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.