Autor Cointelegraph By Zhiyuan Sun

DeFi protocol Porter Finance shuts down bond issuance platform after just one month

DeFi protocol Porter Finance shuts down bond issuance platform after just one month

Uverejnil používateľ | júl 6, 2022 |

Porter Finance, a decentralized finance, or DeFi, protocol based on the Ethereum (ETH) blockchain, announced Tuesday that it was shutting down its bond issuance platform. In explaining the discussion, Porter Finance said:”Looking forward, we are not confident there will be large inflows of lending demand for fixed income DeFi products like the ones offered through Porter Finance. This is primarily due to the competitiveness of rates offered in traditional finance and the lack of institutional fixed income DeFi adoption over the past year. We are also no longer willing to take on the legal risk associated with bond offerings.”Porter Finance is shutting down its bond issuance platform.Please see the medium article below:https://t.co/4dPNEvqXrr— Porter Finance (@porterfinance_) July 4, 2022Just last month, Porter Finance unveiled the first-of-a-kind service in partnership with Ribbon DAO to issue 3,103,224 convertible bonds redeemable for 1 USDC with a maturity date of Dec. 4, 2022. At the time, each bond was issued at a discounted price of 0.9667 USDC per bond with a yield to maturity of 7% after accounting for interest. In addition, each bond is secured by 16.112 Ribbon Finance tokens ($4.78 at the time of June announcement) and convertible for 1.111 RBN. It appears significant over-collateralization was required for the issuance of the bond. The instrument also had a significantly higher borrowing cost than money-market securities of the same maturity.In light of the recent implosion of notable DeFi lenders such as Celsius, investors have taken a risk-averse approach to borrowing and lending on decentralized protocols. The total value locked in such projects tracked by DeFi Llama has plunged nearly 70% since the beginning of the year. The Portal Finance offering, characterized by its underlying smart contract, will remain active until all Ribbon DAO lenders redeem or convert their bonds. 

Čítaj viac
eToro to terminate $10B SPAC merger in mutual agreement with acquisition firm

eToro to terminate $10B SPAC merger in mutual agreement with acquisition firm

Uverejnil používateľ | júl 5, 2022 |

On Tuesday, special purpose acquisition company (SPAC) FinTech Acquisition Corp. V announced that it terminated its purposed takeover of Israeli cryptocurrency exchange eToro via a bilateral agreement. In explaining the decision, Fintech V chairman of FinTech V Betsy Cohen said: eToro continues to be the leading global social investment platform, with a proven track record of growth and strong momentum. Although we are disappointed that the transaction has been rendered impracticable due to circumstances outside of either party’s control, we wish [CEO] Yoni and his talented team continued success.Last year, eToro and Fintech V announced the SPAC takeover valuing the former at $10 billion. However, it appears that eToro has run into difficulties, possibly due to the ongoing cryptocurrency bear market, and is in need of a capital infusion to enhance its operations. eToro is reportedly considering a private funding round of $800 million to $1 billion, valuing the firm at $5 billion. Related: 6 Questions for Yoni Assia of eToro – Cointelegraph MagazineIn comparison, Fintech V, which is traded on the Nasdaq exchange and whose sole purpose is to merge with a private company so the latter can “receive” public listing status, has about $250 million in cash held in trust. Nevertheless, Yoni Assia, co-founder and CEO of Toro, assured the public about the state of eToro’s underlying business:Our balance sheet is strong and will continue to balance future growth with profitability. We ended Q2 2022 with approximately 2.7 million funded accounts, an increase of over 12% versus the end of 2021, demonstrating continued customer acquisition and retention rates that have been improving over time. 

Čítaj viac
With the bear market in full throttle, crypto derivatives retain their popularity

With the bear market in full throttle, crypto derivatives retain their popularity

Uverejnil používateľ | júl 5, 2022 |

The 2022 cryptocurrency bear market has been the worst on record as most Bitcoin traders are underwater and continue to sell at a loss. In response to the rapid decline of token prices, some investors have fled to safe-haven assets; some have exited the market completely and others have perplexingly turned to the enigmatic market of crypto derivatives. With regards to this, Cointelegraph spoke to BingX’s brand lead Emerson Li. BingX is a Singaporean social-based cryptocurrency exchange known for its leaderboards where users can compete with others for returns on investments as well as share ideas among their followers. The exchange processed around $319 million in trading volume within the past 24 hours, mainly consisting of derivates. Regarding the recent market downturn, here’s what Li had to say:”BingX’s users are also proliferating; compared with Q1 2022, Users number increased by 70% in the second quarter, and transaction volumes doubling since this round of slumps. We believe that its demand for derivatives is still increasing because it allows users to profit from falling prices, a feature that other products do not have.”During bear markets, traders can purchase derivatives known as put options to either hedge their positions or speculate that the value of underlying tokens will fall. While this can be done by simply shorting the coin, violent and periodic bear market rallies can lead to theoretically infinite losses on one’s short position. In addition, a lack of liquidity for borrowing coins to short may lead to exchanges charging high-interest rates on one’s positions. On the other hand, the put buyer’s losses are theoretically limited to the premium they paid for the derivative, and there are no additional interest fees. Li went on to explain that BingX is also seeing a sharp increase in deposits as of late. “Since high market volatility is suitable for the derivatives market, we see more users participating in such transactions and stimulating more demand for deposits.”Money also appears to be flowing back to CeFi products from DeFi protocols. “For high-risk products such as DeFi staking, we believe traders have panicked under the recent market, affected by the Terra (LUNA) — since renamed Terra Classic (LUNC) — affair and the problems with many DeFi protocols. Users’ risk appetite has decreased, and demand has declined,” said Li. Indeed, dYdX, a decentralized crypto exchange known for its margin and perpetual contract products, saw its weekly trading volume fall approximately 90% from the $12.5 billion witnessed from Oct 24 to Oct 30 last year. However, the trading volume is still several magnitudes higher than one year ago, partly due to the aforementioned risk-hedging tailwind. Risk-wise, it would appear that the worst is over as a spike in liquidations on dYdX, mainly in the Ethereum and Bitcoin markets, has dissipated since mid-June. Experts from Glassnode noted tokens held in wallet addresses by both new investors and crypto whales had been increasing meaningfully amid the sell-off. 

Čítaj viac
FTX on the verge of purchasing BlockFi in $25M fire sale: Report

FTX on the verge of purchasing BlockFi in $25M fire sale: Report

Uverejnil používateľ | jún 30, 2022 |

Cryptocurrency exchange FTX is close to purchasing digital asset lender BlockFi’s remaining assets for $25 million, according to CNBC.According to sources close to the matter, BlockFi’s equity investors were wiped out and are now writing their positions off at a loss. In addition, the FTX deal could take multiple months to close, opening up the possibility that the price tag could shift over that period. In June 2021, BlockFi had a reported valuation of $5 billion.Earlier this year, BlockFi had over 1 million clients, over $10 billion in assets and deposits, and had distributed more than $700 million in crypto rewards and interest. However, BlockFi’s fortunes quickly soured after it reportedly became a major creditor of the now troubled hedge fund Three Arrow Capital, also known as 3AC. As a result, it was forced to liquidate 3AC’s positions amounting to $1.33 billion, likely at a severe loss as the bear market intensified in June. The situation was exacerbated by 3AC posting collateral for the loan in $400 million worth of Grayscale Bitcoin Investment Trust (GBTC) shares, which often trade at a discount or premium to spot Bitcoin (BTC) prices. At the time of liquidation, GBTC shares were trading at a 34% discount to the net asset value of its Bitcoin holdings, which plunged further as BlockFi began closing the position.Related: FTX may be planning to purchase a stake in BlockFiEarlier this month, BlockFi said it would fire 20% of its 850-strong staff due to profitability woes in the short term. Just last week, FTX had extended a $250 million line of credit to BlockFi and denied rumors that it was acquiring the ill-fortuned firm. 

Čítaj viac
Reserve Bank of India ranks crypto near the bottom of systemic risks despite harsh criticism

Reserve Bank of India ranks crypto near the bottom of systemic risks despite harsh criticism

Uverejnil používateľ | jún 30, 2022 |

In its latest financial stability report published on Thursday, the Reserve Bank of India, or RBI, reiterated its skepticism of digital assets, writing: “We must be mindful of the emerging risks on the horizon. Cryptocurrencies are a clear danger. Anything that derives value based on make-believe, without any underlying, is just speculation under a sophisticated name.”The report alleged that decentralized cryptocurrencies “are designed to bypass the financial system and all its controls,” including Anti-Money Laundering, Combatting Financial Terrorism, and Know Your Customer mechanisms. In a tone similar to the previous report, the RBI says that private currencies often result in instability over time and undermine sovereign control over the money supply. However, despite all the harsh words, cryptocurrencies, perhaps ironically, rank at the nadir of the RBI’s risk agenda. Based on a systemic risk survey, factors such as global growth headwinds, rising commodity prices and geopolitical tensions were regarded as high-impact events that could threaten the integrity of the global financial system.Related: RBI seemingly wants to ban cryptocurrencies, but not for the reasons you might thinkOn the other hand, digital asset risks were at the bottom of the risk-weighted scale, being tied to sovereign rating downgrades and just slightly above political uncertainty and the threat of terrorism. In part, the RBI attributes such risk limitations to the relatively tiny foothold digital assets have on the global scale as well as their lack of integration within traditional finance.Cryptocurrencies currently account for anywhere between 0.4% to 1% of the world’s estimated $469 trillion in total financial assets. RBI has traditionally been one of the most skeptical central banks on crypto adoption, claiming that central bank digital currencies could “kill” private crypto. 

Čítaj viac

Získaj BONUS 8 € v Bitcoinoch

nakup bitcoin z karty

Registrácia Binance

Burza Binance

Aktuálne kurzy