This week’s newsletter was co-authored by @serdave

PRICE CHANGE: WTD/YTD

- BTC ($17,132): +4% / +4%
- ETH ($1,287): +8% / +8%
- XRP ($0.35): +2% / +2%
- UNI ($5.57): +8% / +8%

MARKET CAP CHANGE: WTD/YTD

- Crypto Market Cap ($838B): +6% / +6%
- BTC Dominance: 39%
- ETH Dominance: 19%
- Tether ($66B): 0% / 0%
- USDC ($44B): -1% / -1%

NFT 3M TRADING VOLUMES

THIS WEEK IN CRYPTO

- 2022 saw $24.7 billion in NFT transaction volumes, nearly on par with the $25.1 billion seen in 2021. The number of unique traders increased by 877% in 2022, reaching 10.6 million Link. Link. 

- Total Value Locked (TVL) in DeFi fell 74% in 2022 to $55 billion in December. Ethereum remains the dominant DeFi protocol with $32 billion in TVL. BNB Chain is the second largest DeFi ecosystem with $6.5 billion in TVL. Link.

- Over $3.9 billion was lost in 2022 to hacks and fraud, down 51% from 2021 when over $8 billion was lost. Link. Immunefi Report.

- The US Federal Reserve issued a statement warning banks of working with crypto companies, saying that companies that issue digital tokens or hold them on balance sheets are “highly likely to be inconsistent with safe and sound banking practices.” Link. Statement.

- Former FTX CEO Sam Bankman-Fried pleaded not guilty to eight separate counts of wire fraud and campaign-finance violations with a trial date set for October. The judge presiding over the case granted SBF's application to seal the names of the co-signers on his $250m bail bond and prohibited him from accessing FTX and Alameda funds. Link. Link.

- The SEC is probing FTX investors about the due diligence they conducted on the crypto exchange. Link.

- DCG announced closing of its wealth management division and layoffs at its crypto brokerage Genesis. Reports surfaced that the DOJ and SEC have opened inquiries into DCG, specifically scrutinizing transfers between DCG and Genesis Capital. Link. Link. Link. 

- Crypto bank Silvergate Capital saw its stock plunge 43% after releasing its quarterly financials. Silvergate was forced to sell $5 billion worth of assets at a $780 million loss in order to meet $8 billion of withdrawals during the quarter (over 68% of its deposits). It also announced it was laying off 40% of its staff, and that Moodys has downgraded its debt to Ba1 (aka junk bond status). Link. Link.

- Gemini CEO Cameron Winklevoss wrote a public letter to DCG CEO Barry Silbert about its subsidiary Genesis’ debt obligation to Gemini Earn. Gemini Earn, which allowed users to earn interest on their crypto assets, halted withdrawals in mid-November after the collapse of FTX. Link. Link. Tweet. 

- The New York attorney general is suing ex-Celsius CEO Alex Mashinsky for defrauding investors. The Celsius bankruptcy judge recently ruled that deposits belong to the platform, meaning users are considered unsecured creditors in the bankruptcy. Link. Link. Link. 

- Wyre CEO sent an email to employees clarifying that the company is “scaling back” without providing additional details, after Axios had announced the company was shutting down. Link. Link. Wyre also announced it was limiting withdrawals to 90% of funds. Link. 

- DeLabs, the startup behind top Solana NFT collections DeGods and y00ts, announced it received a $3 million grant to move y00ts to Polygon. In a community post, DeLabs founder Frank said the grant will be used to expand the team and launch a crypto incubator to support its NFT ecosystem. Link. Tweet.

- NFT marketplace SuperRare announced it was laying off 30% of its staff. Link. Link. Tweet

- Proof Collective, the startup behind NFT collection Moonbirds, signed with United Talent Agency. Link.

- The creator of NFT project Mutant Ape Planet was arrested at JFK airport in New York this week. Aurien Michel, a french citizen living in the UAE, is accused of a “rug-pull” and defrauding token holders of $2.9 million. Link. 

- Mastercard and Polygon announced the "Mastercard Web3 Artist Accelerator," a program starting April 2023 and designed to support musicians launching NFTs. Link. 

- The SEC and DOJ filed objections to Binace.US’s planned acquisition of bankrupt crypto lender Voyager. Link. Link. 

- Animoca Brands is targeting $1 billion for its upcoming metaverse fund, instead of $2 billion as originally expected. Link. Twitter Spaces.

- Coinbase agreed to pay $100 million in fines for violating anti-money laundering laws and failing to conduct adequate background checks. Link. 

- Logan Paul is threatening to sue YouTube influencer CoffeeZilla over a video he produced alleging that Paul defrauded his fanbase out of millions with his NFT project CryptoZoo. Link. Video. 

- Bored Ape Yacht Club’s ApeFest will not happen during NFT.NYC this year. Link. 

- Coinbase stock fell to an all-time low of $36 this week and was subsequently downgraded by analysts. Link. 

- SBF’s $470 million Robinhood stake is expected to be seized by US authorities as part of the ongoing bankruptcy proceedings related to FTX. Link.