Cryptocurrency companies continue to struggle in 2023’s first week, with businesses announcing notable layoffs and bankruptcy. So let us check what the year has had for the crypto space within the past seven days.
Bitcoin (BTC)
The distressing Texas winter storm in December last year forced BTC miners to return nearly 1.5K megawatts of power to the energy grip, enough to run more than 1.5M small homes. Mt Gox’s announcement indicated that intermediate and base payments would shift to September from July 2023.
Meanwhile, investor Michael Burry stated that the United States would witness more inflation and a recession this year. He believes that inflation hovers at higher levels, but changes will occur. Finally, Shapeshifter crypto exchange’s CEO and founder Eric Voorhees said the coming bull market might emerge in the next six to three years.
Decentralized Finance (DeFi)
The decentralized finance (DeFi) protocol Balancer cautioned LPs to withdraw liquidity immediately because of an ongoing problem. Meanwhile, Uniswap’s lately integrated bug bounty program has uncovered and substantially resolved existing weaknesses within its Universal Router. Further, DeFi platform SushiSwap revealed that it would shut down Kashi, its lending protocols, and Miso, its coin Launchpad.
Technology
LG Electronics, a leading South Korean tech company, revealed plans for collaborating with Oorbit, a cloud-based tech platform, to ensure TV viewers enjoy the metaverse experience. An attack that drained and exploited GMX coins from a large wallet allowed the hacker to exchange the tokens for 2,627 $ETH.
The cryptocurrency market endured most hacks last year, with many impacting DeFi protocols, which recorded a 3rd of such events in 2022.
Business
Crypto exchange Huobi revealed plans to reduce employees by 20%, citing the cryptocurrency market fall and FTX’s fallout. Meanwhile, Justin Sun of Tron hit the headlines after his wallet transferred stablecoins worth around $100M to Huobi. That ensured confidence in market participants.
Genesis, a cryptocurrency lending network, is considering bankruptcy filing after laying off about 30% of its workforce. Meanwhile, clients of crypto-centric U.S bank Silvergate withdrew more than $8B of their cryptocurrency-connected deposits, slinking its stock value.
The recent court decision rewarded Celsius Network the powers to interest-bearing accounts. That pushes actual account owners to the repayment queue end. Moreover, the United States authorities have seized shares worth millions in Robinhood Markets as part of the scam lawsuit against SBF.
Meanwhile, crypto payment firms EmpireDAO and Wyre have been the recent causalities of the escalating cryptocurrency winter. Also, Core Scientific has agreed with Celsius to shut 37K mining risks that we hosted for the latter.
Indonesia’s financial reform program includes a crypto exchange launch in 2023. Former Bithumb exchange chairman Lee Jung-Hoon was found not guilty over the exchange’s failed acquisition. Moreover, Gemini Trust co-founder Cameron Winkelvoss accused DCG’s CEO Barry Silbert of bad faith negotiations.
Regulation
The Thai SEC launched a crypto academy dedicated to educating individuals that want to invest in cryptocurrency free of charge. Meantime, the Bank of France governor calls for more inclusive and stricter crypto licensing requirements in France, citing the latest market turmoil.
Letitia James, NY Attorney General, has sued the former CEO and founder of collapsed cryptocurrency bank Celsius (Alex Mashinsk) for misinterpreting Celsius’ financial condition. Moreover, ECB’s Fabio Panetta wrote that trading crypto is like gambling, and regulators should use that approach.
Please add anything that we might have missed in the section below.
