Strengthens
- Of the cryptocurrencies tracked by CoinMarketCap, the best performer for the week was Terra LUNA, which rose 216.98%.
- Ether is outperforming the broader crypto market as the latest software update to the Ethereum network kicks off one of the final stages of the blockchain’s long-awaited transition to a more energy-efficient process, Bloomberg reports. The latest upgrade to the Ethereum network, known as Bellatrix, was activated around 7:35 a.m. New York time. It officially begins the blockchain’s transition from proof of work to proof of stake, the article continues.
- Thailand will establish a working group to study improving oversight of digital assets to improve investor protection and adhere to international standards, according to the Securities and Exchange Commission. The group will consist of representatives from agencies including the Ministry of Finance and the Bank of Thailand. Improving oversight will help prepare for rapid changes in the digital asset market, Bloomberg reports.
Weaknesses
- Of the cryptocurrencies tracked by CoinMarketCap, NEXO was the worst performer this week, down 14.61%.
- Bitcoin is flirting with a test of this year’s lows after a cryptocurrency selloff pushed the sector’s total market capitalization below $1 trillion again. Bitcoin has lost more than 6% so far this week, trading at around $18,750, Bloomberg explains. Rising real interest rates put pressure on a number of risky assets, and crypto is no exception.
- Fraudsters who ransacked cryptocurrency projects worth hundreds of millions of dollars in recent months have been able to pull off such heists by taking advantage of a central tenet of decentralized financial services. While DeFi projects promise to enable more efficiency in crypto transactions, much of the code underlying the software is public, meaning anyone online can scan it for potential vulnerabilities they can exploit, writes Bloomberg.
Possibilities
- Binance, the largest crypto exchange by volume, will begin converting existing user balances and new deposits of USDC, USDP and TUSD into the company’s own stablecoin. The exchange said the move is intended “to improve liquidity and capital efficiency for users”, writes Bloomberg.
- Insolvent crypto lender Voyager Digital has drawn enough interest from potential buyers to necessitate an auction, Bloomberg reports. The need for an auction means that Voyager received more than one acceptable bid for its assets, and no bid was clearly the best. That could be good news for Voyager customers still locked out of their accounts, the article continues.
- GameStop shares rose on Thursday after the video game retailer announced a partnership with cryptocurrency exchange FTX US, suggesting the company is making progress in its strategic shift to NFTs. But analysts remained skeptical of its long-term growth prospects after the company reported a drop in sales and a bigger loss in the second quarter. GameStop said it will partner with FTX US on new e-commerce and online marketing initiatives and will begin carrying FTX gift cards in select stores, Bloomberg writes.
Threats
- The Securities and Exchange Commission of Thailand has filed a police complaint against Zipmex Thailand, a crypto exchange operator, and its CEO for failing to comply with the country’s digital asset regulations, writes Bloomberg. CEO of the exchange Akalarp Yimwilai broke digital asset rules by failing to disclose information about the exchange’s digital wallet, which contains customers’ assets, and details of transfers and withdrawals of digital assets as requested by the authorities.
- A closely watched measure of Bitcoin mining revenue has fallen to its lowest in about two years as competition heats up while prices drop and energy costs rise. The hash price index, which indicates the mining revenue value per unit of computing power, fell to around 7.7 cents for each terahash, the lowest since September 2020.
- The White House Office of Science and Technology has released a report that claims Bitcoin mining is negatively impacting the environment and suggests banning proof-of-work, according to Daily Bitcoin News. The report alludes to possible executive orders and congressional legislation to “restrict” or “eliminate” mining if regulatory actions do not affect U.S. climate goals, the report said.
