Crypto and investments related to crypto, were hard hit on Monday, June 13.
Below are links to stories where stress cracks are forming:
- Stress cracks are starting to be seen at Binance. Celsius Networks has placed restriction on withdrawals swaps or transfers between accounts.
Binance specific linked comment. It appears to be a hardware problem and not a liquidity problem at this moment in time.
Celsius specific linked comment this appears to be a liquidity problem. Yahoo
The Celsius Withdrawal Pause Rattles Crypto World – Investopedia
- MicroStrategy (MSTR) $152.15 faces margin calls if Bitcoin goes below $21,000 – Margin calls are obviously a liquidity problem.
- Galaxy Digital (BRPHF)* $4.45 down 22.6% today. I have no specific update related to Galaxy, but obviously as an investment banker and venture capital investor, Galaxy has wide spread exposure to positive or negative news in crypto space. I am not buying share on this weakness. There is too much uncertainty. As soon as I am comfortable with their liquidity situation, I will buy. This is a change of view from LOTM as the liquidity factor related of crypto and participants has come into question within the industry.
- Soluna Holdings (SLNH)*$5.40 and Soluna preferred (SLNHP)* $15.15 – big positions for LOTM. I don’t see a liquidity problem at the company. Costs are low and completely alt-energy drive as an energy source. They are broader based in their business plan than just a crypto miner. Currently however 100% of their revenue is from crypto mining, however. I believe their breakeven point from crypto mining is below $10,000. SLNH is very volatile, but I don’t see a survivability problem here.
- Tron’s Stablecoin Peg to Dollar Wobbles; Justin Sun Swears to Deploy $2B to Prop Up
LOTM Comment: I don’t believe problems within the crypto world will cause the Fed to change course in its tightening policy. The different agencies within government will likely use the current situation to make their case for tighter regulations. I could be wrong. There are powerful companies that are now heavily invested in blockchain and crypto. Among these are Mastercard, Visa, Fidelity, Insurance and Banking industries. This is an important industry to be the world leader in as a tool/weapon Vs the USA’s competitors.
Coingape.com is an excellent consolidator of news flow related to Blockchain and Crypto. You might consider connecting with them as a free news flow source.
LOTM Research & Consulting Service
* An account related to LOTM holds a position in this security.
Neither LOTM nor Tom Linzmeier is a Registered Investment Advisor.
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