|Welcome to issue #7 of the DeFi DeBrief, your weekly digest of the biggest news in DeFi.
Interest rates headed to the moon 🌕
Perhaps not a surprise, but still significant. Last week, the Federal Reserve raised interest rates by another 0.75%, the third consecutive hike of this size this year. Interest rates will be at their highest since late 2007 and likely surge higher.
The Federal Reserve’s top officials suggest rate increases could continue through to 2023, with some traders already betting on another 0.75% rate hike at the next monetary-policy meeting in November.
Why should you care?
If the Fed remains this hawkish, all markets could test lower lows until inflation figures start improving. We’ve seen the price of bitcoin seesaw over the last seven days, surging above the psychological $20,000 barrier before tumbling again.
That said, speculation of a full 1% rate rise could have signalled that the central bank had lost control and was in panic mode. A mere 0.75% suggests things aren’t as bad as they might have been.
|IN THE HEADLINES
4.4 billion workers can now get paid in crypto 👨💼👩💼
In five years, experts predict most Americans will be freelancers. The shift is enabled, in part, by technology, with the decentralised talent network Braintrust helping lead the change.
Braintrust connects skilled, vetted knowledge workers with the world’s biggest brands. And the platform has just added a powerful new payout option using Stripe Connect: the ability to get paid in the dollar-backed stablecoin USDC.
The new addition means more than 4.4 billion people in more than 110 countries can now request payment in cryptocurrency.
IN THE HEADLINES
Interpol red notice for founder of UST 🚨
In May this year, Luna and its associated algorithmic stablecoin UST collapsed, wiping over $40 billion from the crypto markets. Contagion spread throughout the industry, leading to widespread bankruptcies at every level.
South Korean law enforcement has sought to question Do Kwon for months. And prosecutors have confirmed that Interpol has issued a “red notice,” meaning global law enforcement can help them find and arrest Kwon.
Five short reads catching our eye this week:
TEMPERATURE CHECK 🔥
*Data last updated at 08:00 on 28th September.
TWEET CHECK 🐦
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