Headlines
▌ Bitcoin Traders hit by $210 Million of Long Liquidation on Friday
Bitcoin traders suffered $210 million in long liquidations on Friday, the biggest liquidation event since June.
▌ One of the Main Designers of the DAO Left the Ethereum Community After Nine Years
Stephan Tual, one of the main designers behind The DAO, has left the Ethereum community after nine years. Tual said he now intends to focus on other technologies, including mesh networking and software-based radio communications. In January 2014, Tual joined the Ethereum project as Chief Communications Officer, where he worked until September 2015. At the time he left to found Slock.it, which in 2016 created a framework for building DAOs, and that year a large community of developers adopted the framework, collaborated with Slock.it, and used it to launch what is known as A project for The DAO. Before a bug in its code was exploited, The DAO attracted significant investment, raising 15% of all Ethereum (ETH) in circulation at the time. The problem was so severe that the Ethereum blockchain eventually forked, giving rise to what we know today as Ethereum and Ethereum Classic. Tual faded out of the public eye after buggy code was exploited to bring The DAO down, but remains active in the Ethereum community. He left Slock.it in 2017 to create an incubator focused on cryptocurrencies and continues to host Ethereum community events in London.
Cryptocurrency
▌Celsius Spent $40 Million in Cash on Mining Operations Two Weeks Before Bankruptcy
Celsius CFO Chris Ferraro said at a meeting with creditors on Friday that the company spent more than $40 million on its cryptocurrency mining operations in the two weeks before it declared bankruptcy. It is reported that Shara Cornell of the Office of the U.S. Trustee discovered the capital expenditure at the meeting, and Chris Ferraro eventually admitted that the funds were used to pay for expenses such as electricity related to mining equipment, and claimed that Celsius thinks it’s worth spending money on mining operations because “the market is saturated with mining platforms, meaning their value has declined, and Celsius’ mining operations are expected to be profitable by January 2023.”
▌Bored Apes (BAYC) Floor Price Fell Below 70 ETH, Approaching Mass Liquidation on BendDAO
A large number of Bored Apes Yacht Club NFTs are approaching liquidation on the lending platform BendDAO, a platform that lends out Ethereum loans to users against NFT collaterals. Many Bored Apes Yacht Club (BAYC) NFT holders have borrowed ETH using the platform lending service, and a significant number of these users are at risk of liquidation currently as the floor prices of the collection have been going down in recent weeks. An analyst on Twitter has suggested that a possible consequence of these BAYC liquidations can be a crash of the entire NFT market. As of writing, the BAYC floor price is trading at 69.70 ETH.
▌Stablecoin Fei (FEI) Might Be Shutting Down Soon
One of the largest decentralized stablecoins, might cease its operations as its founder, Joey Santoro, had published a compensation proposal. The proposal suggests holders may redeem the existing circulating supply of FEI to Dai (DAI), the largest algorithmic stablecoin. Should this proposal pass, the remaining PCV reserves will be distributed between the holders of the TRIBE token, which is used to act as a balanced instrument to keep a 1:1 peg between FEI and USD. As of writing, FEI is trading at $0.9897, losing its 1:1 US dollar peg.