Strengthens
- Of the cryptocurrencies tracked by CoinMarketCap, the best performer for the week was XRP, which rose 49.29%.
- Nasdaq is making its first major push into crypto, Bloomberg reports, as the second-largest exchange prepares to capitalize on growing appetite for digital currencies among big money investors. A new group dedicated to digital assets will initially offer custody services for Bitcoin and Ether to institutional investors. As a manager of digital assets, Nasdaq will compete with crypto firms such as Coinbase, Anchorage Digital and Bitgo, the article continues.
- A crypto industry lobby wants the judge in a high-profile digital asset case to consider Congressional efforts to establish a new legal framework for the nascent industry before moving forward, Bloomberg reports. The Chamber of Digital Commerce, a crypto advocacy organization, filed an amicus brief on Wednesday in the SEC lawsuit against Ripple Labs.
Weaknesses
- Of the cryptocurrencies tracked by CoinMarketCap, RavenCoin was the worst performer this week, down 23.82%.
- A fall in cryptocurrencies on Monday sent Bitcoin to a three-month low as sentiment took a hit from a wave of monetary tightening set to stretch from Europe to the United States. lowest since prices of digital assets fell after the collapse of crypto lender Celsius in June, writes Bloomberg.
- Cryptocurrency hedge funds lost 4.9% in August, the most among all investment styles, according to Bloomberg Hedge Fund Indices. The Bloomberg All Hedge Index fell 0.2% for the month and lost 5.9% so far this year. So far this year, cryptocurrency funds are down 41%, according to Bloomberg.
Possibilities
- Colorado taxpayers can now pay their taxes in Bitcoin, Ether and other cryptocurrencies under a unique state tax payment program in conjunction with PayPal. Businesses and individuals will be able to use cryptocurrency assets to pay taxes under Colorado’s primary tax programs, writes Bloomberg. Because Colorado cannot directly accept crypto itself, the Department of Revenue has contracted with PayPal to broker each transaction and instantly convert digital currencies into US dollars.
- Cryptocurrencies outperformed US stocks for a change, with Bitcoin and Ether up for the first time in five days. Bitcoin rose around 2% on Friday and Ether rose around 1.5%. Markets shudder at the Fed’s willingness to fight inflation by tightening monetary conditions, writes Bloomberg.
- Cryptocurrency exchange FTX is in talks with investors to raise $1 billion in funding, reports CNBC. The valuation of billionaire Sam Bankman-Fried’s company will be $32 billion, according to the report. It is the same as in January, when the company brought in 400 million dollars, writes Bloomberg.
Threats
- The UK’s Financial Conducts Authority published a warning to consumers about Sam Bankman-Fried’s crypto exchange FTX, saying it is not authorized by the regulator to offer financial services or products in the country. The regulators said that FTX is “targeting people in the UK” and adding that investors are “unlikely to get their money back if things go wrong”, writes Bloomberg.
- South Korean prosecutors signaled that Do Kwon, the progenitor of a $60 billion cryptocurrency wipeout, is at risk of a red notice from Interpol and is trying to avoid retribution over a meltdown that has destroyed digital assets. Kwon had moved from South Korea to Singapore, Bloomberg reports, where the now-collapsed Terraform Labs project had a base, but the city-state says he is no longer there. Kwon’s whereabouts are unclear and he denies being a fugitive, although prosecutors in Seoul are seeking his detention on allegations including violations of the Capital Markets Act.
- Jesse Powell, co-founder of crypto exchange Kraken, plans to step down as CEO, Kraken confirmed with CoinDesk. Kraken’s current CEO will take over as CEO until someone is hired to fill the position, according to an article published by CoinDesk.
