Going Down, Down

Good morning. Today we've got coverage on market volatility (losses), a Bitcoin dividend, institutional participation in DeFi, and more!

Bonus Content Coming: I'm targeting early next week to have my notes out from Messari's Crypto Theses for 2022. I'll include a link to my notes in this newsletter, however, the full report is definitely worth a read.

Market Update (as of 7:50am ET):

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Top 5:

1. Bitcoin Falls Below $43K, Leads to $800M in Crypto Liquidations
$812 million dollars in crypto futures were liquidated yesterday as Bitcoin's price dropped around $4,000 shortly after the Fed's December meeting minutes were released. 87% of those liquidations came on long positions, and shortly after the move another 8% of open interest (the total number of unsettled futures or derivatives) was closed out as traders exited their positions. Below @WClementeIII adds useful context to yesterday's liquidation.

2. Nasdaq-Listed Firm Says It Will Offer the First Bitcoin Dividend
On Wednesday BTCS, a blockchain services and portfolio analysis company, became the first publicly traded company to offer investors the option of receiving a dividend issued in Bitcoin. The timing of this news probably wasn't the best given Bitcoin's price action, but investors responded positively with BTCS shares trading up 43% after the announcement. The so called "Bividend" will be payable March 17th.

3. Airbnb CEO: Crypto Payments Top User Requests for 2022
2022 may be the year you get paid in crypto to let strangers sleep at your house. After crowd-sourcing suggestions for updates to the product, Brian Chesky, Airbnb's CEO, announced that crypto payment capabilities were the top request. In the tweet breaking down over 4,000 user responses Chesky stated that the company is already working on most of the top suggestions.

4. Aave launches permissioned DeFi platform Aave Arc, Fireblocks becomes first whitelister
Aave Arc, a permissioned DeFi (oxymoron?) platform, launched yesterday with the goal of enabling institutional participation in decentralized finance. Unlike "regular" DeFi, a permissioned DeFi environment only allows participants that have undergone KYC (know-your-customer) and other due diligence checks to participate. The platform will initially support lending and borrowing for ether, wrapped bitcoin, USDC, and AAVE. Thirty institutions have already been whitelisted for participation by Fireblocks, a crypto custody and security company.

5. Solana DeFi Protocol Exotic Markets Raises $5M Ahead of Mainnet Launch

Top Sharers of the Crypto Top 5:
1. Jake Y. - Greenville, SC
2. Cameron S. - New York, NY
3. Lauren A. - Nashville, TN

Disclaimer: The information contained in this newsletter shall not be understood or construed as financial advice. I am not an attorney, accountant or financial advisor, nor am I holding myself out to be, and the information provided is not a substitute for financial advice from a professional who is aware of the facts and circumstances of your individual situation.