Three Arrows Capital Deals with a Notice of Default for Failing to Repay Loans of More than $650 million

Jenson Nunez
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Three Arrows Capital Deals with a Notice of Default for Failing to Repay Loans of More than $650 million

Voyager Digital revealed a notice of default to troubled crypto fund Three Arrows Capital (3AC) over loan debt.

Failing insolvent cryptocurrency hedge fund Three Arrows Capital has received a notice of default for failing to repay loans registered at more than $650 million.

 According to a statement made on Monday, cryptocurrency platform Voyager Digital, which brings up to 12% returns, highlighted the breach notice. According to the report, Voyager filed the notice to Three Arrows Capital, better known as 3AC, for a debt of 15,250 bitcoins and $350 million on USDC.

The equipped crypto fund has apparently failed to make the required repayment of its loans to the network. Voyager highlighted that despite these drawbacks, it keeps carrying out its operations and fulfilling customer orders and withdrawals.

The company also revealed that it had accessed $75 million from a credit facility provided by Alameda Ventures, with the possibility of drawing further on these resources as required. Voyager said it has $137 million in cash and digital assets under control.

Voyager CEO Stephen Ehrlich said in the statement that they are working hard to strengthen their balance sheet and seeking options to meet customer demands for liquidity.

Voyager Harmed by 3AC

The news comes as Three Arrows Capital faces insolvency difficulties due to multi-million dollar liquidations; The reputable Singapore-based fund liquidated its positions this month after failing to honor margin calls.

The fund’s co-founders, Su Zhu and Kyle Davies said in an interview with the Wall Street Journal that the firm was going through considerable losses after the crash of Terra and the recent broader slump in the digital currency market. 3AC had invested more than $200 million in LUNA, the Terra token that went down to zero in May.

Davies explained to the Wall Street Journal that the company expects to arrange an agreement with creditors that will give it more time to appear with a new strategy.

Voyager Digital highlighted last week that it was lowering the limits allowed for its daily withdrawals from $25,000 to $10,000, with a maximum of 20 extractions, after saying it had exposure to 3AC. The company’s share price fell more than 60% after highlighting the exposure to the crypto fund and revealing the decision, as reported by CoinDesk.

Toronto, the Canada-based Voyager, explained in its statement today that it hired investment banker Moelis & Company as a financial advisor to manage the current situation.

By: Jenson Nuñez

Terra Classic USTC Shows Signs of Life and Experienced an Increase of more than 230%

Jenson Nunez
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0
Terra Classic USTC Shows Signs of Life and Experienced an Increase of more than 230%

The controversial stable coin of the Terra space known as UST, USTC, got listed as the most prominent winner for the day this June 27 after an unexpected volume of operations through FTX and KuCoin.

Amid the fluctuation in prices that is already common in the market at this time, Bitcoin and the most significant altcoins went down on June 27. However, one of the surprises came from the problematic UST, the stable coin of the original Terra network that now gets called USTC, which capitalized on an unexpected increase in the last day.

The Increase of USTC this June 27

A report examined the surprising increase observed in the stable coin USTC, a token that traded around USD 0.037 per unit, which is a number that shows an increase of more than 230% compared to June 26.

According to data from various media outlets, the stable coin that for many had already vanished showed an unexpected behavior in the last 24 hours.

The coin marked an unusual rise since June 26, and even though it crumbled down on various occasions, shortly before 8:00 a.m, it reached its highest peak, corresponding to at least USD 0.043, the point from which it started to fall progressively until approaching the highlighted values.

An Irregular Trading Volume

After checking out the market data, the daily trading volume is over 436%, topping $95.4 million. Most of that capital got moved through commercial activities executed on the FTX exchange, which holds more than 90% of the crypto activities applied throughout the day.

About USD 83.4 million got moved on said network only in buy/sell orders of USTC for US dollars, and at least USD 7.2 million in the exchange of USTC for USDT (Tether).

On the other hand, the KuCoin exchange also registered an unusual trading volume since at least USD 17.3 million got traded in the exchange of USTC for USDT.

The Crypto market Crumbled Again

Leaving aside what happened with the USTC, the crypto market crumbled again this June 27, and the behavior of the most prominent digital assets this fall got determined this way: Bitcoin traded this June 27 at around $20,729 per unit, falling by 2.3%.

For its part, Ethereum (ETH) also lost 2.8%, trading at about USD 1,186. On the other hand, Solana (SOL), Cardano (ADA), Polkadot (DOT), and Avalanche (AVAX) went down with falls registered at 3% and 5% approximately. And finally, TRON (TRX) got listed as one of the few gainers on the day and experienced a rise registered at 5.3%.

By: Jenson Nuñez

Uphold Suspended Activities in Venezuela, and Brave browser Rewards Also Say Goodbye

Jenson Nunez
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0
Uphold Suspended Activities in Venezuela, and Brave browser Rewards Also Say Goodbye

The farewell of the Uphold exchange keeps generating more consequences among Venezuelans. Brave users can continue to hold the BAT token until they count on a new service.

Uphold, the exchange for moving bitcoin and other cryptocurrencies, revealed on June 23 the suspension of its activities in Venezuela, leaving hundreds of users without services to carry out their financial activities.

However, the departure of the exchange also leaves Venezuelans without the possibility of receiving the rewards that the Brave browser gave them.

As highlighted on its official site, Brave suspended all trackers and advertisements thrown by web pages. This action obstructed the ability to view ads and receive rewards in the form of a Basic Attention Token.

Brave rewards get housed just like loyalty points awarded by other entities. These BAT tokens can also get redeemed for prepaid gift cards, used to tip content creators, or saved up for later exchange on an exchange like any other digital currency.

Accumulating BAT and exchanging them for the local currency seems the most accessible alternative for many Venezuelans since a few extra dollars are not bad, especially in a country harmed by the effects of inflation.

However, the only alternative the Venezuelan population had to extract their rewards from the Brave browser was a platform like Uphold, since the other option, the Geminis exchange, does not carry out activities in the nation.

A publication in the Brave community highlights that the team behind the browser would be looking for new alternatives so that Venezuelan citizens keep receiving their rewards in BAT. However, there are too few chances to achieve this goal.

Members of the community expressed that there are many obstacles in the way, so it is hard to reach a new agreement that brings aid to Venezuelans and allows them to get the service of exchanging their BAT for bolívares back.

The Brave community pointed out that the only option that the Venezuelan citizens have is to wait for an agreement to re-take their activities linked to the awards. Users will continue to receive rewards for viewing ads, but they can not exchange their BATs for bolívares; this obstruction harms their economic structure.

Users said patience gets required until these flaws get fixed. They still don’t know how long it will take since it can be months or even years.

By: Jenson Nuñez

According to the CNMV, Three out of Four Spaniards Already Know about Bitcoin and Digital Assets

Jenson Nunez
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0
According to the CNMV, Three out of Four Spaniards Already Know about Bitcoin and Digital Assets

The standard investor in digital assets is male and around 38 years old. The research also presented that eight of ten Spaniards have not invested in digital assets.

Three-quarters of the Spaniard population have heard of or know the existence of the cryptocurrency sector; this statement is what the National Securities Market Commission (CNMV) says about it. A report revealed by the entity gives valuable information on how bitcoin and digital assets have permeated Spanish society.

The research, revealed under the title: Study on cryptocurrencies and the effectiveness of the measures encouraged by the CNMV, also presents the grade of knowledge the people have about digital assets.

Only 1.4% of those who attended the survey highlighted they have enough knowledge about Bitcoin. 6.9% assured that their awareness of the subject is standard. And 22.2% claimed they know the fundamentals of digital currencies.

The dominant group counts for 45.3% and has heard the words “bitcoin” or “digital assets” in some media outlets. Finally, 24.2% of those surveyed expressed that they are completely unaware of information or the existence of the sector.

In any case, the figures are quite different when the 1,500 Spaniards taking part in the survey got asked if they invested or will invest in bitcoin or digital assets. 82.9% responded they did not invest in digital assets and will not. There are 10.2% who could invest in the future and 6.8% who have bought digital assets.

Who Invests in Bitcoin and Digital Assets in Spain?

The organization achieved these results due to a study applied to 300 investors, which got selected as a model to represent the current situation with digital assets in Spain. Most investors in Spain invest less than 5% of their capital in these cryptocurrencies.

Other data that the research revealed is that most investors in digital assets have university studies, and their general profit is more significant than monthly 3,000 euros.

In addition, almost all of them make purchases of digital assets only occasionally when opportunities arise, when they consider good entry points or when they have money to invest. Plans such as Dollar-Cost Averaging are not among the most widespread in Spain.

Spanish Investors Know the Warnings of the CNMV

Most people who know about digital assets know the warnings the CNMV has made about these tools. The agency considers these assets a financial bubble that could harm the economy.

Days ago, Rodrigo Buenaventura, president of the Commission, expressed that most investors “have come together because of the promising results of those who entered at the beginning specifically through currencies such as bitcoin.

Analytics firm Glassnode shows that even with the recent price drop, more than half of Bitcoin addresses are in profit (measured in fiat money).

By: Jenson Nuñez

Bitpanda fired at least 270 employees and joined a wave of cuts in digital asset entities

Jenson Nunez
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0
Bitpanda fired at least 270 employees and joined a wave of cuts in digital asset entities

The employees received an email giving the reasons and steps to take after their dismissal. Bitpanda ensures that there will be no more layoffs by maintaining a staff of 730 people.

Bitpanda, a European exchange for bitcoin (BTC), digital currencies, and other assets, has laid off 270 of its workforce to avoid an imminent recession. The company admits that it hired more personnel than it should have, which increased its operational costs.

Among the reasons for the dismissal, according to a statement given by the entity, is an excessive workforce staff which led these companies to suffer internal damage due to costs.

This situation took effect because, given the high demand for their products and services, encouraged by the rise in bitcoin prices, they committed coordination and hiring failures that made them have a larger payroll than they could maintain.

The entity also explained that it would intend to keep a workforce of 730 employees, who got guaranteed that there would be no more layoffs shortly.

Along with the layoffs, the statement also revealed that all hiring processes got immediately suspended. Many people were in the recruitment stage, but these procedures got instantly canceled.

Layoffs on the Rise at Crypto Firms

The entry of a possible recession, on which analysts highlight that there is more than a 50% chance of happening, made technology companies seek alternatives to protect themselves from the rude situation.

Companies like Tesla or Netflix cut their payroll to resist an imminent recession. Regarding the crypto space, Bitpanda was the only exchange to lay off staff. Other networks such as Coinbase and BlockFi also followed this type of procedure.

Regarding Coinbase, it considerably modified its growth projections for this year, encouraged by the current situation digital assets are experiencing in the market.

The recession directly harms the share price of large technology entities (including exchanges), which have lost up to 70% of their value this year. Coinbase saw how its shares abruptly went from trading USD 200 in January to hardly over USD 60.

This panorama could be encouraging the recent mass layoffs, as entities resort to these practices as methods of cutting budgets and covering operations costs.

Other exchanges making cuts in their workforce have been the Mexican company Bitso with more than 80 workers terminated, and the Argentine exchange house Buenbit, which decided to carry out massive layoffs of its staff. This scenario does not cover only companies in the cryptocurrency sector; the technology and financial companies in Latin America are also struggling with the consequences of this harmful situation.

By: Jenson Nuñez

ANZ Stablecoin Used to Buy Tokenized Carbon Credits

Audy Castañeda
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ANZ Stablecoin Used to Buy Tokenized Carbon Credits

ANZ institutional partner Victor Smorgon used A$DC to buy units of Australian carbon credits from Blockchain-based carbon trading platform BetaCarbon.

ANZ’s A$DC stablecoin has been used to purchase tokenized carbon credits in Australia, providing another critical test of the asset’s use cases in the local economy.

In March, the “Big Four” bank became the first major Australian financial institution to mint its own stablecoin after overseeing a pilot transaction worth AUD20.76 million between Victor Smorgon Group and asset manager of Zerocap digital assets.

The ANZ stablecoin is fully collateralized by AUD which is held in the reserved account managed by the bank. Until now, A$DC transactions have been done primarily through the Ethereum Blockchain.

Latest ANZ Transaction

According to a Monday report from the Australian Financial Review (AFR), the latest transaction was made by his long-time institutional partner Victor Smorgon to buy Australian Carbon Credit Units (ACCUs).

The carbon credits were tokenized and provided by BetaCarbon, a Blockchain-based carbon trading platform that issues digital assets of value dubbed BCAU, representing one kilogram of carbon offsets per credit.

The transaction also saw the participation of Zerocap again, which provided liquidity and market-making services by exchanging the A$DC sent by Victor Smorgon into USD Coin (USDC) so that BetaCarbon could accept the transaction. However, further details regarding the value of the transaction have not been disclosed.

ANZ Spokesperson Adds Details

As for the bank’s prospects in the cryptocurrency and Blockchain sector, ANZ’s head of banking services portfolio Nigel Dobson told the AFR that the company is looking at blockchain technology as a means to “transition from the infrastructure of the financial market” and is not necessarily interested in speculative crypto assets per se:

“We see that this is evolving from being based on an Internet protocol to one of ‘tokenized’ protocols. We believe that the underlying infrastructure – efficient, secure, and public Blockchains – will facilitate transactions, both those we understand today and new ones that will be more efficient.”

Dobson echoed similar sentiments at the Chainalysis Links event in Sydney on June 21, noting that ANZ “immediately banned the word cryptocurrency from all of our internal communications and narratives” when it began exploring Blockchain technology a few years ago.

Dobson added that the bank has explored multiple use cases for Blockchain technology, such as supply chain tracking and providing on-ramps via stablecoins for institutions to invest in digital assets. However, Dobson suggested that tokenized carbon credits were a key area the bank has been preparing for, by stating that, “Another area where we have a strong position in terms of sustainability is where we believe tokenization of carbon credits and tokenized asset-driven markets and tokenized value exchange will be really efficient.”

Earlier this month, ANZ ruled out offering any cryptocurrency exposure to retail investors due to their lack of financial knowledge.

Maile Carnegie, a retail banking executive, noted at the Australian Financial Review Banking Summit that “the vast majority of them don’t really understand the basics of financial wellness.”

By Audy Castaneda

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