FanDuel bets the over on Crypto. Celsius is suing to get some money back and Defi is making a comeback. My name is Ben and this is your nightly crypto news wrap. Let’s get it.
Institutions show an appetite for Defi
It looks like institutions are having a light-bulb moment when it comes to Defi according to Brett Tejpaul the head of institutional sales at Coinbase. Like any disruptive tech, Defi has experienced heavy volatility and fear in the early stages of development. While big buyers have been all in on Bitcoin over the past year, Defi has been the third wheel at the prom. But that’s starting to change thanks to companies like Cobo making better software tools that integrate Defi into traditional systems. And while the Terra crash has had a chilling effect on the industry, it has shown how resilient crypto is. Whales saw the risks and how a shakeout affects the industry. This gave them some perspective and helped create risk profiles that will withstand the ups and downs of the crypto market in its early phases.
Speaking of risk, let’s see how the markets are looking today
Celsius sues over missing funds
Celsius is suing crypto custodian Prime Trust to return 17 million dollars worth of crypto assets. Prime Trust and Celsius dissolved their relationship back in June of 2021 and Prime trust returned 119 million dollars worth of crypto assets to Alex Machinsky’s ponzi scheme – oops I mean Celsius—oops I repeated myself. Celsius says they are missing 17 million and are forced to sue Prime Trust to get it back. That’s funny Celsius…I’m missing 3 million dollars that you haven’t paid me back. Not a good feeling is it? As the fallout continues from these liquidity issues and institutions play tug of war over what remains of Celsius, many onlookers in retail are wondering when the average investor will be actually represented in these court conversations? At least lawyers will do well over the ongoing court battles in what looks like will be a long drawn out process for investors trying to recapture halted funds from the bankrupt lender.
BetDEX makes a bet on Blockchain gambling
The former CEO of largest sports betting app on the planet is about to parlay big time into crypto. BetDEX was founded by former execs at FanDuel, including former CEO Nigel Eccles, BetDEX’s chairman. Varun Sudhakar spent three years at FanDuel. BetDEX is a key contributor to the Monaco Protocol, which is live on Solana’s developer testnet and is set up to act as a digital asset based liquidity pool. Legacy gambling poses a massive potential to blockchain, traditional betting was worth $250 billion dollars in 2021, but as of now lacks on the user experience side and high fees that reach levels of up to 40%! Varun’s goal to capture a market share of the betting world will be attractive for users with fees reaching no more than 1% and the digital clearing house is also focused on making sure betters can cash out quickly and securely. FTX CEO Sam Bankman-Fried has pointed out this “mind boggling” potential for blockchain sports betting near the end of 2021, and it seems the abundance of players in betting all operating with the same high fee structure will create a perfect way for blockchain to break onto the scene to create actual competition for platform betting and cash out fees.
It is great to see the use case crypto and blockchain push the needle forward on innovation that will actually help the little guy, let’s hope to see more like this in the future!
That’s all I got, Bitboy out!