Crypto News Bites 2022/12/16
Hong Kong crypto futures ETFs debuts today / Trump NFT collection / UN sends USDC to refugees / CORZ +72% / MSFT bans cloud crypto mining / Trader Gyoza camping
Top News Summaries
First Hong Kong crypto futures ETFs receives $75m interest, to begin trading today.
Trump announces 45k NFT collection worth $99 each. UN to send USDC to displaced Ukranians.
Core Scientific +72% despite markets dropping over 2.5%. Microsoft bans crypto mining on cloud services.
Trader Gyoza camping next week
More details, news and analysis below! Also follow me on Twitter!
Market Overview
S&P & Nasdaq dropped 2.5% & 3.4% respectively on renewed fears that Fed’s fight against inflation will push the US economy into a recession, as US November retail sales fell more than expected. Crypto markets were dragged along, interestingly BTC -2.5% and ETH -3.4% mirroring S&P & Nasdaq’s drop. Despite the move lower, liquidations in crypto was on the low side, indicating the lack of leverage and also the lack of conviction in markets. This week should mark the final burst of trading activity for the rest of the year in equities markets, as traders and investors go into the holiday season. Trader Gyoza will also be taking a few days off next week to go camping. Take a break from trading every now & again to recharge, markets will always be there.
Defying the market drop, BTC miner Core Scientific CORZ 0.00%↑ continues to rally and finished the day +72% as it’s largest creditor proposed a $72m financing lifeline for the firm 2 days ago.
Adoption
Hong Kong will list its first exchange traded fund (ETF) tracking BTC & ETH futures today, the tickers are 3066 HK & 3068 HK respectively. The ETFs have received $54m and $20m initial investments respectively. The city aims to reclaim its status as the Asian crypto hub during a time when rival city Singapore is tightening rules for the sector.
UN to send displaced Ukrainians USDC to convert into local currencies.
Former US President Donald Trump announces his NFT collection… Based on the Polygon MATIC blockchain, the 45k collection is priced at $99 each.
Microsoft bans cryptocurrency mining on cloud services. Users must obtain a written pre-approval from the firm to use Microsoft Azure for mining cryptocurrencies.
NFT marketplace Magic Eden adds gaming support for Polygon NFT, provides minting & trading. I believe that trend of mutli-chain applications will eventually evolve into being blockchain agnostic, and users will simply interact with the app without knowing which chain they are on.
Regulation
US Senator Elizabeth Warren submits crypto know-your-customer bill in wake of FTX collapse. As mentioned previously, the fallout from FTX will trigger increased and much more stringent rules.
Dutch Central Bank said KuCoin is operating without a license in the Netherlands. Customers of KuCoin and MGL are not in violation of the law, the central bank noted.
Crypto.com receives license as a payment institution in Brazil, the first crypto exchange to receive one in the country.
FTX Fallout
Continue to find skeletons in closets. Crypto trading firm QCP Capital has at least $97m stuck on FTX.
FTX Bahamas co-CEO Ryan Salame was the whistleblower on FTX, tipping off Bahama’s regulators.
Follow the Money
Aztec Network, a web3 privacy firm looking to encrypt Ethereum, raises $100m from investors including a16z, Hash Key, King River.
Blocknative, an Ethereum infrastructure firm, raises $15m from investors including Blockchain Capital.
Very rushed, Trader Gyoza out of time today!
Ongoing Trends
Bankruptcy of 2nd largest crypto exchange FTX causes contagion risks. How many funds & protocols have yet to announce their exposure? Learn to self-Custody!
Decentralization no longer just a tagline. Centralized to decentralized movement for remaining crypto traders & investors.
Global crypto adoption and increased regulation, launches of Centralized Bank Digital Currencies.
Bitcoin mining industry consolidation as margin squeezed on lower BTC prices and higher costs (electricity, funding, hashrate difficulty etc).
Macro: US CPI peaked & slowing of Fed rate hikes / Russia Ukraine war may be thawing / China reopening from zero-Covid policy
Tokens Mentioned Today
BTC ETH