Crypto Weekly Update

There are thousands of interesting articles and news coming out of the crypto industry every week but to help separate the signal from the noise below are the articles that caught my eye this week.

Twitter enables tipping with Bitcoin

Twitter will enable its users to process payments with BTC, the largest cryptocurrency by market capitalization.

They will be providing two options; the first is via a menu of payment options which will include Cash App (Developed by Square inc.) and Go Fund Me.

The second option is by using Strike, a payment application that uses the Lightning Network, a decentralized network using smart contract functionality in the block chain to enable instant payments across a network of participants.

This layer 2 solution (designed to handle small transactions or micropayments) is designed to process transactions faster and cheaper compared to transacting on a base layer while also reducing traffic on the main network.

Coinbase stopped its Lend product due to regulatory issues

The crypto exchange decided to stop the development of Lend, a service that would provide 4% interest on USDC holdings.

To be transparent Coinbase had many discussions outlining the service with the SEC but after six months of negotiations, Coinbase claim the regulator had threatened to sue the company if it proceeded with it plans to launch LEND.

Coinbase announced its decision via its blog "As we continue our work to seek regulatory clarity for the crypto industry as a whole, we've made the difficult decision not to launch the USDC APY program announced below"

Genesis Digital Assets raises $421M in funding

American Bitcoin mining business Genesis Digital Assets announced that led by Paradigm, a crypto investment company, it has raised $431 million in funding.

Among the other investors are New York Digital Investment Group, crypto exchange FTX, venture companies Ribbit Capital, Electric Capital, and Kingsway Capital.

The funding is part of Genesis' "aggressive expansion plans." Recently the company raised another $125 million and sign a contract with hardware giant Canaan for 20 000 Bitcoin mining machines.

The recent price movements and high futures liquidations

At the beginning of the week, the equity market struggled largely due to default crisis with the Chinese real estate giant Evergrande. This was echoed in the crypto market as many tokens plummeted by over 10%. Bitcoin dropped to $39,787 and Ethereum, the second-largest currency, drop to $2,676.

Due to price movements over $1 billion in crypto futures got liquidated in single day early last week. 83.53% of liquidated positions were long (where traders are speculating that the price of the asset will rise). For comparison, on the opposite side, only $96.88 million worth of shorts had been liquidated over the same period.

In total its believed that over 205,000 traders lost their positions. The market has since rebounded and Bitcoin is sitting around 44k while Ether is trading above $3100 at the time of writing.

Militsa Dimitrova

Militsa Dimitrova

Crypto Enthusiast

Militsa Dimitrova is a crypto enthusiast with experience in content creation & social media, who produces her own Cryptocurrency Newsletter and Podcast both in English and Bulgarian. She joined FXCM as an Accountant in 2020, after obtaining a Bachelor's degree in Accounting from the University of National and World Economy…

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