Exchanges back ‘Terra 2.0 revival plan’ via airdrops, listing, buyback and burning

MEXC Global has pledged to carry out a month-long buyback-and-burn to reduce the circulating supply of the old Terra markets.

The fall of Terra shook the entire crypto market. However, the project has no plans to stay down, having secured backing from crypto exchanges to help it rebuild. 

In an announcement on Thursday, Terra provided details on an upcoming airdrop of the new native token for its new blockchain dubbed Terra 2.0. The distribution of tokens will proceed on Friday, and holders of Terra Luna Classic (LUNC), TerraUSD Classic (USTC) and Anchor Protocol UST (aUST) who are eligible will receive new tokens

Crypto exchanges Binance and FTX noted that they are working closely with the Terra team regarding the upcoming airdrop. Binance stated that it aims to help affected users on the platform by helping Terra with the recovery plan.

FTX announced that it will support the airdrop and temporarily halt LUNA and UST markets during the migration. The Terra team said that in addition to Binance and FTX, it’s also working closely with more partner exchanges that will support the airdrop.

Apart from the airdrop, many crypto exchanges, like KuCoin, also expressed support for Terra 2.0 by supporting the migration, listing and trading of the new Terra tokens on their platforms. 

However, not all exchanges are eager to list the new tokens. In a statement, a spokesperson from crypto exchange BitMEX told Cointelegraph that there are currently no plans to list the new Terra tokens. They explained:

“We list tokens for spot trading based on numerous factors, including that we have a custody solution for that particular token. As such, we have no plans at this stage to list LUNA for spot.”

As for derivatives contracts, the spokesperson said that the exchange needs to ensure there is a “reliable reference index” before it can consider contracts on the new LUNA token.

Related: Terra fallout: Stablegains lawsuit, Hashed loses billions, Finder wrong and more

Meanwhile, not everyone is ready to fully move on to the new chain. Despite Terra founder Do Kwon’s position against burning LUNA’s circulating supply, users of the crypto trading platform MEXC Global voted to initiate buybacks and burning in Terra’s secondary market. Using the trading fees collected from the new LUNA/USDT spot trading pair within its platform, MEXC committed to a month-long buyback-and-burn process.

Korean watchdog begins risk assessment of crypto as Terra 2.0 passes vote

While the FSS’ standardization effort is still in its early stages, it is expected that once a legal framework for virtual assets has been established, a uniform evaluation system will be put in place.

The Korean Financial Supervisory Service (FSS) has announced that it will be standardizing the way in which virtual asset risks are assessed. 

According to a local news report, this is because it is currently tough to safeguard investors due to the many ways that risk is measured for each virtual asset exchange. While the FSS’s standardization efforts are still in their infancy, when a legal framework for virtual assets has been established, it will be expected that a uniform evaluation system can be implemented for all exchanges.

On Wednesday, Stablenode’s chief operating officer Doo Wan Nam tweeted that a meeting had taken place at the Korean National Assembly building with representatives from Korean exchanges and officials regarding the Terra (LUNA) and UST issues. The exchanges, according to Doo, said the situation was undesirable and that they would do everything possible to safeguard traders on their platforms.

Heraldcorp reported on Wednesday that Do Kwon, the cofounder of Terraform Labs, has contacted five South Korean exchanges to relist when LUNA 2.0 goes live. However, because LUNA is now under investigation following its failure, a number of other platforms in South Korea are staying clear, except Upbit.

CEO Kwon’s “Terra Ecosystem Restoration Plan” is to create new coins and give them out to investors who have lost money. “Let’s call the existing Terra blockchain network “Terra Classic,” and the present Luna blockchain, “Luna Classic,” and create a new Terra blockchain,” CEO Kwon tweeted on May 18.

The majority of the community, or 65.5%, supported Kwon’s plan. Just 13.2% opposed the fork vote. Around 20% of respondents abstained from voting. On Friday, based on the information in the proposal, Terra 2.0 is anticipated to go live on mainnet. After this launch, LUNA 2.0 coins will be tradeable. At the pre-determined proportion, new tokens will be airdropped to existing stakeholders of the network. However, most of the coins will go through a vesting period.

The plan to relaunch the Terra blockchain and create LUNA 2.0 tokens has been approved by on-chain voters. This will lead to the development of a new blockchain that will airdrop tokens proportionally to those who were affected by the abrupt fall of the UST algorithmic stablecoin.

Binance, a cryptocurrency exchange, has thrown its weight behind the “Terra Rebirth.” The firm said it is collaborating with the Terra team on the recovery plan, which is aimed at givin affected users its platform “with the best possible treatment.”

The controversial $40 billion meltdown of Terra has been the subject of much debate in the Korean and global crypto community. As reported by Cointelegraph, Korean exchanges handled the collapse in different ways, with the National Assembly’s Political Affairs Committee convening Terraform Labs co-founder Do Kwon for a parliamentary hearing regarding the issue.

Related: Exchanges show initial support to Terra revival by listing new LUNA token

Now, the outspoken 30-year-old South Korean who frequently calls his critics “poor” is being called on to explain this month’s $40 billion crash of a project he once called “the oldest and most widely used algorithmic stablecoin in existence.”

Bitcoin ‘finally’ due for $32.8K as long-term BTC price metric flashes overvalued

An uptick to two-week highs is on the cards but longer timeframes still trouble Bitcoin analysis.

Bitcoin (BTC) briefly returned to $30,000 before the May 25 Wall Street open as range adherence lingered.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

Trader: BTC should challenge 2-week highs

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD managing to hit $30,189 on Bitstamp before consolidating back under the $30,000 mark.

While appearing uninspiring at first glance, Bitcoin on low timeframes was a source of fresh interest for Cointelegraph contributor Michaël van de Poppe, who predicted a run to near $33,000 next.

“Bitcoin broke through $29.4K and ran towards the next resistance zone,” he told Twitter followers.

“If we hold $29.4K, we’ll be good towards $32.8K. Finally.”

If realized, $32,800 would represent Bitcoin’s highest since May 9 — just before the Terra implosion sparked its cascade to ten-month lows.

Fellow trader Nebraskan Gooner, meanwhile, eyed a series of higher lows on the four-hour chart, highlighting $30,400 as “the line to beat.”

Metric hints BTC price “overvalued”

Beyond intraday price action, however, cold feet among many analysts remained.

Related: Largest difficulty drop since July 2021 — 5 things to know in Bitcoin this week

For on-chain analytics platform CryptoQuant, concerning signs from the network transaction value (NVT) Golden Cross metric suggested a retracement was incoming.

Designed to catch local tops and bottoms, a spike in the NVT Golden Cross, as was occurring on the day, reinforced the idea that volume was not sufficient to sustain upwards trajectory.

“We have a significant change in the NVT Golden Cross indicator where it has reached its most overvalued position since April last year before the dip to the June lows,” CryptoQuant contributing analyst Kripto Mevsimi told Cointelegraph.

As Cointelegraph reported, forecasts for a generational bottom in BTC/USD included as low as $15,500 this week.

A new all-time high, meanwhile, might have to wait until 2024, when Bitcoin’s next halving cycle begins.

Bitcoin NVT Golden Cross chart. Source: CryptoQuant

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Exchanges show initial support to Terra revival by listing new LUNA token

HitBTC plans to list Terra’s brand new token LUNA on May 27 as the suspended Terra Classic blockchain is expected to revive as Terra 2.0.

Crypto trading platforms show initial signs of support for the revival of the collapsed Terra network by listing Terra’s brand new token, also named LUNA.

The HitBTC exchange took to Twitter on Wednesday to announce that Terra’s new chain token Luna will be available on its platform on May 27.

The news comes amid Terraform Labs preparing to relaunch its protocol on Friday and replace the old chain, referred to as Terra Classic, with the new chain, called Terra or Terra 2.0. The new chain will not be a fork as it will be created from the genesis block and will not share a history with Terra Classic, Terraform Labs said on Monday.

The new Terra’s token will be named LU, replacing the old token referred to as Luna Classic (LUNC).

As previously reported, Terraform Labs CEO Do Kwon proposed to create a new Terra chain without Terra’s algorithmic stablecoin TerraUSD (UST) in mid-May, suggesting LUNA airdrops across LUNC stakers and holders, UST holders and Terra Classic app developers.

The proposal immediately received support from the community, with 91% of Terra validators voting in favor of the Terra “rebirth” as of May 18. At the time of writing, the community poll is still ongoing, with roughly 67% of voters supporting Terra’s revival as Terra 2.0.

Terra network rebirth poll. Source: Terra Station

Terra’s revival comes after Terraform Labs halted the Terra blockchain on May 12 following a massive network crash, with the Luna token plummeting as low as 99% and UST losing its 1:1 peg value to the United States dollar.

HitBTC is apparently not the only crypto exchange intending to cooperate with Terraform Labs in the aftermath of UST and LUNA’s collapse. Following Terra’s successful rebirth vote, Binance crypto exchange announced that it will be “working closely with the Terra team on the recovery plan” to help impacted users on Binance. 

Related: Court documents reveal Do Kwon dissolved Terraform Labs Korea days before LUNA crash

Coinbase recently announced that it would delist the Wrapped Luna (WLUNA) token, an Ethereum token representing LUNA, on Friday. Coinbase Cloud, Coinbase’s infrastructure arm, announced on Friday, May 20 the suspension of support for Terra and all potential Terra chains in the near future.

On Wednesday, Terraform Labs CEO denied reports that he has been in touch with major South Korean crypto exchanges, asking them to list the new Luna token.

South Korean police request exchanges freeze LFG related funds

Police in South Korea contacted the country’s leading exchanges to freeze any funds linked to the embattled Luna Foundation Guard.

Crypto exchanges in South Korea have been issued notices from police requesting the sequestering of funds related to the Luna Foundation Guard. 

On Monday, Korean authorities sent a request to the top crypto exchanges in the country to prevent funds from being withdrawn. Specifically, the Seoul Metropolitan Police Agency asked to prohibit the Luna Foundation Guard from taking any action. The police claim that clues have been found that may link the organization to embezzlement.

The Luna/Terra algorithmic stablecoin crash, which reduced the value of the coin by over 99%, crushed investor portfolios overnight earlier this month.

However, this request is not a demand and is not enforceable by law. Each exchange can choose how they would like to respond, but it is not yet known how they will react.

Several prominent Korean investors requested that Do Kwon, CEO of Terraform Labs, be investigated and sued for the collapse of the TerraUSD (UST) stablecoin. This triggered the revival of the “Grim Reaper,” a Korean Financial and Securities Crime Joint Investigation Team.

Korean legislators have gone as far as meeting with executives from each of these exchanges, including Upbit, Bithumb, Coinone, Korbit and Gopax. Because they are not required to comply, this meeting is likely a move to put pressure on the heads of these exchanges.

According to Newspim, Yoon Chang-Hyeon, chairman of the People’s Strength Virtual Assets Special Committee, said on Facebook, “We will check the exchange’s investor protection measures.”

Related: Terra crash not a risk to the broader crypto ecosystem, says Huobi Global co-founder

It is reasonable to expect that the representatives from the exchanges will be held accountable, in some way, for the damage caused to investors by the Terra (LUNA) crash, reported the outlet. Newspim also reported that the Korean National Assembly is taking the initiative to regulate punishment in this matter.

Two of the exchanges had already issued warnings on their websites, Coinone has already halted the trade of LUNA as of May 11 and Binance had also suspended some spot trading.

Although this official report joins the broader developing story, the request to the crypto exchanges and the Do Kwon investigation are not linked. The actions by the National Assembly and the Korean authorities make it clear that Korea is willing to take the necessary steps to get to the bottom of the Terra ecosystem collapse imbroglio.

Do Kwon shares LUNA burn address but warns ‘LUNAtics’ against using it

Upon a persistent request from the Terra community, Kwon went against his initial plan and publicly shared a burn address for LUNA on Saturday.

The recent Terra revival plan announced by Do Kwon, the co-founder and CEO of Terraform Labs, received mixed reactions as many questioned the effectiveness of a hard fork in reviving the fallen prices of Terra (LUNA) and TerraUSD (UST) tokens. Instead, the part of the community recommended burning LUNA as the most plausible way to achieve a comeback.

Kwon’s proposal to preserve the Terra ecosystem involves hard forking the existing Terra blockchain without the algorithmic stablecoin and redistributing a new version of the LUNA tokens to investors based on a historical snapshot before the death spiral. However, several crypto entrepreneurs, including Changpeng “CZ” Zhao, opined that:

“Reducing supply should be done via burn, not fork at an old date, and abandon everyone who tried to rescue the coin.”

Upon a persistent request from the crypto community, Kwon went against his initial plan and publicly shared a burn address for LUNA on Saturday. Every LUNA token sent to this address will be burned immediately, effectively reducing the circulating supply of LUNA tokens.

Two days after sharing the LUNA burn address, Kwon reiterated his point of view that reducing the circulating supply of LUNA tokens will have no impact on the market price, stating, “nothing happens except that you lose your tokens.”

The Terra co-founder clarified that the burn address was shared with users only for information purposes and warned against using it:

“Happy to provide for information purposes but want to clarify that you should not burn tokens unless you know what you are doing – I for one cannot understand.”

However, the revelation resulted in more confusion among investors. As Cointelegraph previously reported, LUNA’s insane volatility serves as a lucrative opportunity for investors as many try to recoup their losses and others eye profitable trades.

Kwon has previously confirmed that Terra is no longer minting new LUNA, which is one of the main reasons why investors believe a burning mechanism will improve LUNA’s price owing to scarcity.

Amid an unclear roadmap for a resolution, investors are advised to refrain from making abrupt financial decisions as the master plan for Terra revival continues to be under public scrutiny.

Related: Near Protocol picks up slack, onboards Tracer following Terra’s downfall

As a direct consequence of Terra’s collapse, numerous projects sought to migrate to different blockchain ecosystems fighting for survival. Near Foundation, too, played its part by recently onboarding Tracer, a Web3 fitness and lifestyle app.

Speaking to Cointelegraph, Near Foundation’s Nicky Chalabi highlighted that projects like Tracer seek alignment with the ecosystem’s core values and that:

“Projects must watch the interests of their community and users because, in the end, that’s the most valuable thing you have.”

Chalabi further advised Terra projects to migrate only after considering the interests of their users and communities, stating “That can actually define your success.”

Near Protocol picks up slack, onboards Tracer following Terra’s downfall

As explained by Near Foundation’s Nicky Chalabi, projects like Tracer seek alignment with the core values of the ecosystem that can support the company’s roadmap in time to come.

For many layer 1 crypto projects, returning to normalcy from Terra’s death spiral meant a complete migration to a different ecosystem. But, how does one make the right move, especially after knowing the unfortunate fate of their initial platform of choice?

In the case of Tracer, a Web3 fitness and lifestyle app, moving away from the Terra ecosystem for survival was just one piece of the puzzle. Choosing a new host to build on requires more than checking the technical compatibility with the blockchain ecosystems.

As explained by Near Foundation’s Nicky Chalabi, projects like Tracer seek alignment with the ecosystem’s core values that can support the company’s roadmap in time to come. Tracer’s decision to completely migrate over to Near Protocol complements the various other crypto projects that have recently shifted over to Binance’s BNB Chain and Polygon Studios.

Speaking to Cointelegraph about the decision-making process behind a total migration, Chalabi suggested:

“Projects must watch the interests of their community and users because, in the end, that’s the most valuable thing you have.”

Coincidently, Tracer and Near used the same programming language for building smart contracts, which further eased the migrating process. However, Chalabi echoed the sentiments of the crypto community by stressing the fact that Terra’s downfall was a loss for the entire community:

“We’re really trying to help. It’s not our goal to take advantage of this situation. You and your projects have lost your home.”

The sudden collapse of major ecosystems negatively impacts the trust and credibility of projects as investors tend to make unrecoverable losses in the process. As damage control, Near allocates resources to understand the project’s needs, work with the projects, and immediately address any issues.

Other ecosystems, too, have taken a similar approach in easing the transition for the recently displaced projects. As Cointelegraph recently reported, BNB Chain is also committed to investing and supporting projects that intend to migrate away from the Terra ecosystem.

In concluding the discussion, Chalabi advised the recently displaced projects to migrate to blockchains based on the interests of their users and communities instead of choosing platforms for short-term monetary gains, stating “that can actually define your success.”

Related: Aurora launches $90M fund to finance DeFi apps on Near Protocol

Aurora, an Ethereum Virtual Machine (EVM) designed to scale decentralized applications (DApps) built on the Near protocol, recently launched a token fund worth $90 million. 

As Cointelegraph reported, Aurora Labs allocated 25 million AURORA tokens, valued at roughly $90 million, from the decentralized autonomous organization (DAO) treasury to fund the initiative.

3 red flags that signal a crypto project may be misleading investors

The challenges faced by Terra, Wonderland and a handful of other DeFi projects exposed the need for investors to do more research and avoid cult personalities.

Satoshi Nakamoto left a large pair of shoes to fill after releasing the code for Bitcoin (BTC) to the world, helping to establish the network, then vanishing without so much as a trace. 

Over the years, the crypto ecosystem has seen many developers and protocol creators rise in stature to become crypto messiahs for faithful holders who eventually have their best-laid plans end in catastrophe when the protocol is hacked, rugged or abandoned by whimsical developers.

2022 is hardly halfway complete and the year has already seen a particularly bad stretch of good intentions gone awry, which have collectively helped plunge the market into bear-market territory. Here’s a closer look at each of these instances to help provide insight into how similar outcomes can be avoided in the future.

Some developers are anonymous for a reason

Satoshi may have successfully remained anonymous while launching Bitcoin, but in most instances since then, having anonymous developers has turned out to be a red flag.

Many anonymous developers cite personal safety reasons for taking this route. While this is a valid reason in some cases, sometimes anon developers are hiding from previous misdoings or pre-planning to cover their tracks in the case of future offenses.

A flagrant example of this was Squid Game (SQUID), a Netflix-show-inspired memecoin that rallied 45,000% within a few days after launch, only for traders to realize that they were unable to sell the tokens on any exchange.

Investors eventually discovered that all the developers were anonymous and all social media channels were blocked from comments.

The crypto community has grown to be rather distrustful of anonymous developers and this can be seen in the negative reaction to the revelation that the founder of the Azuki nonfungible token (NFT) project was involved with three other NFT projects that were ultimately abandoned, leaving their holders with little to show except worthless jpegs.

Another instance of an anonymous developer going rogue occurred in 2022 when it was revealed that the anonymous Wonderland (TIME) treasury manager @0xSifu turned out to be an alleged financial criminal, along with QuadrigaCX co-founder Michael Patryn.

The revelation of this connection resulted in the collapse of several popular projects including Wonderland and Popsicle Finance, while a significant amount of criticism was directed at Abracadabra.Money creator Daniele Sestagalli.

Prior to the @0xSifu revelation, all three protocols were seeing increased adoption, but , each protocol is a mere shadow of its former success.

Having anonymous developers removes accountability from the equation and is increasingly becoming a red flag when dealing with multi-million dollar cryptocurrency protocols.

Beware of cult personalities

Finance is no stranger to cult personalities and crypto is not immune to this phenomenon.

Long-time crypto pundits will recall Roger Ver being called “Bitcoin Jesus” and hileading the charge to fork Bitcoin Core and create Bitcoin Cash (BCH). Billionaire Dan Larimer also comes to mind, and investors will recall his helping EOS (EOS) raise $4 billion during the initial coin offering (ICO) boom of 2017 to 2018. In each instance, it was a fervent flock of followers that propelled each project forward.

Neither BCH nor EOS managed to reclaim their all-time highs during the 2021 bull market despite all the hype about their future when first launched. This is possibly because a portion of the hype is centered around the personalities behind the projects.

A more recent example includes the collapse of Fantom ecosystem token prices after decentralized finance (DeFi) developer Andre Cronje deactivated his Twitter account and informed the community that he was leaving the crypto space entirely.

Cronje had become so popular that many people would buy a token just because he was involved, and when he left, many of these investors dumped their holdings, which negatively affected the tokens’ prices.

While Cronje was doing what he thought was right and had no ill intentions toward the community, his actions appear to have negatively affected the crypto market due to his popularity within the community and the dedication of his followers.

The main takeaway is to be vigilant when a developer is seen as incapable of doing wrong and remember that cult-like followings can have outcomes that ripple beyond their community.

Related: Court documents reveal Do Kwon dissolved Terraform Labs Korea days before LUNA crash

Decentralization requires involving the community

Another red flag to be on the lookout for ar decentralized autonomous organizations (DAOs) and DeFi protocols that operate in a manner that appears to be more centralized than their name would suggest.

It’s common for many protocols to claim that they are decentralized, yet they rely on centralized service providers like Amazon Web Service to ensure that they function properly.

Another pertinent example is when a project that claims to offer token holders governance rights makes a major protocol decision without consulting the community for feedback and approval.

The move by Terra (LUNA) to add BTC to its treasury as collateral for the TerraUSD (UST) stablecoin made headlines and was lauded by many, but the move was never put to a vote within the Terra community to see what token holders thought.

While there is a good chance that the plan would have been approved and the collapse of Terra still would have occurred, the blame might have fallen more on the community and less on Do Kwon, the project’s leader. It’s also worth mentioning that Do Kown had developed quite the cult following and was frequently insulting a variety of people on Twitter.

One of the main tenets of the cryptocurrency sector is adherence to decentralization and failure to do so often leads to a compromised network and dissatisfied investors.

Want more information about trading and investing in crypto markets?

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Finance Redefined: Lifeline for Terra projects, proposed Terra hard fork and more

Binance comes to the rescue of Terra projects, Chainalysis introduces new tools to track stolen crypto funds, Do Kwon’s new proposal for a Terra hard fork and more in this week’s DeFi newsletter.

The past week in the decentralized finance (DeFi) ecosystem was dominated by Terra’s collapse and its aftermath on various ecosystems it was connected. Now BNB chain has come to the rescue of several stranded projects on Terra by offering financial and technical assistance.

After its spiral collapse, Terra co-founder Do Kown proposed a revival plan and a hard fork to revive the blockchain. Chainalysis introduced new tools to monitor and track stolen funds across multiple blockchains. Swiss asset manager Julias Baer is eyeing crypto and DeFi potential.

Top DeFi tokens saw another week of bleeding, with the majority of these tokens trading in red over the past week.

Do Kwon proposes Terra hard fork to save the ecosystem

Do Kwon, co-founder of the troubled Terra Luna blockchain, announced a revised plan to restore the ecosystem after significant market volatility and inherent protocol design flaws wiped out a vast majority of the blockchain’s market cap. As told by Kwon, Terraform Labs proposed a new governance model on May 18 to fork the Terra Luna blockchain called Terra (token name: LUNA).

However, the new chain will not be linked to the TerraUSD (UST) stablecoin. Meanwhile, the old Terra blockchain will continue to exist with UST and be called Terra Classic (LUNC). Under Kwon’s plan, if passed, the new LUNA blockchain will go live on May 27.

Continue reading

BNB Chain offers another lifeline to Terra ecosystem projects

Binance will welcome migration and provide support to projects from the Terra ecosystem following this month’s unraveling of the DeFi platform and its algorithmic stablecoin.

BNB Chain (BNB) has committed to providing investment and support to projects considering migrating from the Terra ecosystem in the wake of the biggest black swan event to hit the cryptocurrency space in recent years.

Continue reading

DeFi-ing exploits: New Chainalysis tool tracks stolen crypto across multiple chains

Chainalysis launched a beta version of its Storyline software on Wednesday. Touted as a “Web3-native blockchain analysis tool,” Storyline aims to track and visualize smart contract transactions with a focus on nonfungible tokens (NFTs) and DeFi platforms. This is in line with the growing popularity and prevalence of NFTs and DeFi in the cryptocurrency space over the past year.

Chainalysis provides blockchain analysis and annual reports on cryptocurrency crime trends and other analytics. The ever-changing landscape has seen DeFi and NFTs become important cogs in the ecosystem, with Chainalysis estimating the two sectors account for more than half of global cryptocurrency transactions.

Continue reading

Swiss asset manager Julius Baer eyes crypto and DeFi potential

The 132-year-old Swiss asset management firm, Julius Baer, intends to offer exposure to cryptocurrencies and decentralized finance for its high net-worth clients. The firm’s CEO Philipp Rickenbacher confirmed the move into the cryptocurrency space during his delivery of the company’s strategy update for the next three years.

Rickenbacher noted that the recent slump in the cryptocurrency markets presented a watershed moment for its clients to gain exposure to the nascent asset class.

Continue reading

DeFi market overview

Analytical data reveals that DeFi’s total value locked remained under the $100 billion mark, falling to $84.2 billion. Data from Cointelegraph Markets Pro and TradingView reveals that DeFi’s top 100 tokens by market capitalization registered a week filled with volatile price action and constant bearish pressure.

Majority of the DeFi tokens in the top-100 ranking by market cap traded in red, barring a few. Kyber Network Crystal v2 (KNC) was the biggest gainer with a 74% rise over the past week, followed by Kava (KAVA) at 25% and PancakeSwap (CAKE) at 5%.

Thanks for reading our summary of this week’s most impactful DeFi developments. Join us again next Friday for more stories, insights and education in this dynamically advancing space.

Crypto Biz: Amid crypto carnage, Goldman and Barclays fill their bags, May 12-18, 2022

Some of the world’s biggest banks are increasing their exposure to the digital asset market despite the recent market volatility. Is this a sign of things to come?

Has there ever been a worse time to be in crypto? It depends on how you look at it. Amid Terra’s death spiral, Bitcoin (BTC) recording seven-consecutive weekly red candles, over $1 trillion in lost market cap across the ecosystem and an aggressive Federal Reserve hell-bent on reversing the chaos it created, major banks are quietly increasing their exposure to the sector. You’re going to love this: Goldman Sachs — once the most passionate Bitcoin detractors — and Barclays are doing some strategic buying as they prepare for the future of crypto trading. 

Early polling from Terra vote indicates 91% are in favor of ‘rebirth’

The Terra saga took an interesting turn on Wednesday after Terra co-founder Do Kwon managed to convince network validators to accept a proposal that would salvage the blockchain without the algorithmic stablecoin, TerraUSD (UST). More than 91% of community votes were in favor of “rebirthing” the Terra network and doing away with UST entirely. The “old” blockchain would continue to support so-called “residual UST” holders and operate under the name — wait for it — Terra Classic. All is not well for the Terra ecosystem, however. Kwon has been summoned for a parliamentary hearing regarding his failed project, while three members of Terraform Labs’ legal team resigned this week.

Goldman Sachs and Barclays invest in UK crypto trading platform Elwood

Goldman Sachs and Barclays made headlines this week after they revealed a strategic investment in United Kingdom-based crypto trading platform Elwood. Why is this important? Aside from the fact that I like to dunk on Goldman every chance I get for its past anti-Bitcoin propaganda, the investment further cements the fact that major banks view crypto as a new asset class with a strong institutional appeal. That’s basically what Goldman’s global head of digital assets said. You can read about Elwood’s $500 million funding round below.

Bitcoin investment giant Grayscale debuts ETF in Europe

Grayscale has finally launched an exchange-traded fund (ETF). Okay, not the one we’re all waiting for, but it’s still a notable achievement nonetheless. Grayscale Future of Finance UCITS ETF is the digital asset manager’s first European ETF and will track the performance of the Bloomberg Grayscale Future of Finance Index. The fund doesn’t invest in crypto outright but provides exposure to companies directly involved in the digital asset ecosystem — miners and trading apps especially.

BitMEX launches spot crypto exchange following $30M penalty

Crypto derivatives exchange BitMEX — home of the now-infamous liquidation cascades — is moving beyond offering just derivatives by launching a spot trading platform. BitMEX Spot Exchange gives investors the ability to trade seven crypto pairs, including Bitcoin, Ether (ETH), Chainlink (LINK) and Tether (USDT) — without the ability to get absolutely wrecked in the process. BitMEX recently cleared $30 million in civil penalties after the company’s cofounders, including Arthur Hayes, pleaded guilty to violating the Bank Secrecy Act.

How will you survive the bear market?

I’ll be honest: Crypto’s implosion over the past few months has been unlike anything I’ve ever seen. A lot of investors are in extreme pain right now. Trust me, I’ve been there. I’m not going to sugarcoat your losses or fill this page with cliches, but as famed value investor Benjamin Graham once observed: “Abnormally good or abnormally bad conditions do not last forever.” This week’s edition of The Market Report dissects the current bear market and gives you a few survival tips to come out the other side stronger than ever.

Crypto Biz is your weekly pulse of the business behind blockchain and crypto delivered directly to your inbox every Thursday.