Hi HODLers,
It seems the overall market is doing much better than for the past month and it feels good to take a breather. I am not naive enough to believe this is the end of the downturn BUT we are getting closer to the bottom every day!
On the bad news front, we just learned that
Cryptocurrency exchange Blockchain.com stands to lose $270 million from lending to Three Arrows Capital, the over-leveraged hedge fund now the subject to a liquidation order in the British Virgin Islands.
I guess it is not coming at the best time as they have recently signed a deal to be a sponsor of the NFL team Dallas Cowboys!
Did everyone lend money to 3AC or what!?
Everyone treated 3AC as the darling and did not do their homework on their solvency I guess.
We also learnt that Deribit had lent money to 3AC but I am less worried about them as I believe they have a better market positioning and niche.
Concerning Blockchain.com; we learned that through the past years, 3AC had repaid close to $700mn of previous loans to Blockchain.com.
I am quite worried for the Blockchain.com exchange even if Peter Smith, CEO claims that your funds are safe.
Smith also emphasized that Blockchain.com “remains liquid, solvent and our customers will not be impacted,” in the letter dated June 24.
Well, I guess if he says it is safe... Run!!! :D
Source: Crypto Exchange Blockchain.com Faces $270M Hit on Loans to Three Arrows Capital