• The Lido DAO Governance token has fallen approximately 15% due to a withdrawal proposal that is being met with criticism by Galaxy Digital.
• Bitcoin and other cryptocurrencies finished January with strong momentum, with Bitcoin up 40% during the month.
• The Federal Reserve is set to make a rate decision soon, and Bitcoin is expected to react positively to the news.
The cryptocurrency market had a strong finish to the month of January, with Bitcoin and other top digital assets posting double-digit gains and providing some hope for the year of the rabbit. Bitcoin closed out the month with a 40% gain, while Ethereum also had a very successful month, rising 17%.
However, not all cryptocurrencies had a successful January. The Lido DAO Governance Token, a governance token of the decentralized autonomous organization (DAO), has fallen approximately 15% since its peak last week, in part due to a withdrawal proposal that has been met with criticism by Galaxy Digital. The proposal, which would allow users to withdraw their staked Ether, has yet to be formally presented.
The cryptocurrency markets also have their eyes on the Federal Reserve, which is set to make a rate decision in the coming days. Analysts believe that a positive outcome from the decision could lead to a further increase in the price of Bitcoin, as investors will likely look to the asset as a safe haven.
Overall, the crypto markets had a strong start to the year and the year of the rabbit looks to be even more successful. With the withdrawal proposal from Lido DAO still up in the air and the Federal Reserve announcement looming, it will be interesting to see what the next few months bring for the cryptocurrency market.
• Crypto market capitalization dropped 3.5% in the past 24 hours due to a decline in U.S. equity markets.
• Ether and dogecoin led the slide among major tokens, falling more than 5%, while bitcoin lost just 1.6%.
• Outside of majors, Avalanche (AVAX) and Lido (LDO) dropped 7.7% and 10% respectively, while a few tokens traded in the green.
The crypto market has seen a significant pullback as traders likely took profits after weeks of an uptrend. In the past 24 hours, the market capitalization dropped 3.5%, with Ether and Dogecoin leading the slide among major tokens. Ether dropped by more than 5%, while Dogecoin fell by an even greater amount. Bitcoin, on the other hand, lost just 1.6%. This caused upward of $173 million in longs, or bets on higher token prices, to be liquidated, with Ether futures seeing $86 million in liquidations and Bitcoin futures seeing $46 million in liquidations.
Outside of the major tokens, Avalanche (AVAX) and Lido (LDO) both saw notable drops, with AVAX falling 7.7% and LDO dropping by 10%. This ended a multi-week bump that saw LDO’s value jump 135% in the past month. On the other hand, a few tokens traded in the green, with Quant (QNT) and Aptos (APT) both rising over 4%.
The pullback of the crypto market is likely due to a decline in U.S. equity markets, as well as traders taking profits after weeks of an uptrend. It remains to be seen if the pullback will be short-lived or if it is a sign of a more prolonged downtrend. In either case, it is important to remember that crypto markets are volatile and investors should approach them with caution.
• Deputy Prime Minister of Ukraine, Mikhail Fedorov, wants to make his country the world’s leading jurisdiction for virtual currency.
• He stated he wants to be the first user of the planned new central bank digital currency and take his salary in e-hryvnia.
• The new laws will make Ukraine the world’s leading jurisdiction for virtual currency.
Mikhail Fedorov, Deputy Prime Minister of Ukraine, attended the World Economic Forum in Davos, Switzerland to make a bold announcement. He declared he wanted to make Ukraine the world’s leading jurisdiction for virtual currency. He further stated that he would like to be the first user of the planned new Central Bank Digital Currency (CBDC) and take his salary in e-hryvnia.
The new laws that Fedorov is proposing will make Ukraine the world’s leading jurisdiction for virtual currency. This is an ambitious goal as many countries have already begun to develop their own virtual currency initiatives. Fedorov explained his plans with an emphasis on making sure the regulations are fair and just for everyone. He said he wants to create a “level playing field” for all users of the new virtual currency.
The World Economic Forum was attended by a number of experts in the field of virtual currency and blockchain technology. Topics discussed included Bank of America’s new report on central bank digital currencies (CBDCs), the European Union postponing the MiCA vote until April, and crypto’s tax implications.
IBM Consulting Executive Partner Shyam Nagarajan, Deloitte Tax LLP Partner Rob Massey, TRM Labs Senior Policy Advisor Isabella Chase, and Marta Belcher of the Filecoin Foundation were among the speakers. All of them expressed their support for the new laws proposed by the Ukrainian government.
The Ukrainian government is taking steps to make the country a friendly environment for virtual currency usage. This includes setting up a Regulatory Sandbox and establishing a cryptocurrency exchange. It also plans to create a National Digital Currency Research Institute for research and development.
Fedorov’s vision for the future of Ukraine as a leading digital currency jurisdiction is ambitious, but not impossible. The regulations that the Ukrainian government is proposing could pave the way for a future of digital currency use in the country. It is yet to be seen if this vision will be realized, but if it is, it could be a major turning point for the global virtual currency industry.
– ConsenSys, the developer of the crypto wallet MetaMask, is planning to lay off 100 staffers or more.
– The New York City-headquartered Ethereum studio currently has about 900 employees.
– CoinDesk estimates nearly 27,000 jobs have been lost across the industry since April of last year.
The crypto industry has seen a significant downturn in employment opportunities since April of last year, and this week is no exception. ConsenSys, the developer of the crypto wallet MetaMask, is planning to lay off 100 staffers or more, according to a person familiar with the matter. The New York City-headquartered Ethereum studio currently has about 900 employees, and the planned cuts are understood to be in the process of being finalized. The exact number of jobs lost is not yet known.
CoinDesk estimates that nearly 27,000 jobs have been lost across the crypto industry since April, based on media reports and press releases. This is in addition to the 950 jobs that were cut from Coinbase earlier this week. ConsenSys declined to comment on the specifics of the layoffs.
The crypto industry has been hit hard by the coronavirus pandemic, with many companies drastically reducing their staff in order to remain afloat. This is especially true for those in the space who are developing blockchain-based applications, as the technology is still in its early stages and is not yet as widely adopted as other technologies.
As the industry continues to evolve and mature, it is likely that more job losses will be seen in the coming months. However, the industry is also seeing an increase in investment and interest, so there may be a corresponding increase in employment opportunities as well. Only time will tell.
• Gemini, a crypto exchange owned by the Winklevoss twins, has terminated a key aspect of their relationship with Digital Currency Group’s (DCG) Genesis Global Trading.
• Barry Silbert, the head of DCG, has given his shareholders more details about their company’s Genesis Capital lending division which was forced to halt customer withdrawals in the aftermath of FTX’s November collapse.
• Lumida CEO and co-founder Ram Ahluwalia has weighed in on the latest tensions between DCG and Gemini.
Crypto exchange Gemini, owned by the Winklevoss twins, has recently escalated its dispute with Digital Currency Group’s (DCG) Genesis Global Trading – its partner on a crypto lending product pitched to smaller investors. The twins have terminated a key aspect of their relationship with the company, following DCG’s Genesis Capital lending division being forced to halt customer withdrawals in the aftermath of FTX’s November collapse.
In a letter to DCG investors, Barry Silbert – the head of DCG – has provided more details about their company’s Genesis Capital lending division. Silbert noted that the organization was “among the first to recognize the risk of counterparty exposure to FTX” and immediately moved to limit their exposure. He explained that despite the halt on customer withdrawals, DCG had not experienced any losses from its exposure to FTX.
Lumida CEO and co-founder Ram Ahluwalia has weighed in on the latest tensions between DCG and Gemini. He noted that while the dispute was unfortunate, it highlighted the need for more transparency in the crypto lending space. He urged both parties to make sure that customers were kept informed of the situation, and to explore ways to resolve the situation in the best interests of their customers.
Silbert concluded his letter by reiterating his commitment to the DCG family of companies and to their customers. He noted that he was “proud of the team at Genesis for taking the steps necessary to protect our customers’ assets and look forward to continuing to work with our partners to provide the best possible experience in the crypto markets.”