Monat: Juni 2022

Crypto hedge fund Three Arrows Capital (3AC) has had its goose finally cooked after failing to repay a $670 million loan owed to crypto brokerage firm Voyager Capital.

But while what looks like a final nail has been hooked in place by Voyager via its notice of default issued on Monday, 3AC was already massively hit by the collapse of the Terra Luna cryptocurrency last month.

Failure to meet a margin call also saw crypto lender BlockFi liquidate the company’s assets – one among multiple such moves across the ecosystem.

3AC and what it means for crypto

CNBC’s Arjun Kharpal said on Tuesday the risk is really in what happens next with those firms that are heavily exposed to 3AC.

According to the analyst, the uncertainty and jitters are already being felt in the market, with pressure on Bitcoin price on Tuesday (BTC/USD is still above $20k at the moment but it’s nearly 3% down in the past 24 hours).

But going forward, Kharpal says the industry could find a solid footing. Among issues to be addressed, however, are structural issues like the outrageous yields firms like Celsius have been offering and which a major factor in the liquidity issues are facing the lender and others.

Acquisitions and consolidations are also another outcome of the crypto winter and the credit conundrum that some projects have found themselves in. Already, several market players, including crypto exchange FTX are eyeing the M&As route as one way of navigating this.

Of course, there’s a lot that could still happen in the market, with the likely contagion linked to 3AC one to watch.

The post What does Three Arrows Capital demise mean for the crypto universe? appeared first on CoinJournal.

Rapper Snoop Dogg, one of the biggest celebrity personalities with a bullish outlook on the crypto and Web3 space, says the current “crypto winter” has been tough on investors as well as projects and companies.

But he believes the tough market conditions will pass and that crypto is here to stay.

The rapper made his comments during an interview with CNBC on Tuesday, where he discussed NFTs and their place in the music industry. Also on the “Crypto World” show was Web3 entrepreneur Cordell Broadus, aka Champ Medici.

Every industry has seen a depression

Asked to comment about his outlook for the crypto sector amid the impact of the bear market, Snoop Dogg said it would “last forever.”

According to him, whatever is setting crypto back today is not exclusive to it as there has been a “downfall” in other sectors too. He believes crypto, which has been rocked by the collapse of some major projects amid contagion, will emerge even better.

He sees the problems facing some companies and the price wipe out as growing pains experienced in almost every other industry.

“I feel like every great industry has a downfall,” he said. “There’s been a depression in every industry you can look at – alcohol, tobacco, clothing, food – every industry you can imagine,” he added.

He also notes that the crypto winter offers the market the break it needs to separate strong projects from poor ones that have “abused” the opportunities they had.

In his view, this weeding out of “all the people who weren’t supposed to be in the space,” can only mean the future will be bright.

“Now it’s going to bring on great business, and moving forward, when the market comes back, there will only be great things to pick and choose from,” he said.

The post Snoop Dogg: ‘crypto will last forever’ appeared first on CoinJournal.