Monat: Mai 2022

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FLOW is down by 5% despite announcing a $725M ecosystem fund

The cryptocurrency market has continued its poor start to the week, losing more than 6% of its value in the last 24 hours. 

The crypto market has been performing poorly since the start of the week. The market has lost nearly 7% of its value in the last 24 hours, and the total market cap now stands above the $1.3 trillion mark.

The market has lost over $100 billion over the past few hours, with LUNA’s poor performance affecting the broader crypto market. 

Bitcoin is down by more than 4% over the past 24 hours and is struggling to maintain its price above the $30k level. Ether has dropped to the $2,300 region after losing more than 3.5% of its value in the last few hours.

FLOW, the native token of the Flow ecosystem, is down by more than 5% over the past few hours. The poor performance comes despite the Flow team announcing the launch of its $725 million ecosystem fund.

In a blog post on Monday, Flow said the Ecosystem Fund would support existing and future developers in building applications on the Flow blockchain. The developers will gain investments, FLOW token grants and in-kind support from the team.

Key levels to watch

The FLOW/USD 4-hour chart is bearish over the past few hours as the market continues to underperform. Despite the positive news, FLOW could record further losses in the coming hours.

The MACD line is beyond the neutral zone as the bearish sentiment in the market thickens. The 14-day relative strength index of 33 shows that FLOW is currently oversold.

At press time, FLOW is trading at $3.49 per coin. If the bearish trend continues, FLOW could drop below the first major support level at $3.10 before the end of the day. 

In the event of extended negative performance, FLOW could trade below $3 for the first time this year. 

The post FLOW is down by 5% despite announcing a $725M ecosystem fund appeared first on Coin Journal.

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Terra CEO Do Kwon announces UST ‘rescue plan”, LUNA down 92%

LUNA has dropped more than 90% in the past 24 hours, while UST remains more than 54% off its dollar peg at $0.43.

Terraform Labs CEO Do Kwon has outlined how the cryptocurrency platform plans to handle the de-pegging from the US dollar that has over the past few hit the TerraUSD (UST) stablecoin.

UST, an algorithmic stablecoin whose minting model is tied to the native LUNA token has continued to decouple from its dollar peg on Tuesday massively. At one point, the UST token stood at $0.25, off 75% from the peg.

On Tuesday, Do Kwon said a “rescue plan” was in consideration, a move that followed failed attempts to push up the peg using Bitcoin reserves.

On Wednesday, the Terraform Labs chief explained via a tweet thread what was being put in place after a brutal 72 hours for the stablecoin and LUNA.

“I understand the last 72 hours have been extremely tough on all of you – know that I am resolved to work with every one of you to weather this crisis, and we will build our way out of this. Together,” he tweeted.

Path forward for UST and LUNA

According to Kwon, there is a need to absorb UST supply that is looking to exit the ecosystem first before further measures help establish a path towards the peg. This, he notes, will likely continue to push pressure on LUNA, which is incidentally down over 90% at the time of writing.

“Before anything else, the only path forward will be to absorb the stablecoin supply that wants to exit before UST can start to repeg. There is no way around it,” he explained.

He noted that the Terraform Labs team has proposed “several remedial measures to aid the peg mechanism to absorb supply.”

Among these measures is the teams’ endorsement of a community proposal to increase minting capacity from $293 million to $1200 million. With more LUNA minted, UST absorption will happen faster and help the recovery plan.

He, however, added that these measures come at a cost for holders of the Terra tokens.

“Naturally, this is at a high cost to UST and LUNA holders, but we will continue to explore various options to bring in more exogenous capital to the ecosystem & reduce supply overhang on UST,” he wrote.

Kwon has also hinted at a redesigning of the UST stablecoin, with future plans being to make it collateralized.

LUNA down 92%

On 11 May the UST token traded as low as $0.25, de-pegging the dollar by 75%. A brief relief in the crypto market had the stablecoin up to $0.50, but pressure has it back to $0.43 and more than 54% off the dollar peg.

LUNA was down an astonishing 92% in the past 24 hours at the time of writing. According to data from CoinGecko, the LUNA/USD pair was trading around $2.20 as a panicked community continues to wonder what next.

The post Terra CEO Do Kwon announces UST ‘rescue plan”, LUNA down 92% appeared first on Coin Journal.

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BAYC NFTs prices fall for 6 consecutive days as crypto market crash turns into a crisis

The prices of Bored Ape Yacht Club (BAYC) NFTs have been on a downtrend for the last six consecutive days as the wider crypto market crash turns into a catastrophe

The crypto market crash does not only have a direct impact on the crypto industry but also on all other attributes including NFTs.  The Non-Fungible Token (NFT) market including the BAYC NFTs, one of the largest and most popular NFT collections, has been largely affected.

BAYC has been among the top NFT performers and its popularity has even rivaled that of popular cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) in the past few weeks. However, due to the current crypto market slump, the prices of the BAYC NFTs prices is also nosediving in tandem with the wider price drops within the larger crypto market.

Bored Ape Yacht Club performance 

Although both BAYC NFTs and BTC are nosediving, BAYC NFTs are definitely performing far worse than BTC and Ethereum (ETH). Over the past six days, the NFTs have dropped by about 29% while BTC is down 15.8%, and ETH is down 13%.

Other major and popular NFTs have also been affected and are experiencing massive price drops, like JPG NFT Index price which has also seen a massive drop of 26% over the last 6 days.

Other NFT collections that have also been nosediving include the Otherdeed NFT and Moonbirds NFT which were down by 23% and 19% respectively. However, the NFT market is expected to get back to its bullish trend under one condition, and that is if the crypto market recovers from its current crash. 

The post BAYC NFTs prices fall for 6 consecutive days as crypto market crash turns into a crisis appeared first on Coin Journal.

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Das Schweigen von Do Kwon sagt alles inmitten der UST-Krise

Do Kwon ist der Gründer von Terra und das Gesicht des Ökosystems. Er ist auch auf Twitter äußerst aktiv und diskutiert häufig über Luna, UST und die Vorzüge der algorithmischen Verknüpfung.

Ton

Nun, ich nenne es diskutieren, aber es ist normalerweise weit entfernt von einer Diskussion. Er vertritt oft eine sehr aggressive Linie mit Berichten, die sich nach der Nachhaltigkeit des Pegs, der langfristigen Rentabilität von Anchor und vielen anderen (gültigen) Fragen zum Experiment UST erkundigen.

Gestern wurde sein UST-Stablecoin auf 60 Cent abgekoppelt. Während ich dies schreibe, sind es wieder rund 90 Cent, aber die Angst, dass das Vertrauen in das System irreparabel beschädigt wird, bleibt. Und einer der größten Gründe, warum ich mir Sorgen um die Fähigkeit von UST mache, sich langfristig zu erholen, ist die Haltung von Do Kwon sowie sein Schweigen während dieses ganzen Debakels.

Kurz bevor es richtig hässlich wurde, postete er unten in seinem typischen, lässigen Ton.

Sonst nichts. Funkstille. Seine Entschuldigung, als er dann, fast 24 Stunden später, endlich wieder auftauchte? „Wollte nicht so leise sein – brauchte messerscharfe Konzentration, um zu liefern, danke an alle für die Unterstützung“. Hmmm.

Ich argumentiere seit einiger Zeit, dass Do Kwon nicht das Temperament, die Transparenz oder die Reife zeigt, um ein Ökosystem zu führen, das Milliarden und Abermilliarden Dollar wert ist (Luna war über 40 Milliarden USD und 18 Milliarden USD wert, bevor alles implodierte).

Zentralisierung

Aber ob er geeignet ist oder nicht, ist vielleicht nicht der Punkt. Es wird als dezentraler Stablecoin beworben, was genau der Grund dafür ist, dass er den algorithmischen Peg verwendet. Warum müssen wir uns also auf das Wort eines Einzelnen verlassen? Warum müssen wir darauf warten, dass die Luna Foundation Guard (LFG) ihre Bitcoin-Reserven auf äußerst diskretionäre und undurchsichtige Weise einsetzt? Ist das die eigentliche Definition von Zentralisierung?

Rätseln Sie mit mir – was ist der Unterschied zwischen dem Einsatz der Bitcoin-Reserven der LFG und den Offenmarktgeschäften der Fed mit dem USD?

Dies hat das Potenzial, einer der größten Vermögensverluste in der Geschichte zu werden, wenn Do Kwon und die LFG den Markt nicht davon überzeugen können, dass der Bindung in Zukunft wieder vertraut werden kann. Nach so einem öffentlichen Ansturm auf die Bank wird es ein unglaubliches Comeback, wenn er es schafft, und ich werde auf jeden Fall meinen Hut vor ihm ziehen.

Ich fürchte nur, das Schweigen von ihm während der gestrigen Kernschmelze sagt Maßnahmen über das Ausmaß des Schadens und wie tief diese Krise wirklich ist. Wenn Sie über einen Run auf die Bank sprechen, ist das Spiel vorbei, sobald das Vertrauen weg ist. Ob dieses Vertrauen wiederhergestellt werden kann oder nicht, ist hier also alles wert.

In Anbetracht dessen könnte der nächste Tweet von Do Kwon der wichtigste in der Geschichte von Terra sein.

The post Das Schweigen von Do Kwon sagt alles inmitten der UST-Krise appeared first on BitcoinMag.de.