Crypto News

Reports: FTX Targeting BlockFi Purchase At $25M

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.

Bitcoin

Binance Taps Cristiano Ronaldo For New NFT Deal

While many major firms in the crypto atmosphere have been facing a various bear market challenges, Binance is seemingly taking an aggressive stance and signing a new talent deal with soccer star Cristiano Ronaldo centered around NFTs. The news follows Binance With Their Eyes On The Ball Binance CEO Changpeng Zhao, commonly known in crypto […]

Crypto News

Crypto Market Crash Pauses Commercial Deals With Sports Firms

The current downtrend of the crypto market has negatively affected financial institutions, particularly those dealing with digital currencies. Currently, some firms are beginning to feel the heat from a different angle. This involves sponsorship deals between these digital currency companies and sports teams. This is particular to the crypto firms that have already spent hundreds of millions on the matter. The Crypto Winter Takes Hold As of 2021, the news reported that many digital currency firms invested billions of dollars in sponsoring sports. These companies had believed that the same would occur in 2022, only to wake up to the dawning of the downturn in the crypto market. Suggested Reading | Celsius (CEL) Price Scorches To 130% Rally Despite Frozen Network Accounts As the crypto winter takes hold, there have been records of losses for certain digital currency firms. This led them to make some hard decisions, such as trimming costs and staff headcounts. Moreover, companies that ventured into heavy sports deals are seeking ways to sustain their operations. As such, there is a need to cut down costs. According to the reports, the digital currency exchange, FTX, drew back on the issue of offering a jersey patch for the Los Angeles Angel of MLB. This occurred some weeks back, seeing the tanking of the digital currency market. However, from the news, FTX had shelled out $135 million in March 2020 to rename the Miami Heat’s home. Sources cited another example of a nixed deal resulting from the crypto market crash. This involved the patch deal between a crypto firm and the NBA’s Washington Wizards. Many crypto companies consider the Washington Wizards patch desirable. This is because the regulators and politicians who supervise their games are more often in attendance. However, there was no response from the parties (Washington Wizards and FTX). Past Sponsorships Going further, Joe Favorito, a professor in charge of sports at the University of Columbia, made a statement about the situation. From his speech, there will be no announcement on sports partnerships or sponsorships until the bulls take over the market. Furthermore, it was disclosed that vast amounts of money were poured into sponsorships deals during the last bullish market trend. Some examples of crypto firms cited were Crypto.com, FTX, and Tezos. For example, sources noted that Crypto.com offered about $700 million to name the Los Angeles Lakers’ home for nearly 20 years. Furthermore, in March 2021, FTX offered $135 million, as stated earlier. This was intended to replace the name of the Miami Heat’s home arena with FTX Arena. Moving on to Tezos, the company offered 27 million dollars annually to maintain the Manchester United uniforms logo. However, the current market trend does not change the firm deals between NFT companies and real-world products. This means that there are certain benefits still available to the related parties. Suggested Reading | Shiba Inu Now The Largest ETH Whales’ Holding Despite Crypto Market Turmoil An example is Budweiser, a Golden beer manufacturer in partnership with Zed Run, a renowned horse racing platform. Another source example is Tom Brady’s Autograph NFT marketplace in partnership with ESPN. Again, the idea was to develop significant content for the sports television network. Featured image from Pexels, chart from TradingView.com

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SMUGGLEBOT Unveils Its Unique NFT Project “SMUGGLEVERSE” And A Revolutionary Way To NFT

SMUGGLEBOT Unveils Its Unique NFT Project “SMUGGLEVERSE” And A Revolutionary Way To NFT

The arrival of SMUGGLEBOT has the potential to change the virtual marijuana and NFTs game substantially. SMUGGLEVERSE can be described as a whole new reality in which the most popular strains of virtual cannabis are transported or digitally smuggled throughout the Metaverse and where avatars obtain record deals. The launch of SMUGGLEBOT and possibly the […]

Altcoins

Binance Facing SEC Investigation of BNB Token As Crypto Giant Responds to Money Laundering Allegations

Binance is facing an investigation from the U.S. Securities and Exchange Commission (SEC) that looks into whether or not the global crypto exchange violated securities laws when it began selling its BNB token. According to a report from Bloomberg, investigators are looking at the 2017 initial coin offering of BNB to determine if it resembled […]

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Dubai Property Developer Completes Real Estate Deals Worth $50M via Crypto

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According to an executive with the Dubai-based DAMAC Properties, the real estate development “company has already succeeded in concluding real estate deals worth $50 million via cryptocurrencies since the beginning of this year.” The executive, however, says his company is facing challenges convincing the older generation decision-makers to buy into the metaverse, non-fungible tokens, and… More

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