The Wells Fargo Investment Institute is reportedly planning to evaluate and onboard an actively managed cryptocurrency strategy to its platform for qualified investors, according to the institute’s president Darrell Cronk.

Decentralized Finance (DeFi) wallet provider Debank has revealed liquidations of collateral are up 14-fold during the last few days, in which the prices of most cryptoassets crashed. Over the last 24 hours, Defi platforms lost $662 million in loans as investors reduce their exposure.

Several large centralized cryptocurrency trading platforms including Binance and Coinbase struggled to service users during the recent crypto market crash that saw the price of BTC and ETH plunge by 30% and 40% respectively.

Sponsored: Invictus Capital, the alternative investment firm offering a range of dollar-denominated backed blockchain-based investment funds, has so far offered investors unparalleled returns. In the last year the top-performing funds, Crypto20 and Crypto10 Hedged, have achieved an increase of 979% and 441% respectively, and the Invictus Margin Lending (IML) fund boasted an industry-leading performance of 20% APY.

Top stories in the Crypto Roundup today:

• Wells Fargo’s Wealthy Clients Will Soon Be Able to Bet on Crypto
• DeFi Liquidations Surge Amid Crypto Market Crash
• Top Centralized Exchanges Struggle During Market Turmoil
• Sponsored: Learn More About Invictus Capital's $10,000 Giveaway

Wells Fargo’s Wealthy Clients Will Soon Be Able to Bet on Crypto

The Wells Fargo Investment Institute is reportedly planning to evaluate and onboard an actively managed cryptocurrency strategy to its platform for qualified investors, according to the institute’s president Darrell Cronk.

The “professionally managed solution” to invest in cryptocurrency has been in the works for months and is now in its final stages of research and due diligence. The strategy could be added to the platform by mid-June and is expected to be available to qualified investors – those with an annual gross income above $200,000 or a net worth of over $1 million.

He added:

“We think the cryptocurrency space has just kind of hit an evolution and maturation of its development that allows it now to be a viable investable asset,”

He labelled crypto as an “alternative investment” rather than a “strategic allocation,” as the team is “still not suggesting” that it is its “own dedicated asset class.”

Wells Fargo Wealth and Investment Management includes Wells Fargo Private Bank, Abbot Downing, and Wells Fargo Advisors and oversees nearly $2 trillion in assets, making it one of the largest asset managers in the United States.

DeFi Liquidations Surge Amid Crypto Market Crash

Decentralized Finance (DeFi) wallet provider Debank has revealed liquidations of collateral are up 14-fold during the last few days, in which the prices of most cryptoassets crashed. Over the last 24 hours, Defi platforms lost $662 million in loans as investors reduced their exposure.

Per the platform, a normal day has liquidations of $1 million to $5 million across DeFi products, while on May 12 there were $39 million worth of liquidations. When cryptocurrency prices crash on the spot market, corresponding positions on derivatives platforms and loans can unwind rapidly, prolonging the sell-off.

Taylor Monahan, the founder of wallet provider MyCrypto, noted that highly financialized markets can accelerate downturns as “leveraged positions get liquidated at humanly psychological barriers” such as round figures around $40,000 for BTC and $3,000 for ETH, and as collateral gets liquidated prices drop further, triggering more liquidations.

In DeFi lending platforms, users can borrow assets without credit checks by overcollateralizing their positions with cryptoassets. If the value of the collateral drops below a specific threshold, smart contracts trigger a liquidation that sells the collateral to pay the lender.

Top Centralized Exchanges Struggle During Market Turmoil

Several large centralized cryptocurrency trading platforms including Binance and Coinbase struggled to service users during the recent crypto market crash that saw the price of BTC and ETH plunge by 30% and 40% respectively.

Coinbase reported “intermittent downtime” throughout Wednesday morning, while Binance paused Ethereum-related token withdrawals. Gemini experienced lag times while Kraken noted user “connectivity issues.”

According to some users on Twitter, other platforms including Bitfinex, Bittrex, KuCoin, and Huobi struggled during the crypto market turmoil. Decentralized trading platforms, on the other hand, managed to serve users.

As decentralized platforms use smart contracts on a public blockchain, they are often immune to outages. As long as the blockchain is operating, decentralized exchanges keep on trading.

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Learn More About Invictus Capital's $10,000 Giveaway

Invictus Capital, the alternative investment firm offering a range of dollar-denominated backed blockchain-based investment funds, has so far offered investors unparalleled returns. In the last year the top-performing funds, Crypto20 and Crypto10 Hedged, have achieved an increase of 979% and 441% respectively, and the Invictus Margin Lending (IML) fund boasted an industry-leading performance of 20% APY.

The total assets under management (AUM) of funds managed by the company's team of veteran investment professionals peaked at $112 million in February, and ended the quarter at just over $100 million — a 50% growth over the quarter. The InvictusCapital.com token (ICAP), which allows loyal investors the chance to share in Invictus Capital’s success, has appreciated over 400% since its launch in Q1 this year. 

As part of the company’s broader plan to become a global leader in alternative asset investing, Invictus has integrated Binance Smart Chain based assets for fund investments. This integration solves the pain of high fees associated with using Ethereum and Bitcoin.

To celebrate the newly launched Binance Smart Chain (BSC) feature, a $10,000 giveaway will be distributed randomly to ten lucky users. 

The promotion starts on 30 April 2021 and ends on 31 May 2021 at 11:59 GMT and it’s not available to U.S. residents. Read more about the promotion rules here.

Disclaimer:

Cryptocurrency trading involves high risk, and is not suitable for all investors. Before deciding to trade cryptocurrencies, tokens or any other digital asset you should carefully consider your investment objectives, level of experience, and risk appetite.

Its content does not constitute financial advice. Please remember that the value of investments, and any income from them, can fall as well as rise so you could get back less than you invest. If you are unsure of the suitability of your investment please seek advice.

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