Coming every Saturday, Summary of Hodler will help you follow every important news that happened this week. The best (and worst) quotes, adoption and regulation highlights, major coins, predictions and more – a week on Cointelegraph in one link.
Top stories this week
Breaking: Terra blockchain officially shut down following LUNA price crash
This week, news about the Terra ecosystem hit the headlines after the algorithmic stablecoin TerraUSD (UST) lost its peg to the US dollar – and continued to tumble.
At its lowest point during the week, the UST fell to around $0.13, according to CoinMarketCap. The collapse also affected LUNA due to its symbiotic relationship with its active brother. After hitting a high of $120 in early April, LUNA’s value this week has fallen to virtually zero.
Do Kwon, CEO of Terraform Labs, sought to put in place certain measures to right the sinking ship, according to the Cointelegraph report on Thursday. Later reports showed that the Terra blockchain briefly halted operations after LUNA’s hyperinflation dramatically reduced the cost of a governance attack on the network.
Leaked report: South Korea to establish encryption framework by 2024
South Korea plans to govern crypto assets with a new set of laws intended to take effect by 2024, according to a leaked government document. Although verified as valid, the leaked document is not a finalized plan.
Led by the administration of President Yoon Suk-yeol, the new crypto regulations affect several categories, including NFTs.
Meta will test digital collectibles on Instagram starting this week
Earlier this week, Meta announced plans to experiment with NFTs on Instagram by allowing the use of digital collectibles as profile pictures. The decision came directly from CEO Mark Zuckerberg.
Adding NFT to Instagram serves as a precursor to bringing digital collectibles to Facebook and other Meta entities, Zuckerberg said. Other social media platforms, such as Twitter, have already offered NFTs as profile pictures.
Robinhood shares soar 30% after Sam Bankman-Fried buys $650 million stake
Since March this year, FTX CEO Sam Bankman-Fried has been buying shares of popular trading app Robinhood, completing his purchase last week. In total, Bankman-Fried acquired $648 million in Robinhood stock, equivalent to a 7.6% stake in the company. The average price per FTX CEO share was $11.52.
A regulatory filing in the United States recently revealed the purchase. Robinhood shares rose more than 30% immediately after the news broke.
ECB introduces ‘anonymous’ digital euro as public opposes ‘slavecoins’
The topic of central bank digital currencies (CBDCs) has become increasingly mainstream. A recent working paper from the European Central Bank gave the latest update on the monetary authority’s stance on the matter. According to the central bank, a CBDC with anonymity features could streamline payments while allowing merchants to block banks from extracting information about their payment flows.
Meanwhile, Europeans have apparently spoken out against CBDCs. “Slavecoin” is the term some online commentators have used to describe CBDCs. The backlash has continued to arise after the April 5 launch of a digital consultation on the euro which, in part, allows the public to have their say on the issue via online comments.
Winners and losers
On weekends, Bitcoin (BTC) is at $29,994Ether (ETH) to $2,067 and XRP to $0.42. The total market capitalization is $1.28 trillion, according to at CoinMarketCap.
Among the top 100 cryptocurrencies, there were only two altcoin winners of the week: Maker (MKR) at 1.22% and Fei USD (EIF) at 0.27%.
The top three altcoin losers of the week are Terra (MOON) 100%, TerraUSD (UST) at -81.61%, and Fantom (FTM) at -50.89%.
For more information on crypto 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.”
Ming Duanmanaging director and co-founder of Umee
“In most places in the free world and in democracies, crypto will eventually be regulated and legal. […] And the way we move the conversation forward is by taking action.
Brian ArmstrongCoinbase CEO
“If you want to make an algorithmic stablecoin, for example, it has to be backed by 300% solid assets, solid crypto assets – not 105%, or 110%, or even less. […] It does not make sense.”
Paolo ArdoinoChief Technology Officer at Bitfinex and Tether
“Anyone who’s been here less than 18 months is probably shocked, but for us who’ve been here 2016, 2017, that’s part of the game. Bitcoin isn’t going away, Ethereum isn’t going away because of LUNA or because of UST. Everything is business as usual.”
Marcel Pechmanncrypto analyst and Cointelegraph contributor
“The same rules that apply to investments in the physical world continue to apply to investments in virtual worlds.”
Five U.S. state regulators
“If platforms – whether in the decentralized or centralized finance space – offer securities-based swaps, they are implicated by securities laws and must operate within our securities regime.”
Gary GenslerChairman of the United States Securities and Exchange Commission (SEC)
Prediction of the week
Bitcoin Macro Bottom ‘Not Yet’ Warns Analyst as BTC Price Holds at $30,000
Bitcoin is coming off a very volatile week, briefly dropping below $27,000 at one point, according to Cointelegraph BTC Price Index. Although the asset then rose above $30,000, BTC may not be out of the woods yet in terms of the larger macro bottom.
Presenting his case, Twitter user Material Indicators noted, “IMO the macro background isn’t here yet.”
Other market assessments include that of former BitMEX CEO Arthur Hayes, who said in a May 12 blog post, “Crypto capital markets need time to heal after the end of the bloodshed.” He followed up with further comments, noting some price levels he watches for BTC and ETH.
FUD of the week
Galaxy Digital Announces $112 Million Q1 Loss, Citing Crypto Price Volatility
Crypto investment firm Galaxy Digital Holdings recently released its first quarter 2022 results. earnings of approximately $858 million in the first quarter of 2021. The company’s results reflect the significant shift in market sentiment for crypto assets over the past 12 months.
‘Mortified’ crypto trader gets 42 months for fraud, saying he was a total gun
A New York court has sentenced Jeremy Spence, known as “Coin Signals”, to 42 months in prison for running a Ponzi scheme. The scheme involved making false claims about his crypto-trading profits, taking money from investors, and then paying older investors with money from new ones. The court’s decision also included other terms of the sentence.
Breaking: Binance suspends trading of LUNA and UST due to issues on the Terra blockchain
Amid the turmoil surrounding LUNA and UST, Binance has decided to suspend spot trading for the UST/BUSD and LUNA/BUSD trading pairs. UST and LUNA withdrawals have been temporarily stopped by Binance earlier in the week. Binance Futures has also adjusted some LUNA-related trading features.
Best Crypto Features
Bitcoin 2022 – Will True Maximalists Please Stand Up?
“The attack is a cryptocurrency. This is the fucking attack.
Can Solana become the dominant outlet chain despite persistent outages?
The Solana network appears to be struggling with persistent outages while seeking to resolve the industry’s blockchain trilemma.
What happened? Terra debacle reveals flaws plaguing the crypto industry
The fall of Terra calls into question the real-world usefulness and long-term viability of algorithmic stablecoins.