Elon Musk Denies Advising People to Invest in Crypto
The business magnate and CEO of Tesla – Elon Musk – said he has never urged individuals to distribute their wealth into cryptocurrencies. He reminded he has personally invested in bitcoin, however, this represents a small percentage of his total capital.
The world’s richest man – Elon Musk – has displayed his thoughts on the cryptocurrency industry numerous times, and it is safe to say that often his comments have affected the market. For example, last year, the entrepreneur vowed to put “a literal Dogecoin” on “the literal moon,” which pumped the memecoin’s price by 35% minutes later.On another occasion, he mentioned “Baby Doge” in one of his tweets. Shortly after, the USD valuation of Baby Doge Coin skyrocketed by nearly 90%.
Solend invalidates Solana whale wallet takeover plan with second governance vote
Solana-based decentralized finance (DeFi) lending protocol Solend has created another governance vote to invalidate the recently-approved proposal that gives Solend Labs "emergency powers" to access a whale's wallet to avoid liquidation.
According to Solend, if Solana (SOL) drops in price and the whale gets liquidated, the lending platform may “end up with bad debt” and strain the Solana network. The proposal was approved, triggering criticism from members of the community. As the community condemned the move, calling it the opposite of what DeFi should be and outright illegal, the Solend team initiated a second governance proposal vote to invalidate the previously-approved proposal. The proposal ended with 1,480,264 votes in favor of disregarding the SLND1 proposal.
Crypto Liquidations Hit Almost $300M As Carnage Continues
The carnage in the crypto market has continued today, leading to nearly $300 million in liquidations in the futures sector. Against this margin, the holder can choose to opt for “leverage,” which is a loan often many times the initial position.
The advantage of leverage is that if the price of the crypto (which the contract is for) moves in the direction the investor bet on, then the profits are multitudes more than just the initial position’s gain alone. However, the converse also holds true, if the price happens to move in the opposite direction, then losses are also magnified by the same amount as the leverage. When a specific part of the initial margin is eaten up by these losses, the exchange forcefully closes the position.
Don’t Expect A Bitcoin Recovery Anytime Soon, Galaxy Digital CEO
Billionaire Mike Novogratz has warned investors to not expect much of a recovery in bitcoin anytime soon. Novogratz who serves as the CEO of the digital asset merchant bank Galaxy Digital has always been a big proponent of Bitcoin and its advantages.
The recent market crash has seriously impacted investor faith in the cryptocurrency market. As such, sell-offs across digital assets such as bitcoin have been rampant. Sentiment has also suffered greatly during this time and has led to low momentum in the market. This is not changing anytime soon. Speaking with Bloomberg, the Galaxy Digital CEO explained that it will take a while for bitcoin to recover to previous levels.
FTX, Deribit and BitMEX liquidated Three Arrows Capital
Crypto exchanges FTX, Deribit and BitMEX have liquidated Three Arrows Capital's positions over the past week after the crypto hedge fund known as 3AC failed to meet margin calls, three people familiar with the matter told The Block.
A BitMEX spokesperson confirmed to The Block that the exchange has liquidated 3AC's positions.A spokesperson for Bitfinex, another exchange where 3AC traded, said the fund had closed its positions at a loss without having to be liquidated.
UST Crash To Impact Positive On Crypto Market In A Long Run
According to FSInsight, a combination of economic pressures and over-leveraged yield plans has caused the forceful selling of cryptocurrencies in the previous few days. This has wiped off more than $200 billion in revenue from the digital asset market.
Furthermore, the note stated that in the conventional banking business, such open demonstrations of illiterate capital destruction are frequently neglected. Thankfully, crypto markets have the advantage of “repeating and developing at a faster speed. The crypto lender was also “notable for pushing ‘risk-free’ returns on customer assets,” which demanded massive levels of borrowing combined with dangerous and unstable staking methods.
Celsius reportedly seeks advice from lawyers on restructuring
Crypto lending platform Celsius Network (CEL) has onboarded restructuring lawyers from Akin Gump Strauss Hauer & Feld to find potential solutions to the firm's financial woes. The firm is reportedly looking for other strategic alternatives, such as a financial restructuring, apart from its attempts to solve its current problems.
Citing extreme market conditions, Celsius paused withdrawals from its platform on Monday. Amid the withdrawal freeze, the firm has unstaked around $247 million in Wrapped Bitcoin (wBTC) from liquidity protocol Aave and sent it to the FTX exchange. Apart from its wBTC, the firm has also sent $74.5 million in Ether (ETH) to FTX. As rumors of Celsius’ insolvency proliferate, crypto exchange Nexo has extended its hands to the lending platform.