crypto winter season continues to resoundthroughout the market, with digital property bank Silvergate reporting a massive
$1 billion net loss in the 4th quarter. In a report published by the United States Securities and Exchange Commission, Silvergate divulged$7.3 billion of consumer deposits in Q4, below approximately$12 billion in the third quarter. After getting wind of the news, credit rating company Moody’s Investors Service downgraded Silvergate’s ranking from Baa2 to Ba1. That’s junk status for those of you keeping track. It’s all beginning to make good sense why Silvergate laid off 40%of its staff in early January.Despite the recently reported 70%drawdown in digital asset customer deposits at Silvergate, NYDIG remains helpful of their business, adding deposits and continuing to utilized their SEN item.– NYDIG(@NYDIG )January 18, 2023 Digital Currency Group stops dividends in an effort to preserve liquidity The bad news surrounding Digital Currency Group, or DCG, continues to install after the capital market business notified investors it would halt quarterly dividend payments forever. It’s obvious that DCG is facing liquidity constraints connected to its Genesis Global Trading subsidiary. The problems surrounding Genesis have actually been dragged out in public by Gemini co-founder Cameron Winklevoss, who penned a letter to DCG’s board implicating the company of managing”a thoroughly crafted project of lies”to conceal the massive
hole in Genesis’balance sheet. At last check, it was approximated that DCG owed its creditors
over $3 billion. Hong Kong mutual fund raises$500M to push mass adoption in Web3 Month after month of “down only”in crypto markets has left many people jaded about the industry’s future. But behind the scenes, equity capital continues to pour millions into appealing crypto-focused usage cases. This week, Hong Kong investment supervisor HashKey Capital revealed a$500 million fund to support the future of Web3 adoption . The new FinTech Investment Fund III will invest primarily in jobs at the intersection of blockchain infrastructure, toolings and applications that can harness Web3 innovation. “Web3 is growing too quick to be ignored ,”HashKey financial investment director Xiao informed Pandoraland.”Many traditional institutions and web giants are interested in crypto. Some are finding out how to participate in this paradigm shift. “Before you go: Is Bitcoin in a bull run or bull trap?Bitcoin’s (BTC )cost shot up more than 25%over the past week, marking its biggest seven-day rally in almost 2 years. Naturally, financiers are asking whether the bearishness is over. Although there’s a decent possibility that Bitcoin has actually bottomed, I wouldn’t get too thrilled about an extended bull rally just yet. In this week’s Market Report, I sat down with fellow analysts Marcel Pechman and Joe Hall to talk about BTC’s short and medium-term outlook. You can view the full replay below.
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