Kategorie: Crypto Markets

Solend, a Solana-based borrowing and lending protocol, has overturned the controversial DAO decision that was reached yesterday allowing Solana to take control of the platform’s largest user account.

It all started yesterday, June 19, when the Solend team staged a governance vote on whether to take over the account of a whale account belonging to one of its users to prevent the occurrence of an on-chain liquidation event since the unknown user held a $108 million stablacoins loan that was collateralized by 5.7 million Solana tokens ($170 million).

Solend risk mitigation proposal

According to the proposal that was voted on, there was a need to mitigate the risks from the whale that held 95% of the SOL in the Solend main pool. With the ongoing market meltdown, this could be a great threat to Solend since the whale account will have to be liquidated if the price of SOL drops to $22.30.

The team claimed that the liquidation of this size can pose a great threat to their lending protocol due to thin liquidity. In addition, the team noted that in case an on-chain liquidation happens, then Solend will be on the verge of acquiring bad debts as the SOL value continues to cascade.

However, the team suggested that the loan should be winded up through an over-the-counter (OTC) contract rather than protocol liquidation. With this kind of suggestion, the team got full support and power from the Solend governance system that quickly passed a vote for them to confiscate the user’s position, 88% of voting power coming from a single address.

Social media criticism

Following the governance system decision, there was a lot of criticism on social media claiming that the team has undermined the decentralization ethos. However, the team responded today, June 20, saying that they have taken note of their criticism and they are putting up a second proposal to invalidate the previous decision.

Today, the DAO voted in the favor of invalidating the previous proposal with 99% votes. The team wrote:

“We’ve been listening to your criticisms about SLND1 and the way in which it was conducted. The price of SOL has been steadily increasing, buying us some time to gather more feedback and consider alternatives.” 

The post Crypto lender Solend community votes to reverse ‘whale account’ takeover decision appeared first on CoinJournal.

Dogecoin (DOGE) has surged to a high of $0.06247 today following a tweet by Elon Musk. At the time of writing, the meme coin had slightly pulled back to trade at $0.058 and it was still green.

Dogecoin had found itself at the mercies of the unforgiving plummeting crypto market over the past weeks and Elon Musk’s tweet seems to have come at the hour of need. Musk tweeted yesterday that he will keep supporting Dogecoin.

I will keep supporting Dogecoin

— Elon Musk (@elonmusk) June 19, 2022

Elon’s tweet came a day after a Dogecoin investor sued Elon Musk and his companies SpaceX and Tesla Inc for an astonishing $258 billion in damages for being “engaged in a crypto pyramid scheme” involving Dogecoin.

BREAKING: Elon Musk, Tesla, and SpaceX have been sued for $258 billion over an alleged #Dogecoin ‚pyramid scheme.‘

— Watcher.Guru (@WatcherGuru) June 16, 2022

While the announcement of the legal battle did not have an immediate impact on Dogecoin price, investors were scared that the staunch DOGE supporter (Elon Musk) would pull back from supporting the meme coin following the suit.

However, yesterday’s tweet affirms to many that the billionaire is still a believer in the meme coin.

Elon Musk’s love for Dogecoin

Last year, Elon Musk revealed that he personally owns Bitcoin (BTC), Ethereum (ETH), and Dogecoin (DOGE). And in 2020 and 2021, the price of Dogecoin shoot through the roof whenever Musk tweeted about the coin.

While the prices of ETH and BTC jumped to new all-time highs in 2021, Musk kept on encouraging Dogecoin developers to upgrade the meme-coin so that it could beat the likes of Bitcoin.

In 2019, after being voted “Dogecoin CEO’ in a mock tweet survey, Elon went ahead and claimed he was “The Dogefather.”

Recently, Elon Musk’s Tesla Company started accepting Dogecoin as a mode of payment for its merchandise while SpaceX has also announced that it will start accepting the meme coin as payment for its merchandise. There are also speculations that Dogecoin shall be used for rewards on Twitter following Elon Musk’s bid to purchase Twitter.

The post Dogecoin price shoots up following Elon Musk’s tweet appeared first on CoinJournal.

Bitcoin price fell below $20,000 on Saturday to see the USD value of El Salvador’ BTC holdings shrink from over $105 million to around $44 million.

El Salvador became the first country to adopt Bitcoin as legal tender in June 2021 and went on to buy its first BTC as a nation on 6 September.

That first purchase was for 200 bitcoins for $10,353, 812 at an average price of $51,769.06 per BTC. At the time of writing, that first purchase is down 63.03%, according to a portfolio tracker.

El Salvador bought more Bitcoin, utilizing dips to add to its holdings as BTC climbed to its peak in November. President Nayib Bukele also announced two more purchases in 2022, even as prices declined further off the peak.

El Salvador’s BTC holdings down 58% overall

The last purchase was on 9 May 2022, when El Salvador acquired 500 BTC for $15.3 million at an average cost of $30 744. In total, the country currently holds 2,301 bitcoins acquired at over $105 million for a dollar cost average of $45,908.42.

The value of the total holdings has fallen dramatically over this week, even as BTC/USD plummeted from $30k to $20k.

When we first made this chart on Tuesday, El Salvador’s bitcoin investment was worth $67m. Before going to press on Thursday morning, we updated the chart to $52m. It’s currently $44mhttps://t.co/lVzsnYRI5L pic.twitter.com/fkY98aFQuw

— Alex Selby-Boothroyd (@AlexSelbyB) June 18, 2022

With Bitcoin price below $20,000, El Salvador’s BTC holdings are now worth about $44 million – down more than 58% overall and currently losing over $61.5 million.

Despite the huge loss, the country’s Finance Minister recently said the fiscal risk was “extremely minimal.”  

The post Bitcoin crash brings El Salvador’s BTC losses to over $61M appeared first on CoinJournal.

As the crypto market ructions continue, cryptos with metaverse backup like Decentraland (MANA) have stood tall as others nosedive. MANA, for example, registered some gains today after Decentraland DAO voted in favor of giving Decentral Games (DG) a $1 million grant.

At the time of writing, MANA was trading at $0.8399, up 1.98%.

Decentraland approves DG request for grant

Decentraland metaverse platform DAO approved the proposal made by the DG last month to give them a $1 million grant to support its liquidity pool. However, this grant is more than four times higher as compared to the $240,000 community grant that is paid out in MANA. The DAO uses these grants to support projects that steer the growth of their platform.

According to the DG’s proposal, the grant will offer rewards to its ICE-USDC liquidity pool on QuickSwap. DG play-to-earn ICE Poker game, launched in October 2021, uses ICE token. For those staking USDC-ICE LP tokens, the MANA from the DAO will be distributed to the users for over three months.

Decentral Games CEO and Co-founder, Miles Anthony said:

“This MANA allocation is a stepping stone to assist in boosting our in-game economy as we prepare to launch ICE Poker Sit-n-Go tournaments, along with other key initiatives that drive organic demand and utility for ICE and solidify our ecosystem’s long-term sustainability.” 

DG impact on the Decentraland ecosystem

According to Decentraland, DG has been a key player in its ecosystem with the ICE Poker game accounting for about 60% of its active users weekly and over 8000 active players daily in 12 different decentral venues, besides it has bought thousands of Decentraland land packages.

DAO members voted in favor of the proposal

For the proposal to be approved, a total of 191 DAO members with more than 11 million Voting Power (VP) voted, with 151 members voting in favor of the proposal against the 40 who opposed it. Voting Power determines the winners however it has to be with over 6 million VP threshold and in this case, there was a 6,162,990 VP against 4,952,747 VP.

The VP is calculated based on the total of LAND, MANA, and NAMES that are linked with the Voter’s wallet. In this case, big holders can sway a vote where only 10 voters accounted for 81% VP. But the DG team also played a big role by casting 2 million to reach the VP threshold.

The post MANA price jumps as Decentraland DAO votes to give Decentral Games $1M grant appeared first on CoinJournal.

Kyle Davies, one of the co-founders of Three Arrows CAPITAL (3AC), has said that the crypto hedge fund is exploring different options including getting rescued by another firm or asset sales. This comes after some top crypto exchanges liquated the firm’s leveraged positions.

Three Arrows Capital has grown to become one of the largest crypto-focused hedge funds over the past few years. However, after the Terra (LUNA) debacle a month ago and the current crypto market meltdown, the firm has been undergoing difficult times.

Liquidation of 3AC positions

Bitmex, Deribit, and FTX crypto exchanges have already Liquidated Three Arrows Capital Leveraged Positions.

While the two co-founders of Three Arrows remained mum on the fate of the hedge fund, Davies opened up about the dire situation that the firm was facing during an interview with the Wall Street Journal (WSJ).

During the interview, Davies admitted that the firm had suffered losses following the collapse of the TerraUSD (UST) and Terra (LUNA), currently LUNA Classic. In particular, Three Arrow Capital along with others had participated in a $1 billion token sale conducted by the Luna Foundation Guard. Three Arrow Capital had invested $200 million in the token sale.

Davies said:

“The Terra-Luna situation caught us very much off guard.”

Besides the Terra (LUNA) debacle, the plummeting crypto prices are also hurting 2AC long crypto positions.

Addressing the situation, Davies said:

“This has pushed 3AC into looking for desperate options, including asset sale and a rescue by another firm.”

But he was quick to note that they are not the first to be affected by the current situation saying that many other firms have also been affected.

The post Three Arrows Capital to seek bailout or asset sale appeared first on CoinJournal.