Crypto Moves – Bitcoin and Ethereum fall; 10X SPAC and Prime Blockchain complete $1.25bn merger deal

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RIYADH: Bitcoin, the leading cryptocurrency internationally, traded lower on Tuesday, falling by 3.44 percent to $24,008 as of 7:57 a.m. Riyadh time.

Ethereum, the second most traded cryptocurrency, was priced at $1,874 falling by 5.51 percent, according to data from Coindesk.

10X SPAC and Prime Blockchain complete $1.25bn merger deal

Prime Blockchain and blank-check vehicle 10X Capital Venture Acquisition Corp. II have ended their $1.25 billion merger deal, Reuters reported.

It demonstrates waning enthusiasm for special purpose acquisition companies that were startups’ preferred route to initial public offerings.

As a result of sky-high inflation and recession fears this year, several companies have canceled their SPAC mergers, which were announced in April.

Despite some hope last week, analysts have cautioned against over-optimism, arguing that before slowing rate hikes, the Federal Reserve will seek more solid evidence that inflation is declining.

Hodlnaut seeks judicial management for reorganization

As part of its efforts to restructure its business, Hodlnaut, a Singapore-based crypto currency lender and borrower, filed an application to be placed under judicial management on Tuesday, Reuters said.

In a petition filed with the Singapore High Court, the crypto company said it suspended withdrawals, swaps, and deposits last week.

The collapse of two paired tokens, Luna and TerraUSD, in May sparked a selloff in crypto assets.

Dragonfly Ventures buys hedge fund and rebrands

Venture capital firm Dragonfly announced it acquired cryptocurrency fund MetaStable Capital and rebranded, according to Bloomberg.

Haseeb Qureshi, the managing partner at Dragonfly, said the acquisition coincides with consolidation in the digital asset industry, Bloomberg added.

The terms of the deal were not disclosed. Under a new logo, Bloomberg said that Dragonfly has dropped “Capital” from its name.

Qureshi, a former partner at MetaStable, said in a Telegram message: “The bear market has caused a lot of traditional funds and crossover funds to exit the crypto market.”

“We’re the opposite: we’re going deeper, and committing to our crypto-native roots,” he added.

With tightening monetary policy, the crypto market suffered a painful rout resulting in spectacular leveraged losses., Bloomberg added. This shakeout is resulting in a rise in mergers and acquisitions.

Leon Li, the founder of crypto exchange Huobi, is interested in selling his majority stake., a digital currency platform, also announced acquisitions in South Korea recently.

As of July 31, MetaStable had over $400 million in assets under management, co-founded by Naval Ravikant, according to Bloomberg. Many well-known digital-asset projects, such as Ethereum, were invested in by the fund early on. Venture capital firms including Andreessen Horowitz, Sequoia, Union Square Ventures, and Founders Fund backed the company.

“Dragonfly has grown a lot since it launched, and so has the crypto industry,” Qureshi said.

He added: “The traditional VCs will be back eventually, but the space will have moved on even further by then, and so will we.” 

According to public records, Dragonfly manages regulatory assets worth more than $3 billion, said Bloomberg. In a statement, general partner Tom Schmidt said the new brand represents the firm’s “cyberpunk, hacker-first roots.”

(With inputs from Reuters)

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