Prices can be in the green for the week, but Crypto Twitter remained focused on the sector’s current liquidity crisis.
This week, the Singaporean exchange Zipmex frozen withdrawalsand Legion Strategies, a hedge fund affiliated with Anthony Scaramucci’s Skybridge Capital, halted redemptions. Meanwhile, Blockchain.com has joined the ranks of Gemini, Coinbase, and OpenSea in announcing collective redundanciesand electric car maker Tesla cashed out 75% of his bitcoin for $936 million.
MicroStrategy CEO and billionaire Bitcoin bull Michael Saylor was quick to point out the hard truths of Tesla’s sale.
If you sell 75% of your bitcoin, you will only have 25% of your #bitcoin left.
At the heart of the bankruptcies, one company is stacking that cash: US law firm Kirkland & Ellis, previously hired by bankrupt crypto lenders Voyager and Celsius to help them restructure, was hired this week by Babel Finance. Last Sunday, Babel suspended withdrawals, citing “liquidity pressures.”
An affidavit from recently bankrupt Three Arrows Capital co-founder Kyle Davies claims that the former crypto hedge fund owes his wife $65 million and $5 million to co-founder Su Zhu. Davies and Zhu, effectively silent for five weeks, said Bloomberg what they were do with investor funds before it all comes crashing down.
Zhu Su is asking for $5 million from 3AC’s bankruptcy, and 3AC co-founder Kyle Davies’ wife is asking for $65 million.
On a more optimistic note, blockchain-based file-sharing network LBRY beat the US Securities and Exchange Commission in court. I guess all non bitcoin tokens on the blockchain are not security after all, eh Gary Gensler?
The judge was skeptical of many of the SEC’s claims.
The SEC was forced to admit that the substantial use of LBRY was not speculative.
Ruling in 4-8 weeks on summary judgment, trial seems unlikely
On Wednesday, the hit sandbox game Minecraft, published by Microsoft, announced that it block the use of NFTs and blockchain technology on its servers and prohibit the creation of NFTs based on its assets. Axie Infinity co-founder Jiho was bullish on the news.
Minecraft has banned NFTs.
This is a great sign of adoption. Just as banning books makes them more popular, the Web2 backlash against NFTs will set the stage for viral growth. https://t.co/2bkb7PznOF
The Minecraft-based NFT Worlds project tweeted a lengthy protest.
innovation, player experience and creators. We believe that an open, free, and evolved version of what Minecraft has brought to the world will be a brighter future for creators, developers, and ultimately gamers.
Popular NFT marketplace OpenSea has engaged in a sassy war of words with a Solana-based rival.
Twitter user @8892OS, who claims to be an “art dealer” and provider of “emergency liquidity aid”, allegedly scammed someone for a lot of Ethereum, and this person. .. sent more?
Russian-born Ethereum creator Vitalik Buterin has been thanked for his humanitarian efforts to help Ukraine repel Vladimir Putin’s ongoing invasion.
And finally, GameStop’s new NFT platform has come under fire for listing an NFT clearly inspired by Associated Press photographer Richard Drew’s world-famous image of a 9/11 victim known as ” The Falling Man”.
The NFT appears to have since been delisted.
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