What happened this week in the world of blockchain and cryptocurrencies? The most relevant local and international events as well as appealing background reports in a concise and compact weekly review.
Selected articles of the week:
In 2021, retail investor Keith Gill (better known as “Roaring Kitty”) started a loose anti-Wall Street movement via the internet forum WallStreetBets. He shared his bullish analysis of struggling video game retailer GameStop (GME). At the time, the number of shares sold short relative to total public float was a staggering 140%. A massive wave of buying by retail investors was to bring the hedge funds on the short side to their knees. Three years later, the saga is entering its second round, with the parallels to the crypto sector becoming increasingly relevant.
Through the second round of the GameStop saga, the video game retailer possesses additional funds, which could be diversified into Bitcoin.
Celebrities launch their own memecoins
The “meme” phenomenon appears in various forms. Cryptocurrencies with no meaning or purpose have been around longer than in the world of shares and are used purely for entertainment. Their price is determined by narratives and engagement on the internet. Popularity is triggered by viral online content such as tweets, videos or news. And sub-sectors are now even forming in the world of memecoins. The latest trend: cryptocurrencies from celebrities and presidential candidates.
Meme coins are a type of cryptocurrency inspired by jokes circulating on the Internet. Meme…
Next US exchange plans IPO
The crypto exchange Kraken was one of the first trading venues for Bitcoin in 2011. After Coinbase, the exchange handles the second-highest volume on the US market. A final financing round is now being considered, which is expected to raise more than USD 100 million. After that, Kraken would aim for an IPO – just like its competitor Coinbase. With an annual turnover of USD 1-2 billion, Kraken would be one of the most highly valued crypto companies on the stock exchange. The financing round is expected to be completed this year.
Like the US competitor Coinbase, Kraken is planning an initial public offering (IPO) after completing a financing round of 100 million USD.
New retail CBDC project
A central bank digital currency (CBDC) is a digital form of a country’s fiat currency that is issued and regulated by the central bank. Unlike cryptocurrencies, CBDCs are backed by the government and have the same legal status as physical currencies. The main risk with CBDCs is the significant loss of privacy, as all transactions can be closely monitored by central banks. It is no coincidence that retail CBDCs are particularly advanced in China. A team of banking and FinTech experts in Switzerland is working on a private sector project for a Swiss Narrow Bank (SNAB) with a “synthetic” retail CBDC.
The new Swiss Narrow Bank (SNAB) wants to introduce a private-sector approach to a retail CBDC which has a built-in interest function.
Stablecoin providers under pressure from the EU
Stablecoin providers under pressure from the EU
In addition: The upcoming regulation in Europe will shake up the stablecoin market. Binance revealed plans last week to restrict stablecoins that do not meet MiCA (Markets in Crypto Assets) standards. This may include the largest stablecoin, Tether (USDT). Other exchanges have announced similar plans. For euro stablecoins, this would be an opportunity to regain market share from the US dollar.
A summarizing review of what has been happening at the crypto markets of the past week. A weekly report in cooperation with Kaiko.
