• Smart Cash
  • Log in
  • Get Started
ResearchCrypto Weekly (2/16)

Crypto Weekly (2/16)

Feb 16, 2023

 “What's dangerous is not to evolve.” – Jeff Bezos

1) Billionaires Clash Over Silvergate: Crypto bank Silvergate is at the center of a high-finance spar, according to latest filings with the Securities and Exchange Commission. Legendary financier George Soros’s Soros Fund Management and Ken Griffin’s Citadel Securities are holding opposite positions in the debt-laden crypto lender. In the red corner, as of Dec. 31, Soros’s family office held a short position in the form of put options on 100,000 Silvergate shares worth $1.74mn. In the green corner is Ken Griffin’s firm with 1.73 million shares, or a 5.5% stake in Silvergate.

Titan’s Takeaway: Tuesday was the deadline for hedge funds and institutional investors to report certain U.S. holdings. So it’s not a big surprise that some of these filings may contain opposite views on certain companies.

Silvergate is a curious case for a few reasons. It’s the second most-shorted stock with over 72.5% of its shares shorted. Over the past twelve months, the stock is down about 90% on bearish pressure over its ex-customers bankrupt firms FTX and Alameda Research.

Why did Citadel purchase a 5.5% stake? According to the filing, Citadel is a market maker in the company’s options, which may not have anything to do with a directional call on the stock.

While hardly a notable clash, nothing like, for example, the Herbalife battle between activist investor Bill Ackman and predatory corporate raider Carl Icahn — it’s among the first instances of a crypto firm caught in the crossfire, even if both parties may not know anything about it.

2) Credit Suisse Leads $65M Fundraising Haul: Swiss banking giant Credit Suisse is venturing deeper into Web3 by leading a $65M Series B round for crypto firm Taurus. The company is based in Switzerland and is building out a platform to serve financial institutions by providing custody for digital assets and tokenization of securities. Other participants in the capital raise included Deutsche Bank and Swiss private bank Pictet Group. The round comes three years after an $11M series A and the proceeds will be used to expand staff, develop the platform, and increase international presence.

Titan’s Takeaway: Bear-market opportunities, if they pay off, have the potential to do so with above-average returns. We have to factor in, however, that Credit Suisse’s recent track record leads us to believe it’s not exactly “smart money” that’s flowing into Taurus.

The Swiss lender posted a $1.5B loss in Q4, bringing annual performance to a massive $7.9B loss. For what it’s worth, the big-name banks in the roster of Taurus backers are significant enough to pique our interest in the company’s future.

3) Celsius to Sell Crypto Platform: Defunct cryptocurrency lender Celsius has reached a deal to have its retail platform acquired by NovaWulf, a digital-asset investment firm. The sale plan will be presented to the bankruptcy court for the sign off but it also needs to be accepted by a majority of Celsius debtors. Under the proposal, customers of the collapsed lending firm would receive a share of their liquid crypto assets that were frozen on the platform last summer.

Titan’s Takeaway: It seems there may be some light flickering at the end of the tunnel for Celsius users. The deal is part of a larger plan where Celsius reinvents itself into a new entity and distributes liquid digital tokens to users.

But many obstacles still remain – before the controversial spin off, Celsius needs to get a regulatory nod, leave out its founders, and have a new board appointed by the committee of unsecured creditors.

All in all, Celsius has a gaping $1.2B hole in its balance sheet and the majority of its liabilities are tokens owed to customers – a complex case that will most likely take many more months to settle.

4) Three Arrows Founders Resurface: The founders of imploded hedge fund Three Arrows Capital are setting their gaze on yet another crypto venture. Going by Open Exchange, or OPNX, the new firm will act as a crypto marketplace where users will be able to trade bankruptcy claims from failed platforms and funds in exchange for immediate credit in a token called USDG. The platform is expected to launch this month with the ambition to be the first mover in a $20B market of crypto claimants.

Titan’s Takeaway: Instead of helping liquidators find whatever money is left after they blew up a $12B crypto fund, Kyle Davis and Su Zhu are ramping up efforts to try and make new money. If a similar sales pitch would’ve worked in the past couple of years, the duo may find things harder this time around.

5) LeBron James NFTs Soar: Sales of LeBron James NFTs are skyrocketing now that the NBA superstar broke the NBA’s all-time scoring record. James hit the 38,388th point last week, surpassing Kareem Abdul-Jabbar’s 39-year-old mark. In the digital-asset space, the milestone will be celebrated by minting only 99 NFT editions of the record-breaking shot. Other LeBron James NFTs have changed hands in the past week, bringing total sales to roughly $500,000 in the secondary market.

Titan’s Takeaway: If NFTs were all the hype in 2021 (someone paid $230K for a LeBron James dunk NFT which was worth just $25 in mid-2022), it’s almost like a switch has been flipped in the aftermath of all this excessive spending.

NFT sales have marked a pronounced downshift from a year ago, but were enthusiastically up 43% in January, compared to the previous month.

Main Contributor: Rosen Traykov

Cryptocurrency trading is provided by Apex Crypto LLC. Apex Crypto is not a registered broker-dealer or a member of SIPC or FINRA. Cryptocurrencies are not securities and are not FDIC or SIPC insured. Apex Crypto is licensed to engage in virtual currency business activity by the New York State Department of Financial Services. Cryptocurrency execution and custody services are provided by Apex Crypto LLC (NMLS ID 1828849) through a software licensing agreement between Apex Crypto LLC and Titan Global Technologies LLC. Please ensure that you fully understand the risks involved before trading: apexcrypto.com/legal

Cash Management

Smart Cash

Smart Cash FAQs

Cash Options

Get Smart Cash


© Copyright 2023 Titan Global Capital Management USA LLC. All Rights Reserved.

Titan Global Capital Management USA LLC ("Titan") is an investment adviser registered with the Securities and Exchange Commission (“SEC”). By using this website, you accept and agree to Titan’s Terms of Use and Privacy Policy. Titan’s investment advisory services are available only to residents of the United States in jurisdictions where Titan is registered. Nothing on this website should be considered an offer, solicitation of an offer, or advice to buy or sell securities or investment products. Past performance is no guarantee of future results. Any historical returns, expected returns, or probability projections are hypothetical in nature and may not reflect actual future performance. Account holdings and other information provided are for illustrative purposes only and are not to be considered investment recommendations. The content on this website is for informational purposes only and does not constitute a comprehensive description of Titan’s investment advisory services.

Please refer to Titan's Program Brochure for important additional information. Certain investments are not suitable for all investors. Before investing, you should consider your investment objectives and any fees charged by Titan. The rate of return on investments can vary widely over time, especially for long term investments. Investment losses are possible, including the potential loss of all amounts invested, including principal. Brokerage services are provided to Titan Clients by Titan Global Technologies LLC and Apex Clearing Corporation, both registered broker-dealers and members of FINRA/SIPC. For more information, visit our disclosures page. You may check the background of these firms by visiting FINRA's BrokerCheck.

Various Registered Investment Company products (“Third Party Funds”) offered by third party fund families and investment companies are made available on the platform. Some of these Third Party Funds are offered through Titan Global Technologies LLC. Other Third Party Funds are offered to advisory clients by Titan. Before investing in such Third Party Funds you should consult the specific supplemental information available for each product. Please refer to Titan's Program Brochure for important additional information. Certain Third Party Funds that are available on Titan’s platform are interval funds. Investments in interval funds are highly speculative and subject to a lack of liquidity that is generally available in other types of investments. Actual investment return and principal value is likely to fluctuate and may depreciate in value when redeemed. Liquidity and distributions are not guaranteed, and are subject to availability at the discretion of the Third Party Fund.

The cash sweep program is made available in coordination with Apex Clearing Corporation through Titan Global Technologies LLC. Please visit www.titan.com/legal for applicable terms and conditions and important disclosures.

Cryptocurrency advisory services are provided by Titan. Cryptocurrency trading is provided by Bakkt Crypto Solutions LLC ("Bakkt Crypto"). Bakkt Crypto is not a registered broker-dealer or a member of SIPC or FINRA. Cryptocurrencies are not securities and are not FDIC or SIPC insured. Bakkt Crypto is licensed to engage in virtual currency business activity by the New York State Department of Financial Services. Cryptocurrency execution services are provided by Bakkt Crypto (NMLS ID 1828849) through a software licensing agreement between Bakkt Crypto and Titan. Please ensure that you fully understand the risks involved before trading: bakkt.com/disclosures.

Information provided by Titan Support is for informational and general educational purposes only and is not investment or financial advice.

Contact Titan at support@titan.com. 508 LaGuardia Place NY, NY 10012.