Over the last several weeks, there have been some events happening around the world which has affected the economic situations of many people. As time goes on, others have emerged that have continued to have an impact on the crypto market. In this report, we take a look at some of these events and the implications they carry for the digital assets in the space.
Economic Problems Grow
Over the weekend, news broke about protests that have been going on in the Henan Province of China. The protesters had turned out 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 Kaifeng Xindongfang Village County Bank. The protesters had taken to the streets to air their grievances with the banks.
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The reports coming out of the region showed that while users of these banks had been able to deposit money, they had been unable to withdraw any of their money. Hence the protests in trying to get their money back. The economic implications of these on the market were instantly felt with the decline in the market on Monday.
Even though cryptocurrencies are still banned in the country, Chinese investors remain very active in the crypto market. Hence, their ability to participate always has an effect on the market and the cryptocurrency prices by extension.
The banking and insurance regulator and the provincial financial authority of the Henan Province have said they have crafted a compensation plan for the affected users. However, until it is resolved, it will be no surprise to see less participation from Chinese investors.
Market continues to suffer | Source: Crypto Total Market Cap on TradingView.com
The Crypto Platforms Struggling
Over the last several weeks, news of liquidations has rocked the crypto market. The latest is the Voyager Digital liquidation which has been in the spotlight. However, new findings have shown even more hiccups with the case as liquidators have revealed that they have been unable to get in touch with the founders of the hedge fund.
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However, that is not the worst of it. The firm had also taken to Twitter to announce that despite the liquidation case, it is not guaranteed that all users would be getting all of their cryptocurrencies back. Majority of which is tied to the massive losses it took due to its exposure to Three Arrows Capital (3AC).
While the Voyager Digital liquidation case waxes on, another crypto platform is still holding user funds hostage. It is now almost a month since Celsius Network had frozen withdrawals, transfers, and swaps on its platform. The company has continued to aggressively pay off its debt. However, there is still no telling when, or if, users will be able to get their crypto back.
Featured image from The Economic Times, charts from TradingView.com
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