CoinCodeCap’s Weekly Issue #10 

Share IT

This Week in Crypto 

Since the fall of Terra, the crypto market has been having a hard time regaining its balance. The suspicious downfall of the Korean currency dragged its founder into a series of legal events. But Terra is not the only shady one here. MIM, with the name itself being Magin Internet Money, maybe be nearly insolvent, signifying another major stablecoin with over $300 Million Market cap can follow the path of Terra’s UST.

I don’t know what everyone thought by working on their own algorithmic stablecoins. However, the present system of maintaining the peg of a stablecoin is not worth the retail losses happening.

The situation in the market got tenser as soon as the Luna Fiasco was followed by the Celsius and Three Arrows Capital Fiasco. Celsius calls itself a lender or a Network, but in reality, all they are is a highly leveraged hedge fund. So, for example, what Celsius does is it let’s retail money flow in through BTC, ETH, etc.; it then uses strategies at Compound, AAVE, MakerDao, etc., to maximize its yields. 

Newspaper On Crypto Crash
Newspaper Caricature on Crypto Crash

The Crypto After Party

If your main goal is generating yield, you should have a really strong risk management strategy in place. But that was not the case with Celsius. After Do Kwon’s pet project fell to ashes, Celsius was seen withdrawing over half a billion dollars from the Anchor Protocol, Terra’s lending protocol.

Celsius also had over 24K locked WBTC in Maker’s vaults near liquidation when BTC was around $22K Celsis was aggressively trying to prevent the liquidation of the BTC by adding more capital, which did help them for a while, at least until some of it later liquidated, although Celsius started getting out themselves once the market bounced back). So this sure does tell us about their risk appetite.

Following this incident, the 3AC insolvency rumors daunted the investors. Further investigation revealed that the multi-million dollar positions of 3AC were at a loss, and estimates suggest that 3AC had its portfolio go down from over $18 Billion to $2-3 Billion. Here’s a thread on the entire 3AC fiasco:

The Happenings 

  1. Tether faced DDOS Attack on its Website. Learn more
  2. The Fed Expresses Concern Over “Structural Fragility” Of Stablecoin. Read here
  3. Celsius Pauses Withdrawals amid Increasing Rumors of Insolvency. Know the full story here
  4. Federal Reserve announces Highest  Interest Rate-hike since 1994. Here’s why
  5. Binance Considers Re-Entering the Korean Market. Learn more
  6. Elon Musk, SpaceX, and Tesla Sued for $258 Billion in Alleged Dogecoin ‘Pyramid Scheme’. Read here

Charts & Dips 

  1. CAPS Price Analysis June 2022. Link
  2. Ethereum Price Analysis June 2022. Link
  3. DASH Price Analysis May 2022. Link.
  4.  Bitcoin(BTC) Price Analysis June 2022. Link

Hacks & Scams

  1. Multiple Sandbox Phishing Scams. Link
  2. TRX Price Drops Over 29% in the Last three days, USDD Lost its Dollar Peg, $2B Injected to Fight Back. Link
  3. Uniswap Phishing Scam Detected. Link
  4. ZED RUN Phishing Scam. Link
Share IT
Editorial Team
Editorial Team

Get Daily Updates

Crypto News, NFTs and Market Updates

Claim Your Free Trading Guide

Sign up for newsletter below and get your free crypto trading guide.

Can’t find what you’re looking for? Type below and hit enter!