Investment Bank Goldman Sachs will buy or invest in cryptocurrencies following the collapse of the second biggest crypto exchange, FTX, Reuters reported.
The FTX bankruptcy has once again raised the question of trust in the crypto industry. Now, amid this chaos, Goldman Sachs plans to invest in crypto, and that too at a time when Bitcoin, the oldest crypto, has fallen from its all-time high of $68,789 in November 2021, to $17,017 in December 2022.
The fall of almost 75.26 per cent, thus can be considered a good long-term investment for a global investment bank like Goldman Sachs.
Crypto.com Is Launching A FIFA World Cup NFT
Soft drink giant Coca Cola has announced that they are collaborating with Crypto.com, a major crypto exchange, to launch a collection of non-fungible tokens (NFT), “inspired by the unique ‘heatmaps’ created by each team’s on-field attacks, tackles, and winning goals” at the ongoing FIFA World Cup in Qatar.
The crypto exchange has collaborated with GMUNK, who is one of the leading NFT artists, who has previously worked on films like Tron: Legacy and Oblivian. They plan to create 10,000 unique NFTs by tracking the in-game movements of players in the FIFA World Cup matches.
Nexus Mutual May Lose Revenue Due To Stake In Credit Pool
Nexus Mutual, an insurance alternative, expects to lose revenue on its stake in a credit pool on Maple Finance, a big decentralised lending platform.
Nexus warned of a potential loss of 2,461 Ethereum (ETH) worth about $3 million, as a result of Orthogonal Trading’s recent default. It said that it has begun to withdraw all the funds from the impacted wrapped Ether credit pool. According to the statement, this equals to 1.6 per cent of Nexus’ assets.
Bitcoin Mining Difficulty Drops
The difficulty of mining a Bitcoin block dropped by 7.32 per cent on December 6, 2022, when miners turned off rigs as a harsh bear market ate into profits.
The decline of hash rate at block height 766,080, represents the largest decrease since July 2021.
Following China’s ban on the industry, armies of miners abruptly disappeared from the network at that time. The nation was the largest Bitcoin mining hotspot in the world at the time.
The falling Bitcoin hash rate indicates that the number of miners, who are mining Bitcoin and at the same time processing the Bitcoin transactions, are decreasing in number.
The mining industry is also taking a hit following the soaring global inflation and increasing energy prices. This may impact the already slow transaction time of Bitcoin, by increasing the transaction time.
FTX Knocks DeFi’s House Of Cards
M11 credit, a wrapped Ethereum credit pool on Mapple Finance pool, a major decentralised finance (DeFi) lender, has sent a notice of default to Orthogonal Trading, as Orthogonal trading owes $31 million and is unable to pay them back.
The announcement came after the trading firm missed the due date of payment of $10 million USDC Stablecoin on December 4, 2022.
Mapple said in the announcement: “In issuing a Notice of Termination to Orthogonal Credit as a Pool Delegate, Maple severs all ties and association with the firm. Maple will not work with bad actors or with firms that misrepresent their financials or business operations. We are shocked and disappointed in the behaviour of others and this is not a representation of how we do business. The scale and scope of the FTX insolvency has had an outsized impact to lenders in the space, and whilst many risk mitigants are built into the Maple platform, the contagion in this instance was difficult to avoid.”