Weekly Crypto Roundup: Attention Seeking, Job Loss and Sideways Momentum

Bitcoin and Ether prices aren’t changing anytime soon, but the crypto and NFT sector sure is

Bitcoin and Ether prices aren’t changing anytime soon, but the crypto and NFT sector sure is

attention seeking

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Proponents of crypto have struggled for years to bring their emerging technology to the mainstream. Now the crypto industry is in the spotlight, for all the wrong reasons.

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This week, the controversial crypto credit company Celsius Network, which froze all user transfers and withdrawals, filed for bankruptcy protection in the United States. A legal document revealed that the company had a deficit of nearly $1.2 billion.

The company also plans to use its $167 million in cash to support certain operations as it undergoes financial restructuring.

Celsius said it had about 1.7 million registered users and $6 billion in assets at the beginning of this month.

“The onset of the “crypto winter” coupled with the much-discussed Luna collapse and the failure of several crypto funds/exchanges has led to a growing industry-wide reluctance to do business with companies, such as Celsius, which owned crypto assets.” a legal document signed by Celsius CEO Alex Mashinsky said Thursday.

Several US state regulators are currently investigating Celsius’s activities, and one regulator said it believes the platform is “deeply insolvent.”

Other crypto assets are also in sight. This week, the Financial Stability Board (FSB), an organization that advises countries on international financial matters, pledged to push for regulation of stablecoins, cryptocurrencies pegged to the value of dollars, pounds and coins. A report on possible approaches is currently scheduled for October.

In addition, the US Treasury Department is preparing a report for President Joe Biden on the risks and opportunities digital assets can present through mass adoption.

Overall, the current crypto meltdown is not the time when many proponents would have turned to international groups and official bodies to pay more attention to the sector.

Jobs deleted

The NFT community was shocked on Thursday when OpenSea, which claims to be the “first and largest” NFT marketplace, announced it was shedding 20% ​​of its team.

OpenSea co-founder and CEO Devin Finzer blamed an “unprecedented combination of crypto winter and general macroeconomic instability.” However, he stressed that the company had a “very strong” balance sheet.

The move shows how more and more crypto firms that have grown aggressively over the past year are unable to maintain the same momentum during the 2022 bear market, which saw clients massively withdraw their investments. This caused liquidity crises in the sector.

The question now is whether smaller rival NFT marketplaces will follow in OpenSea’s footsteps and cut staff — or use the time to recruit from a growing pool of crypto professionals desperate for new jobs.

Lateral Momentum

With Bitcoin just below $21,000, while Ether was above $1,200 on Friday, little has changed in terms of price performance in recent weeks.

Data from the crypto analytics platform Glassnode showed that the amount of Bitcoin held by long-term investors and/or lost by traders hit a new 19-month high of 7,376,212,666 BTC. This could mean that traders are waiting for the end of the bear market or that many have somehow lost access to their assets.

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