Altcoins Blockchain

Cardano (ADA) Founder Charles Hoskinson Addresses Congress, Argues for Real-World Uses of Crypto and Blockchain

Cardano (ADA) founder Charles Hoskinson is addressing Congress in an attempt to detail the real-world use cases of crypto assets. In a prepared testimony to Congress on the topic of digital asset regulation, Hoskinson says blockchain technology helps marketplaces thrive due to its decentralized and permissionless nature. “Distributed ledgers (i.e., blockchains) store information that needs […]

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Altcoins

One Low-Cap Altcoin Skyrockets by More Than 140% in Just One Week As Crypto Markets Rebound

A low-cap altcoin is erupting in the last seven days as the broader crypto markets flash signs of strength toward the end of the week. STORJ, the native asset of Storj, a decentralized protocol designed to provide an end-to-end encrypted cloud storage platform, has more than doubled its value in just one week. From a […]

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Crypto News

Controlling The Chaos: Alameda Ventures Bails Out Voyager With $200M & 15K BTC

Apparently, Voyager Digital is out of the woods. The company ran into liquidity issues when Three Arrows Capital failed to pay a huge loan to them. Welcome to another chapter of the crypto death spiral caused by the Terra/ Luna collapse. Who came to the rescue this time? Sam Bankman-Fried’s other company, Alameda Ventures. Is this man bailing out crypto or is he taking total control of the industry? In a recent press release, Voyager Digital announced that it “entered into a definitive agreement with Alameda Ventures Ltd. related to the previously disclosed credit facility, which is intended to help Voyager meet customer liquidity needs during this dynamic period.” That’s one way of putting it. The company received “US$200 million cash and USDC revolver and a 15,000 BTC revolver.” This morning, we announced a definitive agreement with Alameda Ventures for a $200 million dollar cash / USDC revolver and a 15,000 BTC revolver. Read today’s release: https://t.co/8wPfzcaI6K — Voyager (@investvoyager) June 22, 2022 As a reminder, yesterday transpired that FTX, also owned by Bankman-Fried, bailed out BlockFi with $250M. At the time, we described the situation as follows: “Over the last few weeks, the crypto market has been trending down. The contagion effect of the Terra/ Luna extinction event rocked every company out there, most of all those who offered yield on cryptocurrency deposits like BlockFi and Celsius and hedge funds like Three Arrows Capital. These companies’ problems and possible liquidation of assets, in turn, sent the crypto market into even more turmoil.” The Voyager case fits right into that description. Sam Bankman-Fried’s Loan To Voyager, The Conditions The rumors were already flying. On June 16th, analyst Dylan LeClair tweeted “Speculation here, but in its quarterly report, Voyager had loaned $320m to a singapore based entity named “counterparty b”. One has to wonder whether “counterparty b” was 3AC and if so, how much of a hit Voyager took?” The answer came quicker than anyone thought.  Speculation here, but in its quarterly report, Voyager had loaned $320m to a singapore based entity named "counterparty b". One has to wonder whether "counterparty b" was 3AC and if so, how much of a hit Voyager took? $VOYG shares are down 33% over the last two days… pic.twitter.com/sCiYskwLEq — Dylan LeClair 🟠 (@DylanLeClair_) June 16, 2022 In the press release, Voyager explained the loan: “As previously disclosed, the proceeds of the credit facility are intended to be used to safeguard customer assets in light of current market volatility and only if such use is needed. In addition to this facility, as of June 20, 2022, Voyager has approximately US$152 million cash and owned crypto assets on hand, as well as approximately US$20 million of cash that is restricted for the purchase of USDC.” The loan comes with “certain conditions,” among them:  “No more than US$75 million may be drawn down over any rolling 30-day period.” “The Company’s corporate debt must be limited to approximately 25 percent of customer assets on the platform, less US$500 million.”  “Additional sources of funding must be secured within 12 months.”  Voyager Digital price chart on OTC | Source: TradingView.com It’s All About Three Arrows Capital Right Now The press release confirms the rumors, the Singapore-based entity named “counterparty b” was 3AC. “Voyager concurrently announced that its operating subsidiary, Voyager Digital, LLC, may issue a notice of default to Three Arrows Capital (“3AC”) for failure to repay its loan.” In a recent article, our sister site Bitcoinist broke down the hedge fund’s situation: “The crypto fund had been directly in the crosshairs of the Luna crash with exposure of more than $200 million and speculated to be as high as $450 million. At first, the firm had appeared to bounce back from the Luna collapse but it would be soon obvious that 3AC was in a more perilous position than investors thought.” The Voyager situation makes it even more obvious. The company’s “exposure to 3AC consists of 15,250 BTC and $350 million USDC”. So, the Alameda loan covers most of it. What did they have to give in return, though? Formally, “Alameda currently indirectly holds 22,681,260 common shares of Voyager (“Common Shares”), representing approximately 11.56% of the outstanding Common and Variable Voting Shares”. If everything goes well, Voyager has nothing to worry about. However, what if it doesn’t? Voyager levered 3AC up with 650million of their customers money, leaving them with only 150million cash reserves. Who tf is in charge of risk over there, Merrill Lynch? — Tyler (@ApeDurden) June 22, 2022 In any case, for those that like gossip, here’s the story as narrated by Voyager: “The Company made an initial request for a repayment of $25 million USDC by June 24, 2022, and subsequently requested repayment of the entire balance of USDC and BTC by June 27, 2022. Neither of these amounts has been repaid, and failure by 3AC to repay either requested amount by these specified dates will constitute an event of default. Voyager intends to pursue recovery from 3AC and is in discussions with the Company’s advisors regarding the legal remedies available.” Answers And Conclusions The crypto industry as a whole is in a precarious situation. And there’s one question at the center of it, is Sam Bankman-Fried controlling the chaos or is he taking total control of the industry? Featured Image by Sebastian Herrmann on Unsplash | Charts by TradingView

Bitcoin Crypto News

Mike McGlone Says $20,000 Is The New $5,000 For Bitcoin, But Is He Right?

With the recent Bitcoin price crash has come a number of speculations out of the market. Amateurs and experts alike have been giving their predictions on what they believe will happen going forward. While most have been bearish, the forecast from Mike McGlone is a rather bullish one. The Bloomberg analyst has sparked hope in the hearts of some with his forecast that $20,000 is the new $5,000 for bitcoin. Good News For Bitcoin McGlone took to Twitter to share his forecast for the leading cryptocurrency in the market. Panic had washed through investors when the digital asset had declined to the $20,000 level, tethering just slightly above it. While many believe that this was a signal for a further downtrend to come, some have said that it may have marked the bottom for the asset. Related Reading | Bitcoin Funding Rates Remain Negative But Open Interest Tells Another Story In his tweet, the Bloomberg analyst points to the early days of adoption in contrast with the diminishing supply of bitcoin may prevail. This argument is by no means a new one. The limited supply of BTC has long been one of its pulls for investors who believe that in the end, the scarcity of the cryptocurrency will be what drives its price higher. Mainly, McGlone suggests that BTC is approaching “too cold” levels, and as such, $20,000 may well be the new $5,000. $20,000 #Bitcoin May be the New $5,000 – The fundamental case of early days for global Bitcoin adoption vs. diminishing supply may prevail as the price approaches typically too-cold levels. It makes sense that one of the best-performing assets in history would decline in 1H… pic.twitter.com/f5MImdhzgD — Mike McGlone (@mikemcglone11) June 15, 2022 What this implies is that the bottom of the current downtrend may be in. Looking at the previous bear market, it is obvious that the bottom was clocked right when the price had fallen below $6,000 in the early days of 2022. If so, then there is no further decline for the digital asset from this point. BTC resumes downtrend | Source: BTCUSD on TradingView.com But Is The Bottom In? Just as one historical movement can tell one story of the bitcoin bottom, so do the others. Now, it is known that the last bear market saw the price of bitcoin declined more than 80% from its all-time high. This trend has been closely followed through the bear markets. Despite the brutal crash in the last couple of days, bitcoin is still less than 70% down from its November all-time high. Given this, there may be more decline to come if it was to follow this trend. Related Reading | Bitcoin Bounces Back Before Hitting 2017 Peak, Is The Bottom In? However, there is another trend that lends credence to McGlone’s prediction. This is the fact that no matter the decline, the price of the digital asset has never fallen below the previous cycle peak. Given that bitcoin’s last peak was a little under $20,000, the bottom may indeed be in if this trend is held. One thing to note though is that the present market has been deviating from previously established trends. It had begun with the multiple bull rallies of 2021 and now has carried into the bearish market of 2022. So, maybe there will be more breaking of historical trends to come.  Featured image from Cryptoknowmics, chart from TradingView.com Follow Best Owie on Twitter for market insights, updates, and the occasional funny tweet…