Michael Saylor is vowing to "HODL Bitcoin through adversity" — but MicroStrategy's now in margin call territory on its $205 million BTC-backed loan.
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Editor's Note: The Media is Killing Crypto Again
Molly Jane Zuckerman writes…
Now that Bitcoin is down something like 25% over the past week, it's time for the media to kill crypto again.
A quick Google of "Is crypto/Bitcoin dead?" brings up headlines like "Crypto is dead. Long live crypto," "Now that bitcoin is dead (again), is it time to buy?" and of course, the classic — "Is Bitcoin dead?"
This isn't actually as bleak as it could be — past crypto bear markets have been much harsher in the coverage by mainstream media. At least in these headlines, they are seeming to question Bitcoin's death and how we could profit from it. Baby steps.
In fact, the media seems to be interested in why exactly (this time) crypto is crashing so hard. So interested actually that they reached out to have me on a four-minute slot on BBC Radio 4 to give my "expert" opinion from CMC… and here's what they asked.
Is the market crash scaring off newer retail investors?
Yes! If you joined the market when BTC was close to $70,000, and you haven't yet learned the lesson "never put in more than you are willing to lose" — you are certainly learning that lesson right now.
Will Bitcoin ever get back up to $68,700?
I don't know. People on Twitter love to throw around big predictions like "$100,000 by X!" (and sometimes even make pretty insane bets about it.) That's not really productive to anyone. Price predictions are a science that we haven't seemed to perfect yet.
What do you think will happen in crypto in the next six months?
That's way too short of a timeframe to be looking at. As hard as it is, crypto seems to do much better if you can look far, far into the future — buy if you want to now, HODL and talk to me in 10 years.
Positive or negative, media interest in crypto is always important — mainstream audiences need to know what's going on. But while coverage of bull markets tends to encourage people to explore what crypto has to offer, endless column inches about the downturn may scare them away.
We often end these editor notes with "only time will tell," and I'll do that here too. Only time will tell if this crypto crash is the real one that could actually "kill" crypto — and there's certainly enough going on to keep the market wobbling… LUNA, Celsius and Elon Musk among them.
MicroStrategy now in margin call territory 🚨
Michael Saylor is attempting to play down fears about MicroStrategy's Bitcoin holdings — with the company now officially at risk of a margin call on a $205 million loan. Back in March, the publicly listed company borrowed the eye-watering sum from Silvergate Bank in its quest to snap up more Bitcoin — using BTC already in reserve as collateral. MicroStrategy later confirmed that margin calls would kick in at $21,000 — a figure unthinkable up until recently. That day has now come. The company does have the option of adding further amounts of Bitcoin as collateral to prevent a margin call being triggered. Saylor is now vowing to "HODL through adversity."
Coinbase cuts 18% of staff… 😞
Crypto layoffs are showing no sign of slowing down. Coinbase has now confirmed it is cutting 18% of its workforce — with CEO Brian Armstrong candidly admitting that the exchange "grew too quickly." Affected workers were given one hour's notice, cut off from Coinbase's internal systems, and informed through their personal email address. Armstrong warned a recession appears to be on the horizon, and this could lead to a prolonged crypto winter. He conceded that Coinbase had "over-hired" — and said the company was now "planning for the worst" as the economy falters.
…but Binance will keep hiring 👀
Despite the doom and gloom in the crypto industry, Binance says it's planning to ramp up hiring. Changpeng Zhao says the exchange has a "very healthy war chest" and also plans to splurge on mergers and acquisitions. A number of big names in the crypto industry have made painful layoffs — and in hindsight, some may have spent too aggressively on marketing while times were good. While other firms spent big bucks on ads during the Super Bowl, Binance focused on a more modest campaign that warned against celebrity endorsements. Co-founder Yi He has told Fortune that over 2,000 roles are open right now. Binance is the parent company of CoinMarketCap.
Celsius 'hires restructuring lawyers' 😬
Celsius Network has reportedly hired restructuring lawyers as it battles to find a way out of growing financial problems. The crypto lender sent shockwaves throughout the industry on Monday when it announced it was pausing all withdrawals, transfers and swaps — meaning users were unable to access their digital assets. According to The Wall Street Journal, the embattled company has now enlisted the law firm Akin Gump Strauss Hauer & Feld. The newspaper understands that Celsius Network is initially turning to potential investors for financing options — but other options on the table could include a financial restructuring.
Bored Ape NFTs take a battering 🤕
The floor price of major non-fungible tokens has fallen substantially as the crypto winter worsens. This metric illustrates how much the cheapest NFT in a collection currently costs. Data from NFT Price Floor shows the least expensive Bored Ape now costs 78.5 ETH. At current rates, that's worth just $88,155. Bored Ape holders have suffered a double whammy. Not only has their value in ETH plunged as the bear market set in, but ETH itself has been in freefall against the U.S. dollar. The pullback will be especially brutal for those who snapped up their Bored Ape in late April, when the floor price for this NFT collection hit an all-time high of 152 ETH.
Traders try screaming therapy 🤯
There's a lot to be stressed about if you're a crypto investor right now. And with digital assets in a downward spiral, you might be looking for ways to relieve some of that stress. One Telegram group has introduced a bit of an unusual method to make anxious traders feel better: screaming therapy. The goal is to ensure members can let it all out by yelling to their heart's content. But the group has pretty strict rules, and people who post anything other than voice notes of screams get an instant ban. Although this might seem pretty wacky, there is some evidence that suggests screaming helps the brain release feel-good hormones called endorphins.
