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Celsius bankrupty, Vitalik on PoS, and is Ryoshi behind crypto enigma? The Crypto Mile Weekly Update

·5-min read

Watch: The Crypto Mile Weekly Update: Celsius bankrupty, Vitalik on PoS, and is Ryoshi behind crypto enigma?

Distressed crypto-lender Celsius has finally filed for bankruptcy as inflation data from the US knocks the cryptocurrency market even lower.

The legal team representing Celsius Network has officially notified regulators that the company is filing for Chapter 11 bankruptcy protection.

Celsius Co-Founder & CEO Alex Mashinsky said in a press release posted late on Wednesday that, "this is the right decision for our community and company as we have a strong and experienced team in place to lead Celsius through this process".

Read more: Crypto live price

Celsius logo and representation of cryptocurrencies are seen in this illustration taken, July 7, 2022. REUTERS/Dado Ruvic/Illustrations
Celsius logo. Reuters/Dado Ruvic/Illustrations

He added: “I am confident that when we look back at the history of Celsius, we will see this as a defining moment, where acting with resolve and confidence served the community and strengthened the future of the company."

After the collapse of the terra/Luna (USD-UST) stablecoin began a wider crash in cryptocurrency markets, Celsius announced it was pausing all customer withdrawals, swaps and transfers, citing the need to "stabilise liquidity".

Read more: Crypto: Stablecoin storm spreads after billions of tether is cashed out

On Monday June 13, Celsius' cryptocurrency (USD-CEL) collapsed 70% in one hour from a prior high of $0.49 to $0.15, the price of Cel is now $0.63.

A view of a representation of cryptocurrency Bitcoin plunging into water in this illustration taken, May 23, 2022. REUTERS/Dado Ruvic/Illustration
Bitcoin fell 4% this week. Reuters/Dado Ruvic/Illustration

Bitcoin dips below $20,000, amid fears it could fall through two technical support levels

Bitcoin and other blue chip cryptocurrencies fell Thursday after inflation figures in the US turned out to be worse than expected.

Bitcoin (USD-BTC) has dipped below the psychological $20,000 level to $19,791.

In the face of tough macroeconomic headwinds, the world's preeminent cryptocurrency is down 4% in a week.

Ethereum (USD-ETH) is still hovering around the $1,000 mark at $1086, down 8.4% in a week.

US Inflation is up 9.1% from a year ago in June, marking the fastest pace for inflation going back to November 1981.

After the figures were released bitcoin crashed down to around $19,100, with bitcoin as a risk asset being one of the first to suffer amid stern macroeconomic headwinds.

Popular technical analyst Techlead has forecast bitcoin will crash through further support levels, to $18,000 and then possibly to around $13,000.

DENVER, CO - FEBRUARY 18: Ethereum co-founder Vitalik Buterin speaks at ETHDenver on February 18, 2022 in Denver, Colorado. ETHDenver is the largest and longest running Ethereum Blockchain event in the world with more than 15,000 cryptocurrency devotees attending the weeklong meetup. (Photo by Michael Ciaglo/Getty Images)
Ethereum co-founder Vitalik Buterin talking at ETHDenver conference in February, 2022. Photo by Michael Ciaglo/Getty Images

Vitalik Buterin takes to Twitter to defend merge to proof of stake

Vitalik Buterin tweeted a defence of Ethereum’s transition to proof of stake (PoS) on Tuesday, responding to arguments suggesting assets secured by such consensus mechanisms should be classified as a security.

Swan Bitcoin managing editor Nick Payton took to Twitter on Tuesday and referring to Ethereum's coming merge to proof of stake tweeted: “The fact that you can vote on something to change its properties is proof that it’s a security."

However, Vitalik Buterin dismissed this claim as an “unmitigated bare-faced lie”.

The Ethereum founder then hit back by adding that proof of stake does not include voting on protocol parameters, nor does proof of work.

Ethereum is scheduled to transition from its current proof of work consensus mechanism in August by merging the proof of stake Beacon Chain with the existing chain.

US regulatory body, the Securities and Exchange Commission (SEC) has been evaluating which cryptocurrencies are securities and which are commodities.

The chair of the SEC Gary Gensler, who has been pushing for most cryptocurrencies to be classified as securities, recently announced that bitcoin is a commodity.

Gensler stated that most cryptocurrencies are securities and remain a “highly speculative asset class".

BRAZIL - 2022/06/26: In this photo illustration, the Shiba Inu (SHIB) logo seen displayed on a smartphone screen, next to two cryptocurrencies and headphones. (Photo Illustration by Rafael Henrique/SOPA Images/LightRocket via Getty Images)
The logo of the Shiba Inu cryptocurrency designed by reclusive cult developer Ryoshi. Photo Illustration by Rafael Henrique/SOPA Images/LightRocket via Getty Images.

Speculation that Shiba Inu founder Ryoshi is behind new cryptocurrency Dejitaru Tsuka

Interest in a low market cap crypto called Dejitaru Tsuka has exploded within crypto forums on 4chan, Reddit and across Twitter and YouTube in the past fortnight.

Cryptic messages about Tsuka have been found within the blockchain, causing Shiba Inu aficionados to conclude the new cryptocurrency was created by reclusive cult developer Ryoshi, the mastermind behind the Shiba Inu (USD-SHIB) memecoin.

Shiba Inu's community of followers are known for their fervent devotion to the memecoin helping it to soar by 48,000,000% from its 2020 launch price.

The outright zealotry of the Shiba Inu community, The Shib Army, and the mystic surrounding its founder Ryoshi has allowed the memecoin to transcend its quasi-satirical beginnings and become an entire decentralised ecosystem, within the crypto sphere.

The group of developers now guiding the memecoin's progress is planning stablecoin called 'SHI' and has its own decentralised exchange called ShibaSwap.

In late May, founder Ryoshi deleted his social media footprint and announced his departure from the crypto world in a farewell note on Medium.

Ryoshi said: “I am not important, and one day, I will be gone without notice. Take the SHIBA and journey upwards frens.”

Since then mysterious messages have appeared on the Ethereum blockchain as transactions notes, with a growing consensus amongst some Shiba Inu fans that Ryoshi is behind Tsuka.

The anonymous founder who is renowned for his cryptic methods of communication has stayed silent and has made no claims that he is involved.

The fervour behind this unsolved riddle reveals the obsessive nature of memecoin communities and the attraction of the anonymous Riyoshi, the enigmatic Shiba Inu founder.

Watch: The Crypto Mile: Episode 3 - How blockchain technology could usher in Web3

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