Published every Saturday, Hodler’s Digest will help you keep track of every major news story happening this week. The best (and worst) quotes, adoption and regulatory highlights, leading coins, predictions, and more – in one link on Cointelegraph for the week.
Top stories of the week
The Fed’s money printing press is reversed: what does it mean for crypto?
Over the past two years or so, the U.S. Federal Reserve has flooded the financial system with excess liquidity — benefiting stocks, cryptocurrencies and other markets as well. Now, the Fed is moving in the opposite direction to fight inflation. In addition to raising interest rates, the central bank has also started the process of quantitative tightening (QT). It’s not entirely clear how the crypto market will respond to the Fed’s QT efforts, but the short-term outlook could be negative for risk assets.
CFTC sues Gemini, alleging cryptocurrency exchange lied in futures contract assessments
U.S. cryptocurrency exchange Gemini is facing a lawsuit from the U.S. Commodity Futures Trading Commission (CFTC) over certain alleged activities dating back to 2017. The CFTC basically asserted that Gemini acted dishonestly in 2017 when it pushed to add bitcoin futures trading contracts to its products. The committee claimed that Gemini was dishonest in the evaluation process.
“Gemini has been a pioneer and proponent of thoughtful regulation since day one,” Gemini told Cointelegraph in response to the lawsuit. “We have an eight-year track record of seeking permission rather than forgiveness and always doing the right thing. We look forward to clearly demonstrating this in court.”
Shenzhen airdrops 30 million free digital RMB to stimulate consumption
As part of the airdrop, residents of Shenzhen can get some e-CNY, China’s central bank digital currency. Shenzhen is partnering with one of China’s top food delivery apps to airdrop a total of 30 million electronic yuan to certain app users in the form of a raffle. At least 15,000 in-app merchant portals allow e-RMB as a payment method. China has stuck to a strict playbook of COVID restrictions, leading to economic hardship. The airdrops are designed to stimulate consumer spending and revive the economy.
South Korean government becomes early investor in Metaverse
There have been several cryptocurrency-centric headlines in South Korea in recent weeks, ranging from interest in cryptocurrency regulation to an investment in Metaverse. The country plans to invest around $177 million in Metaverse as part of its “Digital New Deal” initiative. The funds will be used to develop a Metaverse platform for advocacy government services for citizens, as well as for different Metaverse projects. The investment marks South Korea as a global pioneer in government Metaverse interests.
Japan passes bill to restrict issuance of stablecoins to banks and trust companies
According to reports, a new law in Japan, set to take effect in 2023, will allow only licensed banks and registered money transfer agents to issue stablecoins. The regulation aims to provide more protection for stablecoins given their growing popularity. Japan’s intention to regulate stablecoins comes from a crypto bear market, falling asset prices, and the fall of major stablecoin TerraUSD Classic (USTC).
winners and losers
This weekend, Bitcoin (bitcoin) lie in $29,540ether (Ethereum) exist $1,750 and Ripple exist $0.38. The total market value is $1.21 trillion, according to to CoinMarketCap.
Among the largest 100 cryptocurrencies, the top three altcoin winners this week are Waves (wave) Cardano at 114.63% (ada) 24.19% and helium (HNT) was 22.49%.
The top three altcoin losers of the week are Convex Finance (CVX) -7.51%, Solana (sol) at -6.93% and 1 inch network (1 foot) -3.40%.
For more information on cryptocurrency prices, be sure to read Cointelegraph’s market analysis.
most memorable quotes
“We can actually imagine 30 or 50 years from now that the entire global economy is running on the blockchain.”
Marc Andreessen, co-founder of Andreessen Horowitz (a16z)
“If managed properly, if managed properly, I think in theory algorithmic stablecoins should work.”
Binance CEO Changpeng Zhao “CZ”
“How will we reduce wealth inequality when financial discrimination is at the heart of our regulatory system? It’s time to remove the ‘sophisticated investor’ discrimination rules that advisers use to hide and allow everyone access to financial advice and services.”
Ian Love, CEO and Founder of Blockchain Assets
“We changed our stance on mining to also allow the use of cryptocurrencies in foreign trade and abroad.”
First Deputy Governor of the Central Bank of Russia Kosenya Yudayeva
“I don’t think we live in a single-chain world.”
Brad Garlinghouse, CEO of Ripple Labs
“There are too many general-purpose blockchains competing effectively with Ethereum (and each other) to drive down fees. There are only so many people who will survive.”
Andrew Levine, CEO of Koinos Group
Forecast this week
Bitcoin may hit $14,000 in 2022, but ‘do your best’ when buying BTC now: Analyst
Although the Bitcoin chart saw some positive changes in the first half of the week to the end of May, according to Cointelegraph’s BTC Price Index.
Using pre-BTC price data as context consistent with Bitcoin’s halving cycle (roughly four years), anonymous Twitter user and CryptoQuant contributor Venturefounder said the asset could see a macro price bottom in the next six months. As part of the tweet thread, the analyst stated that Bitcoin could reach depths between $14,000 and $21,000. The analysis includes similarities to 2018, the focal year of the last crypto bear market. Price action is currently in line with historical Bitcoin cycles.
FUD of the week
Investors dump on Terra as LUNA 2 tanks 70% in two days
Terra 2.0 and its associated LUNA 2.0 asset were launched on May 28 after the Terra ecological collapse, and the token price dropped significantly after the launch. Terraform Labs CEO Do Kwon’s revival plan includes distributing LUNA 2.0 to certain players in the old Terra ecosystem. About a day later, Binance announced Completed the first airdrop Offer new LUNA tokens to certain users. Between the writing of Cointelegraph’s Monday article (linked above) and the writing of Tuesday’s Binance airdrop article, the price of LUNA 2.0 rose from $5.71 to $9.25.
New York State Senate Passes Bitcoin Mining Ban
Other proof-of-work (PoW) mining operations in New York state could be suspended for two years pending approval from the state’s governor. The New York State Senate has passed a bill that temporarily bans new PoW mining rigs and renews licenses for existing participants. One exception to the bill, however, is allowing new PoW mining participants that only use renewable energy for their work.
Former OpenSea product manager charged with insider trading
Former OpenSea employee Nathaniel Chastain has been charged with insider trading, wire fraud and money laundering. During his tenure as product manager for the NFT exchange, Chastain allegedly traded many NFTs based on non-public knowledge. Claims that including his work enabled him to influence which NFTs were on the platform’s homepage, which he then used for personal gain. According to OpenSea, Chastain resigned from his position at OpenSea after the entity asked him to quit because it found foul play.This The development raises the following questions NFTs may be marked as securities.
Best Cointelegraph Features
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Better to Fail: Scott Melker Challenges Crypto Trading Possibilities
“It’s a math game of small wins and big wins.”
The culture of anonymity in cryptocurrencies may be losing its relevance
While the Anonymous team has built some of the leading crypto infrastructure, many new players in the ecosystem are using their real identities.