City Arrow Financial News

Bitcoin hit a 2022 low at $17,580 on June 18 and many traders are hopeful that this was the bottom, but (BTC) has been unable to produce a daily close above $21,000 for the past six days. For this reason, traders are uncomfortable with the current price action and the threat of many CeFi and DeFi companies dealing with the loss of user funds and possible insolvency is weighing on sentiment.

Crypto exchange FTX is reportedly in talks to acquire a stake in BlockFi after the company issued a $250 million credit to the lending firm.

Smaller crypto exchanges could be vulnerable to collapse during this crypto bear market, given seemingly unsustainable yields offered to users, and a confusing “webs of relationships” between companies in the space, a new report from the crypto data provider Kaiko has found.

Get your daily, bite-sized digest of cryptoasset and blockchain-related news – investigating the stories flying under the radar of today’s crypto news.

Coinbase Derivatives Exchange (formerly FairX) is launching its first crypto derivatives product, Nano Bitcoin futures (BIT), on June 27.

Crypto broker Voyager Digital lowers daily withdrawal limits to $10,000

Crypto broker Voyager Digital said it may issue a notice of default to Three Arrows Capital if the crypto hedge fund fails to make a loan repayment by 27 June.

Binance founder and CEO Changpeng “CZ” Zhao argues that “bad” crypto projects should be left to fail and not receive bailouts from crypto firms with healthy cash reserves.

Despite facing the music over the Terra fiasco, Do Kwon seems to be quite optimistic about the future. The CEO of Terraform Labs recently expressed “great confidence” in rebuilding the empire that crashed last month. Notwithstanding the crypto-market’s recent bearish trajectory.

The Singapore-based crypto venture firm Three Arrows Capital (3AC) failed to meet its financial obligations on June 15 and this caused severe impairments among centralized lending and staking providers like Celsius and Babel Finance.

Bailouts are not inherently wrong and can be done for crypto projects as long as they happen only for projects that “are fixable” and “have potential,” according to Binance CEO Changpeng Zhao (CZ).

Get your daily, bite-sized digest of cryptoasset and blockchain-related news – investigating the stories flying under the radar of today’s crypto news.

Swan Bitcoin CEO Cory Klippsten believes that the liquidity crisis involving Celsius Network may be just the beginning of a broader collapse in the crypto lending space. 

Crypto lending platform Nexo, says that its strong balance sheet means it can ride to the rescue to provide liquidity during the current market turmoil by acquiring the assets of struggling crypto firms. 

A 60% plunge of Voyager Digital’s (VYGVF) share price since it disclosed its Three Arrows Capital (3AC) exposure has been accompanied by further falls in crypto industry stocks.

Crypto broker Voyager Digital said it may issue a notice of default to Three Arrows Capital if the crypto hedge fund fails to make a loan repayment by 27 June.

Trading platform Voyager Digital takes a loan from trading firm Alameda Research because of its exposure to crypto venture capital firm Three Arrows Capital (3AC). 

Voyager Digital Holdings, an owner of a crypto platform, announced today that they entered into a multi-million credit line agreement with Alameda Ventures, but also that they may issue a notice of default to major crypto hedge fund Three Arrows Capital (3AC) for failure to repay its loan.

TerraUSD's paired token, Luna, plunged in value last month.

CDOs, which repackaged risky mortgage bonds to make them look safer than they were. “CDOs are nothing but a massive Ponzi scheme,” said the villain of a fictional account of the 2008 meltdown. How much more carnage will it take this time to know that blockchain-based lending is similarly reckless? The idea that one could ditch regulated intermediaries like banks and make far higher returns by lending digital assets was a key attraction of decentralized finance, or DeFi. But that was before the bloodletting began, triggered by the collapse last month of the cryptocurrency pair Terra-Luna. The appeal of changing money into TerraUSD, a stablecoin that promised 1:1 convertibility into dollars, lay in the near-20% yield on TerraUSD deposits. Withdrawal of funds from Anchor Protocol, the main DeFi lending application on the blockchain, crushed the coin, as well as Luna, its sister asset. Soon after, lenders Celsius Network and Babel froze deposits. BlockFi Inc., a Peter Thiel-backed lending platform, said it “fully liquidated or hedged all the associated collateral” of a large client believed to be Singapore-based Three Arrows Capital, a troubled crypto hedge fund. BlockFi is reducing headcount by 20% just as Coinbase Global Inc., the largest US-based digital asset exchange, lays off 18% of its workforce. There’s no end in sight to the crypto winter. Of the $252 billion of investor funds tied up in DeFi protocols last December, less than $75 billion remain.

In the history of dangerous naivety, the decentralized finance mania of 2021 will hold its own against the 2007 boom in collateralized debt obligations. It took a financial crisis for the world to wise up to CDOs, which repackaged risky mortgage bonds to make them look safer than they were. “CDOs are nothing but a massive Ponzi scheme,” said the villain of a fictional account of the 2008 meltdown. How much more carnage will it take this time to know that blockchain-based lending is similarly reckless?