Main Takeaway: Investigations Galore & More Lawsuits
In the past week, there’s been a series of investigations into the major crypto exchanges from the US SEC as well as the Philippines, and investigations into exchanges that apparently violated sanctions regimes. So the pressure is on the centralized exchanges as of late as they come into conflict with their local or country jurisdictions.
Moreover, Bragar Eagel & Squire, a law firm, has opened a class action lawsuit against Terra Labs and Do Kwon. This signifies that lawyers are busy behind the scenes working through the mess that evolved with the growing number of liquidations and bankruptcies surrounding projects like Terra, 3AC, Celsius, BlockFi, etc.
The main takeaway is investors should expect these types of news stories to keep unfolding, which may impact specific small-cap cryptos and lesser-known crypto lenders.
Key Stories: IMF Released 2022 World Economic Outlook July Update
The IMF released an update about the global economy titled “Gloomy and More Uncertain” and highlighted how there have been increasingly gloomy developments in 2022 as risks begin to materialize, in particular, the Russian invasion of Ukraine, downturns in China, falling consumer spending, and rising inflation and interest rates. Below is a graphic on the IMF’s growth predictions for the coming year, and as you can see, the numbers are trending downhill, which is not good for anyone, and further confirms the probability of the global economy going into a recession. Therefore, crypto investors need to stay tuned to what’s happening on this front and prepare their investments to be able to withstand a multi-year period of stagnant or slowing growth.