Don’t look at the charts!
We thought last week was bad but this week took the cake!
BTC fell below $20,000, ETH fell below $1000, and the overall crypto market cap has dropped to $910 million. 72 out of the top 100 tokens have declined in excess of 90% according to CoinGoLive.
This week we also saw some big players in trouble. Babel Finance temporarily suspended it’s withdrawals of crypto assets on Friday, as the crypto lender struggles to pay its clients after the recent slump in the crypto market.. Then the Celcius Network also stopped all user withdrawals due to liquidity issues. Celsius also had a large stack of stETH that they had to sell, which could be a problem for Lido finance.
Speculation is mounting that Three Arrows Capital (3AC), a Singapore-based crypto hedge fund, is now insolvent and in deep trouble. Crypto hedge fund Three Arrows failed to meet margin calls this week and was forced to liquidate over $400 million, with another $300 million at risk. To make matters worse, 3AC also held many crypto project funds in its treasury. We still have no idea what the knock-on effect will be for either.
Inflation continues to rise, and in many countries inflation is higher than it has been in 30 years. Fuel prices are at record levels worldwide, adding to inflation and rising food costs. The Fed raised its rates another 0.75%, the largest hike in 30 years. The S&P 500 also entered a bear market this week, falling over 20%. All these global problems are affecting the markets, and many economists are whispering the ‘r’ word.
But on that cheerful note, let's move onto the good stuff!
First, we got our audits back from ZOYKO and we are proud to say that our overall score is 98%, which is higher than the industry average!
You can read the full report Here
This means that we will deploy the fully audited code to the platform on Monday, June 20!
Deployment will take a few days as we need to make sure everything is fully functional. Once the code is deployed, we will get our BTC, ETH and BNB index vaults up and running so we can do some internal testing. The platform testing will take about a week. We originally planned to open the platform on June 27, but due to market conditions and the fact that we believe there will be another downside soon, we will open the platform to users starting the week beginning July 5.
This week we also reported on the second index vault we are adding - ETH indices! The index trades for you, and uses proven techniques like dollar cost averaging (DCA) to achieve better long-term results. Have a read, it’s definitely worth exploring!
Even professional traders make mistakes: they trade too much, too often, or don't control their risk. Take the example of Three Arrows Capital (3AC), the venture capital firm now rumored to be bankrupt. 3AC had massive exposure to LUNA, $560 million to be exact. After LUNA's crash, that investment is now valued at $670, a huge drop. This forced 3AC to borrow more to offset its losses, and now that the market is volatile, the company is struggling to make payments to its lenders.
The FNDZ Crypto Index is designed to keep your portfolio balanced with a better risk/return ratio. The index holds a large-cap token (like BNB or ETH) and stablecoins. It then balances your portfolio between the two. If the price of one token rises, it sells a portion of the gains for stablecoins. If token prices fall, it buys back in at a low price point. This technique is called ‘rebalancing’ and it produces better average returns in the long run than holding individual tokens.
Keep an eye out for more index teasers and videos this week! As always, thank you for your support and stay positive, we are a young industry with huge potential!