Terra’s LUNA Jumps On Debut, Then Crashes

Terra blockchain’s new token LUNA seems to be a chip off the old block. Within hours of debuting this past Friday, the token’s price shot up by 47% to a peak of $19.53. It crashed soon after and reached a low of $3.98 on the same day based on data from Coinmarketcap. As of this writing, it has recovered to trade at $9.16. According to … Continue reading Terra’s LUNA Jumps On Debut, Then Crashes

Grayscale Launches Advertising Blitz For Bitcoin ETF Approval

Bitcoin’s fortunes may have tumbled this year but its advocates are not backing down yet. Investment firm Grayscale is pulling out all stops in its bid to get approval for conversion of its Grayscale Bitcoin Trust (GBTC) – a closed-end fund for accredited investors – to an ETF. The company submitted its application to the SEC in October last year and a decision is expected … Continue reading Grayscale Launches Advertising Blitz For Bitcoin ETF Approval

Crypto and Mainstream Finance Move Towards Each Other

The demarcating lines between traditional finance and cryptocurrencies are becoming increasingly blurry. Recent announcements by regulators and crypto companies point the way to a future in which the two ecosystems, different in their working and philosophically antagonistic until recently, are coalescing to become a single entity. FTX has become the first crypto exchange to offer trading of regular stocks to customers while SEC chief Gary … Continue reading Crypto and Mainstream Finance Move Towards Each Other

What Happened to Investors During The UST Crash?

The crash of algorithmic stablecoin UST continues to be a head spinning mess. Many big investors in the Terra blockchain and its native currency Luna claim to have cashed out of their holdings, some for a striking profit. But there doesn’t seem to be much respite for retail investors in the token. Luna, the underlying token responsible for maintaining UST’s peg, is practically worthless. Even … Continue reading What Happened to Investors During The UST Crash?

Bitcoin Mining in China; Crypto’s Play in Primaries; Meta Still Has Crypto Ambitions

The United States remains the world’s biggest center for bitcoin mining, according to a new report from the Cambridge Center for Alternative Finance (CCAF). The country accounted for 37.84% of global hashrate – the amount of computing power deployed to mine bitcoin – in the period between September 2021 to January 2022. China, which banned bitcoin mining last May, was responsible for 21.11% of the … Continue reading Bitcoin Mining in China; Crypto’s Play in Primaries; Meta Still Has Crypto Ambitions

In The Aftermath of stablecoin UST’s Collapse

It’s yesterday once more in cryptoland. The dizzying rise and rapid fall of algorithmic stablecoin TerraUSD’s (UST) demise brings to mind the initial coin offering (ICO) frenzy of 2017. Back then, all you needed to raise funds from investors was a whitepaper and a generous marketing budget to hype the offering. With the media and crypto enthusiasts cheering on, investors poured money into the empty … Continue reading In The Aftermath of stablecoin UST’s Collapse

Terra Proposes Fork In Revival Plan

The crash of TerraUSD (UST), Terra’s stablecoin, continued to reverberate in the crypto ecosystem on Monday. Terra’s co-founder Do Kwon outlined a new revival plan, after detailing one on Friday, for his beleaguered stablecoin UST. The coin became unhinged from its peg to the US dollar last week and continues to trade at prices far below its 1:1 intended value. Kwon’s plan envisages a “reconstituting” … Continue reading Terra Proposes Fork In Revival Plan

More Drama On Terra Blockchain

The drama continued in the TerraUSD (UST) ecosystem this afternoon, when its operations were halted this morning to prevent governance attacks. “Terra validators have decided to halt the Terra chain to prevent governance attacks following severe Luna inflation and a significantly reduced cost of attack,” Terra’s official Twitter account tweeted. The blockchain began producing blocks a few minutes later and its block explorer showed that … Continue reading More Drama On Terra Blockchain

Stablecoin Terra’s Peg Continues to Unravel

The unraveling of stablecoin TerraUSD’s (UST) peg to the US dollar continues unabated. As of this writing, it is trading at $0.40, down 23.7% from its price 24 hours ago, according to data from Coinbase. That figure is a far way off from its $1 peg to the US dollar but still represents an improvement from trading lows of 23 cents to the dollar on … Continue reading Stablecoin Terra’s Peg Continues to Unravel

Terra And The Freestanding Algorithmic Stablecoin

A successful algorithmic stablecoin is the Internet equivalent of a freestanding dollar, a currency cut off from its peg to the gold standard. Recent advances in technology and cryptography make the idea sound deceptively simple. Practical implementation, however, remains elusive. Many attempts at creating algorithmic stablecoins have failed in the past. TerraUSD (UST) is the latest example of one such coin teetering on the brink … Continue reading Terra And The Freestanding Algorithmic Stablecoin

Terra Continues Free Fall, Repegging In The Works

Will TerraUSD (UST) become the latest stablecoin to fail? That might be the most important question on the minds of investors in the stablecoin. Terra’s price, which was inching upwards towards its 1:1 peg with the US dollar yesterday, crashed to 26 cents Wednesday morning. Traders also sold off their holdings of Luna – the underlying token responsible for maintaining Terra’s price peg, crashing its … Continue reading Terra Continues Free Fall, Repegging In The Works

Terra (UST) Peg Crisis Deepens

The crisis in algorithmic stablecoin Terra’s peg with the US dollar deepened on Monday evening before staging an overnight recovery. TerraUSD (UST), the world’s third biggest stablecoin, was trading at $0.62 to the dollar yesterday evening based on prices available at Coinbase. As of this writing, the stablecoin’s price has risen to $0.89. The Luna Foundation Guard (LFG) announced yesterday that it was lending out … Continue reading Terra (UST) Peg Crisis Deepens

Bitcoin Price Suffers Double- Digit Decline

Bitcoin price and crypto markets tumbled to a new low for this year as investors, spooked by sell-offs in equity markets and the prospect of an economic recession, sold off their crypto holdings. At 19:23 UTC, the price of Bitcoin was $30,752.28, down by more than 11% from its price a day ago. Ethereum’s Ether, the world’s second largest cryptocurrency by market capitalization, was also … Continue reading Bitcoin Price Suffers Double- Digit Decline

Questions Swirl After Algorithmic Stablecoin Terra Loses, Regains Price Peg

Not much news takes place in mainstream markets over the weekend because they are closed. But there is always plenty of action in the 24X7 cryptocurrency markets. The latest drama occurred over the past weekend and concerned the price volatility of algorithmic stablecoin Terra or UST. The stablecoin has been a center of news coverage about decentralized finance (DeFi) and cryptocurrencies in the last couple … Continue reading Questions Swirl After Algorithmic Stablecoin Terra Loses, Regains Price Peg

Will Terra’s Bitcoin Bet Work?

Can Bitcoin become a good reserve asset?   Luna Foundation Guard, the folks responsible for building reserves for the Terra (UST) stablecoin, – the world’s third most valuable stablecoin, certainly seem to think so. They recently bought $1.5 billion worth of bitcoin for their reserves. That figure brings the total amount of bitcoin backing the stablecoin to $3.5 billion. The stablecoin was reported to be … Continue reading Will Terra’s Bitcoin Bet Work?

The Otherdeed Sale Highlights Crypto’s Persistent Problems

There is never a dull moment in crypto. On any given day, there is a scam or a hack. On others, there is a controversy. The latest kerfuffle in cryptoland involves an NFT sale (what else?) and highlights two persistent problems: high transaction fees and regulatory uncertainty. The Otherdeed Mint: A Troubled Sale It started when Yuga Labs – the company behind the Bored Ape … Continue reading The Otherdeed Sale Highlights Crypto’s Persistent Problems

SEC Adds Staff To Its Crypto Division; Could Signal Clarity In Regulation

In his appearances between lawmakers after becoming the chief of Securities and Exchange Commission (SEC), Chairman Gary Gensler referred to the cryptocurrency ecosystem as a “Wild West” and requested greater authority and funding to police it. In a press release yesterday, the agency said it was adding 20 new positions to its Crypto Assets and Cyber Unit. The new additions bring the total number of … Continue reading SEC Adds Staff To Its Crypto Division; Could Signal Clarity In Regulation

What Value in Total Locked Value?

Total Value Locked (TVL) is one of the more interesting metrics to emerge from the Decentralized Finance (DeFi) ecosystem. TVL is the total amount of cryptocurrencies or DeFi tokens locked in smart contracts in various DeFi projects at that point in time. For example, the TVL of a DeFi-lending project will be a total of the market prices of tokens used as collateral by the … Continue reading What Value in Total Locked Value?

Fidelity Will Begin Offering Bitcoin In 401(k)s Later This Year

According to reports, investing giant Fidelity Investments will begin allowing bitcoin investments in its 401(k)s by the middle of this year. Investors will have a separate account on Fidelity’s platform for Bitcoin investments. The account will also have money market investments to hold liquidity. Dave Gray, Head of Workplace Retirement Product and Platforms at the company, told the Wall Street Journal (WSJ) that demand for … Continue reading Fidelity Will Begin Offering Bitcoin In 401(k)s Later This Year

Algorithmic Stablecoins In The Spotlight

Stablecoins are unlikely cryptocurrencies – a bridge between the established world of fiat currencies and its emerging decentralized challengers. Algorithmic stablecoins take that paradigm a step further by eliminating the fiat component and replacing it with token economics on the blockchain. The challenge of creating a free-standing currency to bridge the fiat and crypto worlds has attracted many developers and the number of algorithmic stablecoin … Continue reading Algorithmic Stablecoins In The Spotlight

IMF Calls For Capital Controls and Regulation In Crypto

With an acceleration in “cryptoization” of emerging market currencies, the International Monetary Fund (IMF) is calling for capital controls for cryptocurrency businesses. The agency issued a report Tuesday that outlined measures for instituting regulation on the emerging asset class. Crypto: A Threat to Global Financial Stability As a result of the “cryptoization,” trading volumes for cryptocurrencies against those for emerging markets spiked following Russia’s invasion … Continue reading IMF Calls For Capital Controls and Regulation In Crypto