Crypto SWOT: A crackdown by the Taliban has led to a collapse in cryptocurrency use in Afghanistan

Strengthens

• Of the cryptocurrencies tracked by CoinMarketCap, the best performer for the week was Casper, which rose 21.84%.

• In Mastercard’s latest foray into crypto, the credit card behemoth is leaning on a recently acquired blockchain analytics company to do due diligence on digital assets, Bloomberg reports. The company is leveraging data from CipherTrace, acquired in 2021, to launch a solution that should keep Mastercard compliant with crypto regulation, the article explains.

• The European Union (EU) wants to exchange views on the development of crypto legislation with US officials during next week’s IMF-World Bank annual meetings. The EU is moving forward with key legislation to regulate the crypto sector with common rules across all 27 member states, Bloomberg reports, marking the first time globally that lawmakers have attempted to oversee the industry on such a scale.

Weaknesses

• Of the cryptocurrencies tracked by CoinMarketCap, Unus Sed Leo was the worst performer this week, down 11.19%.

• Growth in Texas crypto mining capacity will be hampered as Russia’s war on Ukraine drives up global energy prices and Bitcoin prices disappear. Mining capacity in the Lone Star State will increase by 2 gigawatts to 3.5 GW by the first quarter of 2024, instead of the previous forecast of up to 5 GW, writes Bloomberg.

• Executives at bankrupt crypto lender Celsius withdrew more than $56 million in cryptocurrencies before suspending customer withdrawals from the platform. Celsius CEO Alex Mahinsky, co-founder Daniel Leon, and CTO Nuke Goldstein largely withdrew the money from escrow accounts, denominated in Bitcoin, Ether, USD and Celsius’ own CEL token, between May and June, according to documents filed for the Southern District of New York. writes Bloomberg.

Possibilities

• Modular Asset Management’s crypto hedge fund has bought tokens such as Algorand and Polkadot in a bet that coins with stronger sustainability characteristics will outperform after a $2 trillion shakeout in digital assets, writes Bloomberg. The Modular Blockchain Fund has also stepped up its purchases of Cosmos in recent weeks. CIO Daniel Liebau said he is seeking to get an edge in choppy markets by choosing coins he believes will better withstand increasing scrutiny of crypto’s ESG properties, the article continues.

• Cboe Global Markets makes some real-time market data freely available over blockchain, as the exchange operator moves into decentralized finance. The Chicago-based firm joins Pyth Network, the Jump Trading Group-backed decentralized publisher of crypto and other market data, as a contributor. It will provide data on 10 stocks from the fourth quarter onwards, reports Bloomberg.

• Grayscale Investments, the largest crypto asset manager, is changing strategy amid the market downturn by setting up a unit that seeks to buy Bitcoin mining equipment at distressed prices. Grayscale Digital Infrastructure Opportunities LLC will buy the computer rigs used in mining and hopes to profit by selling the Bitcoin earned in the process, writes Bloomberg.

Threats

• Kim Kardashian will pay $1.26 million to settle SEC charges that she violated US rules by claiming a crypto token without disclosing that she was paid for the campaign. The SEC said Kardashian was paid $250,000 to post on her Instagram account about EMAX tokens, a crypto asset offered by EthereumMax, writes Bloomberg.

• A crackdown by the Taliban has led to a collapse in cryptocurrency use in Afghanistan after a surge last year when the nation was cut off from global banking and international aid. The value of crypto received by the country has fallen to an average of less than $80,000 a month since November, down from a peak of more than $150 million last September just after the Taliban swept back to power, according to a blockchain report. analysis firm Chainalysis.

• Top Bitcoin miner Marathon Digital Holdings revealed it has over $80 million of exposure in bankrupt data center firm Compute North Holdings. The total includes investments consisting of $10 million in convertible preferred shares of Compute North and $21.3 million related to an unsecured senior promissory note with the firm, as well as $50 million in operating contributions to Compute North units for its hosting services, writes Bloomberg.