Wintermute | Crypto

Wintermute said inflows across stablecoins, ETFs and digital asset treasuries have plateaued, leaving crypto liquidity recycling internally. Crypto market-maker Wintermute said the digital asset market’s current cycle is being driven by “recycled liquidity,” as inflows from its three primary funding sources have slowed. In a Wednesday blog post, Wintermute argued that liquidity remains the defining force behind every crypto cycle. The market maker said that while blockchain continues to be adopted, the flow of fresh capital has decelerated in recent months.  The company pointed to stablecoins, exchange-traded funds (ETFs) and digital asset treasuries (DATs) as the three major conduits for crypto liquidity, warning that liquidity inflow in all three has reached a plateau.  Read more

Wintermute said clear SEC guidance would keep US markets competitive, foster regulator dialogue and support innovation in digital assets. Trading company and market maker Wintermute asked the United States Securities and Exchange Commission (SEC) to confirm that network tokens should not be classified as securities.  In formal feedback to the agency’s request for comment, the company said clear guidance on the security status of tokens is necessary to avoid the misapplication of securities laws and ensure the continued growth of crypto markets.  Wintermute said that “network tokens,” which are “intrinsically connected to the functioning of a decentralized network or protocol,” are necessary technical inputs for blockchain networks. Because of this, the company said, they fundamentally differ from financial products or securities.  Read more

The project said several wallets had “coordinated a liquidity attack with an egregious malicious attempt” followed by “aggressive ZKJ sell-offs.” The team behind Polyhedra Network reported several factors that likely contributed to an 83% price crash of its ZKJ token on Sunday. In a Monday X post, Polyhedra attributed five significant factors causing Polyhedra Network (ZKJ) to fall to $0.32 from $1.92 within hours — a drop of more than 80%. According to the blockchain project, there were “significant token deposits stemming from a coordinated on-chain liquidity attack, substantial deposits by Wintermute into centralized exchanges, and cascading liquidations on these exchanges.” Polyhedra said several wallets had “coordinated a liquidity attack with an egregious malicious attempt,” with withdrawals targeting a ZKJ/KOGE liquidity pool on PancakeSwap, followed by “aggressive ZKJ sell-offs.” The affected trading pairs had fragile and imbalanced liquidity, leading the sell pressure to extend into ZKJ’s primary USD...

Wintermute joins at least eight other large crypto firms that announced their expansion to the US, banking on improved regulatory clarity for the Web3 industry. Wintermute, a London-based algorithmic crypto trading and market-making firm, has opened an office in New York as part of its expansion into the US. Wintermute announced the opening of its New York office on May 15, citing improved regulatory conditions in the world’s largest economy. “As the US takes a friendlier stance on digital assets and institutional adoption accelerates, we moved quickly to establish roots in New York City,” the company wrote in a May 15 X post, adding that the local presence will help them in “contributing to the future regulatory framework.” Read more