Hike funding

UAE decentralized finance platform ZKX secures $4.5m in seed funding

Crypto Moves – Bitcoin and Ethereum rise; OpenSea NFT Marketplace Cuts Jobs; Celsius clients await news from their funds

Bitcoin, the leading international cryptocurrency, traded higher on Monday, rising 0.70% to hit $21,504.27 as of 8:30 a.m. Riyadh time.

Ethereum, the second most traded cryptocurrency, was priced at $1,432.34, up 5.41%, according to data from Coindesk.

Regulated digital currencies have benefits, say central bank chiefs

As long as companies can be properly regulated, consumer-focused digital tokens issued by private companies could be better than central bank-issued tokens, the governor of Australia’s central bank said on Sunday, Reuters reported.

“If these tokens are to be widely used by the community, they will need to be supported by the state or regulated much like we regulate bank deposits,” said Philip Lowe.

“I tend to think the private solution will be better – if we can get the right regulatory arrangements in place – because the private sector is better than the central bank at innovating and designing features for these tokens, and it’s also likely there will be very significant costs for the central bank setting up a digital token system,” he said.

Around the world, many central banks are developing digital currencies, either retail tokens to be used directly by consumers or wholesale tokens to be used by banks.

It is a response to the development of stablecoins such as Tether and USDC, which are commonly used for payment and as a store of value.

Decentralized finance projects, which are part of the cryptocurrency ecosystem, could also be mitigated by further scrutiny of these tokens, according to the head of the Hong Kong Monetary Authority who spoke at the conference. the G20 finance officials’ meeting in Indonesia.

HKMA CEO Eddie Yue said a closer look at stablecoins could also help reduce the risks of DeFi, which aims to replace financial intermediaries with computer code.

Celsius clients await news from their funds

After Celsius filed for bankruptcy in May, customers are anxiously awaiting their money and whether they will ever get it back, according to Reuters.

In June, Celsius froze withdrawals citing extreme market conditions, triggering a sale of $300 billion in digital assets and cutting off the savings of legions of retail investors.

When Celsius Network filed for Chapter 11 bankruptcy in New York this week, it disclosed a $1.2 billion hole in its balance sheet.

Reuters spoke to six lawyers specializing in bankruptcy, restructuring and cryptocurrency to determine what will happen to clients’ money.

Lawyers say the Chapter 11 process will be slow due to limited bankruptcy precedents, multiple lawsuits against Celsius and the high complexity of any restructuring.

Daniel Gwen of law firm Ropes & Gray in New York said “it could go on for years”.

“It is very likely that there will be a lot of litigation,” he added.

OpenSea NFT market cuts 20% of jobs

OpenSea, a New York-based marketplace for non-fungible tokens, cut its workforce by 20% amid a prolonged downturn in digital asset markets, Reuters reported.

As Bitcoin and cryptocurrencies grew in popularity in 2021, the company’s sales increased.

Due to rising inflation, central bank rate hikes and fears of recession, the nascent NFT market has collapsed in recent months.

CEO Devin Finzer said, “The reality is that we have entered an unprecedented combination of a crypto winter and broad macroeconomic instability, and we need to prepare the business for the possibility of a prolonged downturn.”

In June, OpenSea’s NFT sales volume fell to $700 million, from $2.6 billion in May and well below the near $5 billion peak in January.

Digital files such as images and texts are represented by NFTs, which are blockchain-based assets.

Following the job cuts, Finzer said the company would be able to sustain growth at current volumes over the next five years.

With contributions from Reuters.