The latest moves in crypto markets, in context By Lyllah Ledesma, CoinDesk reporter Was this newsletter forwarded to you? Sign up here. |
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Welcome to Tuesday! Here’s what's happening in crypto today: |
- Bankrupt crypto lender Celsius Network is accused of running a Ponzi scheme.
- Alameda Research, another bankrupt firm, seeks to recover $446 million.
- Sandbox’s SAND token rallies despite the looming release of more supply.
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CoinDesk Market Index (CMI): 1,073 −1.0%
Bitcoin (BTC): $22,885 −1.1%
Ether (ETC): $1,574 −0.6%
S&P 500 futures: 4,018.50 −0.3%
FTSE 100: 7,720.12 −0.8%
Treasury Yield 10 Years: 3.55% +0.0 |
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Bankrupt crypto lender Celsius Network used new customer funds to pay for other customers’ withdrawals, the definition of a Ponzi scheme, an independent examiner for the U.S. Bankruptcy Court in New York said in a Tuesday filing. “In every key respect – from how Celsius described its contract with its customers to the risks it took with their crypto assets –how Celsius ran its business differed significantly from what Celsius told its customers,” the independent examiner wrote. |
Erik Von Weber/Getty Images |
Alameda Research, a trading firm affiliated with FTX, the bankrupt crypto exchange founded by Sam Bankman-Fried, wants to regain $446 million it transferred to bankrupt lender Voyager Digital prior to Alameda's own bankruptcy filing, a new lawsuit says. According to a complaint filed Monday, Alameda repaid all of its outstanding loans to Voyager after Voyager filed for bankruptcy last July. Some of those loans had yet to mature at the time Voyager requested their repayment. The price of virtual world The Sandbox’s SAND token is surging ahead of its token unlock scheduled for Feb. 14. Token unlocks are usually bearish because they increase supply. The Sandbox will be releasing 12% of the token’s supply, equivalent to around $273 million worth of SAND. The utility token’s price has increased 90% since the start of the year to 74 cents. Notably, however, the token is down 90% from its all-time high of $8 reached in November 2021. |
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Market Insight: 'Whales' Take BTC Profits |
"Whale," or large investors, have been depositing bitcoin to exchanges faster than they have been withdrawing it, a possible sign of profit-taking that could send the price lower. But the possible decline is unlikely to upset markets significantly. Whales are investors holding at least 1,000 bitcoins. Because whales control large amounts of BTC, their purchases and sales can have an outsized impact on markets. Tracking their activity can offer insights into potential price direction. |
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- The two charts show South Korea-based crypto exchange Upbit flipped Binance, the world's largest crypto exchange by trading volume, last week in terms of trading volume for metaverse tokens.
- "Typically, Binance dominates trading activity across all sectors, thus the trend suggests that the Korean region has a particular affinity for the metaverse," Paris-based Kaiko Research said.
- Metaverse tokens like AXS, MANA and ENJ have rallied sharply this month.
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Explore the policy fallout from the 2022 market crash, CBDCs, stablecoin regulation, the challenges in applying 20th century securities laws to 21st century decentralized protocols and more at the Consensus 2023 Crypto Policy Forum. Use code FM15 for 15% off your pass. Learn more and register. |
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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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