Crypto Three Things (8/1)

Monday, Aug 1st 2022

Commentary

July’s inflows pop, Ledger seeks $100M fundraising, Babel loses $280M in client funds

 “Life is never made unbearable by circumstances, but only by lack of meaning and purpose.” — Viktor Frankl


1) Major coins lock in best month since last year: Following a period of sharp declines and bankruptcies, digital assets jumped substantially over the past month as traders rushed to scoop up knocked-down tokens. The rebound rippled across the crypto market, resulting in a ~$270B inflow to the market cap.

Titan’s Takeaway: We saw a healthy leap across the crypto board in July as investors flocked back to the market even amid rising rates and persistent inflation. We believe that robust fundamentals and solid growth potential will continue to uphold the appetite for this asset class.

2) Ledger seeks to raise $100M in fresh funding: The crypto wallet maker aims to command a higher valuation if its latest fundraise proves successful. Previously, Ledger raised $380M in June 2021 at a $1.5B price tag. Since its founding in 2014, the Paris-based crypto firm has sold over 3 million hardware wallets to crypto investors while it oversees a 300-strong staff.

Titan’s Takeaway: With Ledger’s business growing and more people looking to store their coins, pulling in $100M might be mission possible, even when money offerings have cooled down.

3) Babel Finance lost $280M trading client funds: The Hong Kong-based crypto lender and asset manager lost 8,000 BTC and 56,000 ETH of client funds while doing its own proprietary trading during the recent market downturn. The firm attracted $120M in total equity financing and hit a $2B valuation in May thanks to its promise to generate alpha returns in the volatile crypto space. Babel abruptly halted customer withdrawals in mid-June amid “liquidity pressures.”

Titan’s Takeaway: While Babel boasted superior asset-management capabilities, the turning tide demonstrated decreased risk controls and insufficient funds to meet margin calls.


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