Welcome to Barmy’s Daily Crypto News – July 22nd, 2022
1. Coinbase Confirms No Financial Exposure To Celsius, Voyager, Three Arrows Capital
The cryptocurrency exchange Coinbase has stated that it “had no financing exposure” to insolvent businesses such as Celsius Network, Voyager Digital, and Three Arrows Capital (3AC).
In a blog post published on Wednesday, the Nasdaq-listed cryptocurrency exchange Coinbase defined its approach for financing cryptocurrencies. The article was written by Caroline Tarnok, head of credit and market risk, Matt Boyd, head of prime finance, and Brett Tejpaul, head of Coinbase Institutional.
“Solvency concerns surrounding entities like Celsius, Three Arrows Capital (3AC), Voyager, and other similar counterparties were a reflection of insufficient risk controls, and reports of additional struggling firms are fast becoming stories of bankruptcy, restructuring, and failure,” the Coinbase executives explained. “Notably, the issues here were foreseeable and actually credit-specific, not crypto-specific in nature.”
2. SEC Revealed Coinbase’s List Of Nine Unregistered Securities
At least nine digital assets featured on the cryptocurrency exchange Coinbase, according to a new court filing from the SEC, are unregistered securities.
AMP (AMP), Rally (RLY), DerivaDEX (DDX), XYO (XYO), Rari Governance Token (RGT), LCX (LCX), Powerledger (POWR), DFX Finance (DFX), and Kromatika (KROM) are the nine assets in concern.
Ishan Wahi, a former product manager at Coinbase, and two other people have been charged by the SEC and the Department of Justice with operating an insider trading scam that netted them more than $1.1 million in ill-gotten gains. Wahi allegedly informed his buddy Sameer Ramani and his brother Nikhil Wahi about impending announcements regarding token listings on the cryptocurrency market.
3. Epic Games Won’t Be Banning In-game NFTs Like Minecraft
The usage of NFTs on community-run Minecraft gaming servers will soon be prohibited, according to a statement released on Wednesday by Microsoft’s Mojang Studios. Nevertheless, subsequent statements from the CEO of the company indicate that the Epic Games Store does not intend to take a similarly unilateral stance against NFTs in games.
A Twitter user urged Tim Sweeney, co-founder and CEO of Epic Games, to imitate Minecraft yesterday. User DicklessRichard commented on the post and mentioned Sweeney, saying, “It’d be really nice to see the same opinion from the Epic Games Store.” The user wants all NFT games gone from the store.
The leading PC game store, Steam, has taken this approach and last October declared its own ban on NFTs and blockchain technology. However, the Epic Games Store resisted and insisted that it would accept NFT games. Since then, a few such games have been announced. In his reply last night, Sweeney refused to change his opinion.
4. “Rich Dad Poor Dad” Robert Kiyosaki Warns About Potential Depression
Robert Kiyosaki, the author of Rich Dad Poor Dad, expressed new worries about the American economy on Wednesday. Kiyosaki and Sharon Lechter co-authored the 1997 book Rich Dad Poor Dad. It has spent more than six years as a best seller in the New York Times. The book has sold more than 32 million copies worldwide in more than 51 different languages.
“Warning: Inflation may lead to Greater Depression,” he tweeted. The well-known author also mentioned that foreclosures had increased by 700% from the previous year and that layoffs were beginning.
This was not the first time Kiyosaki had issued a Great Depression-related cautionary statement. “Every 90 years, there is a giant stock market crash followed by depression. 90 years ago was 1929 followed by [the] Great Depression lasting 25 years to 1954,” he tweeted in August 2020, adding: “Will history repeat? I believe so.”
5. Crypto Exchange Blockchain.com Cuts 25% Staff
The most recent cryptocurrency startup to announce major layoffs is Blockchain.com. The exchange said earlier today that it was laying off roughly 150 employees, or 25% of its workforce.
Plans to expand into other countries have been put on hold, and the exchange’s whole Argentina division will be shut down. A quarter of the staff affected by the layoffs is American, and 16 percent is from the UK. About 44 percent of the losses hit workers in Argentina.
The exchange is tightening its belt after suffering a $270 million loss due to exposure to the now-bankrupt Singapore-based crypto hedge fund Three Arrows Capital, often known as 3AC, in the form of U.S. Dollar and cryptocurrency loans.
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