😈 'The Evil Empire Of TradFi'

Vanguard is getting slammed. Plus, a very 2024 headline.

Author

Sebastian Soran
January 22, 2024

Happy Monday, Zingernation! Here’s a very 2024 headline for you. A Colorado-based “online pastor” and crypto founder is in hot water. Pastor Eli Regalado turned $1.3 million of “holy crypto” investments into his home makeover fund. Why? Because the Lord told him to. Now we’re not in the business of giving investing advice. But I think it’s safe to say that, if a financial advisor's main credential is the divine, keep scrolling.

Today, why Terraform Labs filed for Chapter 11, Vanguard got publicly shamed and more.

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MARKET SNAPSHOT

FINTECH FOCUS

Star Wars Irony GIF

Briefly: Vanguard’s conservative approach to cryptocurrency is leading to client dissatisfaction.

Back Up: Unlike its traditional finance (TradFi) peers like BlackRock, the investment management firm did not apply to offer a spot Bitcoin ETF.

But Now: The SEC has given the ETFs the green light, and Vanguard’s move is inciting debate (and shade-throwing) from crypto enthusiasts and investors.

Quoted: One investor took to X to say Vanguard "today is part of the evil empire of TradFi, unrecognizable from the ethos" its founder Jack Bogle had "when he was in his 20s and 30s."

So What? Vanguard's decision is already costing the firm clients. Some have reportedly moved their accounts to Fidelity — one of the first firms to file a spot Bitcoin application in 2021.

What Next: Read more here.

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FIVE ZINGERS

Big Doge: Dogecoin's value increased by over 10% following the setup of a payment feature account on Elon Musk's rebranded "everything app" X.

Paying Up For PYPL: Investors with a lot of money to spend have taken a bullish stance on PayPal.

High On Her Supply: Ark Invest, founded by money manager Cathie Wood, added more units of its own spot Bitcoin ETF.

Green For Green: Perenna will provide lower-cost loans to customers who agree to make their homes more energy-efficient.

See Ya, CBDC: Venezuela ended its state-issued cryptocurrency Petro after failing to gain adoption.

CRYPTO CORNER

Briefly: Terraform Labs submitted a petition for U.S. Chapter 11 bankruptcy protection.

Back Up: Terraform is probably best known as the company behind stablecoins Luna and Terra, both of which collapsed spectacularly in 2022, following mass withdrawals.

What Now: Although the coins lost virtually all of their value and wiped out some $45 billion in market cap, Terraform Labs managed to avoid bankruptcy for nearly two years — until now.

Why Now: Last month, a Montenegro court overturned a previous ruling regarding Terra Labs co-founder Do Kwon’s potential extradition. Kwon faces multiple counts of fraud in the U.S. The firm itself is battling a wave of legal difficulties as well.

What Next: Click to read more.

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