🔴Panic Hits Crypto Market

Celsius pauses withdrawals, a crypto hedge fund faces insolvency but a Bank of America survey shows crypto interest is still strong. These stories and more this week in crypto.

Celsius Pauses Withdrawals

Crypto lending platform, Celsius, announced that it had paused all withdrawals, swaps, and transfers between accounts, blaming “extreme market conditions.” While investors were without access to their money, the platform’s native token, CEL, dropped 70% in value within an hour of the announcement, triggering another wave of panic across the crypto market.

Crypto Hedge Fund Got Liquidated

One of the largest digital currency hedge funds, Three Arrows Capital (3AC), may be facing insolvency after a liquidation totaling more than $400 million caused by recent market events. The Dubai-based investment firm was liquidated by crypto lending firms and is exploring different options to handle its challenges, including asset sales or being rescued by another firm.

US Crypto Firms Cutting Staff

Two of the biggest US crypto firms, Coinbase and Blockfi, have announced they are laying off nearly 20% of their staffs. Coinbase CEO Brian Armstrong admitted growing too quickly during the bull market. Meanwhile, Binance is  hiring, with CEO CZ seeing this moment in time as an opportunity to gain access to some of the industry’s best talent.

Elon Musk Sued for Dogecoin Promotion

A disgruntled investor is seeking a whopping $258 billion in damages from Elon Musk for his promotion of Dogecoin. Keith Johnson’s lawsuit has been brought agai nst Elon Musk for the alleged participation in a pyramid scheme that aimed to inflate the price of Dogecoin, claiming the “defendants deceptively alleged that Dogecoin is a legitimate investment when it has no value at all”.

Moneygram Launches USDC Crypto-to-Cash Program

US-based remittance firm, Moneygram has announced the integration of the stablecoin USDC for its crypto-to-cash program. The program enables customers to exchange USDC for fiat currencies by using the Moneygram app to arrange an exchange at any Moneygram branch in Canada or the US to receive the cash.

Circle Issues EUR backed Stablecoin

The issuer of USDC, Circle, has announced that it will be issuing a second stablecoin, the Euro Coin to enable seamless transfer of euro liquidity on-chain. Officially launching on June 30th on Ethereum, with other platforms to follow, Euro Coin will be pegged 1:1 to the Euro and will be backed by euro-dominated reserves.

BoA Report Shows Crypto Interest Still Strong

A Bank of America report released recently shows that consumer interest in crypto is still strong. A survey of 1000 existing and potential users of crypto exchanges found that over the next six months, 91% of respondents intended to buy crypto while 30% said they have no plans to sell any of their crypto holdings over the same period.

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