BlockFi will also receive a $400 million rolling credit facility from FTX.US. BlockFi Inks Deal With FTX.US BlockFi has agreed to an acquisition deal with FTX.US. (Long thread!) Excited to…
BlockFi, Celsius, Nexo, and more: tough times can lead to difficult measures, and this year’s bear market is showing no exception to some of these players. Look no further than the current state of affairs for centralized finance (CeFi) platforms, who have been facing substantial headwinds with no end in sight. Now, after days of rumors and reported exploratory deals, reports have emerged that powerhouse crypto exchange FTX is putting together the final ties around an acquisition deal of BlockFi at just a $25M valuation. The news comes after reports emerged that FTX passed on an acquisition deal for Celsius after seeing the CeFi firm’s balance sheet. BlockFi On The Block Should the purchase come to fruition at the reported valuation, it’ll be a major hit for BlockFi equity holders, following a nearly $5B valuation last year in the midst of bull market movement. However, that $25M number could move drastically between today’s reports and closing time – and a successful acquisition will of course take months to close. BlockFi CEO Zac Prince described the number as “market rumors” and outright denied the number, stating in a tweet that “we aren’t being sold for $25M.” FTX is on the shortlist of exchanges that have sought out opportunity in the midst of crypto market downturn, exploring buyouts or equity share purchases for both Celsius and BlockFi in recent weeks, according to a variety of reports. However, based on the hard facts available to the public, the viability and likelihood of a buyout for BlockFi is still difficult to measure. Celsius (CEL) has faced an uphill battle as the platform has still paused withdrawals for customers. | Source: CEL-USD on TradingView.com Related Reading | Ethereum Loses Steam As Exchange Supply Spikes State Of CeFi: Pulse Check How did we get here? Bear market downturn over the past month or two has caused major pain for CeFi platforms, in a flurry of madness that started with Celsius freezing withdrawals earlier this month amid worries of a bank run and lack of immediate liquidity within the platform’s holdings. BlockFi has undoubtedly faced the heat, too, as FTX provided the firm with a $250M emergency line of credit just last week. While reports across the market suggest that BlockFi has several options on the table, it seems that few will lead down a path that spares equity shareholders of value at present time. Nexo has largely stayed quiet during the chaos, but there’s various internet sleuths who have targeted Nexo with content campaigns around the company’s practices as well. Regardless of how you feel about CeFi, the decline of infrastructure in this bear market shouldn’t be celebrated – we’ll see how it all shakes out when the tides recover. Related Reading | USDC Exchange Reserves Rise As Investors Escape From Bitcoin Featured image from Pixabay, Charts from TradingView.com The writer of this content is not associated or affiliated with any of the parties mentioned in this article. This is not financial advice.
FTX plans to buy a stake in BlockFi after previously extending an emergency line of credit.
The CEO of MicroStrategy announced the company has purchased an additional 480 bitcoin, netting a total treasury of 129,699 BTC amid market downturns.
Ethereum has been closing red week after red week for the past 11 weeks. It is the longest red streak that has been recorded in the history of the cryptocurrency, hence, it carried significant implications for the digital asset. Through the decline, it has been one of the worst-hit coins, performing poorly compared to the other cryptocurrencies at this time. However, the digital asset has now closed its first weekly green candle in three months and things are looking up. Better Days Ahead With this recovery has come a renewed interest in the digital asset. Coupled with the fact that the digital asset is now trading above its 50-day moving average, it has now solidified a bull trend for the short term. The activity on the network, though reduced, remains high enough to strike renewed faith in the heart of investors. Related Reading | Market Wallows In Extreme Fear As Bitcoin Struggles To Hold $20,000 However, there are still things that threaten the price of the cryptocurrency going on another bull rally. The Celsius debacle had been one of the major reasons behind the drawdown below $1,000 and remains a very real threat. The lending protocol which has found itself in a tight spot due to some bad trades remains at risk of being liquidated, and rumors continue to circulate that Celsius is planning to file for bankruptcy, which would mean users would not be able to get their tokens back. ETH price sees first green weekly close after three months | Source: ETHUSD on TradingView.com Additionally, Three Arrows Capital’s insolvency had hit the market hard but there is still more to come. This is because it is the leading crypto fund and as such had its hand in a large number of projects in the space, especially DeFi, the majority of which would be significantly affected by the 3AC insolvency. Ethereum To $1,500 Presently, the price of the digital asset is still trailing $1,200 but there are some things rumored in the market that will likely promote a pump in price. One of these is FTX’s supposed acquisition of the trading platform, Robinhood. Now, Robinhood is one of the most popular platforms when it comes to trading crypto. However, it has drawn the ire of the community in the past due to its practices. As such, if it were to be acquired by FTX, a trusted crypto exchange, it would mean that FTX would be bringing Robinhood’s massive user base of more than 22 million to the broader crypto community. Related Reading | Ethereum Fees Touch Monthly Lows As Transaction Volumes Plummet There is nothing definite regarding the acquisition yet but the sentiment among investors regarding it has been good so far. A rally resulting from such an acquisition could easily see Ethereum grow more than 20% and that would put the digital asset above the $1,500 level once more. ETH is trading at $1,221 at the time of this wring. It remains the second-largest cryptocurrency in the space with a market cap of $148 billion. Featured image from CoinMarketCap, chart from TradingView.com Follow Best Owie on Twitter for market insights, updates, and the occasional funny tweet…
Kaiko, a cryptocurrency market data provider, announced today closing $53 million in Series B funding. This round was led by Eight Roads, with participation from Revaia and existing investors Alven, Point9, Anthemis, and Underscore. The new round of funding will enable Kaiko to strengthen its institutional data products and infrastructure. Proceeds of the funding will […]
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Per a Bloomberg report, crypto exchange FTX is currently looking into ways to purchase Robinhood (HOOD), the U.S. trading platform that offers its clients access to the stock and crypto market. The report quotes sources familiar with the initiative. Related Reading | “Bitcoin Is The Only One I’m Willing To Say Is A Commodity”, SEC Chair […]
Colendi, the fastest-growing embedded fintech services platform in Turkey and surrounding regions, today announced it has acquired London-based blockchain settlements and payments provider SETL. Launched in 2015, SETL is an enterprise blockchain company known for its high-profile work with selected central banks and T1 financial institutions. In December SETL announced a collaboration with SWIFT in […]
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On Tuesday, a popular crypto start-up and founders of a leading decentralized exchange of the name Uniswap announced the acquisition of Genie, an NFT marketplace aggregator, as it plans to launch NFT trading on Uniswap soon. “We’re excited to announce that we’ve acquired Genie, the first NFT marketplace aggregator, which lets anyone discover and trade […]
Aristotle would likely have been a Bitcoiner because he recognized the benefits of private property and wealth development through natural trade.
eBay has been one of the first and most prominent E-commerce marketplaces that connect buyers and sellers directly for several years. As an organization, it […]
The firm has entered an agreement with special purpose acquisition company Goldenstone Acquisition Ltd, through which it will pursue the listing.
Decentralized exchange Uniswap to add additional NFT functionality to its platform following the acquisition.
Uniswap announced today that it has acquired Genie, a market aggregator for non-fungible tokens or NFTs. Uniswap Will Introduce NFT Support Uniswap is one of the largest DeFi exchanges in…
Nothing will stop Tesla/SpaceX CEO Elon Musk from publicly voicing his support for meme king Dogecoin (DOGE).