assets

FTX reportedly considers bailing out Celsius via asset bid

Acquiring the assets of Celsius would imply FTX’s intent to save the lending firm, similar to what FTX US did for Voyager by securing the winning bid of approximately $1.4 billion.

Crypto exchange FTX, led by crypto billionaire Sam Bankman-Fried (SBF), is reportedly considering bailing out Celsius Network by bidding on the bankrupt lender’s assets. Coincidently, the information came out the same day Alex Mashinsky resigned as the CEO of Celsius. 

“I regret that my continued role as CEO has become an increasing distraction, and I am very sorry about the difficult financial circumstances members of our community are facing,” said Mashinsky while explaining his decision. For FTX, acquiring the assets of Celsius would imply the exchange’s intent to save the lending firm, similar to what FTX US did for Voyager by securing the winning bid of approximately $1.4 billion.

Bloomberg reported on FTX’s interest in Celsius Network based on insights from a person familiar with SBF’s deal-making. However, an official statement from either party is pending at the time of writing.

On Sept. 22, FTX was reportedly found to be in talks with investors to raise $1 billion, which, if bagged, would help the exchange hold its $32 billion valuation amid a bear market.

Celsius filed for bankruptcy after disclosing about $1.2 billion in deficit in mid-2022. In August, Reuters reported on Ripple’s interest in purchasing Celsius’ assets, which has since gone cold.

FTX has not yet responded to Cointelegraph’s request for comment.

Related: British regulator lists FTX crypto exchange as ‘unauthorized’ firm

In what seems like a massive restructuring drive, Brett Harrison stepped down from FTX US president to move into an advisory role in the next few months.

“Until then, I’ll be assisting Sam [Bankman-Fried] and the team with this transition to ensure FTX ends the year with all its characteristic momentum,” said Harrison.

Interlay launches trustless BTC stablecoin bridge on Polkadot

InterBTC operates as a BTC-backed stablecoin, secured by a decentralized network of overcollateralized vaults, which according to Interlay, resembles MakerDAO’s DAI token.

Interlay, a London-based blockchain firm, launched a Bitcoin (BTC)-based cross-chain bridge on Polkadot (DOT). Named interBTC (iBTC), the bridge allows the use of Bitcoin on non-native blockchains for decentralized finance (DeFi), cross-chain transfers and nonfungible tokens (NFTs), among others.

interBTC operates as a BTC-backed stablecoin, secured by a decentralized network of overcollateralized vaults, which according to Interlay, resembles MakerDAO’s DAI token, a stablecoin on the Ethereum blockchain.

The iBTC vaults use mixed-asset collateral to insure BTC reserves, making iBTC redeemable 1:1 with BTC over the Bitcoin blockchain. As a preventive measure during unforeseen vault failure, the collateral is programmed to get slashed and reimburse the BTC depositors. Sharing the thought process behind the initiative, Interlay co-founder and CEO Alexei Zamyatin stated:

“Bitcoin is the driving force behind global crypto adoption, while Polkadot, Ethereum & co. is where technological innovation is happening. With interBTC, we combine the best of both worlds while preserving the trustless nature of Bitcoin.”

Interlay’s announcement also highlighted Ethereum co-founder and Polkadot inventor Gavin Wood’s vision of creating a fully decentralized Bitcoin bridge on Polkadot, which was made possible by interBTC. Acala and Moonbeam will be the first DeFi hubs to host iBTC’s debut, which will be supported by a $1 million liquidity program offered by the Interlay network treasury and partner projects.

The roadmap for iBTC involves being available on other major DeFi networks, including Ethereum, Cosmos, Solana and Avalanche.

Related: DeFi market has room for growth in Korea: 1inch co-founder — KBW 2022

Echoing Interlay’s interest in serving the DeFi and other crypto markets, DeFi aggregator 1inch Network eyes geographical expansion in newer jurisdictions. Speaking to Cointelegraph, DeFi aggregator 1inch Network co-founder Sergej Kunz revealed plans to expand its reach in Asia.

Kunz disclosed that 1inch is actively looking to partner with Asia-based Web3 companies despite the small DeFi market in Korea and Asia, adding that:

“Here, there are a lot of people who like gaming and a lot of things like that, so I think the DeFi market can grow a lot in South Korea.”

1inch’s primary use case as a decentralized exchange (DEX) aggregator involves identifying pools with the largest liquidity, lowest slippage and cheapest cryptocurrency exchange rates.

Survey shows 55% of crypto investors chose to HODL as Bitcoin and altcoin prices collapsed

Retail investors have been wary of buying the current BTC dip, but survey data shows that 55% of those already invested in crypto chose to HODL during the most recent volatility.

Crypto and equities markets are down, and aside from the positive news of Celsius repaying all of their debt and avoiding a massive liquidation, there are few on-the-spot reasons that are prompting investors to buy Bitcoin (BTC) and altcoins.

The collapse of numerous decentralized finance (DeFi) protocols, crypto investment funds and BTC trading 60% below its all-time high continue to weigh on sentiment, but a few positive tidbits of data could be a sign that the market is ready to enter a consolidation phase.

Crypto investors HODL

According to a recent survey conducted by Appinio and despite the collapse in crypto prices and the start of the bear market, “more than half (55%) of crypto investors held their investments in response to the recent crypto-asset market sell-off with just 8% selling their investments.”

This suggests that the investment conviction of a majority of crypto investors remains strong. The study also found that “33% of American investors are invested in crypto-assets,” and “40% of investors believe Bitcoin presents the best investment opportunity over the next three months.” 

American investors show resiliency

When it comes to how American investors responded to the broad pullback across financial markets, Appinio found that 65% of respondents held their investments and remained confident in their choices.

When asked to pinpoint their most pressing short-term concerns, 66% of respondents cited rising inflation, 39% highlighted the state of the global economy and 34% identified international conflict.

According to Callie Cox, United States investment analyst at eToro, these concerns combined with ongoing uncertainty “and an overall increase in cost of living and housing costs” have formed “a perfect storm of setbacks” for investors.

Cox said:

“Despite these factors, investors across generations are demonstrating a level of maturity and understanding and are not letting emotions dictate important money decisions.”

Related: Bitcoin traders expect a ‘generational bottom,’ but BTC derivatives data disagrees

Bitcoin enters oversold territory

In addition to the resiliency displayed by crypto investors, several on-chain metrics also suggest that the market may have hit oversold territory and is primed for a period of consolidation.

The MVRV Z-score, which uses a combination of Bitcoin’s market value, realized value and z-score, has been a reliable tool to help identify when BTC is “extremely over or undervalued relative to its fair value,” according to LookIntoBitcoin.

Bitcoin MVRV Z-score. Source: LookIntoBitcoin

As shown on the chart above, periods where the red z-score has entered the lower green band have represented good buying opportunities for BTC, as have times when the market price dropped below the realized price, a feature shown by the blue and yellow lines at the top of the chart.

The Bitcoin Investor Tool provided by LookIntoBitcoin likewise offers insight when buying or selling Bitcoin can produce outsized returns.

Bitcoin Investor Tool. Source: LookIntoBitcoin

The green shaded areas on the chart represent periods of time where the price of Bitcoin is at a level that is considered historically low and may represent a good opportunity to buy.

It should be noted that with the Bitcoin investor tool and the MVRV Z-Score, the time spent in bear market conditions varies and can go on for an extended period, so it would be wise for investors to not solely base their investment thesis on any particular metric or indicator in isolation.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.