Polygon’s price plummets, layoffs follow


Polygon has been one of the most popular projects in the Ethereum ecosystem, but now thigs are looking rough for the project.

Polygon (MATIC), the Ethereum (ETH) scaling solution taking the crypto world by storm, has suddenly hit a rough patch.

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MATIC weekly price chart (Source:CoinMarketCap)

After soaring to a 90-day high of $1.56 on Feb. 18, the native token MATIC has taken a 13.5% nosedive, sitting at $1.35 as of Feb. 22.

To make matters worse, the company announced on Feb. 21 a 20% layoff of its workforce. As per the statement, the company’s reserves stand at more than $250 million and about $1.9 billion in BTC, indicating a sound treasury.

What does this mean for Polygon and its native token MATIC?

We’ve got the lowdown on Polygon’s market action and on-chain metrics, so you can make sense of this rollercoaster ride and assess what’s next for this game-changing project.

What’s happening with Polygon?

Despite the cryptocurrency industry’s rough ride in 2022, Polygon Labs secured a massive $450 million in its first major financing round led by Tiger Global and SoftBank in 2022.

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Polygon key metrics 2022 (Source: Messari)

Fast forward to the last quarter of 2022, and Polygon experienced a surge in user activity, recording an impressive 262.47 million completed transactions, according to Messari. However, the collapse of FTX caused the platform’s revenue to take a hit. 

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Polygon TVL chart (SourceL DeFi LIama)

Despite this setback, data from DeFi Llama shows that the total-value-locked (TVL) on Polygon has risen since Jan. 1, increasing by nearly 18% to reach $1.17 billion as of Feb. 22.

Meanwhile, Polygon’s saga continues to unfold as it prepares to launch the zkEVM mainnet beta on Mar. 27, which is expected to increase network throughput and reduce gas prices significantly. 

With these developments, it’s worth exploring how they have affected the on-chain metrics of Polygon.

Polygon on-chain analysis

Number of addresses

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MATIC Number of addresses (Source: Santiment)

According to Santiment, the number of addresses holding 10,000-100,000 MATIC has increased by 39%, from 364 to 507, since November 2022. 

Meanwhile, the number of addresses holding 100,000-1,000,000 MATIC has seen a whopping 60% increase, from 3760 to 6020.

In short, the increasing number of whale addresses holding MATIC indicates that the token is gaining traction in the crypto world. As more investors jump on board, the demand for the token increases, resulting in a surge in price.

Stock-to-flow (S2F) ratio

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MATIC Stock-to-flow ratio (Source: Santiment)

For those unfamiliar with the term, stock to flow (S2F) ratio is a measure used to evaluate the scarcity of an asset. 

It is calculated by dividing the total supply of a given asset by the amount produced or “flow” each year. The higher the ratio, the scarcer the asset, and the more likely it is to appreciate.

MATIC’s S2F ratio, which stands at 30.47 as of Feb. 22, has risen since the start of 2023. This is due to several factors, including the growing popularity of the Polygon Network, the increasing number of decentralized applications (dapps) being built on the platform, and the expansion of its ecosystem.

So, what does this mean for the future of MATIC? As history indicates, a rising stock-to-flow ratio is typically a bullish sign of an asset’s price. As the token becomes scarcer, it becomes more valuable, and investors are willing to pay a premium.

Suppose MATIC continues to experience strong demand and the S2F ratio rises. In that case, the platform could become an even more attractive choice for investors—a trend that could lead to additional gains.

Mean coin age

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Polygon mean coin age (Source: Santiment)

Mean coin age is a key metric in the crypto world that reflects how much investors are hodling. A higher mean coin age means more people are holding onto their coins, reducing the supply and driving up demand, ultimately raising the price.

As per Santiment data, MATIC’s mean coin age has been on the rise for 90, 180, and 365-day time frames since November 2022. 

With the current market volatility, a rising mean age could suggest that MATIC holders are confident in the project’s fundamentals and prospects and are not swayed by short-term price fluctuations. 

In other words, the increasing coin age of MATIC is a promising signal of the community’s trust in the project’s growth and long-term sustainability.

MATIC price prediction

According to the popular pseudonymous cryptocurrency analyst Pentoshi, MATIC could be on the verge of making a new all-time high ahead of the upcoming ZkEVM upgrade.

He reckons that MATIC’s strength during the bear market was commendable. Furthermore, the launch of the upcoming zkEVM mainnet is a major catalyst for a bullish MATIC run.

Meanwhile, CoinCodex, a crypto data website, has strongly recommended MATIC in their choice of best coins for February. They have even predicted that MATIC’s price can spike more than 50% from its current levels and reach $2.06 by Mar. 20.

In line with CoinCodex, Digital Coin, an algorithmic forecasting website, has predicted that MATIC will continue to surge. It predicts that the average price will reach $2.9 this year.

Remember that price predictions are based on the current market and technical sentiments, which may change overnight. Hence, exercising caution when investing in crypto assets is always in your best interest. Never invest more than you can afford to lose.

The road ahead

Polygon has emerged as a standout project in the rapidly-evolving world of cryptocurrencies thanks to its impressive network growth and partnerships with major brands. 

As we look into 2023, Polygon could become one of the top gainers. However, investors should always exercise caution, as the crypto market is notoriously volatile. 

While MATIC’s price may see sharp fluctuations in the short term, the project’s long-term potential looks stable. 

All in all, Polygon is a fascinating project that promises to deliver many exciting developments in the coming years. As a market watcher and observer, you should closely monitor its progress.

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Immutable, the Australian crypto gaming company, lays off 11% of its workforce


According to reports, Australia’s leading crypto gaming startup, Immutable, is laying off 11% of its workforce. 

Immutable is downsizing despite raising $200m from investors in March 2022, which valued the firm at $2.5b.

The layoff was announced internally, and it was reported that the firm cited the need to conserve cash reserves and prioritize critical projects. 

James Ferguson, the chief executive officer (CEO), acknowledged the move’s impact on employees but defended it as necessary to ensure long-term survival.

Ferguson wrote: 

As CEO, I am deeply aware that these role eliminations will directly impact the lives of many, and I take full ownership for these actions.”

Immutable is reportedly restructuring its operations and plans to outsource video game development to external partners. This shift in focus will allow the company to specialize in Web3 and cryptocurrency technologies and concentrate spending on core areas.

It is the second round of layoffs for Immutable in just seven months, with the first in July 2022, affecting 6% of its workforce. The move comes as the crypto industry faces a challenging economic environment due to market volatility and regulatory uncertainty. 

However, Immutable’s decision to shift its focus to core areas could help the firm navigate the challenging market conditions and emerge stronger in the long term.

The road ahead

Ferguson has outlined a generous benefits package to the affected employees, including redundancy pay averaging ten weeks, exceeding the mandatory requirements. 

Moreover, the employees will be allowed to retain more company shares than necessary, receive laptops, and access counseling, coaching, and outplacement services. US staff members will continue to receive their company-provided healthcare coverage. 

Despite the significant workforce restructuring, Ferguson remains steadfast in the company’s ambitious goal of becoming a dominant force in Web3 gaming

He said:

 “We have unwavering conviction in the significant opportunity we are executing against, and we know there is still so much innovation and transformation yet to come for web3 gaming.”

Given the evolving nature of the gaming sector, this move is a strategic effort to position the company for long-term success.

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Fame, fortune, and failure with Terra’s Do Kwon


The crypto world is abuzz with the news of charges filed by the United States Securities and Exchange Commission (SEC) against Terra and its founder, Do Kwon. 

What’s surprising is not just the charges themselves but the fact that they come after months of SEC crackdown on crypto-related businesses. 

It’s been almost a year since Kwon and his company allegedly caused millions of investors to lose their money and triggered a severe bear market that led to the collapse of other crypto companies. 

Who is Kwon, and what led to Terra’s downfall? Let’s explore the story behind this latest crypto bombshell.

How did it all start?

Do Kwon’s journey from a computer science graduate to the founder of Terraform Labs, a blockchain technology company, is a story of ambition and innovation. 

Kwon’s fascination with cryptocurrency began when he was working with distributed networks at Anyfi. However, he soon realized that the popular crypto technologies lacked accessibility and practical value.

In 2017, Kwon co-wrote a whitepaper proposing a decentralized payment system featuring a stabilized digital currency as a medium of exchange. He argued that an ‘elastic money supply’ could remove cryptocurrency volatility while still being decentralized.

The whitepaper caught the attention of Daniel Shin, a successful entrepreneur in the South Korean tech space, who shared Kwon’s vision. Together, Kwon and Shin founded Terraform Labs in 2018 to create a decentralized price-stable cryptocurrency. 

They developed the Terra proof-of-stake (PoS) blockchain using Cosmos SDK, supported by two major tokens – LUNA, the native token, and UST, the algorithmic stablecoin.

In just a few years, LUNA became one of the most successful digital currencies by market capitalization, thanks to the popularity of its algorithmic stablecoin UST. 

However, in May 2022, the TerraUSD and LUNA collapsed, leading to legal and criminal charges against Kwon by various governments and individual investors.

What’s happening now?

Kwon and his company, Terraform Labs, have been scrutinized by various regulatory bodies, investors, and traders over the riskiness of a coin not backed by a reserve asset. The suspicion of fraud and running a Ponzi scheme has also been raised. 

In November 2022, South Korean investors affected by the crash demanded a class action lawsuit against Terraform Labs. The South Korean government has also pursued criminal charges against Kwon for violating capital markets law. 

Lawsuits have been filed in the U.S. and Singapore, and Kwon has been accused of fraud by his investors. 

The allegations against Kwon and Terraform Labs have sent shockwaves through the cryptocurrency world, leaving many questioning the future of the industry and the need for stricter regulation. 

What are the allegations against him?

The SEC has filed a lawsuit against Terraform Labs and Do Kwon for allegedly deceiving investors in a complex scheme involving unregistered securities. 

According to the SEC, the duo misled investors by claiming that the Korean payments application, Chai, used their blockchain platform, Terra, to process payments. 

However, the payments were mirrored on the blockchain and processed using conventional means. 

The SEC also points to Kwon and Terraform Labs’ efforts to create and advertise the unsustainable lending protocol, Anchor, and offering five securities, including Luna and Wrapped Luna.

The regulators allege that Terraform Labs also sold billions of dollars worth of Luna and MIR tokens into the secondary market, including platforms where U.S. persons were allowed to trade.

Where is he now?

Kwon has been on the run since last year when South Korean authorities issued a warrant for arrest for violating capital-markets law. Since then, he has remained elusive, his whereabouts unknown to all but a few insiders. 

But now, rumors are swirling that Kwon may have found a new home in Serbia, where he has reportedly been laying low since December.

While Kwon’s exact location is still unknown, he made a surprise appearance on Twitter recently, denying any wrongdoing and insisting that he has “never stolen any money or had secret cashouts.” 

However, South Korean officials remain unconvinced, having stripped Kwon of his passport and issued an Interpol red notice for his arrest.

Meanwhile, officials in Serbia remain tight-lipped about Kwon’s presence in the country, and speculation continues to swirl about his ultimate fate. For now, however, Kwon remains at large, a symbol of the continued unpredictability and intrigue of the cryptocurrency world.

The road ahead

Before this scandal broke, Kwon was a rising crypto star known for his sharp wit and charm. However, he also had a reputation for arrogance and a tendency to belittle those he considered irrelevant.

As officials from Korea search for him in Serbia, the crypto community is on edge. Many questions the SEC’s actions and wonder what this means for the industry’s future.

As the investigation continues, the world waits for the next chapter in this unfolding drama. Will Kwon be found and brought to justice, or will he continue to elude the authorities? Only time will tell.

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Conflux coin surges 10x, here’s why


A new blockchain in town is making waves – Conflux (CFX). This layer-one blockchain has been climbing the ranks and has quickly become one of the year’s biggest gainers. 

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CFX price chart. Source: CoinMarketCap

With a price spike of over 1000% since Jan. 26, Conflux has skyrocketed from $0.03162 to a 52-week high of $0.3595 as of Feb. 21. Amid a high intraday retracement the CFX token has declined to $0.3082 as of this writing.

But what exactly is Conflux, and how did it pull off such an impressive feat? 

In this article, we’ll delve into everything you need to know about Conflux, from its background to its unique features and the factors driving its massive price surge. So let’s get into it.

What is Conflux

Conflux (CFX) is a Chinese blockchain platform that aims to tackle major challenges facing the blockchain industry, such as scalability, security, and interoperability. 

The platform’s unique approach to consensus, utilizing a tree-like structure, enables high throughput and fast transaction confirmation, processing up to 3,000 transactions per second, a significant feat in the market.

Conflux’s founders developed the platform based on academic research at Shanghai Jiao Tong University, where they identified an opportunity to address scalability issues. 

The Conflux team comprises experts in blockchain technology, cryptography, and distributed systems. It is attracting developers and investors, with an increasing number of decentralized applications (dapps) being developed on top of it.

An interesting feature of Conflux is its partnership with the Shanghai government, which strongly supports blockchain technology’s potential to drive innovation and economic growth. This partnership provides a conducive environment for Conflux to thrive and establishes its credibility in the blockchain.

Why did Conflux pump

Conflux has been on a roll with back-to-back announcements that have sent its token price soaring. 

The integration of Little Red Book, the Chinese equivalent of Instagram, led to a 60.25% surge in Conflux’s value on Jan. 26. This move allowed Little Red Book’s 200 million users to display non-fungible tokens (NFT) on their profiles, minted on Conflux. 

As if that wasn’t enough, Conflux continued its winning streak with another groundbreaking announcement on Feb. 15. 

The network revealed its plans to partner with China’s Telecom to develop blockchain-based SIM cards (BSIM cards) to store and manage users’ public and private keys in encrypted storage. 

The news triggered a massive rally, with CFX token prices skyrocketing by almost 100%, and the rally showing no signs of slowing down.

Conflux price forecast

Hong Kong is taking a giant leap towards cryptocurrency adoption as it moves to legalize crypto transactions for all its residents from June 1, 2023. 

The decision is expected to drive demand for Chinese coins, which could result in a favorable impact on the price of CFX soon.

Crypto Twitter experts have also taken note of China’s central bank’s massive liquidity injections, which seem to coincide with a surge in the crypto market’s capitalization. 

However, it’s essential to remember that crypto markets are notoriously volatile, so it’s crucial to invest wisely and never invest more money than you can afford to lose. 

While Chinese coins may continue to rise in the short term, it’s best to exercise caution and research before making any investment decisions.

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Kraken CEO’s criticism of regulators gains momentum


Jesse Powell, CEO of crypto exchange Kraken scrutinized by the US regulators, expressed his regrets by urging Congress to protect the domestic crypto industry.

Kraken, the popular cryptocurrency exchange, recently reached a $30 million settlement with the US Securities and Exchange Commission (SEC), which forced it to shut down its crypto staking feature following the regulatory crackdown. 

In response, Kraken’s CEO Jesse Powell expressed his regret by tweeting about it and urging Congress to protect the domestic crypto industry and US consumers who may now be forced to go offshore for services no longer available in the US.

Powell has come out again, criticizing regulators for supporting the “bad guys” in the crypto space while treating the “good guys” as enemies. 

In a recent tweet, Powell explained how the blow-ups caused by the “bad guys” lead to massive capital destruction and hinder adoption, ultimately giving regulators “air cover” to attack good actors. Powell has previously accused regulators of ignoring warnings about scams and fraud.

Even Charles Hoskinson, the founder of Cardano (ADA), slammed the regulators. He tweeted:

Meanwhile, the Crypto Mom is not happy with the SEC. Hester Peirce, SEC Commissioner, has slammed the agency for going after Kraken exchange and halting its crypto staking offering after a hefty million-dollar settlement.

What’s happening with crypto regulation

Kraken’s situation is not unique. Many other crypto companies have been calling out the lack of regulatory clarity in the US and the West. 

Gemini exchange CEO Cameron Winklevoss echoed Powell’s sentiments in his recent tweets, warning that the West will lose the game to the East and that the next bull run will begin in the East.

Meanwhile, Custodia Bank CEO Caitlin Long has shared Powell’s views, claiming that her warnings to regulators about crypto risks were ignored and buried in the “bowels of bureaucracy.” 

Long also provided evidence to law enforcement about a crypto crime months before the company collapsed and left millions of customers in the lurch.

What will 2023 look like for crypto?

Crypto companies have long existed in a legal gray area, with legislators and government officials debating how to classify them for regulation.

Regulators have been criticized for failing to keep pace with the fast-growing crypto industry for years. But the recent collapse of FTX once considered one of the most reliable crypto firms, and the charges against its founder, Sam Bankman-Fried, have put regulators under immense pressure to act. 

The SEC has levied fines and other penalties against several crypto lending firms, including Kraken, Paxos, and Terraform Labs in the past month. Many enthusiasts are concerned that the SEC may block other crypto firms from offering similar services.

In short, regulatory clarity is a significant issue in the crypto industry. While some companies, like Kraken, have been hit hard by regulatory crackdowns, others warn that regulators fail to act on warnings about crypto risks and scams. 

The road ahead remains unclear, but one thing is sure: it’s going to be a bumpy ride.

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BinaryX goes parabolic as its price surges 200% in one month


The market value of BinaryX (BNX) has experienced a significant increase, surging over 200% within the past month.

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BNX price chart. Source: CoinMarketCap

CoinMarketCap’s recent price data reveals a rising trend in BNX’s value, starting from $58 on Jan. 7 and reaching its 52-week peak of $181.35 on Feb. 13.

Despite a slight pullback, the current price of BNX is $168.32 as of Feb. 17, accompanied by a market cap of $486 million.

What’s causing this pump, and what exactly is BinaryX? We’ll analyze all you need to know about this token, and you can decide whether to invest.

What is BinaryX

BinaryX is a GameFi platform that operates two play-to-earn games, CyberDragon and CyberChess, both of which run on the BNB chain.

As per data from DappRadar, BNX ranks as the 13th largest decentralized app (dapp) on the BNB chain, with over $1 billion locked in smart contracts as of Feb. 17. This marks a 30% increase in one month.

The BinaryX platform initially served as a decentralized derivative trading protocol, but the system has since evolved to accommodate the advancements in the GameFi sector.

BNX functions as the platform token of BinaryX and serves as a utility token for all activities in the BinaryX ecosystem, including games and the incubation fund.

Why is BNX rising

In their year-end report, BinaryX reported a significant increase in user growth, going from 98,000 to 130,000 players. This was met with positive market sentiment, as their BNX token continued to thrive with the growing number of users.

However, the excitement didn’t stop there. BinaryX announced plans to expand its range of games and split its BNX token in a dramatic 1:100 ratio on February 9, 2023. The token split will begin today i.e., Feb. 17, BinaryX confirmed in a tweet:

This decision was made through a democratic DAO vote, with an overwhelming 99.5% of voters supporting the move, suggesting a solid belief in BinaryX’s future, with investors eagerly anticipating the platform’s growth.

As soon as the announcement was made, the market responded enthusiastically. Investors rushed to buy BNX, causing the token’s price and volume to skyrocket, reaching its 52-week high.

BNX price prediction

CoinCodex estimates that the value of BNX could surge to $373 by Mar. 15, a whopping 113% increase from current prices.

Long-term projections from DigitalCoinPrice also suggest an average price of $329.65 in 2023 and $399.70 in 2024.

But don’t get too carried away just yet. As with all cryptocurrencies, the market is highly volatile, and predictions don’t always match reality.

What’s next for BNX

The hype surrounding BinaryX is real, but so is the risk. Its recent price action has turned heads, but investors must remember that volatility can mean high risk.

While the gaming coins resurgence has added to BinaryX’s buzz, factors like economic trends and regulation changes can impact its price in the coming days. So, caution is key.

So, if you’re considering joining the BinaryX bandwagon, research, seek expert advice, and prepare for the market’s ups and downs.

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Norway’s crypto bust deals blow to North Korean hackers


Norway’s economy crimes unit, Økokrim, just pulled off a digital heist of their own by seizing a whopping NOK 60 million (or $5.9 million) in cryptocurrency.

This breakthrough comes as part of their ongoing investigation into the Sky Mavis cyber attack in March 2022, which saw a staggering $600 million worth of cryptocurrency stolen from Axie Infinity, the popular play-to-earn (P2E) gaming platform. 

The successful seizure of the cryptocurrency has put a significant spanner in the works of the hackers’ laundering process, which is allegedly linked to Lazarus, a North-Korea based hacking group. 

Moreover, according to a Feb. 2023 report, North Korea’s primary intelligence agency, the Reconnaissance General Bureau, has been behind the theft of up to $1 billion worth of crypto through its teams – Lazarus, Andariel, and Kimsuky.

Collaboration across time zones

In a remarkable international collaboration, the Økokrim team partnered with FBI specialists to track stolen assets via cryptocurrency transactions. The aim is to prevent the funds from being used for criminal activities, a crucial move in the fight against profit-driven cybercrime.

Marianne Bender, the Økokrim first states attorney, has emphasized the importance of such global efforts to tackle the issue. 

She points out that “this case demonstrates that we have the skills to follow the money on the blockchain, even when criminals try to outsmart us with their advanced tactics.”

With this latest development, global authorities are setting a new standard for international collaboration in the fight against cybercriminals.

Preventing the use of stolen assets for criminal activities

Økokrim has plans to make things right for the Axie Infinity hack victims. The team is gearing up to communicate with Sky Mavis to ensure that the victims get compensated to the max.

But it’s not just a matter of money. Bender also shared some serious intel on the hackers behind the heist. She mentioned hackers are not just in it for the crypto. Instead, they’re looking to cash out and make some real-world investments. And that’s where things get a little spooky.

Bender revealed that the hackers could funnel the funds straight into North Korea’s nuclear weapons program. Yikes. That’s why tracking down cryptocurrency and stopping it before it’s too late is essential.

Continued collaboration

In a stunning victory for the good guys, Økokrim has given a virtual high-five to their American counterparts for their efforts in a recent case and suggested continued collaboration in the fight against the bad guys.

This joint operation was a resounding success and will send shockwaves through the seedy underbelly of the cybercrime world. 

The message is loud and clear: you may think you’re slick, but the long arm of the law is even slicker. So, all you would-be digital thieves out there, beware. The authorities are watching your every move.

So, if you’re one of the victims of the Axie Infinity hack, don’t lose hope. Økokrim’s got your back. And they’re not afraid to take down some cybercriminals while they’re at it.

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How institutions are driving the crypto renaissance


While crypto has sometimes been seen as a renegade movement, the recent influx of institutional investment has turned the tables on that view.

In the wild world of crypto, fortunes are made overnight, memes are worth millions, and Elon Musk tweets can make or break your portfolio.

But amidst all this chaos, two things stand out: the breakneck pace of change and the growing influence of institutional investors.

Now, Wall Street suits are rubbing shoulders with crypto cowboys, and the game has changed forever. But what does this mean for the scrappy startups that helped build the crypto world?

Buckle up as we dive deeply into the world of institutional crypto investment. From hedge funds to billionaires, we’ll see who’s running the show: retail investors, venture capitalists, or institutional giants.

We will also explore how institutional adoption is changing privacy, security, and decentralized governance and how the rise of web3 protocols is shaking up centralized platforms. Let’s find out.

The rise of institutional investors in crypto space

Firstly, let’s define what we mean by institutional investors. Institutional investors, also known as “whales” in the crypto world, are entities like hedge funds, pension funds, and banks with huge pockets of cash to invest.

You may be wondering why all these fancy institutions are jumping into the crypto game. Well, it’s all about the bling.

Institutions are always on the lookout for opportunities to make a pretty penny. And with the insane volatility in the crypto market, some serious cash must be made. It’s like a never-ending rollercoaster ride – but instead of getting sick, you’re getting rich.

But let’s not forget about the elephant in the room – security.

Crypto may be digital, but that doesn’t mean it’s not valuable. Institutions need to know that their investments are safe and sound. And with the development of custodial solutions, they can rest easy knowing their money isn’t going anywhere.

Plus, with more and more countries and regulators giving the green light to digital assets, institutions are feeling more confident about diving in. They don’t want to miss out on the action and potential returns, and who can blame them?

As more and more investors pile into the crypto market, institutions can’t afford to sit on the sidelines. They want a piece of the pie too, and they want to ensure they get it before it’s all gone.

In the end, the rise of institutional crypto investment is a testament to the power of money. As long as there’s money to be made, institutions will find a way to get in on the action.

Changing dynamics of the market

With their deep pockets and vast resources, institutions can cause some major shifts in the market dynamics. Here’s the rundown of how institutional investment affects the crypto market and what changes we’ve seen as a consequence:

Quick facts

  • Grayscale Investments saw its assets under management (AUM) skyrocket from roughly $2 billion to over $43 billion in December 2021, thanks to its cryptocurrency investment trusts.
  • BlackRock, managing $8.6 trillion in assets, partnered with Coinbase in August 2022, allowing clients of BlackRock’s Aladdin investment management platform to trade digital assets, starting with bitcoin.
  • Despite market turbulence, a November 2022 Institutional Investor Custom Research Lab survey revealed that 58% of investors with current stakes in digital assets planned to increase their holdings over the next three years.
  • In 2022, Fidelity’s survey of over 1,000 institutional investors showed that 51% had a favorable view of digital assets, compared to 45% in 2021.

Changing dynamics

Increased liquidity

Institutional investors can add a lot of liquidity to the market with their deep pockets and sophisticated trading strategies. That means more money flowing around, which can help reduce transaction costs and make it easier for everyone to buy and sell assets.

As a result, more investors can buy and sell digital assets with greater ease and efficiency, leading to improved price discovery.

Reduced volatility 

Speaking of prices, institutional investment has also significantly affected volatility. Contrary to popular belief, institutional investment has contributed to a decrease in price swings.

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BTC volatility chart. Source: Coin Glass.

In fact, the above chart has shown that bitcoin’s volatility has been on a steady decline since 2018, and the influx of institutional investors is a key factor in this trend.

This means digital assets are becoming more stable, reliable, and predictable – characteristics that make them more attractive to mainstream investors.

Market cap augmentation

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Global crypto market cap (Source: CoinMarketCap)

Big money means big growth in the crypto market! From 2018 to November 2021, it was institutional investment that pushed BTC and ETH to their record-breaking highs. No secret there, but definitely a trend to watch!

Mainstream adoption

With the support of institutional investors, digital assets are becoming more widely accepted and recognized as legitimate investment vehicles. 

This is evidenced by the increasing number of publicly-traded companies adding cryptocurrencies to their balance sheets.

In 2022 alone, several hundred large companies added bitcoin to their treasuries, including big names like Tesla, MicroStrategy, Square, and now even countries like El Salvador.

Influence of different players in the crypto space

Let’s take a closer look at how different players impact the world of crypto.

Retail investors

First up, we have retail investors. These are the everyday people like you and me who are getting in on the crypto action. They may not have the same level of expertise or resources, but they make up for it in sheer numbers.

Retail investors bring liquidity to the market, like pouring gasoline on a fire – it can either burn out of control or create a beautiful blaze. The jury’s still out on which one it’ll be.

Venture capitalists

Next, we have venture capitalists. These are the big dogs of the investment world, seeking out the next big thing and pouring truckloads of money into it.

Think of venture capitalists as the cool kid in high school who always had the latest and greatest gadgets. They have the funds to take risks and the connections to make things happen.

The downside? They can be a bit like a rollercoaster – up one minute, down the next. 

Institutional investors

Last but not least, we have institutional investors. They’re the steady and reliable force that keeps the market stable. They have the expertise and resources to make smart investments and weather volatility.

However, they can also be slow to move and risk-averse. It’s like driving a tank – slow, steady, and hard to steer, but it gets the job done.

The cumulative effect

So, what’s the impact of these different types of investors on the crypto market? 

It’s like a game of Jenga – each piece is important and has the potential to make the whole thing come crashing down. 

Retail investors bring liquidity and democratization but also greater risk.

Venture capitalists bring excitement and innovation but also greater volatility. Institutional investors bring stability and credibility but also greater caution.

It’s a delicate balance and one that’s constantly shifting.

Which institutions are topping the charts?

Grayscale Investments

Grayscale is a digital asset management firm that offers investment products that give exposure to cryptocurrencies such as bitcoin, ethereum, and more.

According to CoinGlass, its flagship product is the Grayscale Bitcoin Trust holds over 600,000 BTC, currently worth $13.69 billion.

Grayscale has been instrumental in bringing bitcoin into the mainstream, as its products are available to institutional investors, including pension funds, endowments, and family offices.


MicroStrategy is a software company that has become one of the biggest bitcoin holders in the world. The company has 132,500 bitcoins worth over $2.89 billion, making it one of the most significant corporate bitcoin investors.

Its CEO, Michael Saylor, is a vocal advocate for bitcoin and has been using MicroStrategy’s cash reserves to purchase bitcoin, seeing it as a hedge against inflation. 


In early 2021, Tesla announced that it had purchased $1.5 billion worth of bitcoin, making it one of the most prominent corporate bitcoin investors.

The company has since sold a portion of its holdings, but the move helped to bring bitcoin into the mainstream and fueled a surge in its price. 


Square is a payments company founded by Twitter CEO Jack Dorsey. The company has over 8000 bitcoins worth more than $175 million.

Dorsey has been a vocal supporter of cryptocurrency. It has also developed a product called Cash App, which allows users to buy and sell bitcoin.

The app has become very popular, with over 40 million active users, and has helped to increase bitcoin’s adoption among retail investors.

Fidelity Investments

Fidelity is a financial services company that has been involved in cryptocurrency for several years. It launched Fidelity Digital Assets, a subsidiary that offers custody and trade execution services for cryptocurrencies.

Fidelity has also invested in a range of crypto-related companies and is seen as a leader in the institutional adoption of cryptocurrencies. Its involvement in the space has helped to increase bitcoin’s credibility and adoption among traditional investors.

What are the risks?

As institutional investments pour into the crypto space, it’s important to consider the potential risks and challenges that come along with this influx of capital.

Unexpected price swings: When institutional investors flex their financial muscles in the crypto market, it can lead to price swings so sudden they’ll make your head spin. Brace yourself because these big players can make moves that send shockwaves through the entire market.

Centralization: The flood of institutional money into the crypto scene could leave a select few holding all the cards, undermining the decentralization that crypto stands for. In short, we could be looking at a new kind of power grab.

Regulatory scrutiny: As big players start playing in the crypto sandbox, you can bet your bottom dollar that regulators will keep a watchful eye. This increased scrutiny could mean more hoops to jump through and stricter rules, which could drive up compliance costs for everyone.

Lack of transparency: When institutions enter the game, transparency often takes a back seat. Unlike retail investors who wear their hearts on their sleeves, institutions can keep their cards close to their chest, making it tough for others to make informed decisions.

Manipulation: With great power comes great responsibility – but that doesn’t mean everyone plays by the rules. Institutional investors have the power to manipulate markets and engage in sketchy schemes that can leave smaller investors reeling. Keep your eyes peeled for any shady business.

The road ahead

Institutional investment is bringing a blaze to the world of web3 and crypto. Not long ago, crypto was seen as fringe or even suspect. But now, with big names like Goldman Sachs, Morgan Stanley, and Fidelity getting involved, web3 and crypto are becoming more mainstream and accepted.

Of course, there are risks involved. Institutional investors can be fickle, and it could seriously impact the market if they decide to pull out. And there are concerns that their involvement could lead to a loss of decentralization and control over these technologies.

For the moment, institutional investment is playing a key role in shaping the future of web3 and crypto.

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