Weekly Newsletter – 20 Jan 2023

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Weekly Summary

  • 3AC, CoinFLEX Co-Founders Looking to Raise $25M for New Crypto Exchange
  • Crypto Lender Genesis Preparing to File for Bankruptcy This Week
  • ETH Becomes Deflationary Amid Weekend Rally; BTC Price Cancels FTX Losses
  • AWS Partners with Avalanche to Scale Blockchain Solutions for Enterprises & G’ovts
  • US Charges Crypto Exchange Bitzlato With Laundering $700M

Industry Stories

3AC Co-Founders Want to Launch Their Own Crypto Exchange: The founders of Three Arrows Capital (3AC), Su Zhu and Kyle Davies, are reportedly trying to raise money for a new crypto exchange in partnership with Coinflex co-founders, Mark Lamb and Sudhu Arumugam. According to a pitch deck, they are seeking $25 million from investors. The project is temporarily named ‘GTX’, and aims to be a public marketplace for crypto claims. Coinflex exchange halted withdrawals in June 2022 and resumed partial withdrawals a month later, around the same time when the failed crypto hedge fund 3AC was forced into liquidation.

Crypto Lender Genesis Bankruptcy Filing Expected This Week: According to a report from Bloomberg News on Wednesday, Genesis Global Capital is planning to file for bankruptcy as soon as this week. The crypto lender froze customer redemptions on November 16, as part of the broader fallout in the industry following FTX’s collapse, and DCG — the conglomerate behind Genesis — which suspended quarterly dividends this week to save cash. Moreover, DCG’s crypto trade publication CoinDesk, is also exploring a potential sale, hiring advisors at Lazard to weigh a move that would remove it from Barry Silbert’s Digital Currency Group, according to WSJ.

ETH Becomes Deflationary Amid Weekend Rally: The crypto market has started 2023 on a positive note. Following U.S. fresh economic data, ETH rose to a three-week high, rallying alongside the broader crypto market and stocks. It has turned deflationary as the gas fees hit 15 gwei amid the recent price rally. Bitcoin price also canceled the FTX set-back, bouncing back above 20,000 level. However, it’s warned that the mining difficulties have climbed to record high, 37.59 T.

Amazon Web Services Users Can Now Launch Avalanche Blockchain Nodes: Amazon Web Services (AWS) has partnered with Ava Labs, the developer of layer-1 blockchain Avalanche, to help scale blockchain adoption across enterprises, institutions and governments, TechCrunch reported. AWS will support Avalanche’s infrastructure and decentralized application (dApp) ecosystem with one-click node deployments, through its marketplace. The partnership intends to offer crypto infrastructure and facilitate the node launches and management on Avalanche.

U.S. Charges Crypto Exchange Bitzlato With Laundering $700M: In Wedneday’s press conference, the U.S. Justice Department (DoJ) and Treasury Department announced it has charged Bitzlato Ltd. with money laundering and arrested its founder in Miami. According to the DoJ, the Hong Kong-registered exchange allowed users to trade cryptocurrencies without verifying their identity, which turned Bitzlato into a hotbed for criminal activity.

Service Highlight

Matrixport now supports the leaderboard feature for Grid Trading. Users can easily view every day’s most popular grid strategy ranked by yield, and copy the trades to make profits with one click. The leaderboard is refreshed at 00:00 UTC daily.

Grid Trading is a quantitative trading strategy, where profits are generated from market fluctuations by automatically buying low and selling high within a certain price range.

– Keep up with market prices 7/24; reduce impulsive investment decisions;
– By setting a reasonable price range, investors are likely to earn stablecoins, or buy cryptocurrencies strategically;
– Seek profit during market turbulence and avoid idle funds.

The final profit of Grid Trading is composed of the profit of trading in grids (buying low and selling high) and the floating PnL of your pair’s positions. Before placing an order, choose a proper trading strategy that suits you.

>> Copy popular strategies with one click

Matrixport News

Matrixport’s Markus Thielen, Head of Research, joined CNBC’s Street Signs Asia to explain the mood post-FTX going into 2023, and how greater regulatory clarity can be a positive development for the rebound.

Watch the full video here.

Matrixport’s Benjamin Stani, Director of Business Development, shares with Forkast.News views on the upcoming ETH Shanghai Upgrade, addressing that ” this should be stressed as the last final piece for the major transition from POW to POS and it’s making ETH a lot more diversified and a lot more stable and robust as a long-term asset.”

Learn more from here.

With The Trade News, Toby Norfolk-Thompson, Matrixport’s Chief Investment Officer, sees the opportunity for #DeFi to make further inroads across the crypto industry.

“We believe that decentralised finance (DeFi) is a game changer with the potential to financialise all aspects of life and collapse operational costs and risk. As DeFi increases in systematic importance, regulators around the globe will be motivated to develop qualifications and certifications for digital asset financial services to instil investor confidence in decentralised markets.”