Kategorie: Crypto News

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Luna Foundation Guard confirms it sold 80,081 bitcoins to try prevent the UST crash

Luna Foundation Guard, an organization that supports the Terra ecosystem, has confirmed through an announcement that they sold 80,081 bitcoin and other holding tokens to prevent the crash on May 8 and May 10.

The Luna Foundation Guard (LFG) had over 80K BTC and other cryptocurrencies before the de-pegging of the UST.

The organization sold Bitcoins for about 3 billion UST which currently wort nothing because Terra blockchain has been suspended.

Luna stated via Twitter:

“Beginning on May 8, when the price of UST began to drop substantially below one dollar, the Foundation began converting this reserve to UST. The Foundation did so by directly executing on-chain swaps and transferring BTC to a counterparty to enable them to enter trades with the Foundation in large size & on short notice. Directly sold 26,281,671 USDT & 23,555,590 USDC for an aggregate 50,200,071 UST· Transferred 52,189 BTC to trade with a counterparty, net of an excess of 5,313 BTC that they have returned, for an aggregate 1,515,689,462 UST. On May 10, when UST had fallen to $0.75… Sold 33,206 BTC for an aggregate 1,164,018,521 UST.”

However, Luna collapsed the day after as there were no other mechanisms or assets to stabilize the stablecoin UST.

On May 7, LFG held 80,394 Bitcoin, but when the price of $UST started to drop they started the conversion of the Bitcoin reserve to $UST. At the time of writing the reserve has been left with only 313 BTC.

The post Luna Foundation Guard confirms it sold 80,081 bitcoins to try prevent the UST crash appeared first on Coin Journal.

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Binance to help Terra rebuild but expects more transparency, CEO ‘CZ’ says

Binance CEO Changpeng  ‘CZ’ Zhao says the leading cryptocurrency is ready to support Terraform Labs and its community’s rise from the ‘ashes’. However, he expects the team behind the LUNA and UST tokens to offer more transparency and accountability.

LUNA and UST’s collapse this past week caused ripples and attracted a lot of attention from around the crypto community and elsewhere. Among these reactions have been “falsehoods circulating in crypto twitter,” regarding what happened.

Regarding Binance’s support for Terra, Zhao explained that his viewpoint is that “minting, forking, don’t create value.” According to him, mechanisms that allow for buying back,or burning work. However, this requires funds that Do Kwon and his Terraform Labs team may not have access to.

Binance will therefore work towards helping the team. But more needs to be done.

“In this regard, I would like to see more transparency from them. Much more! Including specific on-chain transactions (txids) of all the funds. Relying on 3rd party analysis is not sufficient or accurate. This is the first thing that should have happened,” he said.

Projects can and will fail, but…

Zhao acknowledges that failures can and will happen. Nonetheless, when such setbacks occur, it needs the team behind the project to be more transparent, act with speed and communicate. Owning up when failures happen is also vital, the Binance chief added in a Twitter thread on Sunday.

Zhao said Binance supported Terra’s first fundraising but not the second one. The leading exchange did not also acquire any TerraUSD.

“I am just hoping that the project teams can rise from the ashes and rebuild in a proper and sensible way. Regardless of my personal views, or the solution chosen in the end, we will always be here to support the community in any way we can”

Terra collapsed dramatically last week, with de-pegging of UST from the dollar sending both the stablecoin and LUNA to zero.  Binance halted and then resumed spot trading for LUNA and UST.

The post Binance to help Terra rebuild but expects more transparency, CEO ‘CZ’ says appeared first on Coin Journal.

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Despite the Terra debacle, the UK to recognise stablecoins as legal tender

We only seek to legalize fully backed stablecoins says the Treasury   

As the crypto world gears up to deal with the consequences of the death spiral suffered by the Terra ecosystem last week, the United Kingdom’s Department of Treasury announced that its plans to regulate stablecoins as a legal tender continue to stay in place.

The announcement has reinstated Her Majesty’s Treasury’s commitment to supporting innovation in the country.

The department has confirmed that the legalisation of stablecoins as a payment mechanism was part of the financial legislation section of the Queen’s speech.  Prince Charles explained that the nation was undertaking various legislations across the board to improve living standards and promote growth.

The Economic Crime and Corporate Transparency Bill will play an important role in achieving these goals as they strengthen the power of law enforcement officers to tackle illicit finance and reduce economic crime, which will facilitate business growth, the Prince of Wales said.

While the UK’s Economic and Finance Ministry department confirmed last month that its constitution would be amended to make way for the use of stablecoins, scepticism regarding the future of such legislation grew as the markets crashed last week following the downfall of LUNA and UST due to the crash witnessed by Terra, one of the most popular stablecoins.     

The Treasury’s Chancellor, Rishi Sunak, hinted that the events of last week did not impact the country’s plans, adding that the government will take all steps to ensure the UK financial services industry is always at the forefront of technology and innovation.

A Treasury spokesperson further pointed out that the UK will not legalize payments via “algorithmic stablecoins” like Terra but instead supports 1:1 fully-backed stable coins like USDT or USDC:

“The Government has been clear that certain stablecoins are not suitable for payment purposes as they share characteristics with unbacked crypto assets.

 We will continue to monitor the wider crypto asset market and stand ready to take further regulatory action if required.”

The post Despite the Terra debacle, the UK to recognise stablecoins as legal tender appeared first on Coin Journal.

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Bitcoin is still struggling to break past the $30k resistance

The cryptocurrency market has struggled over the weekend as the bearish sentiment continues.

The cryptocurrency market has lost less than 1% of its total value over the past 24 hours. The total crypto market now stands above $1.2 trillion after losing nearly $300 billion the previous week.

Bitcoin remains the world’s largest cryptocurrency by market cap and has been struggling in recent months. At press time, Bitcoin is trading at $29,683, down by 11% over the last seven days.

The leading cryptocurrency has been struggling to regain its value above $30k since dropping below this crucial threshold for the first time this year a few days ago. The Terra crisis has affected the broader cryptocurrency market, and numerous cryptocurrencies are yet to embark on solid recoveries.

If the bearish sentiment continues, Bitcoin could continue to struggle below the $30k psychological level over the coming days.

Key levels to watch

The BTC/USD 4-hour chart is currently bearish as Bitcoin has underperformed in recent days. The technical indicators show that the bearish sentiment could grow thicker in the coming hours.

The MACD line has been below the neutral zone since the 5th of May. The MACD reading currently stands at -75, indicating a bearish trend for Bitcoin. 

The 14-day relative strength index of 49 shows that Bitcoin could drop into the oversold region if the recent market momentum is maintained.

Bitcoin could drop below the first major support level at $28,447 before the end of the day. However, the leading cryptocurrency should maintain its value above the $27,500 support level in the short term.

If the bulls regain control of the market, BTC could rally past the first major resistance level at $31,352 over the coming hours or days. Unless there is an extended bullish performance, the second major resistance level at $35,152 should cap further upward movement over the next few days.

The post Bitcoin is still struggling to break past the $30k resistance appeared first on Coin Journal.

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Highlights May 16: Cryptos mixed, Bitcoin comeback expected?

The crypto market as a whole was mixed at the time of writing. Bitcoin is showing signs of a comeback.  

Top cryptos

It is not much as comebacks go, but it’s still something for Bitcoin. Like all major cryptos, it was hammered last week by the toxic mix of rising interest rates, geopolitical unrest, the LUNA disaster, and recessionary fears.

Bitcoin was trading around $30,000, relatively flat over the past 24 hours and roughly 16% from Friday’s $26,600 depth.  

Ether, the second biggest crypto, is changing hands at about $2,050 after dropping below $1,800 last week for the first time in two months. 

Most major altcoins were in the green on Sunday, reversing some losses as the crypto market cap tumbled by $300 billion. 

Cardano is rising in the ranks, up just under 7% and ranking seventh by market cap at the time of writing. Solana rose more than 10% at one point over the weekend and is right behind ADA with gains of almost 8% in the last 24 hours.  

Cryptos outside the top 10 were unremarkable. Crypto.com’s Cronos is showing signs of recovery. It added 3% to its value today. 

Top movers

Outside the top 20, the most notable gainers are Cosmos, NEM, and Decred, each up 11%. Cosmos is surging on news of the the launch of the Gateway to Cosmos Conference and Hackathon. 

NEM hinted at a new SuperNode program on the horizon. 

There is no specific reason for the surge of Decred, other than an affinity for highly decentralized and secure tokens. There is no way for big Decred holders to manipulate the operation of the protocol. 

Arweave is the biggest winner of the day with an increase of 16%. It is rallying because of newfound appreciation for immutable permanent storage, in part related to the situation with Terra.  

The biggest losers of the day are Kadena and Decentraland with 8% each, Kusama and Gala with 9% each, and Helium, The Graph, and Maker with 10% each. 

STEPN is second only to TerraUSD in losses today. Its token GMT, which is among the more volatile in the top 100, is down 12%.    

TerraUSD has lost another 14% in the last 24 hours. It is now trading for 16 cents. Terra founder Do Kwon announced plans to bring it back up to $1, when its peg to the USD was intact. 

Trending

The biggest winner today is the token of Ethos Project, which bills itself as the primary method of payment for audit and development services. 

The ETHOS token is incorporated into Ethos projects and holders may receive token and NFT airdrops from partner projects. 

You can stake ETHOS tokens from PancakeSwap on Ethos Farming Portal and potentially earn a reward. ETHOS token is up 1,011% in the last 24 hours.  

LUNA is the top trending coin on Coinmarketcap today, but that’s the extent of positive news. It has lost another 23% in the last 24 hours and ranks below #200 by market cap.   

The post Highlights May 16: Cryptos mixed, Bitcoin comeback expected? appeared first on Coin Journal.