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DAI Stablecoin Issuer Revenue Drops Over $4 Million in Q3 by CoinEdition

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DAI Stablecoin Issuer Revenue Drops Over $4 Million in Q3
  • MakerDAO saw its revenue decline in the third quarter of 2022 as loans declined with little to no monetization.
  • Income decreased by more than $4 million, which is 86% from the previous quarter.
  • Its ETH and BTC-based assets are down 74% and 66%, respectively.

MakerDAO, the issuer of the DAI stablecoin, saw its revenue decline in the third quarter of 2022 due to lower loan demand and fewer liquidations.

The Decentralized Independent Organization (DAO) saw its income drop sharply to just over $4 million in the third quarter, down 86% from the previous quarter, according to a tweet from Johnny TVL, a Macari analyst.

The senior research analyst attributed the decline in revenue to fewer liquidations and weak demand for credit. Ether (ETH) and Wrapped (wBTC), two major revenue streams, both underperformed last quarter, with revenue for ETH-based assets declining 74% and revenue for BTC-based assets declining 66%, respectively.

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These cryptocurrencies are pledged as collateral by borrowers as collateral for loans denominated in the Dai stablecoin, providing some protection from market volatility at the expense of interest payments.

Additionally, the analyst noted a decline in MakerDAO’s collateral ratio to 1.1 from 1.9 during the same period last year. The analyst added that “costs are not that resilient” because the report revealed expenses were still high at $13.5 million in the quarter, down just 16% from the previous quarter.

Recently, MakerDAO initiated a proposal to invest $500 million in Treasuries and bonds to increase the return on the assets it holds as collateral. The increase in Real World Asset (RWA) backed loans currently represents 12% of MakerDAO’s total income following the successful issuance of the largest RWA backed loan to Huntingdon Valley Bank (HVB) in the third quarter of 2022.

The publication in which the earnings of the issued DAI Stablecoin drop by more than 4 million dollars in the third quarter appeared for the first time in the issuance of coins.

See the original on CoinEdition

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MicroStrategy is at its lowest level since 2020 after the sales were revealed

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(Bloomberg) — Shares of MicroStrategy touched their lowest level since August 2020 after the enterprise software company, which in recent years has been known as the largest buyer of bitcoin, revealed its first sale of the token.

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The stock fell 1.1 percent to $136.63 on Thursday, down 75 percent this year. Bitcoin rose less than 1% to around $16,590 and is believed to have fallen 64% since the start of the year.

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In a filing on Wednesday, MicroStrategy said it acquired approximately 2,395 Bitcoin between the beginning of November and December 21 through its subsidiary MacroStrategy, and paid out approximately $42.8 million in cash. It then sold 704 of the tokens on Dec. 22 for a total of about $11.8 million, citing tax purposes, before buying another 810 of them two days later.

Matt Malley, chief market strategist for Miller Tabak + Co. Step down as CEO. This news means they don’t seem to want to do that anytime soon.”

Overall, MicroStrategy held about 132,500 bitcoins worth over $4 billion USD as of December 27th. The company paid an average purchase price of $30,397 per bitcoin.

“Given MicroStrategy’s $2.4 billion in leverage, we believe the company may have a lot of leverage over Bitcoin, and may face some liquidity risk,” Jefferies analyst Brent Thiel wrote in a note on Wednesday. Thill has an “underperform” rating on the stock and a price target of $110.

Over the years of the pandemic, MicroStrategy has become well known for its Bitcoin takeovers, largely led by Saylor. Earlier this year, Saylor stepped down from that role and now serves as CEO at the company and continues to lead its bitcoin strategy.

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MicroStrategy was trading around $120 before Saylor first announced the company’s Bitcoin purchases in 2020. The stock reached an all-time high of $1,315 in February 2021.

(Updates to include the stock’s closing price in the second paragraph.)

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Bankman-Fried May File Petition in New York Federal Court Next Week Before Judge Louis Kaplan By Cointelegraph

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Former FTX CEO Sam Bankman-Fried is set to appear in court on the afternoon of January 3 to enter a lawsuit over two counts of wire fraud and six counts of conspiracy against him related to the collapse of cryptocurrency exchange FTX, according to Reuters. mentioned on December 28, citing court records. Bankman-Fried will appear before District Judge Lewis Kaplan in Manhattan.

Judge Kaplan was appointed to hear the case on December 27 after the original judge in the case, Ronnie Abrams, Resigned herself because of connections between FTX and the law firm Davis Polk & Wardwell, where her husband is a partner. The company provided advisory services to FTX in 2021.