💼 we want your jobs
LFG creates $1 billion BTC Reserve, Web3 jobs are on the rise, Amber Group raises Series B+ and more.
Hey 👋
Welcome to the mesha tribe. A biweekly newsletter by mesha that brings you valuable insights from finance, biz, and tech to help you take your net worth #ToTheMoon🚀
Sounds good? Sign up below 👇
Great! let’s get started.
First up,
Market Recap 📈
Indian benchmark indices and US Stocks both plunged sharply on Thursday amid Russia's attack on Ukraine.
Sensex: 54,529.91 (-4.72%) ↓
Nifty 50: 16,247.95 (-4.78%) ↓
Dow Jones: 33,131.76 (-1.38%) ↓
Nasdaq 100: 13,509.43 (-2.60%) ↓
Bitcoin: $35,209.54
Top Stories 📰
1. LFG raises $1 billion for Bitcoin Reserve
Talk about taking things to the next level.
The Luna Foundation Guard (LFG), a Singapore-based non-profit organization set up by Terraform Labs to help grow the Terra ecosystem, has raised $1 billion through an over-the-counter sale of its native token LUNA. Led by Three Arrows Capital and Jump Crypto, the fundraise marks one of the largest-ever sale of private tokens in the crypto market.
Decoding TerraUSD (UST): It's an algorithmic-based stablecoin in the Terra ecosystem that runs on Ethereum. Unlike Tether and Circle, UST relies on market incentives as opposed to being backed by collateral to maintain its price. So to mint 1 UST, you have to burn $1 worth of UST's reserve asset (LUNA). This protocol helps Terra's price to remain balanced.
But historically, stablecoins not backed by fiat have lost their value during extreme volatility. This is where the reserve can help provide "an additional avenue to maintain the stability of the peg in contractionary cycles that reduces the reflexivity of the system."
The fresh funds will be used for establishing a Bitcoin-denominated forex reserve for UST—its biggest stablecoin—with buyers locking up the coins for a four-year vesting period.
Shortly after the news, LUNA rose nearly 15%, surpassing the $55 mark and outperforming the otherwise red-dominated crypto market.
Why it matters? While the reserve will initially be denominated in Bitcoin, LFG plans to include other "major non-correlated assets" in the future.
2. A reversal of Big Tech dreams
The hype surrounding crypto and Web3 technologies is enticing several high-profile Silicon Valley executives and developers to leave their cushy, well-paid corporate jobs and join the decentralized revolution.
Tech giants such as Meta, Google, LinkedIn, and Amazon recently reported a majority of their brightest talents shifting towards crypto and other decentralized ventures such as Polygon, Coinbase, and Circle in hopes of working on exciting problems.
So what's guiding them to make such a giant leap of faith? The promise of Web3.
Experts suggest that these executives are drawn to the space due to its rapid growth and innovation potential.
"At the beginning of the Web2 cycle, you saw a lot of the same types of people who are attracted to crypto now gravitate to these big tech companies because it was something new and innovative and really exciting," Kelsey Begin, a senior associate at Intersection Growth Partners, said.
While that's true, there's another crucial factor that's reinforcing this trend: salary. As investments in the crypto market reach unprecedented levels, firms are offering lucrative compensation packages to top hires. Take Coinbase for instance, which offers as much as $900,000 a year for software engineers. And this trend isn't limited to the US, as crypto firms in UK and Ireland are experiencing similar trends.
Why it matters? Despite Web3's growing mainstream popularity, skeptics like Jack Dorsey have called the idea of being too centralized and controlled. But proponents believe that such backlash will slowly subside as more concrete experiences are released.
Deal Street 🤑
Amber Group is now worth $3 billion
Crypto platform startup Amber Group has raised a $200 million Series B+ funding round at a $3 billion valuation. Led by investment giant Temasek, the round saw participation from existing investors such as Tiger Global Management, Sequoia China, Coinbase Ventures, and Pantera Captial. Founded in 2017, Amber Group provides liquidity and market-making services to clients across Asia. The company, which previously raised a $100 million Series B in June, has over 1,000 institutional clients and more than $5 billion in assets under management. The fresh funding will go towards hiring staff in Europe and the Americas and expanding the global footprint of WhaleFin, an app that allows users to earn yields on their crypto holdings.
Foxbit raises Series A
Brazilian crypto exchange Foxbit has raised a $21 million Series A funding round led by Chinese blockchain firm OK Group. Previously, the company had raised a total of $130K in funding over two financing rounds. Founded in 2014, Foxbit provides a diverse range of assets, including virtual currencies such as Bitcoin and Ethereum, stablecoins, and utility tokens. With around 1 million registered users, the company has reported transactions worth $1.8 billion so far. Foxbit plans to use the new capital to expand its product and tech teams, develop new technologies, and seek acquisitions. It also aims to reduce transaction fees by integrating blockchain networks and attracting more Brazilian investment.
Tweet Of The Week ✨
Share what you learn 🤝
Found this newsletter insightful? Well, then forward it to your friends and colleagues. Or share it on your social media.
Want to discuss the above stories yourself? Join us.
See ya next week. Bye! 👋