Daily Digest - 6 January 2023

Headlines

▌Crypto lending agency Genesis lays off 30% of staff

Genesis, an encrypted lending institution, laid off about 30% of its employees in the second round of layoffs. The current total number of employees has dropped to 145. A spokesman for Genesis Global Trading said the company's sales and business development divisions had been hit particularly hard, with the entire sales team in Singapore being axed. But these steps are part of Genesis' ongoing efforts to drive the business forward as Genesis continues to work to find the best possible outcome in the long-term interests of its business units, customers and employees. As previously reported, Genesis first announced a 20% layoff on August 17, 2022.

Cryptocurrency

▌Bloomberg analyst: Ethereum’s performance has been promising compared to Bitcoin

Bloomberg commodities analyst Michael McGlone recently released a report stating that although most risk assets will have a dismal price trend in 2022, compared to Bitcoin, Ethereum’s performance has been promising. After transitioning to proof-of-stake in September, Ethereum’s growth may have reached an inflection point, which means it could be headed against both bitcoin and the stock market. Michael McGlone also believes that the key support/resistance level for Ethereum is the $1,000-2,000 range. McGlone highlighted Solana’s 97% retracement as an example of the crypto speculative glut being cleared after the 2021 bubble. Ethereum’s main competitor was hit particularly hard by the collapse of the FTX exchange, but has since recovered thanks to the BONK airdrop.

▌Hackers Demand Bitcoin to Restore Data Access After Attacking a Romanian Hospital

Romania’s Saint Gheorghe rehabilitation hospital in Botoşani in northeastern Romania became the target of a ransomware attack. Hackers have been locking its medical records since December and demanding a payment of three bitcoins as a ransom to restore access to the files. The health department is unable to report services performed in the final month of 2022 due to the encryption of the December database. Therefore, it cannot even receive payment for these services. However, CAS representatives said they were working to find a solution so the health department could pay wages.

▌What happens to XRP if Ripple wins case against the SEC?

Investors in XRP are interested in knowing what the future holds for the cryptocurrency now ranked sixth by market capitalization, with the ongoing legal dispute between Ripple and the Securities and Exchange Commission (SEC), one of the most important aspects that might have a significant effect on its success. Notably, if the regulator is successful in this case, it might have very negative repercussions for XRP, its investors, and the cryptocurrency sector as a whole. In particular, the regulatory body has the authority to levy a fine on Ripple Labs and demand that the business register XRP as a security. As a consequence, a judgment of this kind would certainly result in XRP being treated in the same manner as conventional securities, which may restrict both its adoption and usage. On the other hand, if Ripple is able to defend itself against the arguments presented by the SEC effectively, it may be considered a significant triumph for the firm as well as a favorable sentiment for XRP. Despite the fact that Ripple had some success during the hearings, the final result of the lawsuit is still unknown, which is very important to keep in mind.

▌Animoca Brands Cuts Web3 & Gaming Fundraising Target By Half

Gaming giant Animoca Brands hopes to raise a slimmed-down target of $1 billion this quarter. This fund will be used towards web3 and metaverse investments. The goal is a departure from the $2 billion commitment made in November. The Animoca CEO had previously disclosed to Nikkei that the company intended to establish a $2 billion fund. Notably, it was in collaboration with former Morgan Stanley executive Homer Sun. The ambition was to go global while supporting mid to late-stage web3 startups. The cutback was mostly due to the FTX meltdown and losses in the crypto market. Beyond the general market decline, about a dozen of Animoca’s portfolio companies faced the brunt of the collapse, according to Co-founder and Chairman Yat Siu. This includes the starship game Star Atlas, whose treasury was mainly housed on FTX.