Curve Launches Native Stablecoin, FTX Attempts Clawbacks from Genesis

May 4, 2023

Market Update

  • Traditional equity indices are under pressure today following yesterday’s 25bps interest rate hike and additional regional bank weakness. The SPY (-0.72%) and QQQ (-0.31%) are approaching last week’s lows, while the DXY (+0.33%) is rising after Fed Chair Powell reiterated his stance that the inflation fight is far from over. BTC and ETH are in line with equities today, falling 0.66% and 0.87%, respectively. Meme coin PEPE has skeptics shaking their heads as it has risen 74% over the last 24 hours. Pepe’s market cap is just below $700 million, making it the 71st largest coin by market cap. Many are beginning to speculate if it can continue its meteoric rise to compete with the likes of older meme coins like DOGE and SHIB.
  • Decentralized exchange Curve Finance (CRV) deployed its native stablecoin crvUSD on Ethereum mainnet. The competition for decentralized stablecoins has picked up in recent months after concerns over stablecoins reignited after USDC temporarily lost its peg during the SVB banking crisis. crvUSD is an overcollateralized stablecoin backed by digital assets and pegged to $1. Investors can mint crvUSD by depositing their assets into Curve as collateral. crvUSD differentiates itself from other CDPs via its lending-liquidating algorithm that constantly rebalances a user’s position as crypto prices fluctuate. Curve’s unique algorithm prevents dramatic liquidation events. Instead, Curve liquidates assets gradually as the price deviates below liquidation levels and swaps back to the collateral asset as price recovers. crvUSD isn’t available to the public yet, but over $20 million crvUSD was minted in the first few minutes following contract deployment.
  • According to the latest court filings, bankrupt crypto exchange FTX is attempting to claw back approximately $3.9 billion from crypto lender Genesis. Genesis is similarly facing bankruptcy, but FTX claims the lender was instrumental to FTX’s fraudulent business model and the exchange's demise. FTX’s lawyers are seeking $1.8 billion in loans and a $273 million collateral pledge allegedly given to Genesis from FTX’s sister company, Alameda. Additionally, FTX would like to retrieve $1.8 million of withdrawals Genesis and its subsidiaries made prior to the exchange filing for bankruptcy. FTX’s legal team is trying to utilize bankruptcy laws that allow firms to try and claw back “avoidable transfers” that occur in the 90 days before declaring bankruptcy. Given that Genesis had withdrawn funds legally and is facing its own bankruptcy problems, it seems unlikely that the clawbacks will prove successful.

Daily Technical Strategy

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Mark L. Newton, CMT

Head of Technical Strategy

Please note that Mark is out-of-office Thursday and Friday and will not be providing technical updates. Please see below for Wednesday's analysis.

Polygon remains one of the better technical risk/rewards given its recent stabilization near an important intermediate-term uptrend from last Summer's lows. This area at $0.94-$1.05 lines up with the uptrend line along with prior lows from March, and the 50% retracement area of its entire rally from last June lows, adding to the significance of the significance of this area. Despite the ongoing downtrend from this past February, daily momentum indicators like RSI have nearly reached oversold levels, and it wouldn't take much before MATIC starts to turn back higher in another rally to test and exceed this year's highs. The ability to surpass $1.10 would be quite important, leading to $1.20, followed by an eventual retest of $1.55. Conversely, any violation of $.90 would be technically negative, postponing the rally and allowing for a decline down to $0.79, which would be the first meaningful area to consider important under $0.90. Bottom line, given that $0.90 does not lie too far away, MATIC is thought to represent an attractive risk/reward which should be favored for gains in the weeks ahead.

Daily Important Metrics

Crypto Size

Bullish signal is tied to the crypto market growing

Market cap $1.19T +$27B (+2.32%)
BTC Dominance
47.12% (+0.57%)
Stablecoins

Increase in circulating stablecoins is a Bullish signal

In Circulation $82B(+0.14%)
In Exchanges $12B(-0.88%)
BTC Metrics

A decrease in Bitcoin on exchanges is bullish, indicates investors are moving coins to cold storage

# BTC in Exchanges 2.3M(0.04%)
Funding Rates

Positive funding rates indicate traders are Bullish

Aggregate0.80 (0.69)
Binance0.98 (1.45)
Bitfinex-0.02 (-0.02)
Bitmex1.00 (0.47)
ByBit1.00 (1.55)
Deribit0.01 (0.01)
Huobi0.87 (-0.13)
Kraken0.38 (0.51)
Mean0.80 (0.69)
OKex0.44 (0.42)
Sentiment
Curve Launches Native Stablecoin, FTX Attempts Clawbacks from Genesis

BMI : 51 (0.00%)

Futures

A positive spread between Futures Prices and Spot Prices is Bullish

CME BTC Price$28,980 (0.78%)
Spot Basis
$71.12 (0.25%)
Volume1.4M (30%)
Open Interest
287,855 (-2.67%)
Options all exchanges

Higher open interest change in a bull market is bullish for the sector

Volume27,847 (108%)
Open Interest310,369 (2.67%)
Volume Put/Call Ratio0.5631 (-29%)
Open Interest Put/Call Ratio0.4760 (1.51%)

All metrics as of May 4, 2023 11:20 AM

All Funding rates are in bps

Crypto Prices

Symbol Market Cap Last Price Daily Change Year to Date Relative to BTC YTD
btc imageBTC
$560B $28,932 2.45% 75%
btc imageETH
$228B $1,892 2.32% 58% -17%
btc imageADA
$14B $0.3899 2.37% 58% -17%
btc imageDOGE
$11B $0.0784 1.01% 12% -63%
btc imageMATIC
$9.1B $0.9884 0.89% 30% -45%
btc imageSOL
$8.6B $21.86 2.30% 121% 46%
btc imageDOT
$6.7B $5.69 1.58% 31% -44%
btc imageLINK
$3.6B $7.04 2.67% 27% -48%
btc imageNEAR
$1.7B $1.84 2.67% 45% -30%

Exchange Traded Products (ETPs)

Symbol Premium to Nav Last Price Daily Change Year to Date Relative to BTC YTD
GBTC -38% $16.77 2.57% 102% 28%
BITW -57% $10.83 1.17% 102% 27%
ETHE -51% $9.11 0.77% 91% 17%
BTCC 0.08% $5.31 1.72% 75% 0.60%

News

QUICK BITS

CryptoPotato

FTX Attempts $3.9 Billion Clawback from Genesis

The move is consistent with previous clawback attempts from Voyager, political figures FTX donated to, and others.

MARKET DATA

CoinDesk

Arbitrum-Based Exchange Chronos Attracts $170M to Yield Pools in a Single Day

The price of the DEX’s native chr token jumped 25% in 24 hours.

REGULATION

Coin Telegraph

SEC steps back from defining digital assets in new hedge fund rules

The SEC and its staff are “continuing to consider” the term “digital assets” despite proposing a definition of the ter...

FUNDRAISING AND M&A

BtcEthereum

Fedi Raises $17 Million In Fundraising Round Led By Ego Death Capital

The company, now having raised $21.21 million, aims to pre-launch the alpha version of its federated operating system later in May.Fedi, Inc., a U.S.-based dev...

CryptoPotato

DeFi Aggregator Portals Secures $2M in Seed Funding Spearheaded by Lightshift Capital

[PRESS RELEASE – Calgary, Canada, May 3rd, 2023] Portals, the platform that simplifies Web3 by enabling anyone to bundle complex DeFi actions, has announced the...

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