tl;dr
• Voyager Digital Holdings joins Three Arrows Capital, files for bankruptcy protection under Chapter 11• CryptoCom defends against FUD and so does Circle• The Wolf of Wall Street says buying Bitcoin is a very good way to defend against current economic instability• US Federal Reserve panel says ther...
• Voyager Digital Holdings joins Three Arrows Capital, files for bankruptcy protection under Chapter 11
• CryptoCom defends against FUD and so does Circle
• The Wolf of Wall Street says buying Bitcoin is a very good way to defend against current economic instability
• US Federal Reserve panel says there is a very limited scope for CBDC utility for cross-border use
First there was the 3AC filing. Now there is Voyager. When will Celsius fold? Here is what is on my mind today.
1. You knew Three Arrows Capital was going to fold. Now it is Voyager Digital Holdings filing for Bankruptcy protection under Chapter 11. With over 100K creditors the company has estimated assets $1B in assets. Initially, I think it will have an adverse effect on the Cryptoverse, but it will be a good thing in the long-term. Clearly, the next in line will be Celsius. Then I think we will go through the reverberations and shakeout. Then we will be left with the players in the space that are more stable and sure-footed in their respective approaches. That means we will be left with a stronger DeFi space.
2. I am not sure what is wrong with people as they automatically think a reduction in headcount means a company is about to close its doors. Take CryptoCom. Their CEO, Kris Marszalek, has to defend FUD stemming from their 5% staff reduction. The company seemingly, has right-sized their staff and now he has to fend against rumors they have reduced their withdrawal limits.
3. Meanwhile, Circle has come under fire, too. This has led to their CFO, Jeremy Fox, to say the company has no liquidity risks. Keep in mind their stable coin, USDC, is predominantly backed by non-crypto assets. Another key note he said was. "USDC reserves are assets that belong to USDC holders, not Circle, and are wholly held in segregated accounts designated “for the benefit of USDC holders." I am hoping the market doesn't toss the baby with the bath water.
4. "The Wolf of Wall Street", Jordan Belfort (yes, that guy), says people should be buying Bitcoin to make money. Speaking on the new Yahoo Finance show, The Crypto Mile, he says he will be shocked if the move does prove to be successful within the next 3-5 years. Like me, he thinks the move will be a good hedge against the economic instability we are facing.
5. During a panel discussion held by the US Federal Reserve, members of the panel said there is a limited amount of scope to the utility of CBDCs for cross-border use. I want you to take that in a moment and give some thought to something else while you're at it. There are a number of countries that are tamping down on crypto while they build out their CDBCs, all while cryptos continue to demonstrate a growing amount of utility. When you hear countries continuing to speak negatively about the Cryptoverse, remember they are banking on their own CBDC infrastructure to be the end all.