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The sell-off continues 🤑
Cryptocurrency prices have kicked off the week with a whimper, continuing the downward trend that wiped billions of dollars from the value of the combined crypto market last week.
The bitcoin price is now closer to $40,000 than $50,000, with ethereum heading toward $3,000. Among the crypto top ten, cardano and solana are leading the market lower as an upgrade hangover grips ADA and sol pulls back after its blazing run through August.
Among (very) minor tokens, the memecoin shiba floki has added almost 500% (though is still ranked around 3,000th on CoinMarketCap) after the number one crypto influencer, Elon Musk, last night shared an image of his new puppy—a Shiba Inu called Floki.
Inflation watch… The latest U.S. consumer price index (CPI) data is out tomorrow (Tuesday) and will reveal how much prices increased last month as the row between economists and the crypto community continues over whether recent inflation should be a cause for concern. Tomorrow’s data will influence next week’s meeting of Federal Reserve officials where plans for the reduction of economic stimulus are due to be discussed.
Koreans face “bank run” situation 🏦🏃♀️
Altcoin angst: Cryptocurrency traders in South Korea are facing a “bank run” situation according to media reports with regulation poised to shut down many smaller exchanges in the country, potentially wiping out some 42 so-called kimchi coins. Foreign and local exchanges have to register as legal trading platforms by September 24 but many are struggling to meet the conditions.
Looming: “A situation similar to a bank run is expected near the deadline as investors can’t cash out of their holdings of ‘altcoins’ listed only on small exchanges,” Lee Chul-yi, head of Foblgate, a mid-sized exchange in the country, told the Financial Times. “They will find themselves suddenly poor. I wonder if regulators can handle the side-effects.”
Counting the cost: According to the FT, South Korean cryptocurrency traders are bracing for losses of $2.6 billion as the country’s regulator, the Financial Services Commission (FSC), cracks down on two-thirds of South Korea’s crypto exchanges. Around 40 of South Korea’s estimated 60 crypto operators are expected to be shut down.
Why it matters: South Korea is one of the world’s biggest crypto markets currency markets and the Korean won is the third most widely used currency for bitcoin trading, after the dollar and euro, accounting for about 5% of global trading, the FT reported, citing data from Coinhills. The regulations will also affect global exchanges offering won trading. The FSC has sent a notice to 27 foreign crypto exchanges that run operations for Korean traders. Last month, the world’s biggest crypto exchange, Binance, suspended its won-to-crypto trading service.
Big if true: Rumors swirl Ukraine could adopt bitcoin
🙊 Rumors are swirling on social media that Ukraine could follow El Salvador in adopting bitcoin as legal tender following some over-excited media reports.
🙉 In a report by London business newspaper CityAM, headlined “Ukraine set to become next country to make bitcoin legal tender,” experts argued the European country is gearing up to make bitcoin official currency—though there’s little evidence that it’s actually in the works. Bear in mind, it was CityAM that recently reported online retail giant Amazon
🙈 Last week, in a nearly unanimous vote, the Ukrainian Parliament opted to legalize and regulate bitcoin and cryptocurrency, triggering speculation it could be about to jump foot-first into crypto adoption.
Don’t miss: El Salvador runs a bitcoin scam
👍 At least one hedge fund still likes crypto…
💂 London-based hedge fund Brevan Howard is expanding its crypto business, hiring new talent and launching a new crypto-focused division called BH Digital.
🤝 Brevan, which launched a digital assets fund in May and said its flagship fund would also invest in crypto, is well known for its macroeconomic bets. Brevan Howard has now hired CMT Digital chief executive Colleen Sullivan to lead private and venture investments in crypto.
🙏 “Colleen’s exceptional track record in making highly successful crypto venture investments will be of tremendous benefit to Brevan Howard clients and underscores the firm’s commitment to rapidly expanding its platform and offerings in cryptocurrencies and digital assets,” said Brevan CEO Aron Landy in a statement first reported by Reuters.
Now read this: Can’t the crypto crowd see the scars from 2017?