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: |
- Wintermute's CEO blasts Three Arrows Capital's exchange project.
- Investors purchase securities with China's digital yuan.
- BNB Chain burns over $500 million worth of its tokens.
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Want our 5 p.m. ET market update? |
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CoinDesk Market Index (CMI): 1,019 +1.8%
Bitcoin (BTC): $21,286 +2.3%
Ether (ETC): $1,572 +2.0%
S&P 500 futures: 4,012.50 +0.1%
FTSE 100: 7,833.27 −0.3%
Treasury Yield 10 Years: 3.51% +0.1 |
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Crypto market maker Wintermute was quick to distance itself from a new round of funding by the co-founders of bankrupt hedge fund Three Arrows Capital, echoing similar sentiments from the crypto community. The co-founders of Three Arrows Capital, known as 3AC, Su Zhu and Kyle Davies. partnered with Mark Lamb and Sudhu Arumugam, co-founders of crypto exchange CoinFlex, to raise $25 million for a new exchange called GTX. GTX said it plans to create an exchange where users can trade crypto, stocks and debt claims on bankrupt companies like FTX. The crypto community was quick to convey its skepticism. Wintermute CEO Evgeny Gaevoy was one of the prominent critics. "If you are investing into coinflex/3ac 'exchange' you might find it a bit more difficult to work with Wintermute in future (on the relationship building side)," he said in a tweet on Monday. |
Su Zhu of Three Arrows Capital (CoinDesk) |
The digital yuan (e-CNY), a digital token issued by the Bank of China, has been used to buy securities for the first time, according to a local media outlet on Monday. Now investors can use the e-CNY to buy securities using the Soochow Securities mobile application. China's development of its central bank digital currency has been further along than most other countries. Last week, the country included the e-CNY in cash circulation for the first time. Around the same time, it also added a function to its e-CNY payment app that allowed users to make payments offline, according to media outlet Yicai Global. BNB Chain, launched by crypto exchange Binance, has completed the burn of over $500 million worth of its native BNB tokens as part of a broader program, it said Tuesday. Token burn refers to the process of permanent deletion of coins from their circulating supply. More than 100 million BNB, or half of its total supply, is intended to be removed from circulation through a burning process. Eventually, only 100 million BNB will be in circulation. BNB was up nominally in the past 24 hours, trading at $300 on Tuesday morning. |
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Market Insight: Silvergate Posts Loss |
Crypto bank Silvergate Capital reported a net loss of $1 billion for the fourth quarter, compared with a net income of $18 million a year earlier. Silvergate's results for the quarter were foreshadowed at the start of January when the firm said that it saw an outflow of $8.1 billion during the period and that it had slashed 40% of its staff. The bank expects to incur restructuring charges of $8.1 million for the layoffs, the majority of which it will recognize in the current quarter. Its shares were down 4% to $13.20 in premarket trading. The stock has lost 87% over the past year. |
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- The chart shows the number of bitcoin held in addresses owned by over-the-counter (OTC) desks.
- The tally has increased by 70% to 5,293 BTC since Jan. 11.
- "Higher OTC Desk holdings imply that institutional investors' demand for bitcoin has increased as these OTC trading desks are usually used by investors who perform large-scale transactions that need high liquidity on a bilateral basis," André Dragosch, head of Deutsche Digital Assets, said.
- Private wealth managers, high-net-worth individuals, or hedge funds wishing to convert large amounts of cash into crypto assets seamlessly typically use OTC desks
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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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