Strengthens
- Of the cryptocurrencies tracked by CoinMarketCap, the best performer for the week was Celsius, with an increase of 89.99%.
- Ether hit a more than two-month high as the planned software upgrade to the Ethereum blockchain underwent a major test, potentially paving the way for one of the most significant changes in the cryptocurrency sector. The Goerli test, conducted late Wednesday New York time, was an exercise of sorts to switch the Ethereum network from proof-of-work to a more energy-efficient proof-of-stake system. The entire shift is expected next month, writes Bloomberg.
- Huobi Group founder Leon Li is in talks with a group of investors to sell his majority stake in the crypto exchange for as much as $3 billion, in what could be the industry’s biggest takeover since a $2 trillion global crypto rout began. The Chinese crypto mogul has had discussions with a number of financiers and tried to sell a roughly 60% stake in the company he founded almost a decade ago, writes Bloomberg.
Weaknesses
- Of the cryptocurrencies tracked by CoinMarketCap, the worst performer for the week was ApeCoin, down 7.37%.
- Galaxy Digital Holdings said its second-quarter loss more than doubled against a backdrop of falling digital asset prices. The next comprehensive loss was $554.7 million, compared with $182.9 million a year earlier, mainly due to unrealized losses on digital assets and on investments in the trading and capital investment business, according to Bloomberg.
- Coinbase Global Inc. posted a record second-quarter loss of $1.1 billion and lower-than-expected revenue, as the largest U.S. cryptocurrency exchange was hit by falling digital asset prices. Revenue fell more than 60% to $803.3 million, missing the $854.8 million estimate from analysts, writes Bloomberg.
Possibilities
- Asia crypto exchange Zipmex Pte will allow users to partially withdraw Bitcoin and Ether from their trading accounts starting later this week, bringing some relief to those caught up in the recent meltdown in the digital asset market. Zipmex will allow users to withdraw portions of Ether and Bitcoin from Zipmex’s Z wallet, meaning 60% of users will get some of their token back, writes Bloomberg.
- Financial giant Morgan Stanley is looking for a product development manager with a primary focus on building a broad range of new crypto products across business lines, according to a LinkedIn job posting from the firm. The job posting is an indication that Morgan Stanley is taking crypto more seriously and looking to increase its product offerings after launching a private passive fund in March 2021, Bloomberg reports.
- CryptoQuant plans to nearly triple its headcount by the first quarter of next year as it continues with expansion plans despite a persistent slowdown in cryptocurrency markets, Bloomberg explains. The Seoul-based cryptocurrency data provider plans to add at least 50 people to its teams in Miami and the South Korean capital starting in September, CEO Ju Kiyoung said in an interview.
Threats
- Democratic Senator Elizabeth Warren wants a US regulator to withdraw its guidance that allowed banks to offer crypto services, seeking more protection for consumers amid increased volatility for digital assets. Warren is circulating a draft letter to the Office of the Comptroller of the Currency among his colleagues and plans to send the final version soon to OCC Acting Chief Michael Hsu, writes Bloomberg.
- As reported by Bloomberg, widespread use of crypto-assets in a fully developed metaverse could pose a systemic risk to financial stability and would require “robust consumer protection”, Bank of England staff said. The greater the volume of these crypto transactions, the greater the potential impact on real-world financial stability should prices collapse, they said.
- Tornado Cash’s token TORN fell sharply on Tuesday after the US Treasury Department imposed sanctions on the cryptocurrency mixer. Tornado Cash was also used to launder funds stolen in the $600 million Ronin Bridge hack in March, as well as the $100 million stolen goods from the Harmony Bridge exploit in June, writes Bloomberg.
