• Solana-based DeFi lender Everlend Finance has shut down operations due to a liquidity crunch in the lending market.
• The protocol had received funding from investors and is now running in withdrawal-only mode until all funds are fully withdrawn.
• Everlend has decided to make its code open-source so developers can utilize it to continue building on its technology stack.

Everlend Finance, a decentralized finance (DeFi) lender based on the Solana blockchain, has announced that it will be shutting down operations due to a liquidity crunch in the lending market. The protocol had received funding from investors including Serum, Everstake Capital, and GSR, and had seen its total value locked (TVL) peak at $400,000 in June 2022, according to DeFiLlama data. Despite considering itself an „excellent product“ and having „enough runway,“ Everlend said that it would be a „gamble“ to continue operating in the current environment.

In order to ensure a smooth transition, the platform is now running in withdrawal-only mode and will continue to function until all funds are fully withdrawn. The team has urged users to withdraw all assets on the platform at the earliest. Everlend has also committed to returning all raised and unused funds over the next two weeks, as well as clearing payments to third-party contractors.

In addition, Everlend has decided to make its code open-source so developers can utilize it to continue building on its technology stack. This will enable developers to build on the existing codebase and create new products and applications for the Solana blockchain. By making the code open-source, Everlend hopes to ensure that its technology does not go to waste.

Overall, the decision to shutter operations was a difficult one for the team, but it was made with the best interests of users in mind. Everlend wants to ensure that users are able to access their funds as soon as possible and that they can continue to build on its technology stack. The team is confident that its open-source code will continue to be used and developed upon in the future.

• Beto O’Rourke has set up $100,000 fund from $1M SBF donation for FTX victims.
• The donation was made by former FTX CEO Sam Bankman-Fried before his crypto empire collapsed.
• O’Rourke’s campaign will hold on to the $100,000 pending the outcome of investigations against SBF over campaign finance violations.

Beto O’Rourke, a U.S. politician, has set up a $100,000 fund for victims of the FTX collapse, out of a $1 million donation made by former FTX CEO Sam Bankman-Fried before his crypto empire collapsed. The donation was made to O’Rourke back on November 4th, but it was later returned in order to avoid any ethical problems associated with it.

However, the Washington Free Beacon reported that O’Rourke is still holding on to $100,000 of the donation. His campaign records disclose that a $900,000 refund was made to SBF, while the remaining $100,000 will be placed in a fund for victims of FTX’s collapse.

O’Rourke’s campaign said it will hold on to the $100,000 pending the outcome of investigations against SBF over campaign finance violations. These investigations came after the FTX collapse on November 11th, 2022. FTX had previously called for a „cushion“ of funds to protect losses from the collapse, which O’Rourke’s donation could be a part of.

The donation from Sam Bankman-Fried totaled over $70 million to many U.S. politicians, with O’Rourke receiving up to $1 million of it. This led to speculation that the donation was made in order to curry favor with O’Rourke and other politicians.

It remains to be seen if the $100,000 fund set up by O’Rourke will be able to help those who have suffered losses due to the FTX collapse. Nevertheless, O’Rourke’s campaign has taken a step in the right direction by setting up a fund to help those in need.

• On-chain metrics suggest a Bitcoin bottom is near, with the Supply Profit and Supply Loss lines converging and then diverging.
• Market Value to Realized Value (MVRV) is split by long-term and short-term holders, with Long-Term Holders (LTH) typically leading the market up and down.
• Macro factors not present in previous Bitcoin cycles may impact the current cycle, making it difficult to predict the exact bottom.

The recent on-chain Bitcoin metrics suggest a market bottom may be near. CryptoSlate revisited several Glassnode metrics that continue to indicate a bottoming of price. For example, the Supply Profit (SP) and Supply Loss (SL) lines have converged around Q4 2022 and then diverged, which has correlated with price reversals in the past.

The Market Value to Realized Value (MVRV) metric is further split by long-term and short-term holders, with Long-Term Holders (LTH) typically leading the market up and down. The LTH MVRV ratio is especially useful in determining whether the market is under or overvalued, as it shows the ratio of the Bitcoin market cap to the value stored in the current circulating supply. This ratio currently shows that Bitcoin is undervalued and could potentially lead to a price reversal in the near future.

While these on-chain metrics suggest that the Bitcoin market bottom may be near, there are macro factors at play that may affect the current cycle. For instance, the recent introduction of institutional investors into the market may influence the bottom, as larger players can manipulate prices to their own benefit. It is also difficult to determine if the current cycle will play out the same as past cycles, as there is no guarantee that the patterns will hold.

Overall, while on-chain metrics may be signaling a Bitcoin bottom, it remains to be seen if the current cycle plays out the same as past cycles. Investors should be mindful of macro factors that could potentially influence the market, and make their investment decisions accordingly.

• On-chain data shows that addresses related to crypto lender Nexo are recording outflows following news of financial crimes investigations by the Bulgarian government.
• Crypto intelligence platform Arkham Intelligence dashboard showed that the crypto lender had seen outflows of roughly $9 million since the news broke.
• Nexo’s real-time attestation by Armanino showed that its customer’s liabilities were $2.42 billion (133,263 Bitcoin) as of Jan. 12.

Crypto lender Nexo has been facing a wave of withdrawal activity after news of financial crimes investigations by the Bulgarian government surfaced. On-chain data shows that addresses related to Nexo have seen outflows of nearly $9 million, with the majority of the withdrawals coming from retail investors moving funds to centralized exchanges such as Binance, Kraken, and others.

Crypto intelligence platform Arkham Intelligence has been tracking these outflows, and has found that the majority of these withdrawals have been from a single address, 0xFfe. This address represents Nexo’s own holdings and the outflows are likely the result of customers withdrawing their funds from the platform due to recent events.

In addition to the outflows, a real-time attestation by Armanino has revealed that Nexo’s customer liabilities have grown to $2.42 billion (133,263 Bitcoin) as of January 12th. This figure was significantly lower just a week prior, indicating that customers are rapidly withdrawing their funds in response to the news.

Several crypto community members have expressed concern over Nexo’s future and have speculated that the firm could be the next victim of a crypto contagion that has taken several other companies by storm. Adam Cochran, a partner at MetaCartel Ventures DAO, has noted that Nexo had previously argued with him that its operations were „super clean and audited“. Ram Ahluwalia, the CEO of Lumida Wealth, has also called out Nexo’s practices in the past.

It remains to be seen how this situation will play out, as Nexo has yet to officially comment on the Bulgarian government’s investigations. Whatever the outcome, this situation serves as a cautionary tale to crypto users to be aware of the risks associated with investing in crypto-related firms, and to always make sure to do their own research.

• The governor of France’s central bank, Francois Villeroy de Galhau, has advocated for stricter crypto licensing requirements.
• Currently, full Digital Asset Service Provider (DASP) licensing is optional, but around 60 companies have obtained a less extensive „registration“ from the Financial Markets Authority (AMF).
• In December, Senator Hervé Maurey proposed an amendment that would do away with the „registration“ option, citing the collapse of FTX as a reason for stricter regulations.

The governor of the Bank of France, Francois Villeroy de Galhau, recently advocated for stricter crypto licensing requirements during a speech in Paris. The governor believes that France should move toward an obligatory licensing of Digital Asset Service Providers (DASP) as soon as possible, instead of relying on the current registration system.

Currently, full DASP licensing is optional in France. However, around 60 companies have obtained a less extensive „registration“ from the Financial Markets Authority (AMF). One of the companies that has registered with the AMF is Binance, which received permission to operate in France last May.

In December, Senator Hervé Maurey proposed an amendment that would do away with the „registration“ option. Maurey cited the collapse of FTX as one reason for stricter regulations, calling the event a moment of „reckoning and awareness.“ Maurey’s proposed amendment would require companies to obtain a full license in order to operate in France.

The governor of the Bank of France believes that France should move toward full licensing sooner rather than later. This would ensure that crypto companies are operating under regulatory guidelines and provide more protection to investors. However, there is no indication of when the proposed amendment may be implemented. Until then, investors should exercise caution when dealing with any crypto companies that are not fully licensed.

• In 2022, 23,600 employees lost their jobs in the crypto sector, representing the highest number of layoffs ever recorded in the industry.
• Coinbase, Kraken, Bybit, Amber Group, Huobi, and Bitpanda were among the firms with the highest number of layoffs.
• The bear market had a greater impact on crypto exchanges, as trading volume decreased significantly, leading to a decrease in transaction fees.

The crypto sector has seen a significant number of layoffs in 2022, with the number of employees losing their jobs reaching an all-time high. According to reports, 23,600 individuals were discharged from their jobs in the industry as of December 9th, making it the highest number of crypto layoffs ever recorded in a year.

Leading the list of firms with the highest number of layoffs is Coinbase. The digital asset platform let go of 1160 employees, accounting for 4.6% of the total crypto layoffs of the year. Kraken followed closely, with the crypto exchange laying off 1100 individuals, representing a 30% reduction in its workforce. Bybit didn’t fall much behind, with 1,020 employees losing their jobs during the year. Amber Group, a digital asset firm, also suffered a significant setback, as it carried out 800 discharges within the year. Huobi and Bitpanda, two other prominent crypto firms, weren’t unaffected either, with the former recording 300 layoffs, and the latter 270. Other firms on the list of highest layoffs include Snap, BlockFi, Gemini, and others.

The bear market has had a greater impact on crypto exchanges, as the decrease in trading volume has led to a decrease in transaction fees. This has forced crypto exchanges to scale back their expansion plans, resulting in a significant number of layoffs.

It is important to note, however, that the crypto sector is not the only one affected by the bear market. Other industries, such as traditional finance and stock markets, have also seen their own share of layoffs due to the downturn. As the markets recover, it is likely that the number of layoffs in the crypto sector will decrease, and the industry will begin to recover again.