IT’S GETTING INTERESTING
FTX buying BlockFi, NFTs on Facebook, and JPMorgan’s prediction for the bear market
Coo! It’s Crypto Owl and it’s Friday my dudes. So, what did the Crypto world prepare for us today?
On Today’s Menu:
⏳ Estimated reading time: 4 minutes & 59 seconds
🌯 FANTASTIC BURRITOS WITH
Jalapeño pepper: FTX is buying BlockFi for bread crumbs
Extra beans: Facebook starts testing NFTs on profiles
Pulled pork: JPMorgan: better days in crypto are on the way
🥣 BOWL OF NACHOS: Crypto Detective series
FTX IS BUYING BLOCKFI FOR BREAD CRUMBS
The drama among crypto exchanges is raging further. In previous newsletters, I gave you some basic information about Celsius, Three Arrows Capital (3AC) situation, and more, but let’s do a little recap because everything is related here:
Celsius Network had massive debts → staked Ether (which was the main crypto in this platform) lost its peg from Ether → investors started to take out their funds → it caused huge losses for Celsius.
Later, more spicy details appeared, and it showed that FTX is behind this escalation. The community believes that FTX liquidated Celsius and that’s why the network failed.
3AC, one of the largest crypto industry funds, became insolvent. It took too many loans from every well-known lender (one of them was Celsius). Debts became so huge that 3AC was unable to repay them. On top of that, 3AC froze the option to withdraw funds.
BlockFi was borrowing from 3AC.
Now, let’s talk about BlockFi.
BlockFi is a popular crypto service provider, mostly focusing on lending. Earlier this year, the company had more than 1 million users and $10 billion in assets. The reported valuation of BlockFi was $5 billion. Quite nice, right?
Unluckily, BlockFi’s problems started as it became the major creditor of 3AC, which, as you know, collapsed. BlockFi was forced to liquidate the 3AC position which was worth more than $1.3 billion. Of course, this loss was painful for BlockFi. But that was just the beginning.
Earlier in June, BlockFi said it would fire around 20% of its employees. Ouch.
Just recently FTX granted a $250 million loan for BlockFi trying to save the company.
However, now, FTX wants to buy BockFi for $25 million. Compared to those $5 billion - it’s really pennies on the dollar.
And this is what BlockFi’s CEO Zac Prince has to say:
Simple question: Does FTX actually trying to save the BockFi? Or is it another Celsius situation? It makes me suspicious.
FACEBOOK STARTS TESTING NFTS ON PROFILES
NFTs are not a new thing anymore. Yes, it's still evolving technology, but everyone who’s into crypto gets the main point of NFTs - they prove ownership.
You can find hundreds of thousands of different NFTs - from jpegs to songs, even movies... Now, it is very possible that in the near future, we all can use NFTs on Facebook. Developers will start testing NFTs minted on Ethereum and Polygon blockchains. Later, it is planning to add Flow and Solana’s NFTs.
Why would we need NFTs on Facebook?
This idea could be very beloved among collectors because they will have the ability to have their NFTs connected to their profile;
Users will have the ability to connect their crypto wallets to their Facebook accounts;
NFTs could be posted just like regular Facebook posts; meaning, others could react: press likes, share it, comment on it, etc.
A spokesperson from Meta informed that the NFTs release on Facebook will be gradual. At first, there will be few creators picked in the US. Later, it should expand to more regions.
NFTs are testing on Instagram too because the platform’s integration is also on the plans. The idea is that people could share and post their NFTs between Facebook and Instagram.
When will it happen? Not clear. But when it does, I’ll inform you. Owl’s word.
Before we go next, check out a few examples of NFTs on Facebook profile:
JPMORGAN SAYS THAT THE WORST PART OF THE BEAR MARKET IS COMING TO THE END
JPMorgan analyst and strategist Nikolaos Panigirtzoglou believes that deleveraging of the crypto market could be over in the near future. Why?
More firms are willing to bail out insolvent or drown in debt companies (great example - FTX trying to buy BlockFi)
Seems like Venture capital funding got at a steady and healthy pace;
According to JPMorgan, Venture capital funding had around $5 billion (May-June period). And that money was for crypto firms. And now, fundraising metrics show that the funding is higher - around $8.6 billion. So, great news!
CRYPTO DETECTIVE SERIES
Have you ever heard of “Cryptoqueen”?
If not - there you go. She is Ruja Ignatova. And today she was added to the FBI’s list of “Ten Most Wanted Fugitives”. She’s also on the most-wanted list of Europol. Sounds like a scenario from the movie. FBI offers a $100k reward for any information that would help to catch Ignatova.
Long story short:
Ruja is accused of organizing and operating an enormous Ponzi scheme with a cryptocurrency called OneCoin.
OneCoin was created in 2014. Developers claimed that OneCoin will change Bitcoin. Except… OneCoin didn’t even have the existing blockchain.
Ignatova defrauded more than $4 billion of dollars from investors worldwide.
In 2017, Ignatova was charged by the U.S. District Court.
And since the same year, she is on the run.
Sooo.. just in case:
Picture from: https://www.bbc.com/news/stories-50435014
THE LOREM IPSUM
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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.