Crypto News: Market Meltdown, Celsius, ETH Delay, Inflation & MORE!!

[Music] Welcome to the coin bureau weekly crypto Review here are this week’s top Headlines in the crypto news [Music] Ethereum implosion after a rocky roxton Merge ethereum developers delay the Difficulty bomb causing eth’s price to Plummet how low could eath go Celsius pauses withdrawals amid rumors That the lender is technically insolvent Is this just a liquidity crunch or could There be something more Terror troubles rumors investigations And the sec plague the terror community Following the collapse of luna classic And ust classic What does this mean for terror 2.0 and The new luna Litecoin delisted south korean crypto Exchanges drop ltc following a privacy Upgrade for litecoin that doesn’t even Apply to its layer 1 blockchain Why there is no cause for concern Yet Finance in the spotlight reuters says Cryptocurrency’s largest exchange Facilitated illicit activity while Bloomberg reveals the sec is Investigating binance over bnb Everything you need to know Abandon ship meta’s head of engineering Calls it quits just days after two of The company’s other executives stepped

Down why this is more significant than You think Inflation expectations the cpi comes in At another 40-year high causing markets To crash in anticipation of how the fed Will respond when will all this Inflation end And a closer look at last week’s top Performing cryptos and where they’re Headed next all this and more in just a Moment Good morning afternoon or evening thank You for tuning in my name is guy and What you’re about to see is educational Content not financial advice You can find any topics you’re looking For using the timestamps in the video Timeline And now for today’s top stories Last week we saw eth drop by more than 20 percent in a matter of days creating Chaos in the crypto market as well as a Lot of questions as to what exactly Happened Here’s my best answer As many of you know ethereum is Currently in the process of Transitioning from proof of work to Proof of stake The actual transition is expected to Take place in august in a process known As the merge On thursday ethereum developers did a Dry run of the merge on ethereum’s

Longest running test net roxton Although the merge was as a whole Successful eth’s price began to decline Around that time Now as far as i understand this is Because the robston merge didn’t go Quite as smoothly as many investors had Anticipated Many bugs were discovered and this Presumably led to fears that the actual Merge could be delayed These fears were arguably confirmed on Friday when ethereum developers agreed That the difficulty bomb would be pushed Back by another two and a half months or So suggesting there is in fact more work To be done before the merge can happen For context the difficulty bomb is Intended to motivate proof of work Minors to transition to proof-of-stake By making blocks more difficult to mine And had it been allowed to continue Ethereum could have become unusable in Just a few weeks time Now as reported by bloomberg the delay Of the difficulty bomb means that Ethereum’s actual merge will likely take Place in the early autumn rather than Late summer as initially scheduled This caused eth’s price to decline for a Second day and all the leveraged traders Who were looking to go long on the back Of the roxton merge got liquidated Causing eth’s price to decline even

Further The assumed delay of the merge also Seems to be why lido finance’s staked Eth fell slightly below its peg Something that has led to liquidation Concerns in d5 protocols like ave where Leido’s st eth token is being used as Collateral for crypto loans It’s too soon to say whether these Concerns are justified While st eth does face liquidity risks In the short term it is inherently Different from terror’s ust It does not face the same death spiral Risks and that’s because each st eth Will be redeemable for one eath as soon As the merge is complete and unstaking Is enabled Now i hope to come back to this sd eath Question in the next few days but if You’re not fully clued up on it i Strongly suggest watching the video we Did about lido finance the other week to Understand how it works that will be in The description And speaking of st eth One of the largest holders of st eth Happened to be the celsius lending Platform this led to many rumors last Week that the platform could face Liquidity shortfalls given the fall in Value of st eth relative to eth This is on top of potential losses that Celsius incurred in defy hacks last year

As well as the terror collapse a month Ago These rumors combined with general Market conditions led many people to Start withdrawing their funds from Celsius And at the rate that withdrawals were Being made last week celsius appeared as If it could be at risk of having a Liquidity shortfall i.e it did not have Enough liquid funds to be able to meet Those withdrawal requests This coupled with the realization that Celsius would not be able to easily Liquidate its st eth positions meant That it was only a matter of time before It took action And early this morning we got the news That celsius was pausing withdrawals on Its platform In a blog post celsius stated quote due To extreme market conditions today we Are announcing that celsius is pausing All withdrawals swap and transfers Between accounts we are taking this Action today to put celsius in a better Position to honor over time its Withdrawal obligations So this leads many to wonder what could Happen from here Well it’s in celsius best interest to Make sure that it honors the commitments To its depositors hence it will have to Raise liquidity to do that and this

Could either come from debt or worse Sales of crypto assets Already this morning we had large Transfers of bitcoin from celsius to the Likes of ftx and one has to wonder how Much of the recent falls we’ve seen this Morning are related to this selling Either way it’s trying times for the Crypto community at large as this will Have ramifications it’s also yet another Reminder of why it’s so important to Practice self-custody As i’ve said many times before Centralized lending platforms control Your private keys and as such they Control your crypto The same can be said for exchanges as Well of course Now i’ll be keeping you updated with This celsius situation and the market Implications in my clips channel and Other social accounts over the week so Be sure to join them if you haven’t Already Now while this celsius news is yet Another blow we can’t forget that it was Only a month ago that we had the Implosion of terror And since that time a lot has happened Last week it was reported that the south Korean police are investigating Employees of terraform labs who Allegedly kept some of the btc from the Lunar foundation guard’s massive bitcoin

Treasury for themselves Now before i go any further i should Note that the tensions in the terror Community remain understandably high as Such it’s important to take what Individuals and institutions are saying About terror with a pinch of salt since There are likely many lunar and ust Investors who just want retribution Obviously most of the tensions in the Terror community are related to do kwan Tera’s bombastic co-founder who According to coin telegraph is actually Not being investigated by south korean Police in relation to the alleged btc Theft i just mentioned As many of you will know however doe is Being investigated by the united states Securities and exchange commission or Sec who wants him to explain terraform Labs involvement in the development and Operation of mirror protocol terra’s Synthetic stock trading defy platform An appeals court recently confirmed that Doe must comply with the sec which given The circumstances is not all that Surprising It’s also not surprising that the sec Has opened up a second investigation Into terraform labs this time asking About how the project was being marketed In the united states What is somewhat more surprising however Is the allegation that doe withdrew 80

Million dollars from company wallets in The months leading up to tara’s collapse Another allegation is that dough used an Elaborate defy strategy to cash out over 2.7 billion dollars which doe denied in A series of follow-up tweets I suppose we will just have to wait and See what the truth is In the meantime doe and terraform labs Have turned their focus to building out Terra’s new ecosystem which has probably Been permanently stained by terror Classics collapse As i predicted in my video explaining Tera’s collapse the new lunar coin Hasn’t held up all that well in the face Of all the cell pressure from terror Classic investors who are desperate to Recoup their losses With the bear market setting in it’s Questionable whether terra will survive With all this cell pressure but it’s Safe to say that crazier things have Happened in crypto and many projects Have bounced back from worse another Crypto project that’s been running into Problems lately is litecoin whose ltc Coin was recently delisted from a series Of south korean crypto exchanges As i mentioned in the introduction Litecoin had recently undergone an Upgrade called m web that makes it Possible to send private ltc Transactions using a sort of special

Side chain that runs parallel to Litecoin’s actual blockchain The fact that ltc privacy isn’t possible At litecoin’s layer 1 level is why the News took so many by surprise ltc is not A privacy coin it just has opt-in Privacy on a side chain that the Exchanges don’t even have to support Now if you watch my update about the ltc Delisting on coin bureau clips you’ll Know that ltc’s d-listing ultimately has To do with the fact that south korean Cryptocurrency exchanges are subject to Strict regulations The regulatory scrutiny of crypto Exchanges has only increased because of Tera’s collapse This might be why they delisted ltc even Though litecoin founder charlie lee had Noted in an interview last year that he Had spoken with crypto exchanges and They had confirmed that they were Comfortable with litecoin’s privacy Upgrade Another factor at play could be all the Pressure coming from international Organizations like the financial action Task force or fat f which are Effectively forcing questionable Anti-money laundering regulations on Countries around the world If you watched our video about the fat f You’ll know it’s not a fan of privacy Whatsoever and this means that it’s

Possible if not likely that there will Eventually be a full-on assault on all Crypto technologies that make privacy Possible This is of course because the assumption Is that technologies which make it Possible to preserve one’s privacy are Only used by criminals The truth is that privacy is a Precondition for freedom and financial Freedom since you can easily be coerced If someone knows exactly how much you Have and what you buy This is why powerful individuals and Institutions intend on keeping their Privacy while us plebs lose ours In any case ltc’s d listings are likely To be limited to cryptocurrency Exchanges in south korea for the time Being It seems the pressure is already on for Other privacy coins however Last week reuters released an Investigative piece alleging that Criminals have used binance to launder Over 2.3 billion dollars since it was Founded in 2017. A significant portion of the piece Centered around privacy coin monero or Rather xmr which trades mostly on Binance and has even been praised by Binance founder chang changpeng zhao for Its privacy Naturally the narrative that the authors

Are trying to weave is that monero is Used mainly by criminals which couldn’t Be further from the truth but then again Nobody can say for sure because well all Xmr transactions are private Binance responded to the reuters piece By publishing the emails that the Exchange had Exchanged with reuters journalists Revealing binance’s unfiltered responses Which seem to correct reuters record so To speak Note that this is not the first time Binance has issued such a response Binance also pointed out the crazy Statistic by blockchain analytics Company chain analysis which found that Just 0.15 percent of crypto transactions are Associated with illicit activity for Reference the un estimates that between Two and five percent of all transactions In the traditional financial system are Associated with illicit activity Not only is this much larger in Percentage terms but in dollar terms as Well When you consider that 2.3 billion is a Drop in the bucket compared to the Trillions of dollars that have flowed in And out of binance over the years it Begs the question of what the end game Of reuters really is and it’s a question That binance is asking as well

This is mainly because bloomberg came Out with its own hit piece on binance The same day as reuters claiming that The sec is investigating binance over Its bnb ico in 2017 citing as always Quote people familiar with the matter However this time binance didn’t fire Back and instead explained that quote it Would not be appropriate for us to Comment on our ongoing conversations With regulators which some could Interpret as confirmation that binance Is being investigated If you’ve watched any of my videos about The sec you’ll know that what it’s Probably after is money and with all the Hundreds of millions that binance has Been spending recently i reckon it’s Reasonable to speculate that the Regulator is hoping to get a slice of That pie too Still it’s interesting that these new Stories came out when they did The very next day there was a senate Hearing about crypto’s use in illicit Activity and exchanges like binance and Privacy coins like monero were very hot Topics As for the sec’s investigation of Binance over its sales of bnb i’ll be Doing a bnb update later this week so be Sure to stay tuned for that Another company that’s received bad Press lately is meta formerly known as

Facebook This time it was the news that metta’s Head of engineering would be leaving the Company after 11 years earlier this Month meta’s head of ai also left his Post after four years but the headline That really caught everyone’s eye was The departure of metas chief operating Officer sheryl sandberg one day prior For those who don’t know cheryl is Considered to be the mastermind behind The internet as we know it specifically All the data gathering data selling and Data surveillance by big tech In bloomberg’s words quote she helped Create the model that for better or Worse has become silicon valley’s Default Cheryl’s linkedin profile notes that she Served as the chief of staff of the United states treasury department for Seven years a position she clinched Shortly after she graduated from harvard After a brief hiatus from the 9-5 cheryl Emerged as google’s vice president of Global online sales and operations a Title she held for almost six and a half Years In bloomberg’s words at google cheryl Built quote the advertising business That founders larry page and sergey brin Hadn’t bothered to create in part Because they believed that advertising Might be a violation of their famous

Don’t be evil motto As some of you will know google’s don’t Be evil motto was meant to remind google Employees that they should not abuse the Powers they have and take care not to Exploit users Google ended up unofficially dropping Its don’t be evil motto in 2018. By that point cheryl had been working as Facebook’s chief operating officer for Over a decade where she successfully Rolled out the same data practices that Have become the primary criticism of big Tech Now if you’re wondering why this is so Relevant to cryptocurrency it’s simply Because it’s a sign that big tech or More accurately the data practices Employed by big tech companies have Become more of a liability than an asset Some would go as far as to say that Meta’s executives can see that something Big is coming and if that’s the case my Guess would be that they can see the Rise of web3 particularly decentralized Metaverse worlds which are in direct Competition with meta and will likely See more adoption in the long term Regardless of the reason the attrition We’re starting to see from big tech Companies like meta means we could soon See lots of talented people looking for Work in the crypto industry Let’s just hope they leave their silicon

Valley tendencies behind right On that note you should know that crypto Companies are hiring and if you want to Find a job in the crypto industry to Ride out the bear market you can check Out my video about that using the link In the description Anyways if all the carnage in the crypto Market wasn’t bad enough almost every Country around the world has Simultaneously seen a rapid rise in Inflation that’s showing no signs of Slowing down In the united states the official Inflation rate now sits at around 8.6 Which is higher than what many investors Were pricing in If you watched my recent video about the Macro factors moving the crypto market You’ll know that a higher than expected Inflation reading is why the crypto Market got decimated over the weekend This is because a higher than expected Inflation reading means the federal Reserve is likely to raise interest Rates even higher than expected and this Raising of interest rates is scheduled To occur this wednesday Right now investors are expecting the Fed to raise interest rates by just 0.5 Percent Anything higher is likely to lead to Even more selling whereas anything lower Is likely to lead to a small rally which

Seems to be long overdue Given that the fed is ultimately raising Interest rates because of inflation you Might be wondering when inflation will Finally start to come down so that the Fed eases interest rates you know so That crypto can rally and we can all Afford the things we used to buy on a Regular basis yeah i’m feeling the Inflation pinch too To be blunt there currently seems to be No end to inflation since most of it is Being driven by supply side factors like The ongoing war in ukraine supply chain Disruptions labor shortages and you know All that other fun stuff That said there’s something that was Mentioned during one of the discussions At the world economic forum’s annual Meeting in davos which we covered in Another video and that’s that many of These inflationary pressures would Disappear if the war in ukraine came to An end I suspect there would be a similar Effect if the world health organization Declared the end of the pandemic as many Supply chain disruptions and labor Shortages are being caused directly or Indirectly by current pandemic Restrictions and the prospect of future Pandemic restrictions Call me crazy but i think that we could See one or even both of these issues

Resolved by the end of the year and That’s simply because there is intense Political pressure to reduce inflation At all costs particularly in the united States where midterm elections are Scheduled for the autumn It’s going to be an interesting time Anyhow turning to the charts we can see That btc has fallen way through that 29k Support level and just kept on going Ouch it’s honestly hard to say where Prices will go next especially with the Fed’s interest rate announcement coming Up It’s also hard to say exactly when this Bear trend could end but if you watch my Video about that you’ll know that Previous cycles in the crypto market Stock market and even the fed’s interest Rate raises suggests we have at least Another year to go so prepare yourself For that possibility Last week’s top performing Cryptocurrencies were bitfinex’s unassed Leo ftx’s ftt token pax gold okx’s okb Token and the fey usd decentralized Stablecoin not exactly an exciting Lineup Starting with unas said leo leo is Basically bitfinex’s exchange token Meaning it’s used for things like Trading fee discounts and is regularly Bought back and burned by the exchange This leads to the kind of price action

You see here but don’t get too excited Exchange tokens can be very risky Because their success is ultimately tied To the exchanges issuing them and in This case caution is advised to put it Lightly Next up is ftx’s ftt token which is Seeing a similar rally for similar Reasons namely that the ftx exchange Regularly buys back and burns the ftt Token creating positive price action If you want to learn more about the ftt Token you can check out our video about Exchange tokens that will be down in the Description Then there’s pax gold or pax g which as The name suggests is a gold backed token Issued by paxos a very heavily regulated Company based in the united states Investors flocked to gold following the Latest inflation reading so it makes Sense that pax g followed suit I’ll quickly note that pax g actually Tends to rally more than spot gold when There’s a flight to safety in the Markets simply because there isn’t Enough supply to absorb the demand Required to maintain the programmatic Price peg The more you know As for ok x’s okb token you already know What i’m going to say buybacks and burns And perhaps a bit of spillover from any Bnb holders who are concerned that it

Could be a crackdown on binance’s de Facto exchange token And finally we have the fey usd stable Coin which well is a stable coin so the Small fraction of a percentage pump it Saw over the last week wasn’t really a Pump it was just the stablecoin’s Inability to maintain its peg For what it’s worth i’m sure they’ll Figure out the decentralized stablecoin Thing Soon enough And that’s all for today’s coin bureau Weekly crypto review if you enjoyed it You know what to do hit that like button Subscribe button and bell icon too If you’re looking to maximize your gains During the bear market the coin bureau Deals page is where you should go You can find the link to that resource And many others in the description below Thank you so much for watching and i’ll See you all in next week’s episode [Music] You