This week in The Flippening, TL;DR
- StarkWare announced its plans to introduce the StarkNet Token that will serve as a governance token.
- The Sandbox, an NFT-based Metaverse gaming platform, has partnered with iconic “lifestyle brand” Playboy to launch the MetaMansion.
- Celsius bankruptcy filing reveals its liabilities to outweigh its assets by $1.2 billion.
Top Highlights of the Week
StarkWare Announces StarkNet Token Launch for September No airdrops till next year
StarkWare is one of the big 4 Ethereum scaling solutions. The company has confirmed the launch of its much-awaited token, StarkNet. The token will function as a governance token and be used to pay network transaction fees.
“The token will allow supporters of the community that perform work that contributed to the success of the ecosystem to play a role in the governance of that ecosystem,” StarkWare stated in a press release.
Inside Hugh Hefner’s Playboy Mansion in Sandbox Metaverse
The most recent participant in Web3 is the widely recognised lifestyle company Playboy. The Sandbox, a metaverse platform, and iconic lifestyle brand “Playboy” have teamed up to release “MetaMansion,” a metaverse recreation of the well-known Playboy house.
The company revealed that the exclusive social meetings and events would be held at the MetaMansion, the Playboy mansion’s metaverse equivalent.
Celsius’s bankruptcy filing reveals a $1.2 billion hole in its Balance Sheet
According to Celsius’ Chapter 11 bankruptcy filing, its liabilities are $1.2 billion more than its assets.
According to the filing, the business owes clients and creditors $5.5 billion. However, even after paying off three significant loans from DeFi protocols Maker, Aave, and Compound in the previous week, which allowed it to recover collateral valued at about $1 billion, its assets still only amount to $4.3 billion.
- Snapchat doesn’t to miss out on the NFT frenzy. The platform is now experimenting with allowing creators to create filters out of their NFTs.
- The crypto winter seems to be getting chillier. The NFT platform, OpenSea announced laying off its 20% workforce.
- Magic Eden, the largest NFT marketplace on the Solana blockchain, has announced the launch of its Web3 gaming investment arm ‘Magic Ventures’.
- Video game retailer GameStop’s long-awaited Ethereum NFT marketplace is finally live.
Disclaimer: All price movements are recorded up to 10:00 AM UTC
Although the crypto market did recover mid-week, it failed to hold its ground. It could primarily be attributed to the huge number of BTC options expiring on Friday. Most of the top cryptos ended the week in red.
Disclaimer: All price movements are recorded up to 10:00 AM UTC
On a sectoral level, we witnessed a much better performance than individual cryptos. Decentralized exchanges and Decentralized Finance outperformed the other sectors by a massive margin. Sector based investing seems to be a winning strategy in such conditions.
Coin of the week
Polygon Matic was announced to be the only blockchain company to be inducted into Disney’s accelerator program. As part of the program, the six companies would work in developing Augmented Reality (AR), Non fungible tokens (NFT) and AI solutions.
This announcement immediately transpired to the price action in $MATIC. Could this imply that the performance of Walt Disney could potentially have a positive boost to the token? Well, time will tell!
€1 = $1
Nope, this is no mistake! The Euro hit parity with the U.S. dollar on Wednesday; they now trade at a 1:1 exchange rate.
Why is this a big deal, you ask? A currency’s exchange rate indicates its state’s economic outlook, and Europe’s weakening currency is a sign of a weak economic state of affairs. It has hit its lowest point since 2002.
Multiple factors caused the decline of the Euro –
- The energy crunch threat amid the ongoing war in Ukraine
- Failure of the European Central Bank to keep up with the Federal Reserve’s tightening monetary policies
Okay, but why should you care about this? If you care about the crypto market, you can certainly not avoid this event.
Over the past year, there has been massive growth in the number of stablecoins and their trading volume. The purchase of stablecoins puts investors at risk of fluctuating exchange rates. This essentially means that investors invested in the Euro-pegged stablecoins like EURt or EURS may be looking to liquidate their holdings, causing some disturbance in the market.
On the bright side, even the biggest euro-pegged stablecoins like the EURT and EURS have a market value of no more than $210 million and $126 million, respectively. Alternatively, Terra’s algorithmic stablecoin UST had a market cap of $18 billion before collapsing in mid-May. The crash of UST led to extreme volatility in the broader stablecoin market but considering the euro-backed stablecoins from a tiny portion of the overall market; their liquidation might not significantly impact the overall crypto market cap.
However, the instability in a major currency such as the Euro suggests macroeconomic uncertainty. In extreme market conditions like this, investors often look to move away from riskier assets such as Bitcoin and other cryptocurrencies to safer assets like government bonds.
As the dollar index grows in strength amid the free fall of technology stocks with no looming bottom, the short-term price action for Bitcoin remains uncertain. Historically, Bitcoin has moved in line with technology stocks and in the opposite direction of the dollar index (DXY). For instance, the DXY, which tracks the greenback’s value against major currencies, has rallied nearly 12% this year. Meanwhile, Bitcoin and Wall Street’s tech-heavy Nasdaq index have tanked 55% and 27%, respectively.
Nevertheless, HODL it is for the OG’s of crypto!
Featured – Mudrex Coin Sets
The past week showed us that the recovery in sectors was much better than the performance of individual cryptos. Unless you possess the qualities of the Wizard of Omaha, you would be better off investing in sectors. Moreover, sector based investing gives you the opportunity to build wealth for the long haul.
DeFi 10:- This Coin Set is created with the belief that DeFi will make finance more efficient and more accessible to everyone. DeFi revolves around decentralized applications (DApps) built on blockchains.
Smart Contract Platforms:- This Coin Set invests in tokens of platforms to build the smart contract infrastructure. Adding such potential tokens to your portfolio can offer stable investment opportunities for long term investors.
Best Exchanges:- The Best Exchanges Coin Set invests in tokens that represent the largest exchanges in the crypto space, otherwise known as exchange tokens.
Here we are, at the end of our 50th edition. We hope you liked reading it.
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