DeFi DeBrief #22: GTX 🤦‍♂️🤦‍♀️

Welcome to issue #22 of the DeFi DeBrief, your weekly digest of the biggest news in DeFi.


  • Crypto is pumping
  • SEC targets Gemini Earn
  • 3AC founders return


Onwards 👇



Positive signals bring crypto markets back to life 👀

We guess you noticed the crypto pump this week. 

Bitcoin is up 22% and Ethereum is up 18% at the time of writing, but the big question is: what’s driving the markets? 

Well, CPI numbers for December came in lower than expected (down from 7.1% to 6.5%), which suggests the current policy is having its desired effect. And that could give the Fed more room to continue lowering rates.

That’s not to say rates won’t go up again. But you might see increments of 0.25% delivering a softer landing for the economy.

Some crypto investors pounced on this news.

Why should you care?

It’s hard not to care when crypto markets move like this.

Whether you have exposure or not, any significant shift catches your eye for one reason or another.

But you need to remain pragmatic. Most expect a continued contraction in 2023, creating a challenging environment for risk-on assets this year. And as we saw during the last bear market, relief rallies can be short-lived.

Still, the next Bitcoin halving is set for March 2024. And historically, these events have been positive for the ecosystem.

So who knows what the next eighteen months will hold?



SEC brings charges against Gemini Earn 🚨

The SEC has made another move, this time retroactively targeting Gemini Earn and Genesis for selling unregistered securities. Gemini gave client funds to Gemini, which loaned them out, paying clients a yield of up to 8%.

The SEC says the program meets its definition of a security, given it includes an investment contract and a note. The SEC is now seeking “permanent injunctive relief, disgorgement, and civil penalties” against both Genesis and Gemini.


3AC founders pitch ‘crypto debt claims’ platform 🤨

Because G comes after F.” That’s one of the opening lines of a new pitch deck from the founders of collapsed hedge fund Three Arrows Capital (which, in case you’ve forgotten, lost investors over $4 billion).

The deck seeks to raise $25m for a new platform called GTX, which will capitalise on industry bankruptcies. GTX says it will offer a distressed deck marketplace, unlocking immediate liquidity for those with funds tied into court proceedings.

The platform could go live as soon as late February.



Five short reads catching our eye this week:

  1. FTX’s $65 billion ‘secret back door’
  2. 10 crypto investment lessons from 2022
  3. Bankruptcy filing reveals big name FTX creditors
  4. New El Salvador bill paves way to BTC-backed bonds
  5. DCG’s open letter to shareholders



  • BTC: $21,299.19 (22.03%, 7 days)
  • ETH: $1,582.31 (18.48%, 7 days)
  • TVL in DeFi: $45.44bn (10.18%, 7 days)
  • Fear & Greed: 52 (neutral)


*Data last updated at 08:00 on 18th January.




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