Assets
European lawmakers have reached an agreement on crypto regulation. Known as Markets in Crypto-Assets, or MiCA, it is the European Union’s first attempt to create a comprehensive regulatory framework for digital assets in the region. According to the EU, the aim is “put order in the Wild West of crypto assets.”
Grayscale Sues SEC
Grayscale, which manages the world’s largest bitcoin fund, said it would sue the U.S. Securities and Exchange Commission after regulators turned down its bid to convert the investment vehicle into an ETF. The SEC rejected Grayscale’s application for a spot bitcoin exchange-traded fund, citing a failure by the investment manager to answer questions about concerns around market manipulation.
Bitcoin Bulls Continue to Buy the Dip
After losing $60 Million in value from his Bitcoin purchases, El Salvador’s president has bought more, spending another $1 million to stack an additional 80 BTC to El Salvador’s existing stash. Furthermore, amid rumors of its impending insolvency, Michael Saylor’s MicroStrategy has also defiantly made another batch of bitcoin purchases; revealing it has bought 480 bitcoins for $10 million since the cryptocurrency market’s intense selloff began in May.
HTC’s New Metaverse Smartphone
Smartphone manufacturer HTC has launched a new phone compatible with its metaverse platform and incorporating crypto and NFT functionality. The Desire 22 Pro will have the Viverse metaverse app and a crypto wallet built into the phone. Users can create virtual avatars and manage crypto assets, including NFTs.
The world’s most-followed TikToker, Khaby Lame joined Binance as a global ambassador. Khaby Lame will be using his signature style to tackle some of the misperceptions around Web3 throughout the partnership. He’ll also partner on exclusive NFT collections with Binance, further enhancing the experience for his fans in a push to increase Web3 awareness and adoption.
That’s what’s happened this week in crypto, see you next week.