The founders of Three Arrows Capital (3AC) are nowhere to be found. Liquidators are having trouble finding them and they have not received any meaningful cooperation from the two founders. 3AC filed for Chapter 15 bankruptcy earlier this month after it defaulted on a $670 million loan provided by Voyager Digital. It has also failed to repay a $270 million loan to Blockchain.com. There is a risk that the founders will attempt to transfer the company's remaining funds elsewhere.
Mysten Labs is in talks to raise at least $200 million in Series B funding at a $2 billion valuation. The company was founded by veterans of the crypto research and development division of Meta. It launched its decentralized blockchain Sui in March. Mysten Labs raised $36 million in a Series A funding round in 2021 led by Andreessen Horowitz.
GameStop's NFT marketplace is now live. It allows gamers, collectors, and other community members to buy, sell, and trade NFTs. GameStop has partnered with Immutable X to establish a fund for creators of NFT content and technology. Immutable X will provide GameStop with up to $150 million in IMX tokens upon the achievement of certain milestones.
blackfridge has launched the poundtoken, a British-regulated stablecoin fully backed by pound sterling (GBP). GBPT will be redeemable for GBP at any time. KPMG will audit the stablecoin to confirm that all tokens issued are fully backed. GBPT can be bridged and transacted across multiple chains. blackfridge plans to develop a range of financial services to drive the adoption of blockchain technology in the financial services industry.
Liquidity pools typically have a higher yield than yield through lending or staking. However, yields in bear markets are much lower due to lower token prices and trading volume. Impermanent loss still exists, and there are many other risks. The bear market separates sustainable farms from unsustainable ones. There are fewer yield opportunities now, so it is worth focusing on building and protecting assets rather than trying to earn an extra few percent in yield.
This Twitter thread summarized Messari's Crypto thesis for 2022, a 165-page report that covers the key trends and predictions for the future of crypto. It discusses the collapse of institutional trust, the inevitability of crypto, crypto technology, venture capitals, and more. A video version of the thread is available.
The Financial Stability Board (FSB) is preparing to propose international regulations for cryptocurrencies and stablecoins in October. The FSB is a global financial regulator that includes all G20 countries. It aims to minimize the risk of fragmentation and regulatory arbitrage. The FSB's interest in crypto regulations is due to the recent decline in the crypto market, which highlights issues with the increasing interconnectedness of crypto with the traditional financial system.
One of the criticisms of DeFi tokens is their lack of real value. Many tokens are now paying out fees to token holders. This Twitter thread talks about seven tokens that receive protocol fees directly, including GMX, Synthetix, Trader Joe, and Curve.