BTC Struggles to Break $20K as More Lenders Face Trouble

July 4, 2022

The latest moves in crypto markets, in context

Was this newsletter forwarded to you? Sign up here.

Supported by

Good morning, and welcome to First Mover. I'm Lyllah Ledesma, here to take you through the latest in crypto markets, news and insights.

Price Point: BTC remains below $20K and Argentinians are buying stablecoins more than normal as their economy minister resigned over the weekend.
Market Moves: Solana DeFi protocol, Crema, lost $8.8 million in an exploit on Sunday.

This newsletter was produced by Parikshit Mishra. Please let us know what you think of First Mover by replying to this email.

Price Point

Bitcoin (BTC) was up 2% on the day with U.S. equity index futures and European bonds falling as investors worried about the threats of deteriorating economic growth and inflation.

Germany also reported its first monthly trade deficit in three decades as surging import prices have caused a shortfall in the export-reliant nation, according to Bloomberg.

Bitcoin is trading down 6% over the last 7-days, at around $19,400.

Ether (ETH) also suffered a downfall over the last 7-days, trading down 10%. ETH's price weakness continues as "The Merge" fast approaches. The Merge will see the network go from a proof-of-work platform, to proof-of-stake.

The once-mighty crypto hedge fund, Three Arrows Capital, filed for bankruptcy on late Friday after weeks of speculation that it was functionally insolvent.

American-Israeli crypto lender, Celsuis, laid off some 150 employees over the weekend as it battles a financial crisis which saw it halt customer withdrawals last month.

Coinbase, the U.S. crypto exchange, said in a report that recent selling of newly minted bitcoin by crypto miners does not add any significant market pressure. If all newly issued bitcoin were sold onto the market each day, it would equate to only 900 BTC of selling pressure.

Over in Latin America, Argentina's economy minister, Martin Guzman, resigned on Saturday. This caused citizens to purchase up to three times as many stablecoins over the weekend than they usually do, crypto companies in the country told CoinDesk.

Separately, a survey from Mastercard reported that over 51% of Latin Americans made at least one transaction with cryptocurrencies between March and April of this year.

Bitcoin (BTC)

See the latest price here

Ether (ETH)

See the latest price here

Market Moves

By Shaurya Malwa

Solana-based liquidity protocol Crema Finance had more than $8.78 million worth of cryptocurrencies stolen from its platform in an attack over the weekend, developers said in a tweet.

Crema said it had suspended its smart contract after the exploit. The protocol allows liquidity providers to set specific price ranges, add single-sided liquidity and conduct range order trading. This makes for a sophisticated and decentralized trading platform.

"We've been closely working with several experienced security institutes and relevant organizations to track the hacker's fund movements," the developers said in a tweet.

Value locked on Crema plunged to $3 million on Monday from over $12 million on Saturday following the exploit, data shows. Crema has seen trading volumes of $1.34 billion since its inception in January.

The attacker started by creating a fake tick account. A tick account is "a dedicated account that stores price tick data in CLMM," the developers said, referring to Crema's market making protocol. After that, the attacker exploited a command by writing the data on the fake account and circumventing security measures.

Read the full story here: Solana DeFi Protocol Crema Loses $8.8M in Exploit.

The future of finance is inherently digital.

As digital assets, technology, and finance continue to merge, we believe the resulting digital economy offers a more equitable, accessible, and inclusive financial future.

Grayscale^® Future of Finance (symbol: GFOF) is an ETF that seeks to invest in the companies and technologies that are integral in evolving the financial system.

Backed by an index that combines the expertise of Grayscale, a leader in the digital asset ecosystem, and Bloomberg, a trusted authority in finance, GFOF seeks to define the "future of finance" in one thematic fund.

What better way to plan for tomorrow than by investing in the future?

Search symbol: GFOF in your brokerage account to start investing. Learn more here.

Investing involves risks and the possible loss of principal. GFOF is distributed by Foreside Fund Services, LLC and Grayscale Advisors, LLC is the adviser. For a copy of the latest prospectus, head to the GFOF landing page. Risks: Future of Finance companies rely heavily on the success of the digital currency industry, and other developing technologies that seek to disrupt or displace established financial institutions.

Crypto Prices

The following are the biggest movers in the CoinDesk 20 digital assets over the past 24 hours:

Biggest Gainers

Asset	Ticker	Returns	DACS Sector
Avalanche	AVAX	+4.5%	Smart Contract Platform
Decentraland	MANA	+4.2%	Entertainment
Terra	LUNA	+2.7%	Smart Contract Platform

Biggest Losers

There are no losers in CoinDesk 20 today.

Sector classifications are provided via the Digital Asset Classification Standard (DACS), developed by CoinDesk Indices to provide a reliable, comprehensive, and standardized classification system for digital assets. The CoinDesk 20 is a ranking of the largest digital assets by volume on trusted exchanges.

We're Cross River Crypto. We partner with today's most innovative crypto companies to offer banking solutions, including fiat on/off ramps.

Whether you are building a crypto exchange, an NFT marketplace, or metaverse, Cross River provides an API-based all-in-one platform that enables:

Banking-as-a-Service
ACH & Wire transfers
Push-to-Card Disbursements
Real-Time Payments
Virtual Accounts & Subledgers

Building the next big thing in crypto? Request your fiat on/off ramp solution now.

Latest Headlines

CoinShares Completes Napoleon Acquisition, Can Now Offer Products Across EU
The acquisition of Napoleon Asset Management was subject to approval by the AMF, which was granted on June 28.
Coinbase Says Miners' Sales of Newly Minted Bitcoins Don't Add Market Pressure
If all newly issued bitcoin were immediately sold onto the market each day, it would equate to only 900 BTC of selling pressure, the report said.
WonderFi Closes Acquisition of Crypto Trading Platform Coinberry
The Canadian crypto firm says it's open to more deals for firms hit by the crypto winter.
Crypto Lender Celsius Cuts 150 Jobs Amid Restructuring: Report
Withdrawals are still paused and the company has hired restructuring experts as it faces a financial crisis.
Lending Platform Vauld Looks to Restructure Amid Crypto Downturn, Suspends Transactions
Vauld has seen withdrawals of around $198 million since June 12.
Solana DeFi Protocol Crema Loses $8.8M in Exploit
The app developer had bought 940.89 BTC and 31,000 ETH in spring of 2021.
Software Firm Meitu Lost Up to $52.3M in H1 Due to Slide in Crypto Prices.
The last purchase by the Central American country had been in May.
Argentines Take Refuge in Stablecoins After Economy Minister Resignation
Major crypto exchanges reported that consumers purchased up to three times as many stablecoins over the weekend as they usually do amid a brewing economic crisis.

What to watch:

CoinDesk TV show "First Mover," will return on July 6.

Where innovators, changemakers, investors and leaders present their best ideas for investing in the future of the Web 3, digital assets, blockchain and crypto ecosystems. Register now.

Disclaimer: The information presented in this message is intended as a news item that provides a brief summary of various events and developments that affect, or that might in the future affect, the value of one or more of the cryptocurrencies described above. The information contained in this message, and any information liked through the items contained herein, is not intended to provide sufficient information to form the basis for an investment decision. The information presented herein is accurate only as of its date, and it was not prepared by a research analyst or other investment professional. You should seek additional information regarding the merits and risks of investing in any cryptocurrency before deciding to purchase or sell any such instruments.