Crypto News Headlines (30-Dec-2022)

Although the world’s largest cryptocurrency by market value, bitcoin (BTC), saw a roughly 64% decline in value year-to-date, CoinDesk research shows that bitcoin and ether returns in 2022 per unit of risk were about the same as equities and significantly better than bonds.

“We want to underscore this is not too different from what you would see in traditional markets, especially stock markets,” said Andrew Baehr, CoinDesk Indices managing director, on First Mover CoinDeskTV.

“Look at some of the darlings that people were really excited about 18 months ago in stocks, they’ve lost 80-90% of their value as well.”

Paul Krugman, who won the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel in 2008 for his analysis of trade patterns and location of economic activity, published an opinion piece in the New York Times Tuesday about Tesla, bitcoin, and their huge valuations. He wrote:

Tesla and bitcoin may have more in common than you think.

The economist explained that mega-corporations like Apple, Microsoft, and Amazon have maintained their dominance because these companies “benefit from strong network externalities — loosely speaking, everyone uses their products because everyone else uses their products.”

There’s no stopping Ark Invest, the investment house led by Wall Street veteran Cathie Wood, from pursuing its long-time dip-buying strategy as the firm snapped up another 158,116 shares of Coinbase shares (COIN) on Thursday.

The purchase is worth almost $5.5 million based on COIN’s price of $34.78 at the closing bell.

According to Ark’s daily trade information newsletter reviewed by Decrypt, the entire purchase was allocated to the ARK Fintech Innovation ETF (ARKF), which invests in equity securities for companies in the fintech space.

Cryptocurrency lender Celsius Network said it is preparing to file a motion requesting a deadline extension for users to submit their claims by another month.

In its latest update, Celsius stated that the motion is scheduled to be heard by the bankruptcy court on January 10. The deadline will be extended until at least then.

“For now, the deadline is extended until the motion is heard by the Court. We will provide further updates on the bar date as they become available.”

Celsius had filed for Chapter 11 bankruptcy protection in the US Bankruptcy Court for the Southern District of New York in July following the unraveling of the Terra ecosystem tokens.

As per the court filing by consulting firm Kirkland & Ellis, the company had $2.8 billion in liabilities on its balance sheet.

Cryptocurrency-related exchange-traded funds (ETFs) have taken the two top spots for the worst-performing ETFs in Australia for the year, with the same story playing out in the United States.

BetaShares Crypto Innovators ETF (CRYP) and Cosmos Global Digital Miners Access ETF (DIGA) have provided investors Down Under with respective negative returns of nearly 82% and 72% year to date (YTD) throughDec. 30.

BetaShares launched its ETF on the Australian Securities Exchange (ASX) in October 2021, mere weeks before most cryptocurrencies hit all-time highs that they’re yet to regain.

Solana’s native token SOL erased most of Thursday’s 15% fall after Ethereum founder Vitalik Buterin tweeted support for the blockchain most battered by FTX’s implosion.

SOL rebounded from Thursday’s low of $8.19 and retook the $9.50 range where it had been trading for much of the day. But the token is still 96% below all-time highs near $260, in part because of sellers dumping the “Sam coin” alleged fraudster Sam Bankman-Fried once loudly boosted.

“Some smart people tell me there is an earnest smart developer community in Solana, and now that the awful opportunistic money people have been washed out, the chain has a bright future,” Buterin tweeted shortly before SOL’s Thursday recovery began.

SOL has lost 20% in just one week. It is trading in the single digits for the first time since February 2021.

The official Twitter account for Shark Tank star Kevin O’Leary, aka Mr. Wonderful, started promoting bitcoin and ethereum giveaways Thursday morning. The account tweeted claiming that O’Leary has made a lot of money from crypto over the last few years and he has decided to give away 5,000 bitcoin and 15,000 ether. The tweet also provides a link for anyone to join the cryptocurrency giveaway scam event.

The O’Leary Twitter account further claimed that it is not hacked and the giveaways are not a scam. It also falsely claimed that Mr. Wonderful said on CNBC last night that he will away some cryptocurrencies for real.

The link provided in the first tweet takes investors to a website claiming to be the official site for O’Leary’s bitcoin and ether giveaway. “Everyone can participate, including those in the United States,” the website details. Two more links are provided: one is to participate in the BTC giveaway while the other is to participate in the ETH giveaway.

The fake giveaway posts were removed by Twitter a few hours after they were posted.

fortunes are only getting worse, as the coin of the layer-1 blockchain platform and so-called “Ethereum killer” has fallen a further 17% today, continuing recent declines. In the process, the coin has fallen out of the top 20 cryptocurrencies ranked by market cap, according to data from CoinGecko.

SOL dropped as low as $8.17 per coin this afternoon, the lowest price seen since February 2021. On Wednesday, it slid below the $10 mark for the first time since that same month—but the price has only fallen more sharply over the last 24 hours.

Even at the slightly rebounded price of $8.30 as of this writing, SOL is now down 16% over the past day. That brings its seven-day drop

Shiba Inu (SHIB) community has a lot to look forward to heading into 2023, as the leading developer Shytoshi Kusama recently declared that Shibarium “will come very soon.” However, the wait for the SHIB Army is longer than expected. Many holders of the canine memecoin expected the Layer-2 solution to drop this year. But the community may be sated for now by another titbit, as Shytoshi teased his true identity.

Shibarium would lay the foundation for other significant projects in SHIB’s Ecosystem. These include SHIB: The Metaverse and Shiboshi NFTs, to name a few. The ERC-20 token, destined to challenge the top dog memecurrency Dogecoin (DOGE), is slowly transforming into a self-sufficient ecosystem

Going forward it will shift focus to collectibles, gaming and pre-owned items.

The Reserve Bank of India (RBI) has again expressed concerns about the burgeoning crypto ecosystem and suggested parts of it could be banned. In its latest financial stability report, released Dec. 29, the central bank said it would use its rotating presidency of the G20 group of the world’s largest economies to call for the development of a global regulatory framework of crypto assets.

The report was generally upbeat about current conditions in the country, despite “strong global headwinds,” saying, “the Indian economy and domestic financial system remain resilient.” The tone changed drastically in its discussion of crypto, however, as it highlighted a familiar laundry list of crises that struck the cryptoverse in 2022. It noted crypto’s volatility, high correlation with equities and its inadequacy as a hedge against inflation, as well as issues with governance, and added:

“Leverage is a constant theme running across the crypto ecosystem, making failures rapid and losses huge and sudden.”