Schlagwort: crypto markets

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.

🐕🪙🐋🚨🚨🚨🚨🚨🚨🚨🚨🚨🚨

139,261,848 $DOGE ($11,625,997 USD) was transferred from an unknown wallet to a #Robinhood wallet.

Fee: 0.756 ($0.063 USD)

Tx: https://t.co/ADkdxMqG32#DogecoinWhaleAlert #WhaleAlert #Dogecoin #CryptoNews

— Ðogecoin Whale Alert (@DogeWhaleAlert) May 11, 2022

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.

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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.

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.

In few minutes Tether will coordinate with a 3rd party to perform a chain swap, converting from Tron TRC20 to Ethereum ERC20, for 1B USDt and from Tron TRC20 to Avalanche, for 20M USDt. The #tether total supply will not change during this process.

— Tether (@Tether_to) May 12, 2022

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.

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.

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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. 

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