The International Monetary Fund says the cryptocurrency crash has not destabilised the world economy.

In its 2022 World Economic Outlook, the institution – which works to foster global monetary cooperation and secure financial stability with its 190 member countries – warned that with growth stalling in the UK, US, China and Europe, the world “may soon be teetering on the edge of a global recession”.

However, it also said: “Crypto assets have experienced a dramatic sell-off that has led to large losses in crypto investment vehicles and caused the failure of algorithmic stablecoins and crypto hedge funds, but spillovers to the broader financial system have been limited so far.”

The IMF is now forecasting global growth of just 3.2% this year and 2.9% in 2023 after the global economy shrank for the first time since 2020 due to the Ukraine war and COVID-19.

The probability of a recession in the G7 economies – Canada, France, Germany, Italy, Japan, the US and UK – is 15%, four times higher than usual.

The UK is set for the slowest growth of the G7 countries in 2023, with the IMF predicting it will fall to just 0.5%. The US’ 2023 growth forecast has also been cut to 1%.

“The risk of recession is particularly prominent in 2023, when in several economies growth is expected to bottom out, household savings accumulated during the pandemic will have declined, and even small shocks could cause economies to stall,” said the IMF.

“[It will be] increasingly challenging to avoid a recession.”

Crypto payments firm BCB Group reveals deputy CEO

Cryptocurrency shorts

The Notorious B.I.G. is to be the subject of a non-fungible token collection. NFT marketplace OneOf is collaborating with the late rap legend’s estate for ‘Sky’s the Limit’ generative profile pictures with holders then holding voting rights to the distribution of a previously unlicensed Biggie freestyle. 

FatManTerra, the Twitter warrior who has repeatedly looked to hold the companies and individuals behind Terra to account, has joined the class action lawsuit brought by US solicitors Scott+Scott to recoup UST stablecoin investments following the collapse of the ecosystem. “We demand a fair trial to uncover all of TFL & Do Kwon’s wrongdoings and so that justice can take its course… One way or another, [CEO] Do Kwon will either atone for his sins or face retribution,” he wrote.

Nubank, the largest Brazilian digital bank, has reached a million users on its crypto trading platform just a month after launch – 11 months faster than it expected. Nubank has 46.5m users.

Topl, creator of a blockchain to drive impact initiatives and sustainable transformation for companies across the world, has raised $15m in Series A funding co-led by Mercury, Republic Asia and Cryptology Asset Group.

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Crypto prices

The overall market cap of the more than 20,300 coins is at $978.7 billion at the time of writing (7am UK), a 0.9% increase in the last 24 hours.

Market leader Bitcoin – the original cryptocurrency created by the mysterious Satoshi Nakamoto – gained less than 0.5% to $21,240. BTC is 10% down in a week.

Ethereum, the second most valuable crypto coin – created as a decentralised network for smart contracts on the blockchain – rose 2% to $1,450. ETH is 7% down over the course of a week.

Binance Coin is a cryptocurrency created by popular crypto exchange Binance to assist its aim in becoming the infrastructure services provider for the entire blockchain ecosystem. Its BNB token gained 4% to $254, leaving it 6% down over seven days.

The XRP token of Ripple, a payment settlement asset exchange and remittance system, acts as a bridge for transfers between other currencies. XRP grew less than 0.5% to 33.7 cents, with its price 11% down on seven days ago.

Cardano is an open source network facilitating dApps which considers itself to be an updated version of Ethereum. Its ADA token, designed to allow owners to participate in the operation of the network, lost 1% to 46.9c and is 12% down in a week.

Solana is a blockchain built to make decentralised finance accessible on a larger scale – and capable of processing 50,000 transactions per second. Its SOL token climbed 3% to $36.95 yet is 19% lower than its price a week ago.

Meme coin DOGE was created as a satire on the hype surrounding cryptocurrencies but is now a major player in the space. DOGE added 1% to 6.3c and is 12% down over seven days.

Polkadot was founded by the Swiss-based Web3 Foundation as an open-source project to develop a decentralised web. Its DOT token, which aims to securely connect blockchains, grew 1% to $6.78 and is 15% down on its price a week ago.

Polygon aims to securely connect blockchains as a sort of decentralised internet. Its MATIC token added 4% to 80c, while it is 15% down in a week.

Avalanche is a lightning-quick verifiable platform for institutions, enterprises and governments. Its AVAX token grew 1% to $21.03 and is 18% down in a week.

To see how the valuations of the main coins have changed in recent times – and for round-ups of recent cryptocurrency news developments – click here.

For valuations of the top 100 coins by market cap in US dollars, plus 24-hour price change, see below.