Daily News | US Market Conditions Ignited Global Wide Selloff, Coinbase Reported 75% Revenue Loss, Polygon Announced 20% Layoffs

2023-02-22, 01:39

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## Crypto Daily Digest: Geopolitical Uncertainty and US Rate Shift Cause Global Market Decline, Cryptocurrency Sells Off

Good morning, traders! We’ve reached the middle of the week. Let's seize this Wednesday and make the most of it! 🚀

The negative sentiment in the US financial market caused by the S&P 500's 2% decline and rising Treasury yields, as well as the weak forecasts from major US retailing companies, is expected to result in a decline in Asian equities on Wednesday. This has already caused shares in Australia to open lower, and futures contracts for Japan and Hong Kong benchmarks have also decreased. The shift in perception regarding rates has caused investors to project the federal funds rate to climb to around 5.3% in June, which is a contributing factor to the uncertain market conditions. Moreover, geopolitical outlook such as Russia suspending its observation of the New START nuclear weapons treaty with the US, and the White House's openness to sanctioning Chinese companies that support Russia's invasion of Ukraine, has also affected the market conditions.

In the cryptocurrency market, there has been a drop in the value of cryptocurrencies, including <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> (BTC), over the last 24 hours, with altcoins experiencing a significant sell-off. <a href="/price/polygon-matic" target="_blank" class="blog_inner_link">Polygon</a>'s announcement of job cuts resulted in a 5.7% drop in the value of its MATIC coin. Despite this, most cryptocurrencies have experienced an overall upward trend in value in the last week, and the correlation between <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> and equities has decreased. The market is also anticipating the release of the U.S. Federal Reserve's meeting minutes.

Meanwhile, in Q4 2022, Coinbase (NASDAQ:COIN) reported a net loss of $557 million and a revenue drop of nearly 75%, failing to meet analyst expectations for monthly transacting users and trading volume. However, the company exceeded estimates for earnings and revenue. To broaden its revenue streams, Coinbase plans to emphasize sub_script_ion and services, with products such as Staking, Earn, and Custody contributing over $200 million in Q4. Coinbase's revenue diversification strategy remains in place, and it could benefit from expansion into countries with more favorable crypto regulations. The company predicts sub_script_ion and services revenue of $300 million to $325 million in Q1 2023.

## Topic of the Day: The Open Network's Governance Platform Ton.vote Approved in First Democratic Decision

The release of Ton.vote by The Open Network (<a href="/price/toncoin-ton" target="_blank" class="blog_inner_link">Toncoin</a>), a decentralized layer 1 blockchain, has potential implications for the future of blockchain governance and adoption. The platform enables token holders to vote on decisions related to all projects on the network, which could lead to a more democratic and transparent approach to decision-making within blockchain communities. By involving token holders in the decision-making process, the platform promotes decentralization, which is one of the fundamental principles of blockchain technology.

The use of Orbs to develop the governance platform ensures tamper-proof voting, which is a key feature of blockchain technology. By providing a secure and transparent platform for voting, Ton.vote may increase trust in blockchain governance, attracting new investors and users to the network.

The approval of the first governance proposal, which froze tokens held by genesis mining wallets that had been inactive for four years, highlights the potential power of blockchain governance. This decision was made through a democratic process, with 91.75% of voters supporting the proposal. The freezing of tokens held in inactive wallets will increase the value of TON by reducing the supply, which could have a positive impact on the price of the token.

By providing a secure and democratic platform for decision-making, the platform may increase trust in blockchain technology, attracting new users and investors to the network. The approval of the first governance proposal demonstrates the power of blockchain governance and the potential impact of decisions made through a democratic process. <a href="/price/toncoin-ton" target="_blank" class="blog_inner_link">Toncoin</a> has declined by 0.8% in the past 24hr and has risen 2.5% in 7D.

## The Open Network (<a href="/price/toncoin-ton" target="_blank" class="blog_inner_link">Toncoin</a>) $2.35458 (+0.1%) - Bullish Outlook

**Overview:**

- ***Closest daily support zone: 2.4220 - 2.4767***
- ***Closest daily resistance zone: 2.4220 - 2.4767***
- ***Key Level: 2.6500 (Monthly Close of Jan. 2022)***

![](https://gimg2.gateimg.com/image/article/1677029914Untitled0222.png)

<a href="/price/toncoin-ton" target="_blank" class="blog_inner_link">Toncoin</a>’s value began to increase in Nov. 2022 and saw a 66% gain by early Jan. 2023. However, early January was around the time when the wider crypto market began seeing a bull rally, which took away some of the bullish attention <a href="/price/toncoin-ton" target="_blank" class="blog_inner_link">Toncoin</a> felt during last year’s bear rally. Since the beginning of the year, <a href="/price/toncoin-ton" target="_blank" class="blog_inner_link">Toncoin</a> has risen 20% and has rebounded twice from the golden zone with a shorter wick each time, implying a third time may happen above the golden zone, approximately between the 38.2% and 50% weekly Fibonacci Retracement levels (2.3135 - 2.1200). As it stands, <a href="/price/toncoin-ton" target="_blank" class="blog_inner_link">Toncoin</a> is trading at a 50% discount from its launch price of 4.758.

**Daily Resistance zones**

1. 2.4220 - 2.4767
2. 2.5530 - 2.6500
3. 2.6770 - 2.7966

<br>
 **Daily Support zones**

1. 2.3336 - 2.3135
2. 2.2707 - 2.2000
3. 2.1200 - 2.0000

<div class="blog-details-info">
<div>Author:** Peter L.**, Gate.io Researcher
<div class="info-tips">\*This article represents only the views of the researcher and does not constitute any investment suggestions.
<div>\*Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all cases, legal action will be taken due to copyright infringement.
</div>