Terra ecosystem collapses, Sam Bankman-Fried buys Robinhood stock, and crypto trader receives jail sentence for a ponzi scheme: Hodler’s Digest, May 8-14

Cointelegraph Magazine

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

Breakout: Terra Blockchain Officially Halted After LUNA Price Plunges

This week, news about the Terra ecosystem dominated the headlines after the algorithmic stablecoin TerraUSD (UST) lost its peg to the U.S. dollar and continued to crash.

UST fell to around $0.13 at its lowest point this week, according to CoinMarketCap.Meltdown also affects LUNA because it Symbiotic relationship with its sister assets. After reaching a high of $120 in early April, the value of LUNA plummeted to essentially zero this week.

Do Kwon, CEO of Terraform Labs, attempt to implement certain measures Correcting the sinking ship, according to a report from Cointelegraph on Thursday. Subsequent reports revealed that the Terra blockchain temporarily ceased operations after LUNA’s hyperinflation significantly reduced the cost of a network governance attack.


Leaked report: South Korea to establish encryption framework by 2024

According to a leaked government document, South Korea plans to pass a new set of laws to govern crypto assets that will go into effect in 2024. Although proven to be effective, the leaked documents are not the final plan.

Under the leadership of President Yoon Siyeol, new crypto regulations cover multiple categories, including NFTs.

Meta will start testing digital collectibles on Instagram this week

Earlier this week, Meta said it intends to experiment with NFTs on Instagram by allowing digital collectibles to be used as profile pictures. The decision came directly from CEO Mark Zuckerberg.

Adding NFTs to Instagram is a precursor to bringing digital collectibles to Facebook and other Meta entities, Zuckerberg said. Other social media platforms, like Twitter, have started offering NFTs as profile pictures.

Robinhood shares surge 30% after Sam Bankman-Fried buys $650 million stake

FTX CEO Sam Bankman-Fried has been buying shares of popular trading app Robinhood since March, and closed his buying last week. In total, Bankman-Fried received $648 million in Robinhood stock, equivalent to a 7.6 percent stake in the company. The average price per share for FTX CEOs is $11.52.

A U.S. regulatory filing recently disclosed the acquisition. Shares of Robinhood jumped more than 30% immediately after the news became public.

Public Opposition Against ‘Slave Coins’, ECB Launches ‘Anonymous’ Digital Euro

The topic of central bank digital currencies (CBDCs) is becoming more and more common. A recent working paper by the European Central Bank provided an update on the monetary authorities’ stance on the issue. According to the central bank, an anonymous CBDC could simplify the payment process, while also enabling merchants to prevent banks from extracting information about their payment process.

Meanwhile, Europeans have clearly come out against CBDCs. “Slavecoin” is a term some online commentators use to describe CBDCs. Following the launch of the digital euro consultation on April 5, there has been a backlash against allowing the public to weigh in on the issue to some extent through online commentary.

winners and losers

This weekend, Bitcoin (bitcoin) lie in $29,994ether (Ethereum) exist $2,067 and Ripple exist $0.42. The total market value is $1.28 trillion, according to to CoinMarketCap.

Among the largest 100 cryptocurrencies, there are only two altcoin winners this week: Maker (MKR) At 1.22% and fee USD (fee) is 0.27%.

Top 3 altcoin losers of the week are Terra (Luna) -100%, tera dollar (U.S) at -81.61% and Fantom (FTM) -50.89%.

For more information on cryptocurrency prices, be sure to read Cointelegraph’s market analysis.

most memorable quotes

“When it comes to mass adoption, it’s really about comparing what blockchain technology can bring to users with existing solutions.”

Duan Ming, COO and Co-founder of Umee

“Cryptocurrencies will eventually be regulated and legalized in most parts of the free world and democracies. […] The way we move the conversation forward is through action. “

Coinbase CEO Brian Armstrong

“For example, if you want to be an algorithmic stablecoin, it has to be 300% backed by solid assets, solid crypto assets — not 105%, 110%, or even less. […] That doesn’t make sense. “

Paolo Ardoino, CTO of Bitfinex and Tether

“Everyone who’s been here less than 18 months may be shocked, but for us who’ve been here since 2016, 2017, it’s part of the game. Bitcoin won’t go away, Ethereum won’t because LUNA or UST and disappear. Business as usual.”

Marcel Pechman, crypto analyst and Cointelegraph contributor

“The same rules that apply to investing in the physical world continue to apply to investing in the virtual world.”

Five U.S. state regulators

“If platforms—whether in decentralized or centralized finance—offer security-based swaps, they are subject to securities laws and must operate within our securities regime.”

U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler

Forecast this week

Bitcoin macro bottom ‘not yet there’ warns analysts as BTC price holds at $30k

Bitcoin is reportedly going through a highly volatile week, dropping below $27,000 at one point Cointelegraph’s BTC Price Index. While the asset subsequently rallied above $30,000, BTC may not be out of the woods yet in terms of a larger macro bottom.

Introducing his case, Twitter user Material Indicators noted: “IMO, the macro bottom hasn’t happened yet.”

Other market assessments include one from former BitMEX CEO Arthur Hayes, who said in a May 12 blog post: “After the bloodletting is over, the crypto capital markets must be allowed time to recover.” He went on to make other comments , noting that he is looking at certain price levels for BTC and ETH.

FUD of the week

Galaxy Digital reports $112 million loss in Q1, citing volatility in cryptocurrency prices

Crypto investment firm Galaxy Digital Holdings recently announced its results for the first quarter of 2022. The company reported a net consolidated loss of about $112 million for the quarter, a considerable change from a profit of about $858 million in the first quarter of 2021. The company’s results reflect a notable shift in crypto-asset market sentiment over the past 12 months.

‘Disgraced’ cryptocurrency trader sentenced to 42 months for fraud, claims he was a gun

A New York court sentenced Jeremy Spence to 42 months in prison for a Ponzi scheme under the pseudonym Coin Signals. The scheme involved making false assertions about his crypto trading profits, taking money from investors and then paying old investors with money from new investors. The court’s decision also includes other provisions of the judgment.

BREAKING: Binance suspends LUNA and UST trading due to Terra blockchain issue

Amid the turmoil surrounding LUNA and UST, Binance decided to suspend spot trading for the UST/BUSD and LUNA/BUSD trading pairs. UST and LUNA Withdrawals Temporarily suspended by Binance earlier this week. Binance Futures has also adjusted some LUNA related transaction function.

Best Cointelegraph Features

Bitcoin 2022 – Will the real extremists stand up?

“The attack is cryptocurrency. It’s a fucking attack.”

Can Solana become the dominant PoS chain despite ongoing disruptions?

The Solana network appears to be battling ongoing disruptions while seeking to resolve the industry’s blockchain trilemma.

what happened? Terra debacle exposes flaws plaguing the crypto industry

Terra’s downfall has called into question the real-world utility and long-term viability of algorithmic stablecoins.

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