Weekly Crypto Update: Lawsuits and infrastructure
Cryptocurrency analyst, Saxo Bank
Over the past week the entire crypto market cap is down 7% from its weekly high. Bitcoin has traded 6% down for the week to remain above the $10,000 level after breaking below this key level for the second time this year.
Ethereum has traded down 3.5% from the weekly high, reflecting a longer-term downtrend that started in the middle of January.
Circle acquires major crypto exchange
This week, Goldman Sachs-backed payments startup Circle acquired Poloniex, a major crypto exchange. The deal is rumoured to be worth $400 million. Poloniex is the 14th largest exchange by volume with over 70 different trading pairs, while Circle is already engaged in billions of dollars of OTC crypto trading.
This represents the largest mergers-and-acquisitions deal in the crypto market to date. Circle is now in a position to compete with some of the largest exchanges in the US, such as Coinbase.
DCG invests in crypto-friendly bank
Digital Currency Group, a crypto VC firm, invested $114m in Silvergate Bank, a pro-crypto bank chartered in California. Silvergate is known for supporting Bitcoin startups with banking services when other banks have shied away.
The bank has seen 770% growth in non-interest bearing demand deposits in 2017. The deal increased the total equity capital of the bank by 120%. This represents continued investment in building out the underlying infrastructure that supports the crypto economy.
Self-claimed Satoshi Nakamoto sued for $5 billion
Craig Wright, chief scientist of nChain, is being sued by the estate of a deceased business partner for $5 billion. Craig Wright is infamously known as the guy who claimed to be the inventor of Bitcoin, Satoshi Nakamoto, but quickly withdrew his claim as the community pressured him to further prove his identity.
The lawsuit represents the largest legal action regarding blockchain tech with the second being R3 and Ripple’s lawsuit valued just below $5bn.
Quarterly Outlook Q2 2022
Quarterly Outlook Q2 2022: The End Game has arrived
- Shocks from covid and the war in Ukraine have forced the global financial and political world to change, but what will the end game be?
Productivity and innovation have never been more importantAs the world economy hits physical limits and central banks tighten their belts, could equities be facing a 10-15% downside?
The great EUR recovery and the difficulty of trading itIf the terrible fog of war hopefully lifts soon, the conditions are promising for the euro to reprice significantly higher.
Tight commodity markets – turbocharged by war and sanctionsWith supply already tight, commodities keep powering on. But will it last for yet another quarter?
Between a rock and a hard placeGeopolitical concerns will add upward price pressures and fears of slower growth, while volatility will remain elevated.
The Great ErosionInflation is everywhere and central banks try to combat it. But will they get it under control in time?
Australian investing: Six considerations amid triple Rs: rising rates, record inflation and likely recessionWhile global financial markets are struggling in an uncertain world, the commodity-heavy Australian ASX index is poised to keep a positive momentum.
Cybersecurity – the rush to catch up with realityWith the invasion of Ukraine, governments and private companies are rushing to reinforce their cyber defenses.