Crypto Biz: Crypto massacre pushes Celsius, Three Arrows Capital goes bankrupt, June 9-16

Crypto Biz: Crypto massacre pushes Celsius, Three Arrows Capital goes bankrupt, June 9-16 – Mail Bonus

The 2022 version of Encryption Winter has been unlike anything we’ve seen before. As I warned last month, the melting of the Terra ecosystem did not end with the Luna Classic (LUNC) reaching zero. The biggest threat was infection. When the dust started to settle, we finally got to see who was left with the bag. Crypto lender Celsius and Singapore-based venture capital firm Three Arrows Capital suffered heavy losses during the crisis. These companies, which were once the basis of the emerging cryptocurrency industry, are now in danger of collapsing after weeks of huge sales in the market.

Celsius is said to have consulted with lawyers about restructuring

Alex Mashinsky’s Celsius dominated the headlines this week after the popular cryptocurrency lender suspended audits due to “extreme market conditions”. During the freeze, the company took about $ 247 million in Aave’s wrapped Bitcoin (wBTC) and sent it to the FTX derivatives exchange, along with $ 74.5 million worth of Ether (ETH). It was not long before rumors of Celsius’ bankruptcy began to rise. In response, Celsius has reportedly sought legal advice for restructuring. Nexo, a digital asset lender, has submitted a takeover bid to Mashinsky’s team, which has until June 20 to respond.

Su Zhu’s mystical statement when rumors swirl about 3AC liquidation and bankruptcy

From one chaos to another, cryptocurrency investors have spent the last few days investing in Three Arrows Capital (3AC), one of the industry’s most productive venture capital funds. As in Celsius, 3AC is also reportedly facing bankruptcy after suffering about $ 400 million in bankruptcy proceedings related to the continued collapse of Ether’s prices. The company was also a significant investor in Terra and had a significant position in other tanking altcoins such as Solana (SOL) and Avalanche (AVAX). Co-founder of 3AC, Su Zhu, issued a cryptic tweet on Tuesday that the company was “fully committed to working on this”. He also removed all mention of altcoins from his Twitter biography.

Crypto Exchange Coinbase reduces staff by 18% in the bear market

One of the most obvious signs of cryptographic winter is the mass layoffs of major companies. This week, the cryptocurrency exchange Coinbase announced that it was reducing its staff by 18%. Coinbase appears to have grown “too fast,” according to CEO Brian Armstrong. In addition to job cuts, the San Francisco company has also been withdrawing job offers even after applicants notified their current employer that they were quitting. Some stories are shocking to say the least.

Tether aims to reduce USDT’s commercial paper collateral to zero

Stablecoin publisher Tether plans to suppress any remaining FUD, or fear, uncertainty and doubt, about its Tether (USDT) support. This week, the company announced that it would finally reduce its risk for $ 8.4 billion worth of commercial paper to zero. Tether also categorically rejected any claim that 85% of its commercial paper portfolio was backed by Chinese or Asian assets. So, what’s the point of a commercial paper? These are basically unsecured banknotes with fixed maturities issued by companies. Some viewers’ concerns are that Tether is having difficulty finding a financial institution that is willing to take its cash as a deposit.

Before you go! Do not let the bear market distract you from Metaverse

As cryptocurrencies are falling, it’s hard to think of anything else these days. In this week’s marketing report, I discussed the cryptographic blood with other analysts Jordan Finneseth, Marcel Pechman and Benton Yuan before switching to Metaverse. It’s hard to be bullish right now, but a reverse economy will create enormous value in this decade. Click below to watch a rerun of the episode in its entirety.

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