Crypto CEOs are quitting their jobs. Here because

Hi, welcome back to Distributed Ledger, our weekly crypto newsletter that reaches your inbox every Thursday. I’m Frances Yue, a cryptocurrency journalist at MarketWatch. This week I will walk you through the latest and greatest in the world of digital assets.

Over the past few weeks, CEOs of several major cryptocurrency companies have left their positions. I met RA Farrokhnia, a professor at Columbia Business School, to discuss the reasons for these moves.

Find me on Twitter at @FrancesYue_ to send feedback or tell us what you think we should cover. You can also contact me by email to share your personal stories with cryptocurrencies.

Crypto in a snap

Bitcoin BTCUSD
it fell roughly 5.6% in the past seven days and was trading at around $ 19,159 on Thursday, according to data from CoinDesk. Ether ETHUSD
it lost 18% over the span of seven days to around $ 1,306. Meme token Dogecoin DOGEUSD
fell 2.8% while another dog-themed token, Shiba Inu SHIBUSD,
traded 8% less than seven days ago.

Cryptographic metrics
The biggest winners

Price

% 7 days return

quant

$ 135.02

33.5%

Tokenize Xchange

$ 7.64

29.5%

Creator

$ 725.6

22.1%

XDC network

$ 0.03

19.6%

Swap

$ 6.38

18.9%

Source: CoinGecko as of September 29

The greatest decliners

Price

% 7 days return

Evmos

$ 1.58

-33.5%

Lido DAO

$ 1.59

-12.4%

DeFiChain

$ 0.73

-8.7%

ApeCoin

$ 5.40

-7.1%

Osmosis

$ 1.10

-7.0%

Source: CoinGecko as of 29 September

Exodus of cryptocurrency CEOs

The cryptocurrency industry has seen an exodus of CEOs from major companies as this year’s valuation slump has hooked the industry.

In early August, Michael Saylor stepped down from his MicroStrategy CEO title and assumed a new role as executive chairman. In the same month, Michael Moro left his CEO position at cryptocurrency lender Genesis after his parent company Digital Currency Group filed a $ 1.2 billion claim against bankrupt digital asset hedge fund Three. Arrows. Meanwhile, Sam Trabucco has left his role as co-CEO of Alameda Research, the hedge fund of crypto billionaire Sam Bankman-Fried.

Earlier this month, Jesse Powell, co-founder of cryptocurrency exchange Kraken, stepped down as CEO of the company.

On Tuesday, Alex Mashinsky, chief executive of cryptocurrency lender Celsius, resigned from his post amid the company’s bankruptcy proceedings. On the same day, Brett Harrison, president of FTX US, stated that he will be leaving the role.

The reasons behind the moves can vary, with each company in a different position during the market downturn. Bankman-Fried’s FTX and Alameda have aggressively acquired several distressed crypto companies and assets, while others, such as Celsius, have filed for bankruptcy.

However, a C-suite shakeout on that scale has reflected changes in the cryptocurrency industry in general.

Market conditions come first. For C-suite members who took over a year or two ago when digital assets were on the rise, they now face different challenges, as bitcoin has lost nearly 60% of its value since the beginning of the year.

“Obviously, during the crisis, things get a little more complicated. You need a different kind of management mindset to weather the storm and a variety of cryptocurrency companies are experiencing the experience in a vastly different way, ”Farrokhnia noted.

Meanwhile, the cryptocurrency industry, which began in 2009, has become more developed, with increasing institutional adoption and even regulatory attention. “This requires a different level of professionalism and maturity in senior leadership,” Farrokhnia noted. Some early adopters of cryptocurrencies, which hold strong and libertarian values, may have found that their views contrast with newcomers.

Furthermore, the complexity of the crypto space has added to the difficulty of finding new leaders outside the industry. He explained why, in most cases, successors are company insiders, Farrokhnia said.

The hacking of Ethereum’s “vanity address”

About $ 950,000 in cryptocurrencies were stolen on Sept. 25 in an attack using a vanity-address generator called Profanity, according to blockchain security firm PeckShield.

A “vanity address” is a custom cryptocurrency address created by users. Because such addresses are human-generated, instead of being a random string of letters and numbers created by a machine, they are more vulnerable to brute force attacks.

The hackers withdrew a total of 732 ether on Sept. 25 before transferring the funds to the US government-authorized Tornado Cash crypto mixer, according to a tweet from blockchain security company PeckShield.

The attack resembles a recent $ 160 million attack on Wintermute, a leading cryptocurrency producer.

MarketWatch’s Anushree Dave wrote more here.

Crypto companies, funds

Actions of Coinbase Global Inc. CURRENCY
Thursday fell 9% to $ 61.27, and fell 2.7% over the past five trading sessions. by Michael Saylor MicroStrategy Inc.
MSTR
shares fell 4.8% Thursday to $ 209.90, while they rose 9% over the past five days.

Mining company Riot Blockchain Inc. REVOLT
shares were down 4.3% to $ 7.03 on Thursday and are up 10.8% over the past five days. Actions of Marathon Digital Holdings Inc.
MARA
it fell 2.5% to $ 10.68, while it rose 1.2% over the past five days. Another miner, Ebang International Holdings Inc. EBON
The stock was up 0.8% to $ 0.40 on Thursday, while it fell 0.4% over the past five days.

Overstock.com Inc.
OSTK‘S
the shares fell 2% to $ 24.54. The shares were trading 2.9% higher over the five-session period.

Actions of Block Inc.
SQ,
formerly known as Square, it was down 5.5% to $ 55.85 and 0.2% over the week. Tesla Inc. TSLA
shares were down 6.7% to $ 268.59, down 6.9% over the past five days.

PayPal Holdings Inc.
PYPL
It fell 2.8% to $ 88.55, a 0.9% gain over the five-session period. Nvidia Corp.
NVDA
shares plunged 4.5% to $ 121.65, a loss of 3.1% over the past week.

Advanced Micro Devices Inc.
AMD
The stock plunged 6.5% to $ 63.77 on Thursday, down 8% from five trading days ago.

Among the crypto funds, ProShares Bitcoin ETF Strategy
BITO
lost 0.5% to $ 11.99 on Thursday while his Bitcoin strategy short ETF
BITI
added 0.8% to $ 38.34. Valkyrie Bitcoin ETF Strategy
BTF
traded 1.1% lower at $ 7.44, while VanEck Bitcoin ETF Strategy
XBTF
cuts 1.4% to $ 18.82.

Bitcoin Trust in grayscale
GBTC
it was back 2.3% to $ 11.42.

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