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 Friday! Here’s what's happening in crypto today: |
- Sam Bankman-Fried seeks to keep control of Robinhood Market shares.
- Digital Currency Group is shuttering its wealth-management business.
- Tron’s TRX token tumbled amid troubles at crypto exchange Huobi.
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Want our 5 p.m. ET market update? |
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CoinDesk Market Index (CMI): 797 −1.0%
Bitcoin (BTC): $16,734 −0.5%
Ether (ETC): $1,243 −0.9%
S&P 500 futures: 3,830.25 +0.0%
FTSE 100: 7,652.80 +0.3%
Treasury Yield 10 Years: 3.72% +0.0
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Former FTX CEO Sam Bankman-Fried is seeking to keep control over $450 million in shares of trading app Robinhood Markets. The 56 million shares, in principle owned by Bankman-Fried and FTX co-founder Gary Wang through a holding company called Emergent Fidelity Technologies, are the subject of a complex legal battle that also includes bankrupt crypto lender BlockFi and the U.S. Department of Justice. In a filing with a U.S. bankruptcy court in Delaware, FTX said the shares were only nominally held by Emergent Fidelity and should be frozen until they can be divided up fairly among FTX creditors. Bankman-Fried opposed that idea in a court filing made Thursday, arguing that he and Wang had legitimately bought the shares using money borrowed from FTX’s trading arm, Alameda Research, and that the loan was documented. |
David Dee Delgado/Getty Images |
Digital Currency Group, the cryptocurrency conglomerate whose Genesis Global Trading division announced more layoffs on Thursday, said it's shutting down its wealth-management division called HQ. "Due the state of the broader economic environment and prolonged crypto winter presenting significant headwinds to the industry, we made the decision to wind down HQ" as of Jan. 31, the company said in a statement. DCG is also the parent company of CoinDesk. The price of tron, the 18th-largest token by market capitalization, tumbled Friday amid tensions stemming from crypto exchange Huobi as the broader crypto market held steady. Justin Sun, who is the founder of Tron, sits on Huobi’s advisory board. The exchange said Friday it will cut its headcount by 20% and also closed internal staff communication channels to quell a rebellion, according to reports on Twitter. TRX fell nearly 8% in the past 24 hours, data shows. Huobi’s native HT exchange tokens have lost as much as 11% in the past 24 hours. Tron’s troubles come amid the crypto winter and ahead of the U.S. jobs report for December, which is due to be released at 8:30 a.m. ET on Friday. |
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Market Insight: December Trading Doldrums
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Derivatives giant Chicago Mercantile Exchange’s (CME) crypto-related trading volumes suffered a steep falloff in the last month of 2022. Total crypto derivatives volume plunged 49.2% to $14.2 billion, according to CryptoCompare, the weakest since October 2020. Bitcoin futures volume was down 48.3% to $13.2 billion, with ether futures volume off 55.3% to $481 million. The slump was in line with spot trading volumes across the industry, according to the report. That amount fell 48.4% to $544 billion, the lowest figure since December 2019. |
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- The chart compares the trading volume in the non-fungible tokens (NFTs) market with the year-over-year rate of change in U.S. personal income.
- Personal income boosted NFT trading volumes between October 2020 and October 2021.
- "NFTs, representing a high-risk sub-sector within a high-risk market, should be susceptible to the rate of change of personal income. Higher inflation and muted real wage growth have been the perfect cocktail for lower disposable income," Lewis Harland, portfolio manager at Decentral Park Capital, said in a 2022 review note.
- "This model implies that a low or negative personal income rate of change may hinder significant NFT adoption. We are unlikely to see new NFT monthly volumes ATHs (all-time highs) in 2023 if a global recession plays out," Harland added.
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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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