Do Kwon proposed Terra hard fork, Peter Schiff stated that the price of Bitcoin would test the lower bound of the range around the $8,000 mark. He arrived at this conclusion based on technical analysis.
Peter Schiff Predicted Bitcoin Would Test the $8,000 Level
Peter Schiff stated that the price of Bitcoin would test the lower bound of the range around the $8,000 mark. He arrived at this conclusion based on technical analysis.
Glassnode noted that in the wake of the UST collapse BTC prices approached the fair value level.
As of writing, the first cryptocurrency trades near $29,900.
By the week\’s end, nearly all top-10 digital assets by market cap were in the red. The exceptions were Binance Coin (BNB) and Cardano (ADA). The price of the former rose 7%, the latter remained virtually unchanged.
According to CoinCodex service, over the week among mid-cap digital assets the token governance PEOPLE of the ConstitutionDAO project rose more than 115%.
As expected, the algorithmic Terra stablecoin TerraUSD fell the most. The UST price dropped by almost 60%.
Total cryptocurrency market capitalization stood at $1.34 trillion. Bitcoin\’s dominance index rose to 42.5%.
Do Kwon proposed Terra hard fork
proposed a Terra hard fork with a new network and an airdrop. He described it as “a chance to resurrect the project from the ashes”.
The new network is expected to keep the Terra name with the LUNA token. The original blockchain will become Terra Classic with Luna Classic (LUNC) accordingly.
The project will continue development without a new algorithmic stablecoin.
Total LUNA supply will be 1 billion tokens, target staking reward (inflation) — 7%. The vote on Kwon\’s proposal started on May 18 and will run until May 25.
Most members of the community did not support the hard fork idea in the preliminary vote. However, in the main process the proposal had already passed the quorum.
Kwon also made changes to the proposal, editing it \”in light of the community\’s input\”.
Media reports Terra collapse investigation in South Korea
South Korean authorities reassembled an interagency task force that had been disbanded more than two years ago to investigate the Terra collapse. The team previously earned the nickname \”grim reapers\”.
Media also reported on potential parliamentary hearings with Kwon participating regarding the project\’s ecosystem collapse.
How the Terra collapse was received by the community
Ethereum founder Vitalik Buterin urged Terraform Labs to focus on compensating small LUNA and UST investors. In his words, \”the rich\” should bear personal responsibility.
It is not fully clear how exactly the return of lost funds is possible. This week the non-profit Luna Foundation Guard said that it drained its reserve fund of $3 billion. The funds were spent in an attempt to preserve UST\’s stability.
CEO and founder of Pershing Square Capital Management billionaire Bill Ackman called Terra a crypto pyramid, and Tether\’s CTO Paolo Ardoino stated that the product is poorly designed.
Silence was broken by Galaxy Digital founder Mike Novogratz. His firm became one of the major investors in Terraform Labs, and the billionaire has a tattoo on his left arm referencing LUNA.
Novogratz acknowledged that the Terra ecosystem collapse undermined trust in the DeFi sector and the crypto market overall, though the idea of an algorithmic stablecoin looked promising.
The impact of the incident on the digital asset industry was noted by Forbes journalists. In their view, the collapse of the project in its impact on the sector rivals Mt. Gox bankruptcy, The DAO hack, the ICO bubble burst, and the crypto market crash in March 2020.
Whales disclose losses from UST and LUNA crash
Binance CEO Changpeng Zhao revealed the company\’s investments in the Terra ecosystem and noted that at the time of the collapse the exchange held 15 million LUNA, which are now almost worthless.
The Terra collapse cost Hashed blockchain company $3.5 billion in losses. In the wake of the incident, investment-research firm Delphi Digital also could have lost up to 13% of its assets — the equivalent of the peak value of the acquired LUNA tokens.
The founder of the Avalanche project Emin Gün Sirer said that the non-profit Avalanche Foundation lost $60 million that it invested in Terra.
However not all Terra investors lost money. At Pantera Capital they reported that the firm with substantial profits cashed out around 80% of its investments in the project\’s ecosystem.
What to discuss with friends?
- The SEC did not identify a former employee in the Ripple video.
- Sam Bankman-Fried doubted Bitcoin\’s future as a payments method.
- The leadership of \”Butyrka\” was suspected of illegal mining.
- The court overturned the decision to block the Tor site in Russia and sent the case for review.
DEI stablecoin from Deus Finance DAO lost its dollar peg
UST is not the only algorithmic stablecoin that has lost parity with the US dollar. On May 15, the price of DEI from Deus Finance DAO fell to around $0.51. The incident coincided with publication of a proposal to launch a debt-token program with a fixed rate from DEUS Treasury.
Tether reduced USDT backing in commercial paper by 17%
In Q1 2022 the issuer of the stablecoin USDT — Tether Holdings Limited — reduced its reserves in commercial papers by 17%. By the end of Q2 the company planned to reduce the collateral in these assets by a further 20%.
The accounting firm MHA Cayman, which conducted the audit, confirmed that the company\’s reserves exceed the amount necessary to fully redeem USDT.
Aurora Team to Airdrop Native Token and Launch New Platform
The NEAR network\’s Layer-2 protocol developers — Aurora — announced the launch of the Aurora+ platform with staking of the native token. It will be distributed via an airdrop to users who register in the service during the first week.
The Russian State Duma approved in the first reading a bill on taxes on digital assets
The State Duma approved in the first reading a bill on taxing operations with digital financial assets (DFA).
The document sets out the specifics of VAT on DFA transactions, corporate income tax, and personal income tax on profits from selling digital assets.
This week the Russian Interior Ministry also agreed to revised bills \”On Digital Currency\” and \”On making amendments to certain acts of the Russian Federation in connection with the adoption of the federal law \”On Digital Currency\”.\”
At the end of the week in the State Duma they introduced a draft law on amendments to the Civil Code, enshrining the concept of NFT.
Robinhood will launch a non-custodial crypto wallet, and Revolut will issue its own token
The online broker Robinhood announced the creation of a non-custodial Web3 wallet that will give users full control over cryptocurrency and direct access to DeFi and NFT segments.
The founder of Revolut Nikolai Storonenko stated plans for the neobank to issue its own digital token as part of developing the customer loyalty program.
Ethereum developers named the timeline for the transition to the Proof-of-Stake
The planned Ethereum transition to the Proof-of-Stake (PoS) consensus algorithm will take place in August, said one of the leading developers Preston Van Loon.
According to him, the team expects to complete the process, known as \”The Merge\”, before the activation of the \”difficulty bomb\”.
Earlier Ethereum developers said that on June 8, 2022 the project team will move the Ropsten testnet to the PoS algorithm.
Also on ForkLog:
- WSJ journalists described signs of insider trading in the crypto market.
- Former BitMEX CEO Arthur Hayes was sentenced to two years\’ probation.
- Bill Gates explained the absence of cryptocurrencies in his investment portfolio.
- In the Litecoin network activated the MimbleWimble upgrade.
What to read and watch?
In an exclusive ForkLog we analyzed the causes of Terra\’s collapse, assessing current and potential future implications for the industry, and the project’s chances of recovery.
Interest in decentralized autonomous organizations (DAOs) in the crypto industry is growing rapidly. They explained who conceived the DAO concept, what kinds of decentralized organizations exist, and why people join distributed communities.
They released a series of educational cards: about Vitalik Buterin, algorithmic stablecoins, hard forks and the 1inch project.
In traditional digests we have gathered the main events of the week in the fields of cybersecurity and artificial intelligence.
The cryptocurrency industry is attracting more institutional players. This is evidenced by new investments in infrastructure and the increased attention companies devote to Bitcoin as an asset class. The most important events of recent weeks are in ForkLog\’s review.
On Monday, May 16, ForkLog LIVE discussed what is happening with the crypto market in a live broadcast. Guests were traders Vladimir Koen and Anatoly Radchenko.
Read ForkLog\’s Bitcoin news in our Telegram — crypto news, prices and analytics.