With a net asset value of $ 18 billion (14 14.9 billion στην) in its latest public statement, the Singapore-based hedge fund was known to receive large, high-leverage stakes directly in cryptocurrencies and cryptocurrencies. It holds positions in cryptocurrencies, including bitcoin, Ethereum and Solana, as well as equity investments in companies such as the BlockFi stock exchange and the Deribit options trading platform. The turmoil in the cryptocurrency markets has significantly reduced the value of these holdings and eliminated some of the other bets the mutual fund has taken on, known as 3AC, including the doomed “algorithm stablecoin” project Terra and the “play-to-earn” Axie Infinity game. who fell victim to a $ 700 million hack late last year attributed to North Korean state-sponsored hackers. Zhu Su, the Dubai-based investor behind the cryptocurrency trading house, wrote on Twitter on Wednesday morning that “we are in the process of contacting the relevant parties and we are fully committed to resolving this.” We are in the process of communicating with the relevant parties and we are fully committed to resolving this – Zhu Su 🔺 (@zhusu) June 15, 2022 With investors already hurting after a 25% drop in the bitcoin price in a single day, sparked by the announcement of ersatz crypto bank Celsius that it will suspend withdrawals, Zhu’s statement started another day of turmoil in the cryptocurrency sector . Exchange Crypto Binance CEO Changpeng Zhao described the situation as a “bloodbath”. The value of Bitcoin continued to fall on Wednesday, to just over $ 20,000, 70% below the high record of $ 69,000 in November. Tether, the central stablecoin that has systemic significance for the wider cryptocurrency sector, has issued a statement denying any losses of 3 AC or Celsius. “The Celsius position has been liquidated without damage to Tether,” the company said. “Tether lending to Celsius (as well as to any other borrower) has always been over-covered. “Tether currently has zero exposure in degrees Celsius, except for a small investment made from Tether shares in the company.” The company had previously told the Financial Times that its loans to Celsius were 30% over-secured, meaning it had received $ 1.30 in bitcoin for every $ 1 it lent. Celsius added: “Tether is aware that other rumors are circulating that it’s on loan at Three Arrows Capital – again this is a complete lie.” The company also denied allegations that its large holdings in commercial paper – short-term corporate loans – were held in disproportionately risky investments. He also said he intended to replace those holdings with US government bonds, although he did not provide a date by which the change would take place. Subscribe to the daily Business Today email or follow the Guardian Business on Twitter at @BusinessDesk On Wednesday, the Tron DAO reserve project, which backs up the USDD algorithm stablecoin, announced that it was withdrawing more than $ 100 million worth of cryptocurrencies from Binance to support its stablecoin commitment to a dollar that had fallen to $ 0.97. dollars on cryptocurrency exchanges. This sparked fears that stablecoin could follow in the footsteps of a similar UST peer-to-peer structure, the collapse of which accelerated the recent crisis. Teunis Brosens, chief economist for digital finance at the Dutch bank ING, said that while the cryptocurrency trend could be partly explained by broader market conditions, the recent collapse of the Terra stablecoin project had sparked deeper concern. viability of some lesser known digital components. “Encryption investors have become very critical, especially of the more complex products, and they want to get out. There may still be trust in bitcoin and Ethereum, which are the simplest currencies, but as people try to get away from complex products, entities like Celsius need to liquidate their conventional currencies like bitcoin and Ethereum, something which only further reduces their price. ” On Tuesday night, Bill Gates warned that the cryptocurrency sector was a bubble economy, “100% based on the theory of the biggest fool,” the idea that the profit comes from finding someone more stupid than you to sell the property. your item. “I’m used to asset classes – like a farm where they produce, or like a company that makes products,” Gates said.
