Die Gespräche sind derzeit laut WonderFi noch vorläufiger Natur.
What do layoffs at Crypto.com mean? Crypto winter rages on
Key Takeaways
- Crypto.com is laying off 20% of its workforce, having cut 5% last summer
- Fellow exchanges Coinbase, Kraken, Huobi and Swyftx have all downsized over last month
- Tech sector as a whole is laying off thousands, with Amazon, Salesforce, Meta and Twitter just a few of the big names
- Crypto sector misjudged its vulnerability to price levels in the market
- Volatility of Bitcoin was overlooked as companies expanded aggressively during COVID
Crypto.com has become the latest crypto company to lay employees off, announcing Friday that it is cutting 20% of its workforce. CEO Chris Marszalek cited “market conditions and recent industry events” for the downsizing, in line with what other crypto CEOs have blamed, as the bear market continues to take victims.
As I shared with the team today, while we continue to perform well, market conditions and recent industry events have made this the right decision for the company at this time.
— Kris | Crypto.com (@kris) January 13, 2023
Layoffs flood the industry
Crypto.com is far from the only exchange that has been forced to make workers redundant. Kraken, Swyftx and Huobi have all laid off workers in the last month. Kraken cut 30% of its staff, Australian exchange Swyftx chopped 40% and Huobi chopped 20%. Coinbase also announced earlier this week that it was chopping 20% of its workforce, having already laid off 18% in June.
It is not only crypto companies that have been affected, however. The tech industry at large has wobbled. Amazon, Twitter, Meta and Salesforce are just a few names that have reduced their workforce by thousands.
The tech sector is notoriously volatile and has been hurt by increasing interest rates over the past year. Given so many tech companies fail to turn a profit, valuations are often derived from the discounting of future cash flows back to the present. When interest rates were zero, this led to high valuations across the board.
However, with inflation spiralling, central banks have been forced to raise rates aggressively. This has lowered the value of these discounted cashflows and reduced company valuations.
Contagion in the cryptocurrency industry
But crypto has faced its own battles separate from the macro climate, too. There is no shortage of scandals to point to when Marszalek says “recent industry events”, but the most recent is the staggering collapse of FTX.
The exchange was one of the top three, alongside Coinbase and Binance, and its demise has triggered a fresh wave of contagion across the industry.
While $8 billion is the amount of customer assets that are missing in the FTX scandal, the LUNA crash of May was perhaps even more devastating, as the one-time $60 billion ecosystem collapsed following the death spiral of its not-so-stable stablecoin, UST.
This triggered a series of bankruptcies and collapses across the industry, including crypto lender Celsius and hedge fund Three Arrows Capital.
These scandals have decimated prices. With dropping prices, volumes and interest, alongside the macro headwinds mentioned earlier, crypto companies have been forced to pare back operations in order to survive.
Crypto.com’s expansion was too rapid
In a criticism that is far from limited to Crypto.com, the exchange expanded too rapidly amid the hysteria of the pandemic bull market.
“We grew ambitiously at the start of 2022, building on our incredible momentum and aligning with the trajectory of the broader industry. That trajectory changed rapidly with a confluence of negative economic developments”, said CEO Marszalek.
Crypto.com has seen meteoric growth to 70 million users. But it has had its share of missteps along the way. In February, it received widespread criticism for a rather cringe-worthy Matt Damon Superbowl advert. The commercial cost $10 million, and Crypto.com laid off 5% of its workforce only four months later, in what was the biggest signal of all that it had misjudged the sustainability of the bull run.
“The reductions we made last July positioned us to weather the macro economic downturn” said Marszalek.
However, he added that “it did not account for the recent collapse of FTX, which significantly damaged trust in the industry. It’s for this reason, as we continue to focus on prudent financial management, we made the difficult but necessary decision to make additional reductions in order to position the company for long-term success”.
Crypto companies misjudged correlated nature
While these events were described as “unforeseeable”, some analysts point towards a mismanagement of risk, given how correlated the industry is to the Bitcoin price. Bitcoin has been notoriously volatile historically, with the below chart showing how many pullbacks the industry has suffered.
There was a bullishness during COVID that crypto had finally beaten this tendency for violent bear markets. Ultimately, this was misguided, with much of the expansion predicted on cheap money and a warm printer.
The federal reserve hiking rates pulled liquidity out of the system and risk assets dropped harshly. There are few assets further out on the risk spectrum than crypto, which got crushed.
A glance at the Coinbase share price during 2022 is all that needs to be done in order to see how rapidly things have turned south for crypto exchanges. Since going public in April 2021, Coinbase has shed close to 90% of its value.
A chart which illustrates quite how beholden to the crypto gods these exchanges are is the plotting of Coinbase’s share price against the Bitcoin price.
The correlation is extreme, with a falling Bitcoin price linked with a drop in volume and interest in the industry, and ultimately less revenue for crypto exchanges.
Final thoughts
Of course, this is all well and good in hindsight. Not many predicted a pullback of this magnitude, and as said above, the tech industry outside of crypto is also getting punished.
While Crypto.com have certainly made some errors and misjudged how vulnerable they are to the overall price level and volatility in the crypto market, they are far from the only one.
The macro climate has shifted immeasurably over the last year, with the speed of interest rate hikes catching all corners by surprise. It was never going to be pretty for crypto, even aside from all the scandals that have rocked the space.
The post What do layoffs at Crypto.com mean? Crypto winter rages on appeared first on CoinJournal.
Hodlnaut stares at liquidation after creditors reject restructuring plan
- Investigations show that Hodlnaut lost about $190 million in the Terra LUNA crash.
- The lender had proposed a restructuring plan to allow creditors to have a view of the company’s operations.
- The creditors however want liquidation of the company’s assets.
Troubled Singapore-based crypto lender Hodlnaut seems to be heading for a possible liquidation after its creditors rejected a proposed restructuring plan and instead sought liquidation of the lender’s assets.
Hodlnaut started by downplaying its exposure to the Terra LUNA collapse but after the platform suspended withdrawals citing lack of liquidity and market volatility, investigations were carried out and it immerged that it lost about $190 million in the Terra debacle and the executive later deleted numerous documents related to their investments in order to avoid exposure.
Hodlnaut later sought judicial management to avoid liquidation and it was eventually placed under a creditor protection program with hopes that it would restore its asset-to-debt ratio to 1:1 and allow users to withdraw funds.
The government-aided judicial program seems not to have helped. In November investors lodged complaints resulting in the investigation of the founders for “underplaying their exposure to certain crypto tokens and misrepresentations of facts.”
Hodlnaut restructuring plan
The proposed restructuring plan allowed the current directors to oversee the operations of the lending company during the restructuring process meaning the interim judicial managers were to be sidelined. However, in a hearing on January 12, the application to remove the interim judicial managers was rejected.
The firm’s creditors rejected the restructuring plan rather and asked for liquidation of the platform’s assets. They believe that the restructuring would not help remove the crypto lender from its current woes and that it was in their best interest that the firm wind down and liquidates its assets.
Algorand, for example, which is one of Hodalnut’s creditors, called for immediate liquidation and distribution of the remaining assets among the creditors.
The post Hodlnaut stares at liquidation after creditors reject restructuring plan appeared first on CoinJournal.
Metacade Price Prediction as Investors Fear Binance Exchange Is Next to Collapse
BNB investors fear that Binance exchange may not last through the bear market. However, investors are still optimistic about the long-term future of Web3, and Metacade has been a key project bringing positive sentiment back to the crypto markets.
The MCADE presale attracted seven figures worth of funding and sold out the beta phase in just three weeks. Now, investors have started to look forward once again.
Binance exchange is under fire, and investors are starting to worry
After FTX collapsed in November, Binance exchange conducted a proof-of-reserves audit to show that digital assets fully backed user funds; however, some have highlighted a key inconsistency in the report.
Binance’s BTC liabilities were $245 million bigger than their BTC reserves, meaning an FTX-style bank run could cause major problems. In such an event, Binance may be forced to pause withdrawals and sell other assets, which could have a negative impact on price action for the entire crypto market.
After Changpeng Zhao appeared on CNBC to discuss the financial situation of Binance exchange, it appeared that the CEO of Binance exchange was reluctant to hire a top four auditing firm to reveal liabilities. This hesitancy has invited more fear, uncertainty, and doubt (FUD) during the 2022 crypto bear market.
What is BNB?
Binance (BNB) is a digital asset exchange platform for trading various cryptocurrencies. BNB tokens are the native tokens on Binance exchange and Binance Smart Chain – a Layer 1 blockchain that was forked from Ethereum while being developed by Binance exchange.
BNB is used to facilitate transactions on Binance and pay fees for trading activities such as listing or withdrawal fees. The BNB token also serves as an essential component of the Binance exchange ecosystem, allowing users to receive rewards through a cash-back program and participate in community voting events.
What is Metacade (MCADE)?
Metacade is building the biggest arcade that can be found anywhere on the blockchain.It is the first community-driven project of its kind and aims to become a central hub for Web3 users to play, earn, socialize, and learn about all things GameFi.
The Metacade will offer various arcade games and merge its classic titles with play-to-earn mechanics. In addition, gamers can participate in tournaments and access several different methods of earning a crypto income through Metacade.
After announcing the launch of the MCADE token presale, Metacade attracted a significant level of investment in a short space of time. The beta phase of the presale sold out in just three weeks, as Metacade rapidly sold 140,000,000 MCADE tokens at the price of $0.008.
How does Metacade work?
Built on the Ethereum blockchain, Metacade is a comprehensive gaming platform that offers crypto rewards to gamers in various major arcade games. As well as this, users can discover the latest GameFi trends, share game reviews, and earn MCADE tokens for contributing helpful information to the community.
Through Metacade, users can also kickstart a career in Web3. The platform will connect gamers to paid job opportunities and offer beta testing roles to its community, allowing gamers to earn crypto while playing brand-new blockchain-based games.
Metacade can drive growth in the GameFi sector through the Metagrants program. This scheme will allow users to vote for the best up-and-coming blockchain games and provide early-stage funding to support game development. Metacade is an all-in-one GameFi project that offers significant value to the crypto gaming community.
Metacade is, without a doubt, the best investment opportunity
BNB investors are worried about Changpeng Zhao’s recent comments and what they might mean for the future of Binance exchange. In contrast, early adopters of MCADE have been getting increasingly excited about the future.
MCADE is a brand-new token that has huge long-term potential. Early participants in the presale have a rare opportunity to make gains above 10x over the next few years, as the current price of $0.01 looks undervalued.
As Metacade completes its presale and launches its all-in-one gaming platform, it could become one of the biggest gaming platforms in Web3. Over time, the MCADE token could be worth over $1 – a major 50x price rise from the end of the presale.
Is MCADE worth buying?
While BNB investors are fearful, the future certainly looks bright for Metacade. Metacade could be the best investment opportunity during the bear market, forecasted to become one of the biggest gaming platforms available.
The MCADE token is currently just $0.01, and the price will rise to $0.02 by the end of the presale. Investors have a limited time only to access MCADE at this price level before Metacade sells out. As you can see, Metacade certainly looks like a strong investment, as early investors could enjoy gains up to 50x during 2023.
You can buy Binance tokens at eToro here.
You can participate in the MCADE presale here.
The post Metacade Price Prediction as Investors Fear Binance Exchange Is Next to Collapse appeared first on CoinJournal.
Cryptocurrency price prediction: AGIX, MULTI, Aptos
Cryptocurrencies had a strong week as investors reacted to the FTX bankruptcy proceedings and the latest American inflation data. In the biggest crypto news of the week, FTX said that it had found more than $5 billion in liquid assets that it could sell. Another key news was data that showed that America’s inflation was cooling. This crypto price prediction will look at what to expect with AGIX, Aptos, and MULTI.
AGIX price prediction
AGIX is the native token for SingularityNet, a relatively small but fast-growing AI platform built on Cardano. The AGIX crypto price surged to a high of $0.130 this week, the highest point since October 14. It has jumped by more than 253% from the lowest point in 2022. It is unclear why the token rose but a likely reason is that it was in sync with other AI-focused coins.
Turning to the daily chart, we see that the token went parabolic this week. As it rose, it moved above the important resistance point at $0.072, the highest point on December 13. The coin managed to move above all moving averages and is now approaching the important resistance point at $0.136 In the same period, oscillators like the Relative Strength Index (RSI) and the MACD have all surged.
Therefore, I suspect that SingularityNet’s token is about to have a major pullback. If this happens, the next key support level to watch will be at $0.10, which is about 25% below the current level.
How to buy SingularityNET token
Aptos price prediction
Aptos price also surged this week as several apps in its ecosystem saw significant outflows. APT surged to a high of $7, which was the highest point since November. Precisely, Aptos soared by more than 120% from the lowest point this year. It also moved above the important resistance point at $5.42. The token surged above the 25-day and 50-day moving averages.
Like AGIX, I feel that Aptos price has now gotten so overbought, meaning that it will likely retreat. If this happens, the next key level to watch will be at $5.42, which is about 20% below the current level.
How to buy Aptos
Binance.US
Binance.US provides secure and reliable access to the world’s most popular cryptocurrencies, with some of the lowest fees in the industry.
MULTI price prediction
MULTI is the native token for Multichain, which was previously known as AnySwap. It is a leading platform in the Arbitrum ecosystem. Like Aptos and AGIX, the token surged to a high of $6.50 this week. It was up by more than 110% from the lowest level this year. It has also moved above all moving averages while oscillators are highly overbought. Therefore, I also suspect that the token will pullback in the coming days on profit taking.
How to buy MULTI
As MULTI is such a new asset, it’s yet to be listed on major exchanges. You can still purchase MULTI using a DEX (decentralised exchange) though, which just means there are a few extra steps. To buy MULTI right now, follow these steps:
1. Buy ETH on a regulated exchange or broker, like eToro ›
We suggest eToro because it’s one of the world’s leading multi-asset trading platforms, an exchange and wallet all-in-one with some of the lowest fees in the industry. It’s also beginner-friendly, and has more payment methods available to users than any other available service.
2. Send your ETH to a compatible wallet like Trust Wallet or MetaMask
You’ll need to create your wallet, grab your address, and send your coins there.
3. Connect your wallet to the 1Inch DEX
Head to 1Inch, and ‚connect‘ your wallet to it.
4. You can now swap your ETH for MULTI
Now that you’re connected, you’ll be able to swap for 100s of coins including MULTI.
The post Cryptocurrency price prediction: AGIX, MULTI, Aptos appeared first on CoinJournal.