Autor Cointelegraph By Brian Quarmby

BitBoy founder threatens class action lawsuit against Celsius

BitBoy founder threatens class action lawsuit against Celsius

Uverejnil používateľ | jún 16, 2022 |

Just two weeks after appearing in an ask me anything (AMA) with Celsius founder Alex Mashinsky, crypto Youtuber Ben Armstrong has announced he intends to file a class action lawsuit against the lending platform and its chief executive. Armstrong made legal threats via Twitter on June 15, and has since provided more detail in multiple threads. His issue is centered on being unable to pay down loans with existing funds on the platform, and instead having to deposit new funds to pay the loans off:“[Our account rep] told us we had enough money in our account to pay off a loan. But we can’t use money in our account. We HAVE TO SEND CELSIUS MORE MONEY TO PAY IT OFF.”“Imagine an insolvent company that you can’t withdraw your money from ASKING YOU TO SEND THEM MORE MONEY,” he added. Armstrong stated that he is currently working through the process of getting all “disclosures, documents, loan details, etc” put together while speaking to attorneys to explore the best ways to go about the class action. Co-plaintiffs are yet to be added as Armstrong hasn’t “officially began moving” yet. BitBoy Crypto is the second most subscribed crypto YouTube account with roughly 1.45 million subscribers and primarily provides commentary on market news/events. The channel is only behind Coin Bureau and its 2.07 million subscribers, although BitBoy Crypto has plenty of detractors too, some of whom allege that he has been paid to promote dubious crypto assets in the past. Armstrong’s sentiments towards Celsius have swung wildly from just two weeks ago, when he was featured on the  ask me anything (AMA) session with Mashinsky on Celsius’ YouTube channel.“And today I’m the victim. Kicking myself for wondering how I let this get so bad and so far,” he said. Celsius is battling either insolvency or it’s experiencing severe liquidity troubles as a result of the crypto market plunge. The firm paused withdrawals on June 13, and also reportedly shifted around $320 million worth of assets to pay down loans and avoid liquidation on decentralized finance (DeFi) platforms such as AAVE. One issue to a potential lawsuit however, is if Celsius files for bankruptcy it will trigger a provision called “automatic stay”, which would prevent creditors from pursuing collection activity against the firm. Celsius has reportedly onboarded restructuring lawyers from Akin Gump Strauss Hauer & Feld to find potential solutions for its financial troubles, however Armstrong claims that these types of lawyers “specialize in MOSTLY preparing companies for bankruptcy.”“Even if Celsius does file bankruptcy, we have discovered some potential workarounds to still do a class action lawsuit (not effected by bankruptcy). Unfortunately I have to keep that one close to the vest for now,” he said. Related: DeFi contagion fears and rumors of Celsius and 3AC insolvency could weigh on NEXO priceIn terms of recouping funds from Celsius, there does at least appear to be a potential option for users with less than $25,000 on the platform to obtain their assets in the immediate future. Joshua Browder, the founder of robot lawyer DoNotPay tweeted a step-by-step strategy on June 15 on how users might be able to get funds back: “As of right now, these exchanges have not yet filed for bankruptcy protection. Therefore, they are subject to small claims court judgements. Small claims court cases typically take 1-2 months. As long as this drags on longer than that, this strategy will work.”2. To file a small claims lawsuit, the first step is to send a demand letter.The demand letter should say 1) how much you are owed 2) why you think you are owed the money. For Celsius specifically, you should mail it (return receipt requested) to:— Joshua Browder (@jbrowder1) June 15, 2022

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Total supply of stablecoins dropped sharply for first time ever in Q2

Total supply of stablecoins dropped sharply for first time ever in Q2

Uverejnil používateľ | jún 16, 2022 |

The total supply of stablecoins saw its sharpest drop in history during Q2 2022, with stablecoin redemptions spiking as a result of “short-term liquidity and concerns about insolvency that were not present during the panic of 2020,” according to data analytics firm Coinmetrics.CoinMetrics head of research and development Lucas Nuzzi highlighted the data via Twitter on June 16, with a graph showing the total supply of stablecoins since January 2020. “22Q2 is the first time in the history of stablecoins where Total Supply decreased. Even if we exclude UST, over 10B has been redeemed *directly from the treasuries* of major issuers.”The list included DAI, UDST, OMNI and TRON, SAI, USDK, PAX. While Circle’s USDC and Binance’s BUSD were compiled in a separate graph. Terra’s original variant of UST was not included in the graph. 22Q2 is the first time in the history of stablecoins where Total Supply decreased. Even if we exclude UST, over 10B has been redeemed *directly from the treasuries* of major issuersSome @coinmetrics data pic.twitter.com/AcCKx4Qp4z— Lucas Nuzzi (@LucasNuzzi) June 15, 2022Nuzzi noted that Tether saw the most redemptions of all centralized stablecoin issuers, with 7 billion of the total USDT supply wiped off the board in April and May, and is likely to have been caused by actions of a few, rather than any significant market-wide movements. “The sharpness of that decrease suggests that a single entity, or small cohort, was behind it,” he said. The implosion of the Terra eco-system including its native LUNA token and UST stablecoin in May coincided with Tether’s USDT de-pegging from the U.S. dollar by around 5%. As a result, around 7 billion USDT was redeemed as big players looked to exit the market and avoid any further potential carnage. Another project to take a big hit was MakerDAO’s DAI, which saw 40% of its supply retired as a result of the “largest liquidation event of its history.” USDC and BUSD were also included in a separate graph, and also show a sharp drop in supply of around 5 billion in May, however, both have since rebounded and are close to being back to their respective all-time high levels of around 65 billion and 48 billion a pop. Related: DeFi contagion fears and rumors of Celsius and 3AC insolvency could weigh on NEXO priceThe unique market conditions of 2022 offer a likely explanation as to why stablecoin users have been taking risk off the table over the past few weeks. So far, the crypto sector has seen the Terra eco-system cause a crash worth around $40 billion, while lending platform Celsius and venture capital firm Three Arrows Capital have also been fighting to avoid insolvency due in part to reported liquidations, exposure to Terra, declining asset prices and potentially unsustainable business models. Tether, which is also exposed to Celsius via $10 million equity investment in 2020 and a $1 billion loan it gave to the company last year, issued a statement on Monday noting that the plummeting price of Celsius native token and the firm’s liquidity troubles will have “no impact” on its reserves. The firm stated that its lending activity with Celsius has “always been overcollateralized.”

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Su Zhu’s cryptic statement as rumors swirl of 3AC liquidations and insolvency

Su Zhu’s cryptic statement as rumors swirl of 3AC liquidations and insolvency

Uverejnil používateľ | jún 15, 2022 |

Su Zhu, the co-founder of Singapore-based crypto venture capital firm Three Arrows Capital (3AC) has put out a cryptic statement on Twitter in response to swirling rumors that the company is battling against insolvency. Online chatter about 3AC being unable to meet a margin call began after 3AC started moving assets around this week to top up funds on DeFi platforms such as AAVE to avoid potential liquidations amid the tanking price of Ether (ETH) this week. There are unconfirmed reports that 3AC faced liquidations totaling hundreds of millions from multiple positions.DeFi-banking platform Celsius has also been frantically shoring up positions to avoid liquidations too. Celsius funds account for a significant proportion of the Total Value Locked in various platforms in the DeFi ecosystem, while 3AC is a major borrower. The collapse of either or both would have significant implications for the entire space. This wallet (tagged as 3AC on Nansen) has been aggressively paying back AAVE debt against its 223k ETH / $264mm position to avoid liquidation. With $198mm in borrowings against it, @ a 85% liq threshold, a -11% move in ETH to $1,042 liqudates ithttps://t.co/y7yJJ0NlMc pic.twitter.com/2S55Rzl9Xc— Onchain Wizard (@OnChainWizard) June 15, 2022In a short and sweet Twitter post from earlier today, Zhu broke his silence after around three days of inaction on social media and suggested that the company is working through its issues:“We are in the process of communicating with relevant parties and fully committed to working this out.” Messari Crypto’s Ryan Selkis highlighted speculation that 3AC started to reposition its balance sheet after being on the “wrong side of two synthetic trades — with size — in GBTC and stETH.”Wu Blockchain also reported that the firm lost around $31.37 million through trading on Bitfinex during May. According to Bitfinex Leaderboard, Three Arrows lost $31,370,031.97 in Bitfinex trading in May, ranking second. The account lost $37,278,593.9 on Bitfinex this year. In June, the account was not recorded. But losses on a single exchange may just be hedge. https://t.co/Xr8cYjLHII— Wu Blockchain (@WuBlockchain) June 15, 2022

The rumors ramped up after Zhu removed all mention of investments in ETH, AVAX, LUNA, SOL, NEAR, MINA, DeFi and NFTs from his Twitter bio, keeping only a mention of Bitcoin (BTC). Others have raised questions about Su deleting his Instagram, and asked why both he and co-founder Kyle Davies were inactive on Twitter for three days. 3AC in trouble? rumors swirling- Kyle and Zhu havent tweeted or liked anything in days- Zhu took every coin and # tag out of his bio- Zhu deleted his instagram- an hour ago they dumped 30k stETH and reduced all AAVE positions— moon (@MoonOverlord) June 14, 2022

A related issue is 3AC’s previous exposure to the Terra eco-system via the LUNA token (now LUNAC) which experienced a multi-billion market crash in late May. The platform exchanged roughly $500 million worth of Bitcoin (BTC) with the Luna Foundation Guard for the equivalent fiat amount in LUNA just weeks before Terra imploded.Related: Binance.US faces class-action lawsuit over LUNA and UST saleOther prominent figures in the space such as the former head of crypto Cathie Wood’s Ark Invest, Chris Burniske, also pointed to rumors of 3AC being the next firm to crumble after Terra and Celsius. Alameda Research was also loosely referenced via a meme.Well 1 of these 3 is down, and 1 I doubt will fall, but the other is something to watch https://t.co/OgBqd7GqHa— Chris Burniske (@cburniske) June 14, 2022

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Nifty News: Lacoste’s luxury DAO, Bill Gates slams Bored Apes and more…

Nifty News: Lacoste’s luxury DAO, Bill Gates slams Bored Apes and more…

Uverejnil používateľ | jún 15, 2022 |

Lacoste launches NFTs and DAOAccessible luxury brand Lacoste has launched an NFT project named “Undw3” that includes a new decentralized autonomous organization (DAO) that will offer token holders voting power on certain products and business partnerships.There are 11,212 NFTs in total — in a nod to the firm’s popular polo shirt L1212 — that were sold for a mint price of 0.08 Ether (ETH) or roughly $96 a pop yesterday. The NFTs depict an animated alligator that pokes the top of its head out from underwater, and the collectibles appear to have had reasonable demand as the floor price on OpenSea has since more than doubled to 0.193 ETH ($233). The company is yet to release the full details of its roadmap and the utility offered to NFTs hodlers, but has confirmed the DAO will enable users to participate in the “creative process” on a range of products and partnerships under the Lacoste Underwater line. Holders will also have access to unique customization features on Lacoste’s clothing line, however it is unclear if they will have to fork out the money for the products or if they will receive a certain amount of freebies. Lacoste also hinted via Twitter that it could be looking at Metaverse integrations as well, but noted “we can’t say more about it except: be ready ser.” / .At 12h12 CET time, you will have the opportunity to mint a #underwater NFT. Do you know what you will get by owning the #NFT below? Let’s dig together. #UNDW3 1/7 pic.twitter.com/HyOqwRzVQ0— Lacoste (@LACOSTE) June 14, 2022Not everyone liked the idea of performing Creational Labor. “So in return for the purchase of your NFT you will receive my creative customization ideas for free? And I still have to purchase the customized clothing I create? Plus I have to attend meetings? Not sure how I benefit from anything here…” questioned OffKeyMagazine on Twitter. 921 ETH profit on Bored ApeDespite the floor price of Yuga Labs’ Bored Ape Yacht Club NFT project falling to around 86 ETH this week (under $100K) investor BoredWEB3 paid an eye-watering 1,024 ETH ($1.22 million) for Ape #7537 overnight. The trade marks a 921.12 ETH profit for seller DB1C00, or roughly $914,000 in fiat terms, as they purchased the NFT for 102.88 ETH worth 305,553 on March 22. Before that, the NFT went for a mere 40.99 ETH eight months ago. BAYC NFT #7537: DappRadarIt is unclear what prompted someone to spend over $1 million on a single NFT amid a bear market, butthe BAYC NFT has relatively rare properties including a police motorcycle helmet (1% have this trait), Bandolier (2% have this trait) and closed eyes (7% have this trait).  Bill Gates not convinced by tokenized apess Microsoft co-founder and billionaire Bill Gates has slammed NFT projects as being “based on the greater-fool theory. ”He made the comments while speaking at a climate conference in California on Tuesday hosted by TechCrunch, and in this instance he noted that he was neither long nor short the entire sector, and sarcastically stated:“Obviously, expensive digital images of monkeys are going to improve the world immensely.”Gates is a well-known crypto skeptic that has slammed Bitcoin (BTC) on multiple occasions, and recently in February, he warned investors that unless they have as much money as Elon Musk, they should stay away.“I’m not bullish on Bitcoin, and my general thought would be: If you have less money than Elon, you should probably watch out,” he said.Related: NFT ticketing may catch on faster in France after UEFA championship debacleColorado Governor is fundraising via NFT salesColorado Governor and Democrat Jared Polis launched 2,022 NFTs as part of a fundraising campaign in the lead-up to the Colorado gubernatorial election in November. The NFTs depict Polis standing in front of a rainbow-colored mountain, a pair of hanging sneakers and his dog Gia who has red lasers firing out of her eyes. The tokens were rolled out on June 13 and are priced at $52.80 apiece. At the time of writing there are still 1895 NFTs up for sale, and if they sell out Polis will have raised roughly $118,893 from this fundraising initiative. Other Nifty NewsOpenSea announced on Tuesday that it will be migrating to Seaport. Among many perks, the protocol says it will feature lower gas fees, the ability to make offers on entire collections, removal of new account initialization fees and more user-friendly signature options.The Securities and Exchange Commission (SEC) has reportedly launched a probe to discover how crypto exchanges and potentially NFT platforms are working to prevent insider trading.

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NFT trading volume surges amid market and floor price crash

NFT trading volume surges amid market and floor price crash

Uverejnil používateľ | jún 14, 2022 |

NFT trading volume has surged over the past 24 hours as crypto markets tank taking floor prices of many top NFT collections along with it.A long list of top NFT projects such as Bored Ape Yacht Club (BAYC), Mutant Ape Yacht Club (MAYC), Crypto Punks, and Sorare have all seen more than 100% increases in 24-hour trading volumes as investors look to snap up cheaper NFTs as floor prices tumble.According to data from CryptoSlam, eight of the top 10 NFT projects in terms of 24-hour sales volume have posted at least a 115% increase in trading volume, with the only projects falling under that mark being Goblintown at 35.54% and Moonbirds at 64.11%. Leading the pack is Yuga Labs’ BAYC NFTs, with a 262.79% surge over the past 24 hours to account for $7.1 million worth of sales. Notably, the following three highest-ranked projects are also owned by Yuga Labs, with MAYC, Otherdeed, and CryptoPunks posting 173.49%, 157.88%, and 122.69% surges in 24-hour trade volume to represent $3.4 million, $2.6 million and $2.5 million worth of sales respectively. 24 hour trade volume: CryptoSlamData from DappRadar also shows that OpenSea marketplace has been the biggest beneficiary of the increased trading volume over the past 24 hours, with the platform posting a 173.43% gain in trading volume for a total of $23.88 million worth of sales. However, the number of traders on the platform also decreased by 15.39% to 29,300 within that same time frame, suggesting that only a small number of investors with relatively deep pockets are making moves. Related: Crypto winter survival guide: Community shares game plan for the bear marketIt is also worth noting that even as projects such as the BAYC and CryptoPunks have seen their floor prices drop to 82.5 ETH ($96,700) and 47 ETH ($54,800) — down from their all-time highs of 153.70 ETH and 123 ETH — investors are still snapping up assets above the floors. In the past 24 hours, CryptoPunks #8620 and #5690 went for 275 ETH apiece ($327,000 at current prices) while BAYC NFTs #393 and #3441 sold for 118 ETH ($140,000) and 105 ETH ($124,000).

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