Crypto SWOT: GameStop Announced Partnership With Crypto Exchange FTX US

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Strengths

  • Among the cryptocurrencies tracked by CoinMarketCap, Terra LUNA was the top performer of the week, up 216.98%.
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  • Ether outperforms the broader crypto market as the latest Ethereum network software update is one of the latest steps in blockchain’s long-awaited transition to a more energy-efficient process, Bloomberg reports. The latest Ethereum network upgrade, known as Bellatrix, was activated around 7:35 a.m. PT. It officially kicks off the blockchain transition from proof-of-work to proof-of-stake, the article continues.
  • Thailand will set up a task force to study digital asset supervision to strengthen investor protections and follow international standards, the Securities and Exchange Commission said. The group will be made up of representatives from agencies including the Ministry of Finance and the Bank of Thailand. Enhanced surveillance will help prepare for rapid changes in the digital asset market, Bloomberg reports.

Weak points

  • Among the cryptocurrencies tracked by CoinMarketCap, the worst performance of the week was NEXO, down 14.61%.
  • Bitcoin flirts with a test of this year’s lows after a cryptocurrency selloff that once again pushed the sector’s total market value below $1 trillion. Bitcoin has lost more than 6% so far this week, trading at around $18,750, explains Bloomberg. Rising real interest rates are putting pressure on a range of risky assets and crypto is no exception.
  • Scammers who have looted cryptocurrency projects worth hundreds of millions of dollars in recent months have been able to commit such heists using a core principle of decentralized financial services. While DeFi projects promise to enable greater efficiency in crypto transactions, much of the code underlying the software is public, meaning anyone online can scan it for potential vulnerabilities,” Bloomberg writes.

Possibilities

  • Binance, the largest crypto exchange by volume, is starting to convert all existing user balances and new deposits from USDC, USDP and TUSD into the company’s own stablecoin. The exchange said the move was “to improve liquidity and capital efficiency for users,” Bloomberg writes.
  • Insolvent cryptocurrency lender Voyager Digital has attracted enough interest from potential buyers to warrant an auction, Bloomberg reports. The need for an auction means that Voyager has received more than one acceptable offer for its assets and none of them have been clearly the best. That could be good news for Voyager customers who still can’t access their accounts, the article continues.
  • GameStop shares rose Thursday after the video game retailer announced a partnership with cryptocurrency exchange FTX US, suggesting the company is making progress in its strategy shift towards NFTs. But analysts were still skeptical about the long-term growth prospects after the company reported lower sales and a larger loss in the second quarter. GameStop said it will partner with FTX US on new e-commerce and online marketing initiatives and begin offering FTX gift cards at select stores, Bloomberg writes.

Hazards

  • The Thai Securities and Exchange Commission has filed a police complaint against Zipmex Thailand, a crypto exchange operator, and its director for failing to comply with the country’s digital asset regulations, Bloomberg writes. Akalarp Yimwilai, CEO of Exchange, has violated digital asset rules by not disclosing information about the exchange’s digital wallet, which contains client assets, and details about digital asset transfers and withdrawals, as requested by authorities.
  • A closely watched measure of Bitcoin mining revenue has fallen to its lowest level in about two years as competition heats up, prices fall and energy costs rise. The hash price index, which indicates the value of mining revenue per computing power, fell to about 7.7 cents for every terahash, its lowest since September 2020.
  • The White House Office of Science and Technology released a report claiming Bitcoin mining has a negative impact on the environment and proposing to ban proof-of-work, according to Daily Bitcoin News. The report references potential executive orders and congressional legislation to “limit” or “eliminate” proof-of-work mining if regulatory action doesn’t affect U.S. climate goals, the report said.

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