IT'S FINE *dog in burning house meme*
The Dominos keep falling...
Coo! It's a Crypto Owl, flying as fast as an eagle to tell you the breaking news of the day.
On Today’s menu:
🥃 “DARK ‘N’ STORMY”: Celsius triggers BTC and ETH fall to a record 18-month low
🍟 SOME SNACKS: TOP 6 Crypto News around the world
🧊 B52 SHOT: humble story about the guy who KO’d his own stablecoin
🕛 Estimated read time: 2 minutes & 35 seconds 🕛
CELSIUS TRIGGERS BTC AND ETH FALL TO A RECORD 18-MONTH LOW
Ladies and gentlemen, it is very possible that we are going to witness yet another major crash scenario. Similar to what happened to Luna. God damn, not again…
This time it’s Celsius. A financial technology network (fintech) that offers interest-bearing savings accounts, that allow you to borrow, and pay with your crypto or traditional currencies.
Now, I doubt they’ll be offering this any longer. Celsius is rolling down the hill so fast that it is dragging Bitcoin and Ether alongside with it. So, as the dust has settled, here are the main takeaways we know for now:
It seems like Celsius has been sending huge amounts of crypto (worth millions of dollars) to another exchange platform, called FTX, while removing wrapped Bitcoin and Ethereum from AAVE (decentralized lending protocol). The reason why this is happening is unclear. Maybe its debts, but if it's true, then whoops, it's bad.
Why is this bad?
Because, remember, Celsius offers an interest-bearing savings accounts, which means it is holding A LOT OF staked ether. The Celsius goal is to pay people for their staking - with ether (staked ether = 1 ether, or, staked ether is pegged to 1 ether worth). What we have now is that this pegg is lost, staked ether is no longer equal to 1 ether and people are taking out their funds causing huge losses for Celsius and its (dropping) future price. Will this add some fear fuel to this already burning bear market bonfire? We’ll see.
So what about Bitcoin and Ether?
The latest inflation report shows that rates climbed to a sky high 8.6%. On top of that we have this Celsius situation, so naturally, investors are fearful and are taking their funds. All this together (just like a bad shot of tequila) caused Bitcoin to crash overnight, reaching around $23,700. Same with Ether, it dropped to less than $1,200, and we have 10 red weeks in a row. Fantastic.
Remember as I’ve talked about in the previous newsletter - there is no clarity what’s going to happen in crypto, and especially in this whole bear market situation. Well, here you go.
Now the question is:
is the worst is yet to come? Let’s leave it rhetorical.
TOP 6 CRYPTO NEWS AROUND THE WORLD
Crypto world never sleeps, never gets tired and never stops surprising us. I picked some interesting additional stuff for you, check it out:
Crypto market is crashing, but not the XTZ. It's shooting up like craaazy.
Mastercard is expanding its payment network for nonfungible token (NFT) markets and Web3.
PayPal from now on allows users to transfer, send and receive digital assets between PayPal and other wallets and exchanges.
Tether created Tether (USDT) tokens on Tezos blockchain, but aims to appear on the decentralized finance (DeFi) sector and digital payments.
Major cryptocurrency exchanges in South Korea have delisted Litecoin.
WEB3 is not enough anymore. Now we are going to have WEB5 (sorry, WEB4…).
B52 SHOT
In case you’ve missed story about Luna’s crash:
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Disclaimer: This newsletter is strictly educational. None of this information is intended to be financial advice. Always do your own research and act responsibly with your profits.