Dear Teroxx Community,
This week we saw a market in digital assets that suffered price declines on a weekly basis.
As usual, we are also providing detailed videos for those who want to delve deeper into the subject.
Digital Asset News
The American crypto exchange Coinbase has acquired the crypto hedge fund One River Digital Asset Management (ORDAM).
As Coinbase announced in a corresponding blog entry yesterday, 3 March, One River Digital becomes Coinbase Asset Management, “an independent and wholly owned subsidiary” of the crypto exchange. One River Digital is registered as a so-called investment adviser with the US Securities and Exchange Commission, a title the new company can now assume. The hedge fund had previously accepted investments from Coinbase to scale its own business.
“Coinbase and ORDAM are united in the ethical principle of responsible risk management, a characteristic that has helped both companies successfully weather the current crisis in the market,” as Coinbase explains in its blog. It adds: “In terms of corporate culture, both organisations are quite similar in that they only want to seize the opportunities of the crypto market with uncompromising security and care.”
As part of the acquisition, One River Digital’s current team is to be incorporated into the crypto exchange and CEO Peters is also to take a senior position in the new company. Accordingly, the crypto exchange intends to make “minimal changes to current business operations” as possible.
The news of the acquisition comes shortly after it was announced that Coinbase was one of several crypto firms to cut its ties with Silvergate Bank. Scaling healthy digital asset companies continues despite the market not being easy!
Insolvent crypto exchange FTX has revealed a “massive hole” in its crypto assets and cash. According to the report, the crypto trading platform and its subsidiary FTX US are missing a total of several billion in customer funds.
This is according to an official presentation by the crypto company on 2 March, in which FTX reveals that it had just under 2.2 billion US dollars in assets in the company’s own wallets and accounts up to the last, of which in turn 694 million US dollars were the very liquid “Category A assets”, including cash, stablecoins, Bitcoin and Ethereum.
Only just under 191 million US dollars of the total assets were stored in the FTX US wallets, in addition to 28 million US dollars in customer receivables and 155 million US dollars in receivables from other parties.
In addition, the FTX Wallets show a net loan of US$9.3 billion to sister firm Alameda Research, while FTX US has liabilities of US$107 million to Alameda.
Meanwhile, in the class of less liquid “Category B assets” – which includes the firm’s own cryptocurrency FTX Token (FTT) – FTX is posting a gain. However, these assets are vanishingly small compared to the missing funds anyway.
In total, the deficit of FTX amounts to a whopping 8.6 billion US dollars across all wallets and accounts, while FTX US shows a missing sum of 116 million US dollars. This clearly shows how important it is to choose the right partner companies! Teroxx never had a business relationship with FTX.
A strong stock market and a weak US dollar actually mean the best conditions for a strong Bitcoin price, but the dilemma of the most important “crypto bank” is causing unrest. The market-leading cryptocurrency was actually able to avoid even heavier losses after the controversy surrounding Silvergate initially caused a noticeable slump of almost 5 %.
While the US stock market is able to finish the week strong, bitcoin and altcoins have so far been unable to convert this tailwind. “Most of the stock indices have now hit higher lows…” as financial expert Tedtalksmacro notes to that effect. To this he adds:
“If it weren’t for the fears around Silvergate, BTC could probably climb above US$25,000 in the next week as well.”
Initial Celsius customers are now reportedly able to withdraw their crypto assets for the first time in 263 days after the insolvent crypto-savings platform shut down withdrawals.
According to several posts on social media yesterday, 2 March, some customers who had invested their funds in Celsius custody accounts have finally been able to withdraw them. On 31 January, Celsius had announced which clients were eligible for withdrawals. So far, only users of Celsius Custody, i.e. the savings platform’s custody service, can withdraw their funds, and only up to 94% of the actual value.
However, the custody accounts could only be used by American customers, which is why international customers of the platform, who have invested their funds elsewhere on this platform, must continue to wait for the time being.
Technical term of the week
Silvergate: Is an American bank that has become known for its affinity for digital assets. The bank manages inflows and outflows for many digital asset companies and is an important bridge between FIAT and digital currencies.
Digital Asset Markt
Bullish outlook: Market easing and positive global markets could provide a rally towards ~$25,000.
Bearish outlook: A negative market week and intensifying news around Silvergate could lead to further sell-offs.