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


Coming each Saturday, Hodler’s Digest will aid you monitor each single vital information story that occurred this week. The perfect (and worst) quotes, adoption and regulation highlights, main cash, predictions and rather more — per week on Cointelegraph in a single hyperlink.

High Tales This Week

Breaking: Terra blockchain officially halted following LUNA price collapse

This week, information in regards to the Terra ecosystem dominated the headlines after algorithmic stablecoin TerraUSD (UST) misplaced its peg to the U.S. greenback — and continued to crash. 

At its lowest level throughout the week, UST fell to round $0.13, in keeping with CoinMarketCap. The meltdown additionally affected LUNA because of its symbiotic relationship with its sister asset. After reaching a excessive of $120 in early April, LUNA’s worth plummeted this week to mainly zero. 

Do Kwon, CEO of Terraform Labs, looked to impliment certain measures to proper the sinking ship, as per Cointelegraph’s reporting on Thursday. Subsequent reporting confirmed that the Terra blockchain halted operations briefly after LUNA’s hyperinflation considerably decreased the price of a governance assault on the community.

 

 

 

Leaked report: South Korea to establish crypto framework by 2024

South Korea plans to control crypto belongings with a brand new set of legal guidelines meant to return into play by 2024, in keeping with a leaked authorities doc. Though verified as legitimate, the leaked doc is just not a finalized plan. 

Led by the administration of President Yoon Suk-yeol, the brand new crypto laws pertain to a number of classes, together with NFTs.

 

Meta will test digital collectibles on Instagram starting this week

Earlier this week, Meta mentioned it intends to experiment with NFTs on Instagram by permitting digital collectibles for use as profile footage. The choice got here immediately from CEO Mark Zuckerberg. 

Including NFTs to Instagram serves as a precursor to bringing digital collectibles to Fb and different Meta entities, Zuckerberg mentioned. Different social media platforms, equivalent to Twitter, have already moved towards providing NFTs as profile footage.

 

 

 

Robinhood shares spike 30% after Sam Bankman-Fried buys $650M stake

Since March of this 12 months, FTX CEO Sam Bankman-Fried has been shopping for shares of fashionable buying and selling app Robinhood, concluding his buying this previous week. In whole, Bankman-Fried picked up $648 million in Robinhood inventory, equating to a 7.6% firm stake. The FTX CEO’s common value per share was $11.52. 

A United States regulatory submitting lately revealed the acquisition. Robinhood shares elevated greater than 30% instantly after the information grew to become public.

 

ECB lays out ‘anonymous’ digital euro as public opposes ‘slavecoins’

The subject of central financial institution digital currencies (CBDCs) has turn out to be more and more widespread. A latest working paper from the European Central Financial institution gave the most recent replace on the place the financial authority stands on the matter. In response to the central financial institution, a CBDC with anonymity options might streamline funds whereas additionally enabling retailers to stop banks from extracting details about their cost flows. 

In the meantime, Europeans have apparently come out towards CBDCs. “Slavecoin” is the time period some on-line commentators have used to explain CBDCs. The backlash has steadily flowed in following the April 5 launch of a digital euro session which, partially, permits the general public to weigh in on the difficulty by way of on-line feedback.

 

 

 

 

 

Winners and Losers

 

On the finish of the week, Bitcoin (BTC) is at $29,994, Ether (ETH) at $2,067 and XRP at $0.42. The overall market cap is at $1.28 trillion, according to CoinMarketCap.

Among the many largest 100 cryptocurrencies, there have been solely two altcoin gainers of the week: Maker (MKR) at 1.22% and Fei USD (FEI) at 0.27%. 

The highest three altcoin losers of the week are Terra (LUNA) at -100%, TerraUSD (UST) at -81.61%, and Fantom (FTM) at -50.89%.

For more information on crypto costs, be certain to learn Cointelegraph’s market analysis.

 

 

 

 

Most Memorable Quotations

 

“In the case of mass adoption, it’s actually about evaluating what blockchain know-how can convey to customers by current options.”

Ming Duan, chief working officer and co-founder of Umee

 

“In most locations within the free world and in democracies, crypto goes to ultimately be regulated and authorized. […] And the best way that we push the dialog ahead is by taking motion.”

Brian Armstrong, CEO of Coinbase

 

“If you wish to do an algorithmic stablecoin, for instance, it must be 300% backed by strong belongings, strong crypto belongings — not 105%, or 110%, and even much less. […] That doesn’t make sense.”

Paolo Ardoino, chief know-how officer at Bitfinex and Tether

 

“Everyone who has been right here for lower than 18 months might be shocked, however for us who’ve been right here since 2016, 2017, it’s a part of the sport. Bitcoin is just not going away, Ethereum is just not going away due to LUNA or due to UST. Every thing is enterprise as standard.”

Marcel Pechman, crypto analyst and Cointelegraph contributor

 

“The identical guidelines that apply to investments within the bodily world proceed to use to investments in digital worlds.”

Five U.S. state regulatory bodies 

 

“If platforms — whether or not within the decentralized or centralized finance area — supply security-based swaps, they’re implicated by the securities legal guidelines and should work inside our securities regime.”

Gary Gensler, chair of the U.S. Securities and Alternate Fee (SEC)

 

Prediction of the Week 

 

Bitcoin macro bottom ‘not in yet’ warns analyst as BTC price holds $30K

Bitcoin is coming off a extremely unstable week, briefly falling beneath $27,000 at one level, in keeping with Cointelegraph’s BTC price index. Though the asset subsequently rallied above $30,000, BTC will not be out of the woods but when it comes to a bigger scale macro backside.

In presenting his case, Twitter person Materials Indicators famous: “IMO, the macro backside is just not in but.”

Different market evaluations included one from former BitMEX CEO Arthur Hayes, who mentioned in a Could 12 weblog put up: “The crypto capital markets should be allowed time to heal after the bloodletting concludes.” He continued with different feedback, noting sure value ranges he’s expecting BTC and ETH.

 

 

FUD of the Week 

Galaxy Digital reports $112M Q1 loss, citing crypto price volatility

Crypto funding agency Galaxy Digital Holdings lately revealed its outcomes for Q1 2022. The agency posted a internet complete lack of roughly $112 million throughout the quarter, a substantial change of tempo from its roughly $858 million earnings throughout Q1 2021. The corporate’s outcomes mirror the numerous shift in market sentiment for crypto belongings over the previous 12 months.

 

‘Mortified’ crypto trader gets 42 months for fraud, claiming he was a total gun

A New York courtroom dealt Jeremy Spence, recognized beneath the pseudonym “Coin Alerts,” a 42-month jail sentence for working a Ponzi scheme. The scheme concerned making false assertions about his crypto-trading earnings, taking cash from buyers after which paying out older buyers with cash from newer ones. The courtroom ruling additionally included different phrases of the sentence.

 

Breaking: Binance suspends LUNA and UST trading amid issues on Terra blockchain

Amid the turmoil surrounding LUNA and UST, Binance determined to droop spot buying and selling for the UST/BUSD and LUNA/BUSD buying and selling pairs. UST and LUNA withdrawals had been temporarily halted by Binance earlier within the week. Binance Futures has additionally adjusted sure LUNA-related trading features.

 

 

Finest Cointelegraph Options

Bitcoin 2022 — Will the real maximalists please stand up?

“The assault is cryptocurrency. That’s the fucking assault.”

Can Solana become the dominant PoS chain despite persistent outages?

The Solana community appears to be battling persistent outages whereas searching for to handle the business’s blockchain trilemma.

What happened? Terra debacle exposes flaws plaguing the crypto industry

The downfall of Terra calls into query the real-world utility and long-term viability of algorithmic stablecoins.

 

 

 

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