First week into the 2023 matrix.
We already have a memecoin, bankruptcy news, and a major realisation.
Welcome back to "The Coin Weekly" newsletter! We hope you had a great holiday season and are now fully rested and ready to dive back into the world of decentralized technology. It's been a month since our last update, but we're happy to announce that we're back on full swing and ready to bring you the latest and greatest in the Web3 space. So without further ado, let's get started!
Well, last year was a wild ride. Thankfully, 2023 is here! What should you expect from 2023? Let's explore together.
Before this crypto winter, we think that 3⁰ temperatures will actually kill us 🥶
👆last seen image of IAN before stumbling into the MATRIX
Are you going bonkers over $BONK?
Solana took a major hit after the whole FTX fiasco. It was majorly because SBF hyped Solana and the network for years and when Solana Labs raised $314.2 million in the summer of 2021, Alameda Research invested heavily in it. SOL was Alameda’s second-largest holding. The fall of FTX and Alameda had a ripple effect on Solana as well.
On December 25th, 2022, a new cryptocurrency called BONK emerged as a potential savior for Solana. BONK is a dog-themed token built on the Solana blockchain and was officially launched on that date, with airdrops given to Solana NFT collectors, traders, artists, and developers.
Following its launch, BONK saw an impressive increase in value of over 800% and gained significant attention on social media and from major exchanges such as Huobi. While it is currently uncertain whether BONK will be able to maintain its value in the volatile cryptocurrency market, the possibility that it may not be held long-term by investors could lead to a decrease in its value over time due to increased selling.
Genenis may file for Chapter 11 Bankruptcy
The ripple effect of FTX fall will be felt throughout this year as well with many major and minor companies going under water. And, Genesis might be one of them.
Genesis, a cryptocurrency lending and borrowing platform, has reportedly been impacted by the recent fall of FTX. Genesis was founded in 2013 and is headquartered in New York City. The company has announced layoffs and plans to reduce costs in an effort to stay afloat. Genesis suspended withdrawals for clients in November, following the collapse of FTX, which held $900 million in user funds.
The Wall Street Journal has reported that Genesis is considering filing for Chapter 11 bankruptcy in conjunction with Moelis & Co. as a way to restructure and move forward.
Legal precedent established for the principle 'Not your keys, not your coins'
Crypto lending platform Celsius experienced rapid growth during the COVID-19 pandemic, offering high interest rates and easy access to loans that were rarely available through traditional banks. However, in May 2022, the collapse of major tokens terraUSD and Luna led to a sharp sell-off in the crypto market, causing the viability of Celsius' business model to come into question.
In July of the same year, Celsius froze withdrawals and filed for bankruptcy, citing "extreme" market conditions. The company estimated its assets and liabilities as being between $1 billion and $10 billion, with over 100,000 creditors.
Fast forward to January 2023, a U.S. bankruptcy judge ruled that Celsius has ownership rights over customer deposits of cryptocurrency, affecting approximately 600,000 accounts valued at around $4.2 billion. This means that most Celsius customers will be last in line for repayments, highlighting the importance of the principle "Not your keys, not your coins." The court also ruled in favour of Celsius, rather than in favor of customers who lost their savings on the platform.
What is your 2023 outlook?
The year 2022 was full of blowouts: major hacks, smart contract exploits, major lenders going under, liquidity drying up, and people gradually losing interest in cryptocurrency. And, the long-term impact will be felt this year. 2023 might be a slow year. But, WAGMI⚡️
Here's our 2023 outlook:
1. Revenue of most projects might decline. Hence, optimizing operational costs, infrastructure, and the revenue model would be crucial.
2. Institutional Investors may be on the sidelines until further clarity about the current state of the market.
3. Exchanges will have to aim for greater transparency and effective risk management policies with regular and detailed reports on their financial health.
4. A rise in security and risk management firms to address security exploits and strengthen the overall crypto space.
5. 2023 will be the year of ZkEVM. Industry giants are working on ZkEVM testnets.
6. NFT projects lacking utility will struggle to retain their community.
7. Blockchain analytics space that can gather transactions across multiple Blockchains and present them in a user-friendly way will greatly expand.
8. An increase in demand for KYC and AML Infrastructure. And, Oracles might venture into the KYC space.
9. Web3 integration of Twitter seems like a no-brainer, especially given that the platform needs a revenue stream.
10. Emergence of more Central Bank Digital Currencies (CBDC).
11. Following the FTX saga and crypto crash of ‘22, we can expect to see companies, including both crypto and DeFi protocols, go through a serious regulatory overhaul.
12. GameFi will make the mainstream audience adopt Web3 and motivate them to dig deeper.
13. A wallet might solve the problem of connecting sidechains without requiring any effort from the end user.
14. Hyping projects through influencer marketing will become a dying breed.
15. Good airdrops are highly expected this year.
16. Thousands of people will be onboarded to Web3 and good communities will be stronger than ever.
Where is the market headed?
Todays' gem is Bliv.club . We came across BLIV recently , which is a web3 fintech company. BLIV is the only product that allows people to have an exposure to blue-chip NFTs in an easy manner ( WOW !! ). This appeals to the people who don't have time to research deeply in the NFT space but are super bullish on it
We Signed up for early access ! Did you ? 👇
Well, 2023 will be a fire anyways.HODL, BUIDL, and subscribe to The Coin Weekly👀