Kategorie: Crypto Business

Popular cryptocurrency exchange KuCoin CEO Johnny Lyu took to Twitter to slam rumours stating an incoming ban on withdrawal due to the company’s insolvency difficulties. The executive reassured users that KuCoin is not experiencing a “coin crash” and has no exposure to recently fallen tokens.

The rumour started as a warning by a subcommunity in crypto twitter that told investors to remove all funds from the exchange before it imposes a ban on withdrawal due to it facing liquidity issues amid the suffering caused by high exposure to tokens like LUNA. This was promoted by prominent crypto twitter figures including @KongBTC and blockchain investigator @otteroooo. 

Calling these rumours unvetted an attempt to instigate fear, uncertainty, and doubt, Lyu explained that KuCoin has no stakes in LUNA, 3AC, Babel or any other recently collapsed token: 

“No ‘immense suffer’ from any ‘coin collapse’, no plan to halt withdrawal, everything on KuCoin is operating well”

Threatening the rumour mongers with legal action, the CEO pointed out that KuCoin completed a $150M fundraising round in May 2022 where its valuation was placed at $10B. Its strong position can also be understood by its increase in activity in the bear market and the launch of new features, he said.

Lyu further established KuCoin’s well-being by drawing attention to the fact that it is one of the few crypto companies to continue hiring for multiple positions despite the recent hiring freeze in major exchanges like Coinbase. He called upon investors to rely on their own judgement and trust the company’s commitment to transparency amid such FUD.

The CEO also confirmed that KuCoin will soon be sharing the company’s 2022 H1 review report with detailed information about its operations, shutting down any doubts about its insolvency.

The rumours about KuCoin come amid talk of coordinated attacks by hedge funds looking to short Tether in order to cause further panic after the LUNA collapse.  

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A court in the British Virgin Islands has directed that the embattled crypto hedge fund Three Arrows Capital (3AC) to be liquidated. The liquidation order comes a few days after Voyager Digital issued a notice of default to the hedge fund firm.

The Singaporean crypto hedge fund has been going through a hard time in the past few weeks following the crisis gripping the cryptocurrency sector.  Its woes started with the fall of Terra LUNA, which seemingly started a ripple effect that is still being felt throughout the crypto space.

According to reports, several partners including Teneo in the British Virgin Islands are lining up to handle the insolvency of the crypto hedge fund which has been in operation for the last 10 years since its launch in 2012 by Su Zhu and Kyle Davies.

What does 3AC liquidation mean to the crypto market?

Crypto insiders opine that the liquidation will have a significant impact on the cryptocurrency sector which is already undergoing difficulties due to plummeting market prices which has also caused the market to become extremely volatile.

Although it is still unclear what the immediate financial implications will be, 3AC’s demise is likely to rise more questions about the future of digital assets. And the 3AC creditors will certainly be the first to feel the pinch.

It would be noted that the default notice issued to the 2AC by Voyager Digital was in relation to a loan worth hundreds of millions of dollars.

In an interview with the Wall Street Journal earlier this month, the Three Arrows Capital co-founder Kyle Davies said:

“We are committed to working things out and finding an equitable solution for all our constituents”.

Davies had also said that the hedge fund was looking at alternative ways of rescuing the firm including the sale of assets or being rescued by another firm.

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FTX CEO Sam Bankman-Fried (SBF) refuted rumors that the crypto exchange was planning to acquire the trading platform, Robinhood. This is after Bloomberg News reported yesterday that FTX was in talks to buy Robinhood.

However, the FTX CEO today issued an emailed statement saying:

“We are excited about Robinhood’s business prospects and potential ways we could partner with them, and I have always been impressed by the business that Vlad and his team have built. That being said there are no active M&A conversations with Robinhood.”

It is possible that the rumors suggesting that discussions were underway on how FTX would buy the brokerage app were based on an earlier comment by Fried that Robinhood was “an attractive investment.” 

Robinhood dual-class shareholder structure

Since Robinhood has a dual-class shareholder structure that gives its founders more power, it will be difficult for FTX to make a buy-out without the approval of the founders.

Robinhood CEO, Vlad Tenev and CCO Baiju Bhatt own about 8% of the trading platform and have 64% voting power of the company.

According to a filing with the US Securities and Exchange Commission (SEC) last month, Sam Bankman-Fried has purchased a 7.6% stake in Robinhood and regards Robinhood as an “attractive investment.” 

However, Fried said that he has no intentions to influence or change Robinhood.

Robinhood revenue growth

Even though Robinhood offers limited assets on its trading platform, its revenue growth has been greatly influenced by the incomes from the crypto-related trading platform. 

After joining the industry four years ago, Robinhood is currently trying to expand its crypto offering, where it launched a wallet functionality on its platform this year.

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Voyager Digital issued a default notice to Three Arrows Capital (3AC), a crypto hedge, fund today.

This is after 3AC failed to meet the deadline that Voyager had announced last week for their loan repayment. 3AC currently owes Voyager 15,250 BTC worth around $325 million and $350 million in Circle’s USDC stablecoin.

In last week’s announcement, Voyager disclosed that the crypto hedge fund, 3AC, owes them over $650 million, and up to now they have not repaid any digital assets to them.

Voyager Digital recovery plan

Today’s announcement confirmed that Voyager Digital is planning to recover its digital assets from 3AC and according to the latest reports, the platform is in consultations with the company advisors to assess legal remedies.

Meanwhile, rumors continued to spread that 3AC faced liquidation after the crypto market started to trade sideways with the largest crypto, Bitcoin, dropping below $2000. Bitcoin bloodbath placed many hedge funds and crypto lenders platforms in a compromising situation with the likes of Babel and Celsius suspending their redemptions and withdrawals as a result of liquidity pressure.

After Zhu Su, 3AC co-founder tweeted on June 15 that the company was working with appropriate parties on finding the solutions, he has not spoken a word over the ongoing issue since then.

We are in the process of communicating with relevant parties and fully committed to working this out

— Zhu Su 🔺 (@zhusu) June 15, 2022

Voyager Digital withdrawals remain active

Currently, Voyage Digital withdrawals are still active due to the 15,000 BTC and $200 million cash revolving credit line from Sam Bankman-Fried’s Alameda Research, so far, the platform has used about $75 million on the loan.

They said:

‘’We are working diligently and expeditiously to strengthen our balance sheet and pursuing options so we can continue to meet customer liquidity demands.’’

According to the updates, Voyager will continue to access the credit line.

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Mogul Productions, the decentralized platform that seeks to promote NFTs and DeFi in the movies and entertainment sector, is going big on the move with a new partnership. 

As announced on Friday, the firm has signed a major partnership with Trace Network Labs to help bring the movie experience to the metaverse.

Growth in the NFTs and Metaverse sector

Blockchain technology has completely changed the landscape when it comes to digital avatars, whose growth trajectory, to state the least, has been on an upward trajectory since the 70s.

Today, digital avatars and the non-fungible token (NFT) and metaverse space are shaping interactions virtually across every aspect of life.

According to an industry expert’s observation highlighted by CoinJournal, “The metaverse will bring true value for digital assets, mainly in the form of NFTs. It will give people the ability to recreate themselves in any shape or form they would like and to reinvent their identity altogether. It will bring to life digital pets of all kinds.”

Mogul Productions and Trace Network want to drive the next level of growth in this sector through their partnership. Essentially, Mogul wants to bring the movie experience and movies to the metaverse.

Use NFTs to experience the Metaverse

Some of the most popular NFT collections in the world today have seen millions of dollars in sale volumes, with the creators of blockbusters such as the Bored Ape Yacht Club, CryptoPunks, and Azuki helping unlock a whole range of success stories.

Alongside this, there has been the steady drive towards the reality of the Metaverse, a virtual world where real-life humans can interact and do pretty much everything else via avatars. 

While tech giants such as Meta Platforms, Apple Inc and Google are all working on delivering the metaverse, the entertainment space is already seeing events in the virtual world. 

Mogul wants to use its partnership with Trace to help drive this to the next level, with NFTs at the heart of it. Notably, the platform wants to allow individuals to mint their own avatarsand use them in the metaverse to experience events such as film premieres.

The collaboration will also see Mogul’s Cinematic Metaverse expand to provide users with new features such as branded wearables and other Mogul products.

With these, users can unlock several exciting experiences, including access to exclusive “Behind The Scenes” events – all in the metaverse.

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