Crypto Biz: Gucci ‘monkeys’ into crypto

by Arthur · August 30, 2022

What do you think of when you think of Gucci? Designer bags, fashion jewelry, elegant Swiss watches? What about payment integration with an ERC-20 governance and utility token that wants to power Web3? Rolls off the tongue, doesn’t it? The iconic Italian fashion brand announced this week that it would expand its payment options to include Bored Ape Yacht Club-affiliated ApeCoin (APE) – but only through BitPay. In other words, Gucci allows you to liquidate your APE for US dollars and use the proceeds in the stores.

If you’re surprised by the news, read on to learn more about Gucci’s expanding crypto ambitions. While you’re at it, stick around for this week’s Crypto Biz, where we dissect the latest news surrounding Michael Saylor and Robinhood. We bring you a sobering analysis of the Terra-induced crypto market collapse from a senior Kraken executive.

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Gucci becomes the first major brand to accept ApeCoin payments

In case you missed it, Gucci officially became the first major brand to accept APE payments via Bitpay. The move came months after Gucci announced it would accept 12 cryptocurrencies as payment in more than 100 North American stores. Holders of Bitcoin (BTC), Ether (ETH), Dogecoin (DOGE) and other crypto can now convert their digital assets into a $5,000 GUCCI tote bag. Beyond crypto payments, Gucci launched a pair of non-fungible token (NFT) collections in year, including the SUPERGUCCI NFT series in February.

Michael Saylor will step down as CEO of MicroStrategy, but will continue as Executive Chairman

Bitcoin’s chief evangelist Michael Saylor is clearing his calendar to focus almost exclusively on promoting the digital asset. This week, Saylor announced that he is stepping down as CEO of MicroStrategy in favor of a new leadership position. Effective August 8, Saylor’s new role will focus on MicroStrategy’s “Bitcoin acquisition strategy and related Bitcoin advocacy initiatives.” A day after the announcement, MicroStrategy’s share price rose to three-month highs. It looks like investors are happy with Saylor’s position. We’ll see how they fare if the crypto winter lasts another year.

In my next job, I intend to focus more on #Bitcoin.

— Michael Saylor⚡️ (@saylor) 3 August 2022

‘This is on me’ — Robinhood CEO lays off 23% of staff after second quarter loss

Robinhood’s foray into crypto looked good over a year ago when we were riding the bull market. Now, with crypto, stocks and the economy in the dumps, the discount brokerage has been forced to lay off nearly a quarter of its staff. Vlad Tenev, Robinhood’s CEO, delivered the bad news shortly after the company reported dismal second-quarter earnings results, which included a 44% year-over-year decline in net income. Crypto-focused companies have seen widespread layoffs this year as asset prices plunged and trading volumes dried up.

“Departing Robinhoodies will be offered the opportunity to remain employed at Robinhood through October 1, 2022 and receive their regular salary and benefits. They will also be offered job search assistance (including a Robinhood Alumni Talent Directory registration).”

— zerohedge (@zerohedge) 2 August 2022

Contagion only affected companies with “poor balance sheet management” — Kraken Aus CEO

The Epic collapse of Terra (Luna) – now renamed Terra Classic (LUNC) – triggered industry-wide contagion in crypto, ultimately leading to multiple bankruptcies and trillions of dollars in lost market capitalization. But the only companies and protocols that went under were those with “poor balance sheet management” and a complete lack of understanding of how blockchain works. The sobering analysis was provided by Kraken Australia CEO Jonathon Miller. He also explained why Ethereum proved resilient in the face of chaos and why its parent company, Kraken, is ready to continue growing.

Don’t miss it! What’s Next for Bitcoin and Ether?

Bitcoin’s performance over the past week has surprised both the bulls and the bears. Meanwhile, Ether has bounced off the declines sharply as the hype surrounding the upcoming Merge intensifies. But the outlook for both assets is as clear as mud. In this week’s market report, I sat down with fellow analysts Marcel Pechman and Benton Yaun to discuss an important topic: Have BTC and ETH bottomed out yet? You can watch a full replay of the show below.