What happened this week around blockchain and cryptocurrencies? The most relevant local and international events as well as appealing background reports in a pointed and compact weekly review.
Selected articles of the week:
Today, the Crypto Valley, encompassing Switzerland and Liechtenstein, is renowned as a crypto-friendly hub for startups. The foundations for this thriving ecosystem were laid over a decade ago when the entire crypto industry was still in its infancy. Led by Danish native Niklas Nikolajsen, a small group of early Bitcoin enthusiasts saw Switzerland as a future blockchain center, giving rise to the crypto broker Bitcoin Suisse exactly ten years ago. Examining the history of the Crypto Valley.
The past two years in the crypto industry were marked by a series of high-profile insolvencies. Providers like FTX, Celsius, and BlockFi mishandled billions in customer funds, resulting in severe consequences. However, reputable players are gradually regaining their footing, with heavyweights like BlackRock, Deutsche Bank, and Swiss financial services provider PostFinance entering the space. According to Andy Flury, CEO of institutional crypto trading platform Wyden, the industry should view the mistakes of the previous market cycle as lessons learned. The algorithmic trading specialist reviews the past two years and outlines the prerequisites for a sustainable crypto infrastructure.
Decentralized Finance (DeFi) refers to a novel financial ecosystem built on blockchain technology. Financial services such as lending, borrowing, trading, and asset management are decentralized and permissionless. In contrast to traditional financial institutions, DeFi operates with open-source software, granting users access to these services without intermediaries. The result is a financial world characterized by increased transparency and accessibility, along with reduced counterparty risk. An introduction to a comprehensive series on the DeFi sector.
It’s been nearly a year since the implosion of what was once the third-largest cryptocurrency exchange, FTX. The downfall of FTX not only left an uncertain environment for investors but also a multi-billion-dollar balance sheet that needs to be distributed to affected users. To facilitate this, the liquidator of the company recently obtained court approval to sell cryptocurrencies worth approximately $3.4 billion. This process is expected to take months to years, and the markets reacted swiftly to the news, triggering a selling spree in some alternative cryptocurrencies (Altcoins).
A summarizing review of what has been happening at the crypto markets of the past week. A look at trending sectors, liquidity, volatility, spreads and more. The weekly report in cooperation with market data provider Kaiko.
In addition: In mid-August, the cryptocurrency markets experienced a sharp correction, pushing Bitcoin nearly 20% below its recent local peak. Subsequently, a consolidation phase brought the price to historical support levels. Now, the markets are eagerly awaiting a decision from the SEC regarding the pending Bitcoin ETFs from BlackRock and other entities.