Come every Saturday Hodler’s Digest will help you keep track of every single important news that happened this week. Best (and worst) rates, launch and regulation highlights, leading coins, predictions and more – a week on Cointelegraph in one link.
Top stories of this week
“Bollic Rate Hike” – Why Crypto Soared On Bad News
Despite the US Federal Reserve announcing a 75 basis point rate hike on Wednesday, crypto markets pumped significantly on the same day, with momentum continuing throughout the week. Quantum Economics founder and CEO Mati Greenspan jokingly called it a “bullish rate hike” and explained that investors were clearly expecting much worse. Analysts like Swyftx’s Pav Hundal suggest the recent rally could be due to easing inflationary pressures around gas and commodities like corn and wheat.
Ethereum developer confirms Goerli merger date, the last update before the merger
On Thursday, lead Ethereum developer Tim Beiko announced that the final Goerli testnet merger will occur ahead of Ethereum’s long-awaited merger and move to proof-of-stake between August 6th and 12th. On a long and severely delayed roadmap since late 2020, the Ethereum network is now in the final stages of completing its biggest upgrade yet. The official merge is scheduled for September 19, but could be subject to further delays if there are issues with the Goerli testnet.
Zuckerberg was unfazed by a $2.8 billion loss at the Metaverse division in the second quarter
Meta CEO Mark Zuckerberg said he was unfazed by the company posting a $2.8 billion loss at its Metaverse division in the second quarter. He stressed that the company’s Metaverse goals will take several years to execute, but he sees a “huge opportunity” to earn hundreds of billions or even trillions of dollars over time as the sector matures. “I am confident that we will be glad that we played an important role in the build-up,” he said.
Cathie Wood Sells Coinbase Stock Amid Insider Trading Allegations
Cathie Wood’s investment firm Ark Investment Management, which is one of Coinbase (COIN)’s largest shareholders, reportedly sold 1.4 million shares of COIN on Tuesday. The sale was made through three Ark exchange-traded funds (ETFs) and the sale was valued at around $75 million. The company reportedly held nearly 9 million shares of COIN at the end of June and has been steadily buying up the stock since it opened at around $350 last April. Since then, the price has fallen sharply and is just under $63, and Ark probably should have shorted it when Jim Cramer called it “cheap” at $248 last August.
Tesla reports $64 million profit from bitcoin sale
The electric vehicle manufacturer Tesla, led by Elon Musk, then made a respectable profit of 64 million US dollars Selling 75% of its BTC holdings in Q2. The gains seem remarkable considering the company was sold in the midst of a bear market; What’s more important and exciting, though, is that Musk finally appears to be here lose interest in crypto and we need hear no more of him. The company reportedly still has 10,800 BTC on its books, which is worth around $255 million at the time of writing.
Winner and Loser
Bitcoin at the end of the week (Bitcoin) is at $23,559.86ether (ETH) at $1,674.34 and XRP at $0.36. The total market capitalization is at $1.08 trillion, according to to CoinMarketCap.
Among the top 100 cryptocurrencies, the top three altcoin gainers of the week are optimism (OP) at 75.71% Ethereum Classic (ETC) at 58.20% and Qtum (QTOM) at 41.89%.
The top three altcoin losers of the week are Huobi Token (HT) at 9.10%, Kusama (KSM) at 8.98% and NEAR protocol (VICINITY) at 7.76%.
For more information on crypto prices, see Cointelegraph’s Market Analysis.
Most Memorable Quotes
“Many NFT projects are just speculation with no real tangible backbone, no real true story. Do you have a football club to cheer on every week? It’s a backbone that people cling to.”
Preston Johnson, co-owner of Crawley Town FC and co-founder of WAGMI United
“The industry shouldn’t be allowed to write the rules they want to play by.”
Sherrod Brown, US Senator and Chairman of the Senate Banking Committee
“We think it’s more relevant that local projects benefit the local economy and not just bring products to the United States to help retailers, for example.”
Lou Yu, Head of KuCoin Labs
“Powell is particularly adept at breaking bad news. Obviously, investors were expecting worse.”
Mati Greenspan, Founder and CEO of Quantum Economics
“The Metaverse is a huge opportunity for a number of reasons. I am now even more convinced that the development of these platforms will unlock hundreds of billions of dollars, if not trillions, over time.”
Mark Zuckerberg, CEO of Meta
“I worry about things that aren’t directly related to blockchain and the metaverse. I worry about climate change and social fragmentation.”
Neal Stephenson, author of snow crash
forecast of the week
The GameFi industry will be worth $2.8 billion in six years
Absolute Reports released a GameFi-focused report this week, estimating that the play-to-earn NFT gaming industry will be worth $2.8 billion by 2028. To meet the goal, GameFi would need a compound annual growth rate of 20.4% over six years, as the sector was valued at $776.9 million last year. However, the reasons for this lofty goal are hidden behind a paywall.
FUD of the week
Solana-Based Stablecoin NIRV Plunges 85% After $3.5M Exploit
Solana-powered adaptive yields protocol Nirvana Finance’s algorithmic stablecoin, NIRV, was decoupled by 85% this week after the protocol was hacked for $3.49 million worth of USDT. The incident was dubbed a flash loan attack, which resulted in funds being diverted from Nirvana’s treasury. Its native token, ANA, also fell 85% as a result of the hack.
Phishing risks escalate as Celsius confirms leaked customer emails
On Tuesday, struggling and bankrupt crypto lending company Celsius emailed its customers, informing them that a list of their emails had been leaked by an employee of one of its business data management and messaging providers, Customer.io. The company downplayed the incident, saying it “did not pose high risks [its] Customers,” adding that they just wanted users “to be aware” — although Celsius also said similar things in relation to users’ assets after suspending payouts a few weeks ago.
TikTok Data Policy Debacle: Is User’s Crypto At Risk?
Popular social media app TikTok is facing backlash over its sweeping data collection policies, which could extract large amounts of sensitive information from a user’s smartphone or computer. Hence, crypto users are now worried about whether TikTok is capable of scraping critical data like private wallet keys. “TikTok is not just another video app. This is the sheepskin. It collects swaths of sensitive data that new reports say is being accessed in Beijing,” US Federal Communications Commissioner Brendan Carr claimed.
Best Cointelegraph Features
The merger is Ethereum’s chance to take over Bitcoin, says researcher
Ethereum’s upcoming transition to a proof-of-stake consensus mechanism will alter its monetary policy, potentially making ETH more scarce than Bitcoin.
Tokenomics instead of Ponzi-nomics: influencing behavior, making money
Economics is the study of human behavior in the use of scarce resources – and the impact that behavior has on those resources, explains Roderick McKinley.
When Worlds Collide: Connecting Web3 and Web2 Crypto
A friend of mine who is a veteran Web2 tech executive joined a Web3 company in June. A die-hard operator, he asked to speak to all 16 employees before deciding to join the company.