More dark clouds in crypto — and a few rays of hope too
Investment is flowing out at the fastest pace since ‘18, but institutions are still building for the longer term
Re-sharing below the latest edition of #Web3 Weekly, my regular newsletter about decentralization. If you’d like to get it in your inbox every Sunday, subscribe here.
The love-hate is strong in blockchain world right now. It’s clear newbies and tourists are still spooked, but big institutions are building for a bright future over the longer term. Meawhile, government attitudes are all over the place depending on jurisdiction.
The latest headlines:
- Money is flowing out of crypto at the fastest pace since 2018. Digital assets suffered three straight weeks of investment outflows through June 21. That was the longest slide in more than three years, according to a new analysis from CoinShares. Global crypto market cap has tumbled to $1.3 trillion, down from a record over $2.4 trillion in May. Bitcoin posted a weekly decline of 7%, trading around $33,000 early Sunday.
- China’s continued crackdown on bitcoin mining is a big part of the problem. Sichuan province, a key mining hub, shut down 26 more miners. The move pushed the network’s hashrate, or pace of minting new bitcoins, down by almost one-fifth during the week, according to The Block.
- But Wall Street continues to launch new crypto offerings. Goldman Sachs has begun trading bitcoin futures through a partnership with Mike Novogratz’s Galaxy Digital. Meanwhile, rival Citigroup launched a new digital asset unit within its wealth management division. And crypto exchanges like Binance and FTX are moving into tokenized stocks, including on-chain versions of shares in Facebook, Google, Netflix, and more.
- Polkadot was a rare market highlight as it listed on Coinbase. The smart-contract platform’s eponymous token jumped 70% in its initial hours of trading.
- New York’s leading mayoral candidate wants the Big Apple to embrace bitcoin. Watch out, Miami!
- Big trouble in South Africa. A pair of brothers have vanished along with bitcoin worth $3.6 billion from their cryptocurrency investment platform Africrypt, Bloomberg News reports.
- Amazon probably isn’t going to buy the island nation of Cyprus. But it’s still a crazy scenario to speculate about.
- U.S. teenagers now have a constitutionally protected right to curse like sailors on Snapchat. What a country!
That’s it for now. As ever, a quick disclaimer: This newsletter is intended for informational purposes only, not as investment advice. For the latter, please DYOR and consult appropriate financial professionals to make the most suitable choices for your particular needs.
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