Some major crypto companies need to stop making obvious, avoidable mistakes that are destabilizing the industry, says deVere Group CEO.
They are causing financial chaos for investors and job losses, says Nigel Green, who runs one of the world’s largest advisory, asset management and fintech firms – as well as deVere Crypto – crypto exchange.
Bitcoin, the world’s largest cryptocurrency, has lost 57% so far this year. It fell below $20,000 over the weekend for the first time since December 2020.
“I don’t cast a shadow over other companies, but we’ve seen recently that many of the biggest players are making huge and unnecessary mistakes,” Green said.
They’ve gone for expensive TV ads, jumped on high-profile sponsorships, introduced lending models that offer astronomical interest rates on crypto deposits, and launched unprecedented hiring.
“Now what do we have?” Companies have laid off entire sections of their staff, managed customer withdrawals, and made investments.
He continued, “Unfortunately, these brands have made classic, obvious and avoidable mistakes in the DotCom era.
These mistakes are destabilizing the industry due to the contagion effect, exacerbating financial chaos for investors and the pain of job losses for many who had hoped for rewarding jobs in the future of finance.
“It would be better for these crypto companies – for the sake of their customers and the industry as a whole – to grow by investing in top talent, innovation and development, and lobbying for reasonable regulation with financial regulators.
Green, who said he will continue to buy bitcoin “because the fundamentals haven’t changed,” believes the crypto sector will rebound even stronger. “I am sure that lessons will be learned and that the industry – the future of finance – will become much stronger as a result,” he said.
NFT Marketplace Magic Eden Awards $1.6 Billion
Magic Eden of NFT Market raised $130 million in Series B funding, valuing the company at $1.6 billion.
The round was co-led by Electric Capital and Greylock, while Lightspeed Venture Partners joined as the new lead investor. Other attendees revealed former investors Paradigm and Sequoia Capital.
Series B funds will be used to grow the company’s primary and secondary markets, explore omnichannel opportunities, and invest in the team as well as in technology to improve user experience through insights, analytics, and enhanced trading tools.
Magic Eden’s goal is to support the next generation of digital creators and bring Web3 to one billion users.
Launched in September 2021, Magic Eden claims to receive an average of 22 million unique sessions per month and see over 40,000 NFTs traded daily.
“We know NFTs are the best way to get people to join the blockchain,” said Jack Low, CEO and Co-Founder. “NFTs are exciting, social and cultural experiences that provide a connection to the world.
“From our inception, we made a conscious decision to support both our content creators and our users during this tremendous era of growth for business and industry. The best part is that we are just getting started.
Magic Eden Launchpad has launched 250 projects to date, while the company’s secondary market covers more than 7,000 listed groups and sees more than 92% of Solana’s NFT volume.
Zhuoxun Yin, COO and co-founder of Magic Eden added, “We have pioneered in a number of areas: such as combining NFT writing capabilities via Launchpad with the aftermarket, integrating gameplay with NFT games directly on the platform, and creating a decentralized autonomous organization (DAO) to enable greater participation within the Magic Eden community.
“We are thrilled to have the continued support of our investors and community and look forward to introducing Solana and beyond.”
Mike Dupuy, Partner at Greylock said, “Magic Eden is one of the top 1% teams working on all cylinders – product execution, community growth, transaction volume – and speed. In its less than a year of existence it has been exceptional.”
Crypto exchange FTX has rescued crypto lending platform BlockFi – which recently froze withdrawals due to liquidity issues – with a $250 million revolving credit facility.
Securities and Exchange Commission Commissioner Hester Pierce – known as the “mother of crypto” – has criticized bailouts of crypto companies. She told Forbes:[It’s better to] Let these things work… As things get more difficult in the market, you find out who is actually including something that might last in the long run and what will fade.
Howard Fisher, a former senior adviser to the SEC, told CoinDesk that the move by several US states to open an investigation into the freeze on the withdrawal of crypto lender Celsius Network would eventually lead to new federal regulation.
Market aggregator NFT Genie has been acquired by Uniswap Labs and aims to support the trading of non-fungible tokens “soon.”
Neol, a Web3 compatible learning and business platform, has raised $5.2 million in seed funding. The tour was co-led by kyu Collective and Global Ventures, along with Learnstart, FJ Labs and Paribu Ventures. Co-angels include Tony Shaw, co-founder and CEO of DoorDash; Tim Brown, President of IDEO; Amin Gun Serer, Founder and CEO, Ava Labs; and Sota Nagano, associate director at Abies Ventures.
A study by the Bank for International Settlements found that about 90% of central banks around the world are considering the effectiveness of adopting central bank digital currencies (CBDCs).
European cryptocurrency exchange Bitpanda is now regulated in Spain, having previously registered with regulators in Austria, France, Italy and Sweden.
The total market value of over 19,900 coins is $902 billion at the time of writing (7am UK), down 2.2% in the last 24 hours.
Market leader Bitcoin – the original cryptocurrency created by the mysterious Satoshi Nakamoto – is down 2% to around $20,430. BTC is down 4% in a week.
Ethereum, the second most valuable cryptocurrency – created as a decentralized network of smart contracts on the blockchain – has fallen 5% to below $1,100. ETH is down 3% in a week.
Binance Coin is a cryptocurrency created by popular crypto exchange Binance to help achieve its goal of becoming the infrastructure service provider for the entire blockchain ecosystem. His BNB token lost 3% to $216, leaving it up 2% over seven days.
Cardano is an open source network that facilitates dApps that consider themselves an updated version of Ethereum. Its ADA token, designed to allow owners to participate in the operation of the network, is down 6% to 47 cents and is up 2% in a week.
Ripple’s XRP token, a payment and remittance asset exchange system, acts as a bridge for transfers between other devices. XRP lost 1% below 32.5°C as its price increased by 6% from seven days ago.
Solana is a blockchain designed to provide access to decentralized finance at scale – capable of processing 50,000 transactions per second. Its SOL token lost 7% to $34.67, up 23% from last week.
Meme DOGE coin was created as a mockery of the hype involving cryptocurrency, but is now a major player in the space. The DOGE rose 3% to 6.4 degrees Celsius, up 22% in a week.
Polkadot was founded by the Switzerland-based Web3 Foundation as an open source project to develop a decentralized network. Its DOT token, which aims to connect blockchains securely, is down 8% to $7.55, up 5% from its price a week ago.
Avalanche is a lightning-fast auditable platform for organizations, businesses and governments. Its AVAX token lost 6% to $16.54 and is up 7% in a week.
To see how major currency valuations have changed recently – and for a brief report on recent developments in cryptocurrency news – click here.
For ratings of the top 100 coins by market cap in US dollars, as well as 24-hour price changes, see below.