The latest moves in crypto markets, in context Was this newsletter forwarded to you? Sign up here. |
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Good morning, and welcome to First Mover. I'm Brad Keoun, here to take you through the latest in crypto markets, news and insights. (Lyllah Ledesma is off this week.) - Price point: Bitcoin steadied just below $30,000, though Solana's SOL and Cardano's ADA were nursing bigger losses.
- Market Moves: Traditional markets are looking weak, and that's not a good sign for cryptocurrencies, given the strengthening correlations between U.S. stocks and bitcoin – effectively the bellwether for digital-asset markets, Shaurya Malwa reports.
- Feature: A crypto wallet linked to the South Korean venture fund Hashed appears to have lost some $3.5 billion in value amid last week's collapse in prices for the Terra blockchain's LUNA tokens, Sam Reynolds reports.
Today's newsletter was produced by Parikshit Mishra. Please let us know what you think by replying to this email. |
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Bitcoin (BTC) was holding steady after a 5.7% drop on Wednesday that took the price back below $30,000 – increasingly a crucial level in the struggle to avoid a deeper sell-off. The largest cryptocurrency was up 1.4% in the past 24 hours to about $29,427 as of press time. Ether (ETH), the second-biggest, lost 3.6% to $1,956. Solana's SOL and Cardano's ADA were nursing bigger losses. But the mood in traditional markets remains grim, with U.S. stock futures trading lower on growing concerns that higher interest rates and fast-rising inflation will seriously dent the economy. The Wall Street Journal Editorial Board warned of a possible looming crisis in emerging markets, as analysts and economists begin to assess the possibility of mounting debt-payment issues in the face of higher borrowing costs. |
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The SEC wants to hear from investors, like you. As part of Grayscale's filing to convert Grayscale Bitcoin Trust (Symbol: GBTC) to an ETF, the SEC provides a 240-day review period for anyone to submit comments for consideration.If you support the conversion, write to the SEC by clicking here. Your submission matters because: We can level the playing field. To date, the SEC has only permitted Bitcoin Futures ETFs, while rejecting "physically-backed" or Spot Bitcoin ETFs. The choice should be yours. If you've been waiting for the familiarity and protections of a Bitcoin ETF, we believe you should not be forced into a Futures-based product simply because it's the only one that exists. You can help take GBTC to the next level, conversion to an ETF. It's already the world's largest Bitcoin fund and regularly reports to the SEC on a voluntary basis as an SEC-reporting company. Learn more here. This information should not be relied upon as investment advice or a recommendation regarding any security. Visit here for important disclosures. |
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The following are the biggest movers in the CoinDesk 20 digital assets over the past 24 hours: |
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Biggest Gainers There are no gainers in CoinDesk 20 today. Biggest Losers |
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Sector classifications are provided via the Digital Asset Classification Standard (DACS), developed by CoinDesk Indices to provide a reliable, comprehensive, and standardized classification system for digital assets. The CoinDesk 20 is a ranking of the largest digital assets by volume on trusted exchanges. |
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- Curve Finance Proposes to End CRV Token Emissions on All UST Pools
On-chain participants are already voting "yes" to end CRV emissions from any liquidity pools involving UST. - Ethereum on Track For Testnet Merge in June
The testnet merge would allow developers to work on any potential risks or bugs ahead of Ethereum's move to a proof of stake network. FTX US Debuts Stock Trading in Push for Bigger Slice of US Retail Pie
Brokerage accounts can be funded with the stablecoin USDC, the exchange said. - BofA Says Crypto Winter, Contagion Risk Concerns Are Overdone
The collapse of the Terra network was due to prioritization of mass adoption over price stability, the bank said. Nomura's Digital Division to Focus on Cryptocurrencies First, DeFi Later
Phase one of Nomura's new digital-assets division will include the top 10 cryptocurrencies, with DeFi and NFTs further down the line. Institutional DeFi Enabler? Data Firm Kaiko Probes DEX Liquidity With New Product
The data feed unpacks what's what in Uniswap, SushiSwap, Curve Finance and Balancer asset pools. - New York Bitcoin Miners Start to Give Up on State Amid Regulatory Uncertainty
The state was once a draw for miners, but environmental concerns are weighing on the bitcoin mining industry. A16z Leads $15M Round for P2E Studio Azra Games
The blockchain gaming company is preparing to launch a fantasy collectibles and mass combat roleplaying game. US Appeals Court Orders SEC to Bring Enforcement Actions to Jury Trials
The 5th Circuit Court of Appeals found that the targets of SEC enforcement actions had their constitutional rights violated by the use of in-house judges. How Do You Tax an NFT?
Plans to share bitcoin data with foreign tax authorities may be hard to adapt to transparent, decentralized blockchains – but once in place, new rules are hard to shift. - News Analysis: Despite Recent Bumps in the Road, Stablecoins Will Stick Around
Why institutional investors will again move past digital assets' volatility and bad headlines.
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Hashed Wallet Takes $3.5B Hit, Delphi Discloses Loss After Terra Collapse |
The collapse of the tokens linked to the Terra ecosystem, stablecoin terraUSD (UST) and Luna (LUNA), has led to some major investors coming clean and detailing their losses. Take Hashed, an early-stage venture fund based in Seoul, South Korea. The company played a part in Terra's 2021 venture round, where it helped raise $25 million according to Crunchbase data. "We were immediately impressed with the sophistication of their mechanical design and execution speed," Hashed wrote about Terra in 2019. "They've done a superb job executing: building product, hiring, facilitating and interacting with the community, and more." Publicly, Hashed has said that they are "financially sound" and Hashed Ventures has not been affected by the crisis. But on-chain data shows that the firm had staked over 27 million in LUNA on the Columbus 3 mainnet, 9.7 million in LUNA for the Columbus 4 mainnet, and 13.2 million in LUNA on the current Columbus 5 mainnet. Hashed didn't respond to a request for comment from CoinDesk by press time. |
Terra's blockexplorer for the Columbus-3 mainnet shows Hashed had significant holdings of Luna (Hubble blockexplorer) |
Delphi Digital, a research firm, and boutique investor, admitted in a blog post that it always had concerns about the structure of UST and LUNA, but believed that the sizeable assets found in the Luna Foundation Guard would prevent the unthinkable from happening. "We always knew something like this was possible, and we tried to stress the risks to a system like this in our research and public commentary, but the fact is we miscalculated the risk of a "death spiral" event coming to fruition. We've taken some heat for this over the last week, and we deserve it. The criticism is fair and we accept it," the firm wrote. Read More: Hashed Wallet Takes $3.5B Hit, Delphi Discloses Loss After Terra Collapse |
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And check out the CoinDesk TV show "First Mover," hosted by Christine Lee, Emily Parker and Lawrence Lewitinn at 9:00 a.m. U.S. Eastern time. Rune Christensen, founder, MakerDAO Dan Gunsberg, co-founder and CEO, Hxro Ophelia Snyder, co-founder, 21Shares
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Consensus 2022, the must-attend crypto and blockchain experience of the year, is heading to Austin, Texas, from June 9-12. This is the only festival showcasing and celebrating all sides of the blockchain and crypto ecosystems and their wide-reaching effect on commerce, culture and communities. Register now for the lowest price. |
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Disclaimer: The information presented in this message is intended as a news item that provides a brief summary of various events and developments that affect, or that might in the future affect, the value of one or more of the cryptocurrencies described above. The information contained in this message, and any information liked through the items contained herein, is not intended to provide sufficient information to form the basis for an investment decision. The information presented herein is accurate only as of its date, and it was not prepared by a research analyst or other investment professional. You should seek additional information regarding the merits and risks of investing in any cryptocurrency before deciding to purchase or sell any such instruments. |
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Hashed Takes $3.5B Hit on LUNA as Bitcoin Trades Under $30K