Daily Top Mover — Filecoin (FIL)
U.S. equities closed lower for the fourth day after a slew of hawkish remarks from global central banks. Traders tighten their buckle in the face of additional volatilities stemming from the Bank of Japan’s unexpected pivot with yield policy changes. Meanwhile, the broader cryptocurrency market barely moved in the past 24 hours, with Bitcoin and Ether up 0.07% and 0.83%, respectively. The top mover for today, Filecoin (FIL), which registered a 1.93% decrease in the past 24 hours and a 31.0% drop in the past week, has clearly underperformed the market on the back of record-long liquidations.
The price plunge of FIL occurred alongside other storage tokens, such as Storj, which declined 16.4% in the same period. Token unlocks, and Grayscale’s rumored selloff are the two most popular hypotheses behind FIL’s underperformance. FIL has a linear token unlock of 11.1 million tokens in December, equivalent to $33 million, while Grayscale’s portfolio holds only $297k worth of FIL tokens. However, with $180 million of trading volume in the past week, it is unlikely that these two factors tell the full story of FIL’s heavy selloffs. Instead, record-long liquidations may be the culprit where a few lenders’ margin calls may have caused forced selloffs, leading to this abrupt and unexpected token decline. On a bright note, Filecoin has not stopped building in the bear market. In particular, the recent introduction of Filecoin’s smart contract language FVM has unleashed its potential for DeFi.
Check Out the Latest Prices, Charts, and Data for FIL/USDT!
Talk of the Town
Grayscale, the largest listed crypto fund, has newly released an end-of-year CEO letter to its investors, shedding light on the fund manager’s reflection on FTX, the crypto development, recent speculation on its insolvency, as well as its efforts on the conversion of GBTC to ETF. Grayscale emphasized the necessity of converting GBTC to an ETF in the best interest of investors, and they are committed to the endeavor. However, in the face of an ongoing lawsuit with the SEC, Grayscale may explore other options to return a portion of capital to GBTC’s shareholders if the court does not rule in their favor. The option could include a tender offer for no more than 20% redemption of GBTC’s outstanding shares. It is noteworthy that these solutions are subject to shareholder approval.
Check out what else is buzzing in the crypto scene today:
Ren Protocol, backed by Alameda Research, warned investors of the risks of asset losses. (Link)
Binance US acquired defunct Voyager’s assets for $1.02B. (Link)
Hedge funds double down on shorting bitcoin miners. (Link)
Source: Bybit Blog | Filecoin Declines With Record Liquidations; GBTC Open For 20% Capital Return
