In recent weeks there have been events around the world that have affected the economic situation of many people. Over time, others have emerged that have continued to impact the cryptocurrency market. In this report, we examine some of these events and their implications for digital assets in the space.
The economic problems increase
Over the weekend, news broke of the protests taking place in the Chinese province of Henan. The protesters had gathered en masse in front of four banks in the province, namely Yuzhou Minsheng Village County Bank, Shangcai Huimin Village County Bank, Zhecheng Huanghuai Village County Bank and the Kaifeng Xindongfang Village County Bank. The protesters had taken to the streets to air their grievances with the banks.
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Reports from the region showed that while users of these banks were able to deposit money, they were unable to withdraw some of their money. Hence the protests to try to get their money back. The economic implications of these on the market were immediately felt with the market crash on Monday.
Although cryptocurrencies are still banned in the country, Chinese investors are still very active in the cryptocurrency market. Therefore, your ability to participate always has an effect on the cryptocurrency market and prices by extension.
The banking and insurance regulator and the provincial financial authority of Henan province said they have drawn up a compensation plan for affected users. However, until that is resolved, it will not be surprising to see less participation from Chinese investors.
The market continues to suffer | Source: Total Crypto Market Cap on TradingView.com
Crypto platforms in trouble
In recent weeks, news of liquidations have shaken the crypto market. The latest is the Voyager Digital liquidation which has been in the spotlight. However, the new findings showed even more setbacks in the case, as the liquidators revealed that they had been unable to contact the founders of the hedge fund.
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However, that is not the worst. The company also took to Twitter to announce that despite the liquidation case, not all users are guaranteed to get all of their crypto back. Most are related to the massive losses it suffered due to its exposure to Three Arrows Capital (3AC).
As the Voyager Digital liquidation case continues, another crypto platform is still holding user funds hostage. It has been almost a month since Celsius Network froze withdrawals, transfers and transactions on its platform. The company continued to aggressively pay down its debt. However, it is not yet clear when or if users will be able to redeem their cryptocurrencies.
Featured image from The Economic Times, Charts from TradingView.com
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