The Crypto Roller Coaster; upset letter from chipmaker to PM

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If you think you’ve had a tough few days, consider El Salvador. Hours after it became the first country to adopt Bitcoin as legal tender on Tuesday, the price of the world’s most popular cryptocurrency fell from around $ 52,000 to less than $ 45,000. Our top story today takes a look at the possible reasons for the latest crypto flash crash.

Also in this letter:

Disappointed, demoralized, chipmaker writes to PM ModiiD Fresh Food files smear campaign complaints Olas scooter rollout runs into problems, CEO apologizes

It happened, say experts, after Bitcoin flash crash

Bitcoin fell below $ 45,000 on Tuesday, from a four-month high of around $ 52,000, hours after debuting as legal tender in El Salvador, the first country to do so.

Why? Experts attributed the 15% flash crash to a lack of liquidity in the crypto markets, which could give disproportionate power to large holders, and the fact that the crypto markets are heavily sentiment-driven and lacking. appropriate regulation.

Automated trading programs that sell or buy at predefined prices could also have added to the pressure.

Not just Bitcoin: Other cryptocurrencies such as Ethereum, Binance Coin, and Cardano also fell between 13% and 18% on Tuesday. Dogecoin fell 33% at one point.

In India, many traders ended up buying the dip. WazirX’s daily trading volume has grown to $ 280 million from the usual $ 100 million to $ 150 million, said chief executive and co-founder Nischal Shetty.

Built-in volatility: Unlike traditional stock markets, they said, crypto markets lack circuit breakers, which trip when an index or stock crosses a set threshold. Wild swings are therefore a standard feature of cryptocurrency markets, they added.

It was coming: Experts and traders said they weren’t surprised by the tumble. Crypto markets, while growing, are not as liquid as traditional financial markets. If there is more liquidity, this [flash crash] is less likely to happen, Shetty said. He added, however, that there is no data to conclusively explain why a flash crash occurs.

Retail investors we spoke to said they made their peace with the volatile nature of crypto. Sanil Mahajan, supply chain manager for a large IT company, said: “You can almost predict the unpredictability of crypto now. I started to get a feel for this last week when a few cryptocurrencies hit an annual high. These are typical signs of a “pump and dump” system and signal that a big crash is going to happen in a few days.

Disappointed and demoralized, chipmaker writes in letter to PM

Tower Semiconductor, an Israel-based semiconductor foundry, sent a letter to Prime Minister Narendra Modi, asking him to help speed up a government proposal for chipmaking, for which it had launched an expression of interest. (EoI) nine months ago.

May Withdrawal: The company said any further delay from the government would render it unable to remain active in the project for the near future.

We are disappointed and demoralized that despite the discussion at the highest level G2G for the proposed semiconductor factory … there is no idea where we are headed, the letter says.

We kindly ask you to express and convey the limitations of the GoI (Government of India) and its stakeholders without further delay, otherwise we express our inability to remain active in the project in the near future, he added.

$ 3 billion pitch: Tower Semiconductor is the technology partner of a consortium launched by Abu Dhabi-based Next Orbit Ventures that has launched a project for a $ 3 billion semiconductor manufacturing unit in Dholera , in Gujarat.

The letter was also addressed to Minister of Finance Nirmala Sitharaman, Minister of Electronics and Informatics Ashwini Vaishnaw and Minister of Trade and Industry Piyush Goyal. Sources said Vaishnaw, who took office as IT minister about two months ago, had a call with the consortium last week to understand various issues and assure them of government support.

Tatas plans for semiconductors: Last month, we announced that the Tata Group may soon enter semiconductor manufacturing, targeting a growing share of the high-tech electronics manufacturing market. to $ 1,000 billion. At Tata Group, we have already turned to a number of new businesses such as electronics manufacturing, 5G network equipment as well as semiconductors, in all likelihood, said N Chandrasekaran, president of Tata Sons.

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ETtech Agreements concluded

Notion, a workplace collaboration company valued at over $ 2 billion last year, acquired Hyderabad-based Automate.io in a cash and stock deal. Notion will absorb the entire 40-member Automate.ios team, which will continue to operate in Hyderabad.

Startup Edtech Leap has raised $ 55 million in a Series C funding round led by Owl Ventures. The company will use the funds to expand its range of services to students in the Southeast Asia, Middle East and North Africa regions.

CollegeDekho college admissions platform raised $ 26.5 million in Series B funding round led by Winter Capital Partners, ETS Strategic Capital, Calega and existing investors Man Capital and Rajeev Chaba .

Vahdam India, a wellness brand, pocketed Rs 174 crore in a Series D funding round led by IIFL AMC’s private equity fund. The capital will be used to expand the company’s online and offline distribution, enter new markets and enter new complementary categories.

WeRize, a financial services platform, has secured $ 8 million in a Series A funding round led by 3one4 Capital, Kalaari Capital, Picus Capital and Orios Venture Partners. The capital will be used to increase investment in technology and expand the partner network to over 50,000 over the next two years.

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iD Fresh Food files a complaint for a smear campaign

PC Musthafa, Co-Founder and CEO, iD Fresh Food

The packaged food company backed by billionaire Azim Premji, iD Fresh Food, filed a complaint on Wednesday with the Bengaluru City Police Cybercrime Cell, as well as WhatsApp, demanding action against people who have launched a campaign targeting its products on the messaging platform and social media. websites.

What happened? According to the Bengaluru-based company, which makes idli and dosa batter among other things, it has received social media messages in recent days containing misleading and false information alleging that it was using animal extracts in its products. products.

The company has denied what it called baseless allegations that are intended solely to slander the brand. We condemn the spread of such malicious rumors and disinformation and have taken the legal route to rightly tackle this problem, he said in a statement.

Coursera steps up its game in India amid edtech boom

Coursera Inc. partners with Indian institutions and introduces platform innovations to better serve learners in its largest market outside of the United States.

The online course provider has 12.5 million registered learners in India. About 7.5 million of them have signed up since January 2020, making the country the fastest growing market for the U.S. company. Coursera has also made India the hub of its Asia-Pacific (APAC) operations.

Quote: The pandemic has radically changed the way we learn, teach and work. Our strong momentum in India reflects the continued trend of individuals and institutions to embrace e-learning to develop skills for a digital future, said Jeff Maggioncalda, CEO of Coursera.

New partners: The company has partnered with four new higher education institutions in India, bringing the total number of university partners to 10. New partners include IIT Bombay, IIT Guwahati, Indian Statistical Institute and Ashoka University.

Olas founder apologizes for technical issues in scooter deployment

Bhavish Aggarwal, Founder and CEO of Ola

Ola founder Bhavish Aggarwal apologized on Wednesday for failing to meet the expectations of customers who were unable to purchase his S1 electric scooters due to technical issues.

When it was launched, Ola announced that its electric scooters would be available for purchase from September 8 and that home delivery would begin from October.

Ola said customers will now be able to purchase her scooters from September 15. The company started taking pre-orders for its electric scooter on July 15 and claimed to have received more than a lakh of bookings in the first 24 hours.

In an interview with ET last month, Aggarwal said all two-wheelers sold in the country by 2025 should be electric.

On Monday, the company partnered with leading banks and financial institutions, including HDFC Bank, ICICI Bank, Kotak Mahindra Prime and TATA Capital, to provide loans to buyers of its electric scooters.

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