The crypto industry suffers another casualty in the bear market.

The crypto industry suffers another casualty in the bear market.

by | Nov 17, 2022 | Market News, News

An increasing number of cryptocurrency service providers are closing their doors permanently in the midst of the bear market, including the German crypto bank Nuri.

Three Arrows Investment. Celsius. Voyager Electronics In 2022, the number of cryptocurrency bankruptcies, closures, and trade freezes seemed never-ending. The year is still not over. Nuri, a German cryptocurrency bank, asked users to withdraw money this week in advance of the company's anticipated liquidation in December. At least users of Nuri received adequate notice.

The market has been mercilessly purified of excess, leverage, bad risk management, and outright scams by the cryptocurrency bear. If business forecasters are to be believed, the market may experience one more surrender before things start to get better.

The closure of Nuri, the most recent drama involving Voyager Digital, and Silvergate Capital's challenging quarter are all covered in this week's Crypto Biz.

500K consumers are advised by the German cryptocurrency bank Nuri to withdraw money before the closure.

Nuri informed its 500,000 subscribers this week that it would suspend operations on December 18 after citing liquidity concerns in August. Users have two months to withdraw their money before the business closes the shop as a result of the bear market. Users were given the reassurance that all assets in their Nuri account are safe and untouched by Nuri's insolvency by Nuri CEO Kristina Mayer. Although the industry wasn't helped by Nuri's collapse, Celsius handled its insolvency far worse by locking user withdrawals.

Voyager Digital won't sue its executives for negligence and will instead make a claim against its insured.

This week, the story of Voyager Digital took another unexpected turn when the business decided against suing its management for negligence for their part in enabling the Three Arrows Capital disaster (and Voyager's in the process). For those who are not familiar with the drama: Without conducting adequate due diligence, Voyager provided Three Arrows Capital with a $675 million loan. This loan was never repaid, and it played a significant role in Voyager's bankruptcy. Why then don't the executives face legal action? They reportedly got immunity from the lawsuit when FTX US purchased the assets of Voyager through an auction in late September.

Crypto-to-fiat transactions at Silvergate Capital fell by $50 billion from the 3rd Quartile of 2021 to the 3rd Quartile of 2022.

Silvergate Capital's crypto-to-fiat transfers are among the statistics that best illustrate how severe the crypto winter has been. This week, the company revealed that transfers on its network fell by $50 billion year over year in Q3, which is worrying news for those hoping for widespread adoption of cryptocurrencies by financial institutions. However, there was a bright spot: Silvergate's profits increased by 84% to $43.328 million from the previous year. In response to the announcement, investors sold off Silvergate shares, which fell 20% on October 18.

Cryptocurrency miners can now apply for $500 million loans from Binance.

Binance, a cryptocurrency exchange, has announced the launch of a new $500 million financing programme to assist struggling Bitcoin miners during the current bear market. By putting up physical or digital assets as collateral and paying 5% to 10% in interest, miners will have access to loans with terms of 18 to 24 months through the new Binance Pool. For the financing, only "blue-chip" miners are eligible. A spokesman for Binance informed Cointelegraph that one of the requirements is that the applicant is a Binance VIP member and connects at least 500 PH/s to the Binance Pool for at least 24 months after the loan is provided.

When will the crypto market bear market end?

Are you over the bear market in cryptocurrencies? How much time is left before the market turns? Even though no one has a crystal ball, I am still adamant that Bitcoin will most likely reach a cyclical bottom in the coming months, which will be followed by a protracted accumulation phase. I sat down with fellow analysts Marcel Pechman and Benton Yaun to talk about the near-term forecast for cryptocurrencies in this week's Market Report. Every Thursday, Crypto Biz is a weekly email that gives you a pulse on the blockchain and cryptocurrency industries.

Chilliz, Cosmos, and EOS Tokens Considered As Best Performers in August in Bear Crypto Market

Chilliz, Cosmos, and EOS Tokens Considered As Best Performers in August in Bear Crypto Market

by | Nov 4, 2022 | Market News, News

After a massive crypto crash, the global crypto market started its new upward journey. But, later, it again notably falls. The last high market cap was $3 trillion in November 2021.

The declines beginning about mid-month came after the reveal of minutes of the Federal Reserve's July meeting strictly suggested that the central bank will try to fight against inflation.

The top cryptocurrency Bitcoin has fallen 13% over the last month. On the other hand, the second top coin, Ether, fell about 20%. Though, the recent data shows that not all cryptocurrencies fell like BTC and ETH. Because there is so much positive news circulating over the internet. Also, several networks are focusing on their upcoming upgrade. That led the investors to participate in the networks.

The Best Performer Of August :

This is a token issued by Socios.com. It is a blockchain-enabled sports entertainment platform. Chili was the biggest winner of the month. As the platform received regulatory approval to operate in Italy, Its native token CHZ hit 75.8% in August.

Cosmos’ native token, ATOM, also performed well. It rose by 14.5%. The raise was noticed during the project announcement. The announcement stated its tokenomics redesign at its upcoming conference in Medellin, Colombia, in late September.

Antelope announced that it would act as the supporting protocol for EOSIO-based blockchains. That spurred the 3.6% surge in the EOS token last month. 

The head of research at Arca, Katie Talati, considered the news-related price spikes as “healthy to see in terms of asset dispersion” among investors. Arka is an asset-management firm.

Referring to the correlation between Cosmos’ tokenomics redesign and its raising token's rate, Talati stated that it's interesting as in a bear market, technically, a lot of the tokenomics tend to be what drives one's rate changes that they see a lot more of, versus in the bull market where it's like any old announcement and users get excited. 

Effects Of Negative News :

However, negative news was behind the price drop of other major altcoins. In early August, a $6 million exploit on the Solana platform following the theft of tokens from more than 9,000 hot wallets caused SOL’s 25.7% decline.

On the other hand, Ripple’s XRP dropped 14.1% and Avalanche’s AVAX declined 19.1%. It happened after a self-described whistleblower accused Ava Labs, which is the company behind the Avalanche blockchain.

Talati explained that she will be focusing on the Merge, which is a major software update for the Ethereum blockchain along with crypto conferences in September. It will be eyeing, Singapore Blockchain Week and the Ethereum Developer Conference, for news and events that might impact altcoins' prices.

Ongoing Situation :

Notably, the global crypto market has been facing a hard time since the last period of 2021. In November, it touched its last highest market cap. Later, it rapidly fell due to several reasons. Though, the market was still in the spotlight for several upgrades. While Ether starts to focus on its Ethereum Beacon merge. Also, Cardano goes ahead with Vasil Hard Fork.  Recently, both upgrade's launching dates have been announced, which is in September.

Additionally, several regulations are taking place in the market. Countries like Japan, the US, and Canada are taking that virtual world very seriously. It has the potential to grow in the future on different platforms. Now the platforms are shifting towards web3 from web2. Along with Metaverse projects, there are so many gaming platforms being introduced into that virtual space. It is anticipated that after a couple of years, crypto will be used as an exchangeable component in every country.