Schlagwort: crypto market news

After weeks of hyping due to the TerraUSD (UST) stablecoin release, the LUNA token has been forced to bite a humble pie after the same stablecoin de-pegged from the US dollar causing its price to drop massively. 

The price of LUNA, the native token of Terra has dropped by over 95% over the last five days with the bulk of the drop being registered today where it had fallen by about 86% at the time of writing.

In one week, LUNA has dropped from trading above $80 to its current price of $4.89 at the time of writing.

LUNA and the UST

Some analysts say that there is a possibility that there were no funds in the Terra project to support the UST and maintain its Dollar peg.

However, the Luna Foundation Guard (LFG), the organization that ensures UST maintains its $1 peg, has been putting a lot of effort into ensuring that there are no more losses and returning the UST peg to the Dollar.

Besides, Terra’s stablecoin reserve emptied its Bitcoin reserve by deploying $1.5 billion worth of BTC to support the UST and also defend the peg by adding the required liquidity to the ecosystems. The foundation also started to loan out coins to other trading firms and also 750 million UST tokens to accumulate BTC all aimed at defending the peg.

On May 5, the foundation had a total of 167,081 BTC ($3.5 billion) when it announced that it has added 37,863 coins more. However, the market effects did not seem to bother Do Kwon, Terra funder, he tweeted “Deploying more capital – Steady lads.”

Deploying more capital – steady lads

— Do Kwon 🌕 (@stablekwon) May 9, 2022

However, after Kwon’s tweet, the foundation moved 42,500 coins to different crypto exchange platforms like OKX, but since then Kwon has not said a word.

How UST and LUNA work

UST and LUNA work together to maintain the $1 price using game theory and blockchain-based burn and mint mechanics. These mechanics acts as a shock absorber for UST price volatility by ensuring that traders can swap a $1 worth of UST for $1 worth of LUNA.

Although there were speculations on the future of LUNA, Today’s Doji candlestick showed that although bulls are buying at lower levels the bears are equally defending the lower levels, therefore, the selling and buying pressure are canceling out.

The post The price of LUNA falls massively after the UST de-pegged from the US Dollar appeared first on Coin Journal.

The crypto market as a whole continues to suffer with most top 100 coins in the red at the time of writing. 

Top cryptos

Bitcoin lost around 5% in the last 24 hours, trading below $31,000. Ethereum and XRP suffered similar losses. The second biggest crypto is changing hands for just over $2,200. The biggest top 10 loser is Solana with a drop of 12%. 

Cryptos outside the top 10 did not do much better. Avalanche has shed over a quarter of its value so far today with further pain expected. Terra’s stablecoin UST, which lost its currency peg, is down 67%, trading for 30 cents per UST. 

Another big loser is NEAR, down 22% today and 33% this week. 

Top movers

Outside the top 20, the tendency was similar, with most coins losing 7-12% of their value. 

Notable victims of the severe market downturn include Algorand (-22%), Cosmos (-17%), Monero (-18%), ApeCoin (-21%), THORChain (-23%), Axie Infinity (-24%), Fantom and WAVES (each -20%), and the promising STEPN’s GMT (-27%).

Terra’s LUNA is in freefall, down 86% today and ranking 38^th. Since the crisis with its stablecoin started, LUNA has lost 95% of its value.                

At the time of publication, the only cryptocurrency in the green was UNUS SED LEO, which has added 6% to its value. This cryptocurrency allows Bitfinex users to save money on trading fees. 

The extent of the discount depends on how much LEO the customer has in their account. LEO is at #22 and seems poised to break the top 20 soon.  

Trending

The biggest winner today is 1SAFU, a platform on Solana where users will be able to send and receive messages, SOL, and NFTs as a single transaction.

To sign up and use the service, one would only need a supported SOL wallet. 1SAFU holders are rewarded generously based on a tiered system. Its token SAFU is up 843% today.  

The post Highlights May 11: Bitcoin loses over 20% in a week, LEO only gainer appeared first on Coin Journal.

Bitcoin price fell sharply on Monday to break below $30,000 and register its lowest level since July 2021. 

As the sell-off in the crypto market mirrored Monday’s bloodbath on Wall Street to hit lows of $29,996, over 40% of Bitcoin supply slipped into an unrealized loss. And on-chain data from Glassnode suggest more pain remains a possibility if the current outlook is compared to that of the 2018 bear market.

The picture could be worse given Bitcoin’s short-term correlation with stocks, which means more losses for stocks amid higher rates and other macro headwinds could see BTC also plummet. It’s looking increasingly bleak for Bitcoin, which could retreat beyond the $28k level.

But according to Perianne Boring, the CEO and founder of the Chamber of Digital Commerce, the drawdown is a “massive buying opportunity.”

“Everything is down,” Boring noted in an interview with CNBC’s “Squawk Box” on Tuesday, pointing to the rout seen in stocks and bond markets amid Fed’s tightening. The low prices offer a buy the dip opportunity, she told CNBC’s Andrew Ross Sorkin.

„Bitcoin has only been around for 13 years. This is the first time that #bitcoin is experiencing a Fed tightening,“ says @PerianneDC on the recent #crypto sell off. „Everything is down … this is the Wall Street mantra at play: Don’t fight the Fed.“ pic.twitter.com/hMjz5wmXi4

— Squawk Box (@SquawkCNBC) May 10, 2022

Among the biggest dip buyers this week was El Salvador, which snapped 500 BTC worth over $15 million. 

Boring also said people are trading Bitcoin like a traditional asset, yet the cryptocurrency is not. Again, the focus has been on BTC’s price although really it should be on the network value.  

In terms of where she thinks Bitcoin will go in the future, she said the benchmark cryptocurrency’s fair value as per valuation models, currently stands between $48,000 and $180,000.

Bitcoin reached its all-time high of $69,000 in November and, at current price levels, is trading nearly 54% off that peak.

The post Bitcoin’s sell-off is a massive buying opportunity, says Chamber of Digital Commerce CEO appeared first on Coin Journal.

• KuCoin announces $150 million pre-Series B funding raise.
• The raise values the global crypto exchange at $10 billion.
• KuCoin will use the funds to build the next generation of its core trading system.

Leading global crypto exchange KuCoin announced a $150 million pre-Series B funding round, with which it is valued at $10 billion. Jump Crypto led the round and investment funds such as Circle Ventures, IDG Capital, and Matrix Partners took part.

Expanding presence in Web3

The inflow of capital will allow the exchange to expand beyond centralized trading services and augment its presence in Web 3.0, including GameFi, crypto wallets, DeFi, and NFT platforms.

This will be possible through KuCoin Ventures and other investment arms. The KuCoin community built a public chain, KCC, on which many resources will be deployed to create a decentralized ecosystem.

Building the next-gen KuCoin trading system and more

Among the uses of the new funds will be to build the next generation of the exchange’s core trading system. Performance is expected to improve tenfold thereafter. 

The funds will also support KuCoin’s global regulation efforts and improve security and risk management systems to make the platform more secure and accessible.

Johnny Lyu, CEO of KuCoin, commented:

The vote of confidence from prominent investors, including Jump Crypto and Circle Ventures, solidifies our vision that one day everyone will be with crypto. KuCoin is built for all classes of investors, and we believe these new investors and partners will contribute to making KuCoin synonymous with a reliable and trustworthy gateway into crypto space.

Tak Fujishima, Head of Asia, Jump Crypto, stated:

KuCoin provides a comprehensive platform of crypto services to a global audience, which is one of the many reasons we’re proud to lead this round. We are pleased to support the company as it continues to grow and expand its offerings in futures and margin trading, lending, staking and passive yield generation to support the growth of Web 3.0 and the crypto markets.

KuCoin is currently the fifth biggest crypto exchange on the market according to CoinMarketCap data. It secured $20 million in Round A funding in November 2018. 

The post KuCoin announces $150M funding round, $10B valuation appeared first on Coin Journal.

Crypto futures racked up more than $1 billion in liquidations in the past 24 hours amid major cryptos losing key support levels and weak market sentiment.

Top cryptos

Bitcoin (BTC) fell as much as 5% in the past 24 hours. Ethereum saw a similar loss. Dogecoin, XRP, and BNB lost around 7% each.

Bitcoin briefly dropped under $30,000 in early Asian hours, buoyed by a weak wider market. It was trading at just below $32,000 at the time of writing. 

Terra’s LUNA fell 50% as its UST stablecoin lost its peg with the US dollar. LUNA dropped out of the top 10, slumping to 14th position on Coinmarketcap’s ranking.  

Cardano suffered the least, down only around 3% today. The only top 20 gainer is Polygon, which has added around 0.70% to its value. 

Top movers

Coins in the top 100 mirrored the overall slump, with most losing up to 10% of their value. 

The hardest hit were Lido DAO (-43%), NEM (-16%), Amp (-18%), STEPN (-24%), Klaytn (-14%), Tezos and Algorand (each -13%), ApeCoin (-19%), and Monero (-15%). 

Not all is gloom and doom on the market. Notable standouts are FTX Token (FTT) and Elrond, each of which gained 3%. Maker is up 5%, and Qtum – 4%.  

Maker DAO’s traffic is consistently rising all over the world, especially traffic from Japan and Russia. In addition, Maker revealed the launch date of the AstraProtocol. The token ASTR SHO (Strong Holder Offering) is coming to Maker on May 30, 2022.

BitStore announced that it would list the QTUM token on May 11. It becomes available on the BitStore app tomorrow. 

Elrond is gaining on news of an upcoming listing on BitMart exchange, which will also integrate the ESDT token standard.

Elrond’s CEO tweeted that their new strategic partner would support the development and growth of the Elrond ecosystem by providing exceptional projects with funding and access to new markets. 

Trending

The biggest winner today is Rakon, whose token RKN added 406%. Rakon describes itself as a blockchain-based network designed to connect satellites, infrastructure, and navigation and communication systems in trustless ecosystems without relying on middlemen.

Rakon uses smart contracts to power timing solutions and frequency control of devices such as smart power grids, wireless controls, aviation systems and other applications. 

The post Highlights May 10: Crypto market crashes, Terra down 50% appeared first on Coin Journal.