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Dogecoin drops 15% after Anon Whales shift 250 million DOGE

Dogecoin (DOGE), the largest meme crypto, has dropped by more than 15% in the last 24 hours after Anon whales shifted 250 million DOGE with half of the amount going to Robinhood.

At the time of writing, DOGE was trading at $0.07903, down 15.51% after retracing from a daily high of $0.09932.

Half of the amount transferred to Robinhood

According to a tweet by @DogeWhaleAlert, an account that tracks big Dogecoin transfers, two transactions were carried out each exceeding 100 million, that is, 110,614,220, and 139,261,848 meme coins each worth $8,497,274 and $11,625,997 respectively. 

The second transaction of 139,261,848 Dogecoins was transferred to Robinhood, a popular US-based trading app that enables customers to invest in stocks and cryptos like Bitcoin, DOGE, Ethereum, Bitcoin Cash, Shiba Inu, Solana, and other popular coins.

Earlier this year, the service also started allowing customers to use local crypto wallets to deposit, store and withdraw digital currencies.

Yesterday, U.Today reported that Robinhood held 40,998,170,618 DOGE (worth $4,390,002,113) for its clients, which is approximately 30.90% of the DOGE circulating supply.

Recent DOGE activities

Following Terra UST dollar peg loss and the downtrend of Bitcoin, Dogecoin has also been trading sideways.

Currently, DOGE is 89.29% down from the all-time it had set last year, May 8, when it rallied to $0.7376 after Elon Musk, Tesla CEO and owner of SpaceX, called himself “The Dogefather” on Twitter and then debuted on Saturday Night Live (SNL).

However, Musk’s appearance on American TV resulted in a massive DOGE selloff but after three days dropped to $0.45.

The Tesla boss has been a major fan of DOGE and he has been mentioning the token a couple of times on his Twitter posts causing the token price to rally. However, as time went by his tweets’ effect started dimming and sometimes caused a short-term rally in the token price.

In January this year, Tesla Company started accepting Dogecoin payments for the selected merchandise in its online shops. But Musk commented on the move by saying that this was just an experiment and that he will see how it will go.

The post Dogecoin drops 15% after Anon Whales shift 250 million DOGE appeared first on Coin Journal.

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Sam Bankman-Fried explains why UST crash was ‘predictable’

Sam Bankman-Fried, entrepreneur, founder and CEO of FTX crypto exchange, tweeted that the crash of Terra’s UST and LUNA was ‘predictable’, generating a Twitter thread that has since gone viral. He said:  

A good point someone brought up recently: ‘Stablecoin’ is used to mean multiple different things. Just as the outside view skeptics predicted, during a large market move a stablecoin blew out.  Just not the stablecoin they predicted. Which was predictable, if you knew the details. This isn’t a comment about good vs bad–it’s about how important it is to know the details! 

SBF’s take on algorithmic stablecoins before the crash

In a Bloomberg interview with Joe Weisenthal, co-host of the Odd Lots podcast, SBF was asked about his take on the rise of algorithmic, partially-backed stablecoins. Weisenthal inquired:

One of the most interesting phenomenon happening right now is the rise of Luna and UST. Luna has this Treasury Reserve consisting of a lot of Bitcoin, which seems a little dicey, but some people say any idea of an algorithmically-backed stablecoin is a perpetual motion machine – it’s only a matter of time before it fails. Do you believe there can be a truly decentralized stablecoin? What do you make of these projects?

SBF: 

I do have some sympathy to the perpetual motion machine crowd here. They can serve some useful purposes, but if you do zoom out, right, and you say, this is a stablecoin, backed by volatile assets, what’s gonna happen in a big market move. Right? Like, you know how this plays out.

The screenshot of this exchange, posted on Twitter, attracted all kinds of comments. Here is one seemingly reasonable suggestion:  

Has someone thought of minting a decentralized stablecoin backed by a basket of tokens tied to commodities and securities? If it were done right, it might be less volatile than a stablecoin backed by Bitcoin.

The post Sam Bankman-Fried explains why UST crash was ‘predictable’ appeared first on Coin Journal.

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Tether to move over 1 billion USDT assets from Tron to Ethereum and Avalanche

After Terra’s UST stablecoin meltdown, there seems to be a storm within the stablecoin space with a second stablecoin and one of the most popular stablecoin, Tether (USDT) also losing its dollar peg. Following the recent developments, Tether has announced via a tweet that it shall coordinate a chain swap to move its USDT assets from the Tron blockchain to Ethereum and Avalanche blockchains.

In the announcement, Tether says that it plans to move one billion USDT assets from Tron to Ethereum and 20 million USDT assets from Tron to Avalanche. This will however not affect the total supply of the USDT stablecoins.

The announcement has come at a time when there is heightened fear arising from the recent TerraUSD stablecoin meltdown that has taken Terra (LUNA) coin down with it. Today, the price of USDT has shown some price fluctuations that have caused the stablecoin to even slip below $0.99 on many crypto exchanges.

USDT is the most traded stablecoin and investors are worried when it starts showing signs of struggle.

USDT is not like algorithmic stablecoins such as UST

In an interview, Tether’s CTO, Paolo Ardoino assured traders that the USDT stablecoin is not similar to algorithmic stablecoins like UST. He said:

“Tether has a Strong, conservative, and liquid portfolio that consists of cash & cash equivalents.” This includes treasury bills, money market funds, and commercial paper holdings.

Tether’s portfolio includes treasury bills, commercial paper holdings, and money market funds.

Ardoino also pointed out that while some are scared of the current stables hiccup, some traders are utilizing the opportunity by for example purchasing USDT below $1 and exchanging it for above $1 on Bitfinex and Tether’s official website.

The post Tether to move over 1 billion USDT assets from Tron to Ethereum and Avalanche appeared first on Coin Journal.