A Complete List Of Problematics Crypto Companies, Voyager Digital’s Latest. The crypto market has been rocked by various sentiments throughout early 2022 which made the price of digital assets plummet. This decline will not only result in losses for retail investors but also institutional investors and crypto companies.
So far there are several crypto companies that have announced various issues with the impact of the crypto decline. The most severe impact of this decline is bankruptcy.
The following is a summary of several crypto companies that are currently in trouble due to price declines in the crypto market, written Monday (4/7/2022):
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Celsius Network
A Complete List Of Problematics Crypto Companies, Voyager Digital’s Latest. Cryptocurrency lending platform Celsius revealed on Monday (13/6/2022) that it had stopped all withdrawals. Celsius is one of the biggest players in the nascent crypto lending space, with more than USD 8 billion or approximately IDR 117.5 trillion loaned to clients and nearly USD 12 billion in assets under management as of May.
“Due to extreme market conditions, we are announcing today that Celsius is stopping all withdrawals, swaps, and transfers between accounts,” the company said in a memo to clients.
The move has raised concerns about Celsius’s solvency. The company has seen its asset value more than halve since October, when it handled $26 billion in client funds. The Celsius crypto token, CEL, has also lost 97 percent of its value in the same timeframe.
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CoinFLex
Cryptocurrency exchange CoinFlex suspended customer withdrawals last month, citing “extreme market conditions” and customer accounts going into negative equity.
CoinFlex claims one of the users, alleged to be high-profile crypto investor Roger Ver, owes the company USD 47 million. Ver, who goes by the nickname “Bitcoin Jesus” due to his views on the industry in his early days, denies he owes CoinFlex any money.
CoinFlex issued a new token called Recovery Value USD, or rvUSD, to raise USD 47 million so it can continue with withdrawals, and offers a 20 percent interest rate for investors who want to buy and hold digital coins.
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Three Arrows Capital (3AC)
Cryptocurrency hedge fund Three Arrows CapitalLtd is exploring various options for the impact of the current crypto market downturn. Various options, including asset sales and bailouts by other companies.
Reporting from Channel News Asia, Wednesday (22/6/2022), Three Arrows Capital failed to meet the margin call last weekend. The 10-year-old hedge fund, founded by Su Zhu and Kyle Davies, has hired legal and financial advisors to help find solutions for investors and lenders.
Then 3AC defaulted on a loan worth more than USD 660 million from Voyager Digital. As a result, Three Arrows Capital fell into the liquidation stage of the company. Recently circulated information, this company has filed for bankruptcy.
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A Complete List Of Problematics Crypto Companies, Voyager Digital’s Latest. Reporting from CNBC, Monday, July 4, 2022, non-US companies use Chapter 15 to block creditors who want to file lawsuits or tie up assets in the United States.
Voyager Digital
Crypto lender Voyager Digital announced on Friday (1/7/2022) that it has temporarily suspended withdrawals, trading and deposits on its platform. The company also said it was exploring strategic alternatives to maintain the value of its platform.
The move comes days after the company issued a notification to crypto hedge fund company Three Arrows Capital (3AC) over the company’s failure to make required payments on the loan.
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Voyager said it had lent USD 350 million or around Rp. 5.2 trillion and 15,250 bitcoins to 3AC and currently according to an informant 3AC has entered the liquidation phase.
In a statement, Voyager Chief Executive Stephen Ehrlich said the move gave the company additional time to continue exploring strategic alternatives with various interested parties while preserving the value of the platform.
Previously, since the beginning of the year, the cryptocurrency market had lost more than USD 1 trillion or around Rp. 14,953 trillion of its market capitalization due to the pressure on the digital asset. As a result, the crisis hit the entire digital asset sector on a global scale.
As a direct consequence of this, holders of the flagship digital currency, Bitcoin(BTC) have been hard hit by the market crash, as evidenced by the fact the number of BTC millionaires decreased significantly by almost 70 percent in the first half of 2022.
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Reporting from Finbold, Monday (4/7/2022) shows that on June 29, 2022, the number of Bitcoin millionaires reached 30,626. Specifically, addresses with a BTC balance of over USD 1 million are 26,284, according to BitInfoCharts.com statistics. Meanwhile, there are 4,342 wallet addresses that have a combined balance of around USD 10 million or more.
When using the Wayback Machine web archive tool, as of January 5, 2022, 99,092 BTC addresses with Bitcoin worth over $1 million were reported, down 69.09 percent since the start of the year.
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Bitcoin millionaires drop drastically
A Complete List Of Problematics Crypto Companies, Voyager Digital’s Latest. Since early January, the number of Bitcoin millionaires has fallen drastically, but the decline is even more impressive if we take the date further back to October 2021, when BTC was trading near an all-time high, the losses were more spectacular.
In fact, when 116,139 Bitcoin addresses are confirmed to be millionaires on October 28, 2021, it will represent a decline of 73.62 percent between then and June 29, 2022.
Asset performance continues to be negatively affected by a number of issues, some of which include increased regulatory oversight, volatile market conditions, geopolitical turmoil, rising inflation and rising interest rates.
With such market uncertainty, more crypto traders are looking to Bitcoin for the short term.
