Crypto Crash
Vol 77: You missed the last few weeks and thats ok...Just read this.
June Gloom for Cryptocurrency
Together with Brew Money
Crypto crash
June Gloom is a term often used to describe the weather in Southern California. This year, it can best be used to describe all financial markets and, more specifically, the cryptocurrency market. Unless you are fully immersed in the day to day events, you may not be up to speed on the tumultuous month it’s already been. Here’s a simple breakdown of a complex cascading set of major failures.
It began with the collapse of the algorithmic stablecoin UST and the fall of Luna…A 60 Billion dollar ecosystem.
Then….Celsius Network, the Centralized Finance platform abruptly freezed withdrawals.
Although the company has been relatively quiet not revealing details of their status, rumors and allegations have been circling.
One strong allegation is that a target was on Celsius’ back since Celsius was one of the first investors to exit from their Terra Luna and UST positions right before the project went into a death spiral. Since that time, a negative campaign against Celsius’ financial position and investments began circulating.
At the same time, massive short-selling positions were placed on Celsius’ native token (CEL), causing the token to plunge nearly 80% in a matter of days.
Withdrawals remain paused while regulators move in and customers question whether they will ever see their funds again.
And finally, at the same time Three Arrows Capital, one of the largest crypto VC firms became insolvent. Liquidations cascading across the industry leading to more and deeper issues across the industry.
All in all,
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investrly is written by Founder Michael Rippe, with edits and design by Chief Strategist Danny Bopp. Share your thoughts in the comments. Thank you for reading.