Weekly Flip Thru: Vauld Suspends Activity, Meta Axes Novi
Many Americans had a three-day weekend due to the Independence Day holiday, but that didn’t mean crypto news was caught napping.
In fact, the last few days brought us encouraging words about a potential bitcoin bottom, news of another platform suspending withdrawals, and more. Read on for a quick look at some of the week’s biggest headlines.
Vauld pauses transactions, explores restructuring (CNBC): On Monday, the Singapore-based crypto lender (backed by Peter Thiel and others) suspended withdrawals, deposits, and other actions on its platform. In an accompanying statement, Vauld’s CEO Darshan Bathija, cited “financial challenges” arising from volatile market conditions.
As recently as June 16, though, Bathija confirmed Vauld was operating as usual “despite volatile market conditions.” Since then, nearly $200 million has been withdrawn from the platform.
Crypto ATM market on the move (Networld Media Group): The global market for crypto ATMs is projected to grow by nearly $2.4 billion by 2026, amounting to an annual growth rate of more than 53%. Driving this growth is increased interest in crypto investing — including initial coin offerings (ICOs) — and a corresponding demand for more buying hardware.
More Reading: What is a Bitcoin ATM and how does it work?
Meta drops its crypto wallet project, Novi (FXEmpire): The company formerly known as Facebook is shelving its Novi crypto wallet on September 1. Deposits will be unavailable after July 21, with withdrawals impossible after the September date. Meta’s venture into cryptocurrency, via its Diem (formerly Libra) coin, has also failed to gain traction amid privacy concerns.
Bitcoin (and only bitcoin) is a commodity? (Axios): Many among the crypto cautious lump “bitcoin” in with all cryptocurrencies as a sort of generic trademark (see also: Xerox and Kleenex). Well, SEC Chair Gary Gensler may be one of these, at least when it comes to “official” declarations. Appearing on CNBC’s “Squawk Box,” Gensler suggested that bitcoin is the only coin he would publicly label as a commodity.
Bitcoin bounceback (Bloomberg): Technical analysts continue to try and time a potential bounceback by considering historical lows, moving averages, and volume trends. Fundamental research, meanwhile, foresees continued challenges, given the potential for additional interest rate hikes and recessionary pressures.
Another more positive angle, however, was detailed by Brett Munster of Blockforce Capital. Munster pointed out that in past bear markets, coins get withdrawn from cold storage and re-deposited onto the exchanges. We haven’t seen this trend, he observes, and in fact, the number of bitcoin wallets with a value is rising. “Despite the recent price crash,” he added, “Bitcoin’s fundamentals are arguably stronger now than any time in its history.”
And in other talks…FTX may be interested in acquiring RobinHood, the UK’s Classic Parade supercar rental company announced it would accept payment in crypto, and crypto hedge fund Three Arrows Capital may be forced to liquidate.
Still hungry for more crypto news? The easiest way to get them delivered to your inbox is by subscribing to the CoinFlip newsletter. Get regular bite-sized pieces of crypto news along with the occasional discount code to get reduced fees at your nearest crypto ATM or when using CoinFlip Order Desk.