Exodus Newsdrop - June 24th 2022

Exodus Newsdrop - June 24th 2022

Exodus Newsdrop - June 24th 2022

A roundup of the week's crypto news, as liquidation worries spread across chains, Uniswap enters the NFT market, and NFT.NYC returns to provide us with some eyeball-melting cringe.

    Crypto liquidity crisis continues

    Crypto’s liquidity crisis continues into another week, as a leaked document showed that BlockFi made huge losses during in the last bull market. The figures, which show losses totaling $285 million in 2020 and 2021, raise the worrying question of how much the lending app has lost in the 2022 bear market. Unfortunately, CeFi is still largely opaque, so we may not know until it’s too late.

    FTX will reportedly bail out BlockFi with a $250 million revolving credit facility. The exchange also extended credit to Voyager Capital, another CeFi app that has been affected by cross-market liquidations and by the 3AC default in particular. Voyager didn’t go Full Metal Celsius by blocking customers’ access to their own funds, but the New-Jersey-based company has lowered their daily withdrawal limit from 25k to 10k.

    The SEC’s pro-crypto commissioner Hester Pierce has argued against bailouts for crypto companies, instead telling Forbes that the recent crash is neccessary in order to “seperate the strong companies from the weak”. If only banks had been given the same treatment in 2009…

    Solana accused of being centralized

    Solend, a Solana based DeFi application, caused controversy when a tiny minority of token holders voted to stage a forced takeover of a whale account that risked a huge SOL liquidation event. Another vote was held after cries of “centralization” from across the space, and this time the Solend community voted against intervention.

    Both votes were passed with just over 1% of token-holder participation, raising the issue of how democratic DeFi governance actually is when rewards are down and participation is low, and how effective Proof-of-Stake is as a consensus mechanism.

    The Solana whale has since paid off some of the debt, and fellow Solana DeFi protocol Mango Markets has agreed to take on some of the liquidation risk, worrying some holders of the platform’s native MNGO token.

    Crypto BUIDLing for another day in the sun

    In developer news, Uniswap has entered the NFT market via an acquisition of Genie, an NFT aggregation platform.

    Circle Labs, the developers of the USDC stablecoin, have announced a fully-backed Euro stablecoin for use in the U.S (in case you’re feeling a bit continental) and Tether are launching a stablecoin pegged to the British pound, which suggests that the company is putting credence in the UK government’s plan to become a global crypto hub.

    Derivatives exchange dYdX turned heads when they announced a move from Ethereum to Cosmos, citing a need for “full decentralization”. Will other applications follow the lead of dYdX, or are they waiting to see how life will be under Ethereum PoS?

    And the famous “stock-to-flow” price prediction metric has come in for some mockery for its portrayal of a booming crypto market that exists somewhere over the rainbow.

    And finally… NFT.NYC cringe

    The 4th annual NFT.NYC event ploughed ahead despite bearish market action and disappointing crowds.

    Some eye-watering moments of cringe included a photo of the BAYC “VIP section”, and thespians-for-hire being forced to act like Goblins.

    To top it all off, a group of concerned citizens seemingly made the effort to assemble and protest about how “NFTs are not for me”. The protest appears to have been a cheeky publicity stunt, considering that photos of the placards have now been made into NFTs and are available for sale on OpenSea.

    The crypto space may be many things, but it is never boring. Click here for our top 7 most NFT cringe moments ever.

    This content is for informational purposes only and is not investment advice. You should consult a qualified licensed advisor before engaging in any transaction.

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