Weekly Newsletter – 25 Nov 2022

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Weekly Summary

  • Markets gain confidence as Federal Reserve hints of slower pace rate hikes
  • Genesis seeks US$1b in emergency funding, warning of bankruptcy if deal fails
  • Hacker steals US$42m from early crypto investor Bo Shen
  • JP Morgan files trademark for a crypto wallet
  • Curve releases stablecoin whitepaper — crvUSD
  • Sui Network went live on its testnet

Industry Stories

Latest Fed minutes summarized: In the latest Fed meeting, a substantial majority of participants judged that a slowing in the pace of increase would likely soon be appropriate. The FOMC has raised interest rates by 75 basis points for four consecutive periods and the markets are pricing in a 75% probability that the next meeting in December will be lowered to 50 basis points.

What’s going on with Genesis and DCG?: Genesis, one of the subsidiaries of DCG, is on the verge of bankruptcy as it reveals $175m locked funds in FTX. Its parent company recently injected $140m equity infusion but it was seemingly not enough as Genesis is seeking an additional $1b in funding after shutting down withdrawals. The company is warning of bankruptcy if it is unable to secure fresh capital.

Early crypto investor Bo Shen Loses $42M to Hackers: Bo Shen, the general partner at Fenbushi Capital, a blockchain VC firm started in Shanghai, said he lost about $42 million through a hack of his personal digital wallet. The cryptocurrencies stolen include USD Coin, Tether, Ether and Bitcoin, according to blockchain security firm SlowMist, as a result of the compromise of the wallet’s recovery phrase. According to Cointelegraph, Shen previously suffered another devastating hack to his personal wallet in 2016.

JP Morgan expanding its footprint into crypto: A few weeks later after JP Morgan took the lead to be the first US bank to perform a DeFi transaction on a public blockchain, the largest bank is now launching its own “J.P. Morgan Wallet”. The patent was officially approved this week and this would pave the way for the bank to offer crypto payment processing, cross-border payments in digital assets, crypto assets transfer on the blockchain and other financial services.

Curve Finance launching crvUSD soon?: Curve just released its long-awaited stablecoin crvUSD whitepaper on GitHub this week. The stablecoin uses a novel innovation model known as lending-liquidating AMM algorithm or “LLAMMA”, a new model that liquidates collateral continuously and re-collateralized positions depending on the price action of ETH. In this way, it prevents collateral from being fully liquidated and removes risks of bad debt.

Sui Network, the new kid on the block: Sui Network, a layer-1 chain built by ex-Meta engineers is widely considered as the next-generation blockchain together with its competitor, Aptos. Both blockchains use a new programming language, Move, which has been rapidly gaining attention. The first wave of the testnet will focus on validators and nodes with the aim to improve decentralized coordination and incident management operations. It will be live for about 2-3 weeks before moving on to “wave 2” of the testnet.

Product Highlight

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Matrixport News

Team Matrixport participated in Markets Group‘s ALTSSG 2022, an investor-centric, and education-focused forum. Matrixport’s Co-Founder & CEO, Yuesheng Ge attended the event and shared how professionals manage risk and access digital assets with our private wealth management team.

Team Matrixport turned up at AIM Summit in Dubai, gathering and connecting investors and managers in the world of alternatives (Hedge Funds, Private Equity, Venture Capital, Private Debt, Digital Assets, FinTech) with global industry leaders.

Matrixport Institutional provides a secure, scalable, and reliable financial infrastructure & services for institutions to manage their risk, portfolios, liquidity and grow and scale their businesses.

Matrixport now supports Mask Network ($MASK)Prom ($PROM) and Band Protocol($BAND) on the platform. Users can now deposit, withdraw, and send the tokens using the app.

Grow and manage your digital wealth with the Matrixport app: 

Stay connected in our community: https://t.me/matrixport