Yesterday in Crypto - Issue #14

Read time: ~6 minutes

Here’s what you missed yesterday, 8/2/23.

MicroStrategy, a prominent business intelligence firm, has recently announced plans to sell up to $750 million of its publicly traded equity and bonds. The company's CEO, Michael Saylor, has been a vocal advocate for Bitcoin and has previously used similar strategies to increase the company's Bitcoin holdings. The proceeds from this sale could potentially be used to further expand MicroStrategy's Bitcoin portfolio.

The news of this potential sale has had a noticeable impact on the price of Bitcoin. Following the announcement, Bitcoin's price rose from $29,200 to the $29,700 range. This price increase is significant, especially considering the overall lack of volatility in the Bitcoin market recently.

However, it's important to note that MicroStrategy has not explicitly confirmed that the proceeds from the sale will be used to purchase more Bitcoin. The company's filing with the U.S. Securities and Exchange Commission (SEC) stated that the net proceeds from the offering would be used for general corporate purposes, including the acquisition of Bitcoin and working capital, subject to market conditions.

This move by MicroStrategy is seen as a bold strategy to grow their Bitcoin portfolio regardless of the market trends. It also highlights the growing interest and confidence in Bitcoin among large corporations.

Hong Kong's decision to grant licenses to cryptocurrency exchanges for retail trading marks a significant step forward in global cryptocurrency adoption. The licenses, awarded to HashKey Exchange and OSL Digital Securities Ltd., allow these platforms to expand their services to individual investors, a move that was previously restricted under the region's regulatory regime.

This development is a game-changer for the cryptocurrency landscape in Hong Kong, as it broadens the reach of digital asset trading to a larger audience. It signifies a shift in the regulatory stance towards cryptocurrencies, moving from a cautious approach to a more embracing one, which could potentially lead to increased participation from everyday investors in the crypto market.

The move also signals a trend towards the establishment of clearer regulatory frameworks for cryptocurrencies worldwide. As more jurisdictions like Hong Kong begin to regulate and legitimize cryptocurrency trading, it could lead to increased transparency in the industry, boosting investor confidence and further driving global adoption of cryptocurrencies. Watch out - the next bull run may start in and be fueled by Asia and many in the US will not be ready.

Curve Finance, an Ethereum based, decentralized lending and borrowing platform, saw some key players step in to help its current crisis. Curve Finance had a major hiccup that caused the price of its own digital currency, called CRV, to drop significantly. This put a huge loan tied to the founder of Curve Finance, Michael Egorov, in danger of being wiped out.Did you miss our initial coverage of the Curve calamity? Find it HERE

Justin Sun, the controversial figure who created a digital currency called Tron, stepped in to help. He bought about 5 million CRV from Egorov's digital wallet. He paid less than what the CRV was worth on the market, but more than what it would have been worth if Egorov's loan had been wiped out. Sun wasn't the only one who helped out. Other big names in the digital currency world, like investor Jeffrey Huang and a group called DWF Labs, also bought millions of CRV.

These actions helped to calm things down at Curve Finance. If Egorov's loan had been wiped out, it could have caused problems for other digital currency projects, because CRV is used in many places across the digital currency world. By buying CRV, these people not only helped Curve Finance but also protected their own digital money from potential losses.

This situation shows how everything in the digital currency world is connected, and how a few people can have a big impact on what happens. It also shows the risks that come with this kind of work, where problems can lead to big losses. But, it also shows how the digital currency community can work together to solve problems when they come up.

That’s all for today. We’ll see you tomorrow.

“We do believe that if we can create more tokenization of assets and securities – that’s what bitcoin is – it could revolutionize finance.”

- Larry Fink, CEO, Blackrock