This week on Crypto Twitter: Kraken CEO on company culture, plus reactions to Celsius, 3AC, TRON

Illustration by Mitchell Preffer for Decrypt

This week was easily the industry’s worst in 2022: Prices dropped across all sectors, with all major projects sinking by double-digit percentages over seven days.

Market leaders Bitcoin and Ethereum hit lows not seen since 2020, when the cryptocurrency’s total market cap briefly bottomed out at $845 billion, more than two-thirds below an all-time high. $3 trillion seen in November. At the time of writing, that’s about $859 billion, a 1.85% recovery in the last 24 hours.

There were more than just prices to shout about, though. On Crypto Twitter, many were discussing Celsius’ decision to freeze all loot last Sunday. That night, the decentralized financial platform’s native CEL token took a 70% hit in one hour, evoking fears that the entire industry was in jeopardy. After all, it was only last month that Terra collapsed.

Jon Wu, who is leading the growth of Ethereum Aztec’s Layer 2 privacy network, has launched a long popular attack on Celsius, accusing lenders of luring customers with “Dangerous use of meaningless buzzwords“while chasing”truly degenerate trading strategies.”

Wu explained how Celsius’ insolvency was linked to the company’s decision to use custodial funds to buy many ETH Estacada de Lido (stETH), a cryptocurrency allegedly pegged to Ethererum but which has been trading noticeably below its parity for the past week. Lido’s stETH is also not currently redeemable for Ethereum, but it will be when the network eventually transitions to proof-of-stake later this year.

At one point in Wu’s thread, he called Celsius’ business strategy a “delicious plate of degenerate delicacies.”

Bloomberg Podcaster Joe Weisenthal highlighted a tweet from Celsius CEO Alex Mashinsky just 27 hours before the company halted withdrawals. “Why spread FUD” indeed.

Twitter had not heard from Mashinsky for three days after the freeze, but when he returned, he sent a message of support to the Celsius team and community. But no word on restarting withdrawals.

Depegs TRON

Another event reminiscent of Earth’s historic collapse last week was Tron’s USDD stablecoin. depeg in progress. On Monday, CEO Justin Sun said he was using $2 billion of TRON’s reserves to protect against short sellers as the company’s other token, TRX, also went down in value.

Sun was aware that the situation looked like a scene-by-scene rewrite of Earth’s catastrophe, because at one point, his tweet echoed one of the Do Kwon.

Twitter cryptocurrency analyst Byzantine General was not impressed.

Despite some similarities to Terra, TRON has yet to collapse. USDD is still selling below 95 cents, but TRX is up 3.5% in the last 24 hours and while it has lost almost 20% of its market cap in the last seven days, it still had a better week in terms of price. than Bitcoin and Ethereum.

‘The other 99%’

On Wednesday morning, Kraken CEO Jesse Powell fired off an 11-tweet thread describing his commitment to promoting a cryptocurrency culture on the exchange while announcing that Kraken would continue to hire “and I hope to do a better job of filtering early.” Powell also mentioned that the company had a small number of mutineers.

As the discussion unfolded, Powell accused the 20 “awake activists” of undermining productivity. He also defended the Kraken’s diversity.

“We will never ask our employees to adopt any specific political ideology as a requirement for our workplace,” the company wrote in a statement. blog post published that day. “That said, we ask that our employees respect the individual rights, privacy and freedoms of others. Crypto is a freedom movement and Kraken will continue to be a freedom company.”

Elon Musk, dogecoin-loving Tesla CEO, was approved.

An empty quiver?

Another potential industry time bomb that dominated the Twitter conversation this week was Singapore-based cryptocurrency hedge fund Three Arrows Capital. insolvency rumors.

On Tuesday, a cryptocurrency trader passing by moon lord shared a screenshot from blockchain data platform Nansen showing that wallets associated with Three Arrows Capital were linked to five of the biggest transactions last week. He claimed that 3AC had sold at least 30,000 stETH (see above) and accused 3AC founders Zhu Su and Kyle Davies of deceiving the public.

According to researchers and analysts on Twitter, the sale of stETH was to prevent a $264 million loan from Aave and a $35 million loan from Compound from being liquidated.

Zhu broke the silence on Wednesday, saying… not much.

On Friday, Davies also broke the silence, telling the Wall Street Journal that 3AC has engaged legal and financial advisors “to help find a solution for its investors and creditors”. Davies also mentioned several other options, including the sale of assets or a rescue package from another company. Davies said the company hopes to buy more time by negotiating an interim agreement with existing creditors.

Finally, economist Peter Schiff tweeted on Saturday that while he believes the cryptocurrency will survive, Bitcoin “will not be a part of it.”

He also, it should be noted, runs a website where investors can buy and sell real, not digital, gold.

Want to be a cryptocurrency expert? Get the best of Decrypt right in your inbox.

Get the biggest cryptocurrency news + weekly roundups and more!

Leave a Reply

%d bloggers like this: