The Russian Roundup: Celsius Turn Up The Heat On Crypto — Issue #41
Just when it seems like the markets couldn’t get worse, the daunting nature of burrowing and lending comes to light extending the potential of further downside. Often the bear market tends to highlight the underlying issues that get swept under the carpet whilst price is breaking new heights and in this case, Celsius is on the receiving end of that brutality.
On Monday 13th June, crypto lender Celsius halted withdrawals and account transfers due to ‘extreme market conditions’ which as one of the largest lenders out there led to a cascading effect on the rest of the market.
The firm has around $8b USD which they have lent out to their clients alongside an estimated $12b USD in assets that they manage. While they have a range of institutional clients, this announcement led to the native Celsius token $CEL losing over 60%+ of its value.
Investors have made it clear that they are unlikely to provide more funds to prevent the insolvency of the lending platform leading to further concerns for users of lending platforms like Celsius.
Often hosting weekly AMA’s, Celsius announced that they will be pausing these updates so they can focus on ‘this very important work for the community.
Coinbase Makes Cuts✂️
Often acknowledged as an industry-established exchange, Coinbase is also arguably feeling the constraints of an arduous bear market as they announced this week that they would be making cuts to their staff numbers.
CEO & Co-founder, Ben Armstrong, sent out a letter to the Coinbase employees on Tuesday 14th of June expressing that they have concluded what he called the ‘difficult decision’ to reduce their team size by 18%.
Armstrong cited the ‘economic conditions changing rapidly’ as an explanation for the decision made and the fact that they need to manage their costs during the down markets.
To put the speed of the crypto economy into perspective, Coinbase admitted to ‘growing too quickly’ resulting in them over-hiring and evidently having to go back on their decisions made during the bull-market.
Many found Binance CEO CZ to be expressing his opinions on Coinbase choosing Superbowl ads rather than scaling down in preparation for the inevitable crypto winter.
You can find the letter Coinbase sent to employees here 👉 https://blog.coinbase.com/a-message-from-coinbase-ceo-and-cofounder-brian-armstrong-578d76eedb12
The First Euro-Backed Stablecoin🇪🇺
Issuers of famous U.S. dollar-backed stablecoin $USDC announced their plans to launch a euro-pegged stablecoin called Euro Coin.
Circle which is known for its success with $USDC becoming one of the world's most trusted digital currencies plan to issue $EUROC in a full-reserved manner similar to $USDC.
Euro Coin is set to launch on the Ethereum blockchain on the 30th of June with plans to support other chains later this year.
Despite the market having a gloom-ridden outlook toward the stability and transparency of stablecoins, Circle remains committed to its plans to bring faster transactions to global commerce.
Elon Musk Sued For $258b USD Over $DOGE 🐶
Billionaire and space enthusiast Elon Musk is also known to the crypto economy for his infamous support for memecoin $DOGE as through the bullrun many concluded the rocketing price due to his support for the project.
American citizen, Keith Johnson, sued Elon Musk and his companies on the grounds of constituting an enterprise which led to the inflation of Dogecoins price.
Essentially this led to Musk, Tesla & SpaceX being sued for an alleged pyramid scheme which Johnson is seeking $86b in damages alongside triple damages of $172b concluding a lawsuit of $258b USD.
Musk did not respond to the emails which were asking for a response on the suit however, he claims that he will continue to support Dodgecoin.
Three Arrows Capital Crumbles🏦
As the pain for faithful crypto enthusiasts continues, one of the largest crypto hedge funds Three Arrows Capital (3AC) had been margin called on their crypto loans.
Known for their focus on high-risk, high returns assets, it was reported that following a large exposure to $UST and $LUNA as well as the overall macro environment, 3AC suffered multi million dollar losses in liquidations by its lenders.
With rumours spreading that they were close to a $245m $ETH liquidation on $AAVE, cofounder Zhu Su tweeted the following:
It was later reported that exchanges; FTX, Deribit and BitMEX had all liquidated 3AC’s potions as they failed to meet margin calls. This has led to an estimated $6m that 3AC owe BitMEX.
With their investments being some of the most sought after assets on market, many suspect this to lead to further downside across the entire crypto economy.
As a reminder this is not a trading signal nor is it investment advice, it is an opinion and each trader/investor should know and understand the risks attached to trading cryptocurrencies. At no point should this be regarded as financial advice, feel free to familiarise yourself with our NFA disclaimer.
Telegram Chat: https://t.me/RussianRoundupChat
Telegram Updates Channel: https://t.me/RussianRoundup
Russian Defi: https://twitter.com/RussianDefi