Wu Shuo Zhou’s Selection: Top 10 News and Hot Articles, 3AC Liquidation, 75bps Interest Rate Hike, Bloody Market (0610-0617)

1. FTX , Deribit and BitMEX have liquidated Three Arrows Capital ’s positions.

According to TheBlock, FTX, Deribit and BitMEX have liquidated Three Arrows Capital's positions. Three Arrows still owes BitMEX about $6 million. In addition, it is reported that several Asian institutions have also liquidated at least hundreds of millions of dollars from Three Arrows Capital. In addition, Three Arrows Capital (3AC) is considering selling assets for rescue and has hired legal and financial advisors to help develop solutions for its investors and lenders.

An anonymous account created by three ordinary people who claim to work with the founder of 3AC revealed that 3AC currently has a total outstanding debt of more than 2 billion US dollars and only 200 million in liquid assets (but liquidity is difficult to assess). A source revealed to Wu that the outstanding debt is between 1.5 and 2 billion US dollars, and the current maximum liquid assets are 600 million US dollars.

2. Ethereum core developer meeting, a fork will be conducted at the end of June to postpone the difficulty bomb, and the main network merger is expected to be in late August to November.

In the Ethereum core developer meeting #140, developers discussed issues related to the testnet merge and decided to fork at the end of June to postpone the difficulty bomb. At the same time, Tim Beiko said that the mainnet merge is expected to be in the late August to November period.

3. The Federal Reserve announced a 75 basis point rate hike, the largest since 1994

In response to CPI data that exceeded expectations, the Federal Reserve announced a 75 basis point interest rate hike, the largest increase since 1994.

Fed Chairman Powell said that he does not expect the 75 basis point rate hike to become a regular practice. The next meeting is most likely to be 50 or 75 basis points.

4. The SEC has launched a full investigation into whether cryptocurrency exchanges have adequate protections to prevent insider trading on their platforms

According to Fox Business, the SEC has launched a full investigation into whether cryptocurrency exchanges have adequate protections to prevent insider trading on their platforms. According to a person with direct knowledge of the investigation, after the collapse of LUNA, the U.S. Securities and Exchange Commission has sent a letter to a large cryptocurrency exchange asking it to provide information on how the platform protects users from insider trading facilitated through its network. In addition, people familiar with the matter revealed that based on conversations with industry insiders, the scope of this SEC investigation is very wide.

5. Fujian is the first to prohibit trading venues from conducting NFT transactions: "No participation, no approval, no endorsement"

According to the China Times, Fujian Province recently issued a reminder letter on preventing NFT violations. The document mentioned that in order to prevent the risk of trading venues illegally participating in NFT activities, four reminders were made for Fujian Province's trading venues involving NFT-related activities, including "not engaging in NFT transactions without approval, and not illegally participating in NFT activities in disguise."

6. Principles and agreements that national central intermediary service agencies must follow when entering the market: they cannot engage in NFT and digital collection business, or promise not to engage in NFT and digital collection business after entering the market

7. TRON Joint Reserve’s USDD Anchor Defense Battle

In the context of the market crash and institutional liquidation, USDD has become a potential target for short sellers. However, due to the small market value of USDD and the high-profile purchase of TRX by TRON Joint Reserve on many occasions, USDD has not yet been seriously decoupled.

8. AEX issued an announcement on the reason for delayed withdrawal: mid- and long-term asset allocations cannot be redeemed in the short term, and mainstream currency withdrawals are suspended for 36 hours

AEX issued an announcement on the adjustment of the withdrawal function. The reason for the delayed withdrawal on June 14 was caused by a series of events: the USDT/ USDC stored by AEX on the Curve platform for mining was run by UST after the collapse of UST, resulting in short-term liquidity asset losses; some third-party quantitative institutions experienced a certain degree of net value drawdown under extreme market conditions, and AEX unilaterally interrupted the contract and withdrew assets with principal guaranteed; the repayment speed of customers in the mining machine allocation business and pledge loan business was delayed; institutions such as LUNA, CEL, and 3AC collapsed continuously, causing market panic; the multi-signature server temporarily failed.

9. Celsius suspended withdrawals, exchanges and transfers between accounts to maintain stability. The crisis was resolved by continuously replenishing the on-chain margin.

Celsius, which has suspended withdrawals, exchanges and transfers between accounts in an effort to protect customer assets while stabilizing liquidity and operations, has hired banking giant Citigroup in an advisory capacity to advise on possible solutions.

10. The total market value of the crypto market fell below US$1 trillion for the first time since January 2021, and subsequently fell below US$900 billion.

Key financing events

• Sequoia Capital launches two new funds in India and Southeast Asia to invest in Web3 and other fields

• Digital asset platform Amber Group announced the acquisition of financial group Celera Markets Limited and obtained five types of CSRC licenses, but not virtual asset regulatory licenses

• Web3 creator suite Tellie completes $10 million Series A funding round, with participation from Galaxy Digital , Dapper Labs , and others

• Metaverse developer Atmos Labs completes $11 million seed round of financing with participation from Animoca Brands and others.

• European financial institution Upvest announced the completion of a $42 million Series B financing round to develop and optimize the company's investment API

• Venture capital firm T GV 4 Plus completes $146 million new fund raising

For more industry financing events, please refer to DoveMetrics.

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• Question: What pressures does Bitcoin beacon MicroStrategy face and can it successfully survive the bear market?

• The Lehman moment of entrepreneurial maniacs, the whole story of the crisis of crypto unicorn Celsius

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Hot Column

3AC liquidation liquidity crisis:

• Twitter timeline Thread

• On-chain operation timeline

• Triple Pressure: GBTC, stETH, Luna

• Selling assets & hiring legal and financial advisors

Other related:

• Babel Finance announces suspension of Babel Finance product redemption and withdrawal functions

• 3AC Asset Management

• BlockFi