Crypto was a ‘one-generation bubble’ and ‘doomed to burst’, says ECB official
Hi there! This is Mark DeCambre, MarketWatch Editor, replacing our crypto reporter, Frances Yue, who will be on vacation for the next few weeks.
The failure of crypto exchange FTX remains a focal point of conversation and its founder Sam Bankman-Fried is increasingly expected to appear for a hearing on Capitol Hill next week.
The Senate Banking Committee on Wednesday ordered Bankman-Fried to testify on Dec. 14 and said the committee was prepared to issue subpoenas to compel him to do so.
House Financial Services Committee Chair Maxine Waters said the issuance of a subpoena to testify Bankman-Fried “is definitely on the table” at a separate hearing Dec. 13.
We’ll be sorting through as much as we can this week and giving you some insight into the state of the crypto market.
find me on @mdecambre and as always, find Frances at @FrancesYue_.
Take out to dry
Nick Vale, co-founder of reNFT Labs and Rumble League Studio, said the FTX implosion has left many blockchain developers out in the cold with dramatically reduced funding and project schedules in the wake of the demise. from one of the largest platforms in the industry.
FTX’s bankruptcy “left many capable founders dry,” Vale told MarketWatch. He said developers and founders who can tout transparency and legitimate businesses should always succeed, but notes that this is currently a challenge.
He said there was still some fear of more shoes falling in the industry as the crypto struggles with the FTX fallout.
“People underestimate that our industry, compared to most, is very, very small,” Vale said.
Ripple propagation
The United States Securities and Exchange Commission has urged companies to provide investors with more and clearer information about their health and their connection, if any, with crypto.
In a statement released Thursday, the SEC wrote:
The Corporate Finance Division believes that companies should assess their information with a view to providing investors with specific and tailored information about market events and conditions, the company’s position in relation to those events and conditions and the potential impact on investors. Companies with ongoing reporting obligations should consider whether their existing information needs to be updated.
The SEC says companies should disclose any material market developments in crypto assets, including buybacks or withdrawals, that are material to understanding or evaluating their business, financial conditions and operating results, or the price of the market. action since the last reporting period, “including any significant impact from crypto asset price volatility.
The comments come as industry players monitor developments with crypto financial services company Genesiswhich some fear will result in more pain for the industry and further damage the already battered crypto market, after Genesis loan arm suspended withdrawals.
Spokespersons linked to Genesis and DCG, its parent, declined to comment.
The taxman of 2.5 billion dollars comes
The European Commission plans to create crypto entities report user assets to tax authorities. It is unclear how these rules would be applied, including for those domiciled outside the European Union mandate.
“Anonymity means that many crypto-asset users making large profits slip under the radar of national tax authorities. This is not acceptable,” Paolo Gentiloni, European Commissioner for Taxation, wrote in a statement.
The Commission estimates that crypto taxes could generate 2.4 billion euros ($2.5 billion) in tax revenue by making tax avoidance more difficult.
Bitcoin $17,000?
BitcoinBTC USD,
Thursday was trading up 2% in the past 24 hours, but down slightly (0.2%) on the week, at around $17,000, at last check. The #1 crypto has lost 8% in the past month. Holding up relatively well, despite collapsing in November’s FTX shock.
“With risk appetite not improving, Bitcoin continues to trade below $17,000 and awaits data to come,” said Craig Erlam, analyst at broker Oanda. “Headlines haven’t been favorable recently, although fallout from FTX has cooled somewhat. Unfortunately for Bitcoin, the timing means it never participated in the latest risk rally and there is no not much appetite to make up for lost time.
ETHUSD ether price,
rose more than 3% to $1,268 but were down 1.2% on the week, according to FactSet data.
Africa without grid
According to reports, Jack Dorsey’s Block SQ payment platform,
and venture capital firm Stillmark, led a $2 million investment in Gridless, a digital asset company that designs, builds and operates bitcoin mining in Africa, using renewable sources, such as hydroelectricity.
CoinDesk reported Gridless has launched a handful of projects in parts of Kenya and adds that it will target East African regions in the near future.
To the Moon
MarketWatch’s Mike Murphy reported that Manhattan-based federal prosecutors are investigating whether Bankman-Fried directed the prices of TerraUSD and Luna to benefit FTX and its hedge fund Alameda Research, according to the New York Times. Terra and Luna saw over $50 billion in market value wiped out when they collapsed in may.
quote of the week
““Born in the depths of the global financial crisis, crypto-assets have been described as a generational phenomenon, promising to bring about a sea change in the way we pay, save and invest. Instead, they have become the It’s now obvious to everyone that the promise of easy cryptocurrency and high returns was a bubble doomed to burst. money. Many are just a new way to play.”
Cryptographic metrics
|
The biggest winners |
Price |
% return over 7 days |
|
Base |
$0.04863639 |
48.4 |
|
Trust Wallet |
$2.62 |
23.4 |
|
Frax Sharing |
$5.94 |
20.5 |
|
Axie Infinity |
$8.13 |
14 |
|
Synthetix Network |
$1.93 |
10.5 |
|
Source: CoinGecko at December 8 |
|
The biggest losers |
Price |
% return over 7 days |
|
1 inch |
$0.436325 |
-17.7% |
|
BTSE token |
$2.51 |
-16.4 |
|
Chain |
$0.03742284 |
-13.6 |
|
Theta network |
$0.855321 |
-11.3 |
|
Algorand |
$0.221953 |
-11.1 |
Crypto companies, funds
Coinbase Global Inc. COIN Shares,
were trading down 7.5% to $42.15 for the week. MicroStrategy Inc. MSTR,
fell 1.9% to $194.68, so far on the week, as of midday Thursday.
Crypto mining company Riot Blockchain Inc. RIOT,
fell 7.6% to $4.26 for the week. Shares of rival Marathon Digital Holdings Inc. MARA,
fell 15.6% over the past week. Another miner, Ebang International Holdings Inc. EBON,
rose 1.6% over the past week and was trading at $5.07.
Overstock.com Inc. shares OSTK,
fell 8.7% to $24.30 during the week.
Shares of Block Inc. SQ,
formerly known as Square, fell 7.5% to $62.76 for the week so far. Tesla Inc. shares TSLA,
fell 14% to around $170.
PayPal Holdings Inc. PYPL,
fell 5.4% to trade at around $75.03 on the week so far. Nvidia Corp. NVDA,
last week fell about 1% to $167.28.
Advanced Micro Devices Inc. shares AMD,
for the week is down more than 9% at $70.58 Thursday around noon.
Among crypto funds, ProShares Bitcoin Strategy BITO,
Thursday fell 0.5% on the week, while its ETF Short Bitcoin Strategy BITI,
was up 0.3%. Valkyrie Bitcoin BTF ETF Strategy,
slid 0.3%, while VanEck Bitcoin Strategy ETF XBTF,
fell 0.2% through Thursday noon.
Grayscale Bitcoin Trust GBTC,
lost 9% for the week.
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