Cryptocurrency Firms ‘Must Stop Major Mistakes in the DotCom Era’

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Some major crypto firms need to stop making obvious, avoidable mistakes that destabilize the industry, says deVere Group CEO.

Nigel Green, who leads one of the world’s largest advisory, wealth management and FinTech organizations — as well as cryptocurrency exchange deVere Crypto — says they are causing financial chaos for investors and job losses.

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Bitcoin, the largest cryptocurrency in the world, has lost 57% so far this year. It fell below $20,000 over the weekend for the first time since December 2020.

“I normally don’t cast a shadow on other companies, but lately we’ve seen many of the biggest players make huge, unnecessary mistakes,” Green said.

“They went for wildly expensive TV ads, jumped on higher profile sponsorships, rolled out loan models with astronomical interest rates on crypto deposits, and launched unprecedented recruiting.

“What do we have now?” Companies laid off entire staff, manage customer withdrawals and make investments.

He continued: “Unfortunately, these brands made classic, obvious and avoidable mistakes from the DotCom era.

“These mistakes are destabilizing the industry due to the contagion effect, exacerbating the financial chaos for investors and the pain of job loss for so many who hoped for a rewarding career in the financial world’s future.

“These crypto firms would do better — for the sake of their customers and the industry at large — to grow by investing in top talent, innovation and development, and pushing for sensible regulation with financial watchdogs.

Green, who says he will continue to buy Bitcoin “because fundamentals have not changed,” believes the crypto sector will recover more strongly. “I’m sure the lessons will be learned and the sector – the future of finance – will become more robust as a result,” he said.

NFT Marketplace Magic Eden Awards $1.6 Billion

NFT marketplace Magic Eden raised $130 million in Series B financing, valuing the company at $1.6 billion.

The round was co-led by Electric Capital and Greylock, with Lightspeed Venture Partners joining as a new lead investor. Other attendees revealed former investors Paradigm and Sequoia Capital.

Series B funds will be used to grow the company’s primary and secondary markets, explore cross-channel opportunities, invest both in the team and in technology to enhance the user experience through insights, analytics, and enhanced trading tools .

The goal of Magic Eden is to support the next generation of digital creators and bring Web3 to a billion users.

Launched in September 2021, Magic Eden claims to receive an average of 22 million unique sessions per month and sees more than 40,000 NFTs traded daily.

“We know that NFTs are the best way to get people on the blockchain,” said Jack Lu, CEO and co-founder. “NFTs are exciting social and cultural experiences that connect the world.

“Since our inception, we have made a conscious decision to support both our creators and our users in this tremendous era of growth for business and industry. The best part is that we’re just getting started.

Magic Eden’s Launchpad has launched 250 projects to date, while the company’s secondary market includes more than 7,000 publicly traded collections and sees over 92% of all NFT volume on Solana.

Zhuoxun Yin, COO and co-founder of Magic Eden, added: “We have pioneered a number of areas: such as combining NFT typing capabilities via Launchpad with an aftermarket, integrating gameplay with NFT games directly on the platform, and creating a Decentralized Autonomous Organization (DAO) to enable greater engagement within the Magic Eden community.

“We are delighted with the continued support from our investors and our community and look forward to delivering Solana and beyond.”

Mike Duboe, Partner at Greylock, said: “Magic Eden is one of those top 1% teams that just shoots all cylinders – product execution, community growth, transaction volume – and speed. In less than a year of existence it has been exceptional.

Cryptocurrency short

Crypto exchange FTX has bailed out crypto lending platform BlockFi – which recently frozen withdrawals due to liquidity issues – with a $250 million revolving credit facility.

Securities and Exchange Commission Commissioner Hester Peirce – known as the “crypto mother” – has criticized the bailouts of crypto companies. She told Forbes:[It’s better to] let these things play out… when things get a little tougher in the market, you find out who is actually anchoring something that could last in the long run and what will disappear.

Former SEC senior adviser Howard Fischer told CoinDesk that the move by several US states to open an investigation into the recording freeze of cryptocurrency lender Celsius Network will eventually lead to new federal regulations.

Uniswap Labs has acquired market aggregator NFT Genie and aims to support non-replaceable token trading “soon”.

Neol, a Web3-compatible learning and work platform, has raised $5.2 million in seed funding. The round was co-led by kyu Collective and Global Ventures, in addition to Learnstart, FJ Labs and Paribu Ventures. Participating angels include Tony Xu, co-founder and CEO of DoorDash; Tim Brown, president of IDEO; Emin Gun Sirer, founder and CEO of Ava Labs; and Sota Nagano, associate director at Abies Ventures.

A survey by the Bank for International Settlements found that about 90% of central banks around the world are studying the effectiveness of adopting central bank digital currencies (CBDCs).

European crypto exchange Bitpanda is now regulated in Spain having previously registered with regulators in Austria, France, Italy and Sweden.

Crypto Prices

The total market cap of over 19,900 coins is $902 billion at the time of writing (7am UK), down 2.2% in the last 24 hours.

Market leader Bitcoin – the original cryptocurrency created by the mysterious Satoshi Nakamoto – fell 2% to about $20,430. BTC has fallen by 4% in a week.

Ethereum, the second most valuable cryptocurrency – created as a decentralized network for smart contracts on the blockchain – fell 5% to below $1,100. ETH is down 3% in a week.

Binance Coin is a cryptocurrency created by the popular crypto exchange Binance to help its goal of becoming the infrastructure service provider for the entire blockchain ecosystem. The BNB token lost 3% to $216, pushing it up 2% over seven days.

Cardano is an open-source network that facilitates dApps that see themselves as an updated version of Ethereum. The ADA token, designed to allow owners to participate in the operation of the network, fell 6% to 47 cents and is up 2% in a week.

Ripple’s XRP token, a payment settlement exchange and transfer system, acts as a bridge for transfers between other devices. XRP lost 1% below 32.5c as the price is 6% higher than it was seven days ago.

Solana is a blockchain designed to make decentralized finance widely accessible – and capable of processing 50,000 transactions per second. The SOL token lost 7% to $34.67 and is up 23% from a week ago.

The Meme DOGE coin was created as a satire on the hype with cryptocurrencies but is now a major player in the space. DOGE climbed 3% to 6.4c, taking it by 22% in a week.

Polkadot was founded by the Swiss-based Web3 Foundation as an open-source project to develop a decentralized web. The DOT token, which aims to securely connect blockchains together, fell 8% to $7.55 and rose 5% from its price a week ago.

Avalanche is an extremely verifiable platform for institutions, companies and governments. The AVAX token lost 6% to $16.54 and is up 7% in a week.

To see how major coin valuations have changed lately – and for an overview of recent developments in cryptocurrency news – click here.

For valuations of the top 100 coins by market cap in US dollars, plus 24-hour price changes, see below.

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