Come every Saturday, Hodler’s Digest will help you keep track of every important news story happening this week. The best (and worst) quotes, adoption and regulation highlights, major coins, forecasts and more – a week on Cointelegraph in one link.
This Week’s Top Stories
3AC founders open up about their relationship with Terra co-founders, blaming self-confidence for the downfall
After five weeks of being AWOL, the founders of defunct crypto hedge fund Three Arrows Capital (3AC), Su Zhu and Kyle Davies, have resurfaced via an interview with Bloomberg. The duo admitted to operating the company with confidence due to years of bull markets. He also noted that he was very close to the founder of Terra Do Kwon and, despite running a major hedge fund, was surprised by the highly risky algorithmic stablecoin in the project. Both Zhu and Davies said they ignored some of the red flags because of the kinship.
Minecraft developer Mojang Studios banned the integration of nonfungible tokens (NFT) in its popular flagship game this week. The company cites problems with NFTs related to price speculation, exclusions and carpet pulling. “To ensure that Minecraft players have a safe and inclusive experience, blockchain technology is not allowed to be integrated into our client and server applications,” the company said. Crypto-skeptic gamers too called Fornite developer Epic Games to follow suit, but the company said it “definitely will not” impose a similar ban.
The US Securities and Exchange Commission (SEC) has listed nine crypto assets as securities as part of an insider trading case against former Coinbase product manager Ishan Wahi. The SEC is called Powerledger (POWR), Chromatika (KROM), DFX Finance (DFX), Amp (AMP), Rally (RLY), Rari Governance Token (RGT), DerivaDAO (DDX), LCX, and XYO. These are just nine out of a total of 25 different assets allegedly used for insider trading.
Following the news Tesla sold 75% of its Bitcoin in Q2 for an estimated $936 million, experts remain relatively unfazed. Markus Thielen, chief investment officer at digital asset manager IDEG, told Cointelegraph that Tesla is likely to sell BTC as “it is seen as a distraction from the core business.” Financial advisory site Finder’s stock trading expert, Kylie Purcell, suggests that many companies have moved to “raise capital in cash currencies” amid the current macroeconomic climate. Some Twitter users are even calling the move a “nothingburger,” suggesting that Tesla’s move may be insignificant.
On Tuesday, the Amazon.eth domain ENS belonging to an anonymous OpenSea user got a 1 million USD Coin offer. It has become a common practice for speculators to register ENS domains in the name of well-known entities in the hope of making a big payday. The offer went unanswered, and it is unclear why so much money was ignored. The next biggest bid on the domain was just 6,300 USDC.
Winners and Losers
Among the 100 largest cryptocurrencies, the top three altcoin gainers of the week were Ethereum Classic (ETC) at 71.03%, Bitcoin Gold (BTG) at 50.95% and Lido DAO (LDO) at 48.60%.
The three altcoin losers of the week were TerraClassicUSD (USTC) at 17.08%, Elrond (EGLD) at 5.05% and Computer Internet (ICP) at 1.85%.
For more information on crypto prices, be sure to read on Cointelegraph market analysis.
Most Memorable Quotes
“All Ethereum killers in the past have been unsuccessful, and I don’t expect them to succeed.”
Freddy ZwanzgerEthereum ecosystem lead at Blockdaemon
“Developers should be free to decide how to make games, and you should be free to decide whether to play them.”
Team SweeneyFounder and CEO of Epic Games
“Don’t try to fix fraudsters or Nazis or terrorists. They will stay. They were there before the internet and they will be there after.
Tomer Poranvice president of business development at ActiveFence
“Crypto is revolutionizing how people use the web, as we’ve seen Chrome extensions do. If we can prove this on mobile devices, it will be a game changer.”
Anatoly Yakovenkoco-founder of Solana
“Upgrading Merge is like changing the engine on an airplane mid-flight. We overhauled everything from the consensus algorithm to the execution environment.
Vasily Shapovalovco-founder of Lido
“I wouldn’t be surprised if Tesla keeps nibbling on Bitcoin when Bitcoin stabilizes, otherwise it won’t sell 100%.”
Mark Thielenchief investment officer at IDEG
BTC price could hit $120,000 next year, according to Bitcoin trader turned TechDev on Twitter. He cited the True Strength Index (TSI) for BTC as proof, a metric that uses some basic calculations to determine how overbought or oversold the asset is at a given price. According to TechDev, the decline in asset prices since November continues the trend, and if the historical pattern is repeated, BTC could pump to a peak between $80,000 and $120,000 next year.
FUD from Sunday
Gemini, the crypto exchange owned by Cameron and Tyler Winklevoss, reportedly cut another 7% of its employees this week. The move comes just two months after the company laid off 10% of its employees due to the current bear market. The report comes from TechCrunch, which cites a source close to the company who noted that Gemini had 68 fewer employees on the company’s Slack channel this month.
This week, the US Federal Bureau of Investigation issued a public warning about fake crypto apps. The FBI estimates that the app has defrauded investors of $42.7 million so far. Cybercriminals are said to be creating apps using the same logos and branding as legitimate crypto companies to scam investors. The FBI says that 244 people have fallen victim to the fake app.
Taking a cue from companies such as Celsius and Voyager, SkyBridge Capital has delayed withdrawals from its crypto-exposed Legion Strategy fund. Founder Anthony Scaramucci said the decision was made to “temporarily delay until we can raise capital in the fund.” He said there was “certainly no fear of any kind of liquidation.”
Cointelegraph’s best features
Widely known as the inventor of digital cash, David Chaum is sometimes known as the “father of online anonymity” or the “godfather of cryptocurrency,” whose work inspired the mythical group called Cypherpunks from which Bitcoin emerged.
When posting NFT artwork on social media, the new owner may be violating intellectual property laws. A “wave of litigation has begun.”
It is difficult to overestimate the role of blockchain technology in achieving sustainability and mitigating the climate crisis.