Terra ecosystem collapses, Sam Bankman-Fried buys Robinhood stock, and crypto trader receives jail sentence for a ponzi scheme: Hodler’s Digest, May 8-14

Cointelegraph Magazine

Coming each Saturday, Hodler’s Digest will assist you monitor each single necessary information story that occurred this week. The greatest (and worst) quotes, adoption and regulation highlights, main cash, predictions and way more — a week on Cointelegraph in a single hyperlink.

Top Stories This Week

Breaking: Terra blockchain formally halted following LUNA value collapse

This week, information in regards to the Terra ecosystem dominated the headlines after algorithmic stablecoin TerraUSD (UST) misplaced its peg to the U.S. greenback — and continued to crash. 

At its lowest level through the week, UST fell to round $0.13, in response to CoinMarketCap. The meltdown additionally affected LUNA attributable to its symbiotic relationship with its sister asset. After reaching a excessive of $120 in early April, LUNA’s worth plummeted this week to principally zero. 

Do Kwon, CEO of Terraform Labs, regarded to impliment sure measures to proper the sinking ship, as per Cointelegraph’s reporting on Thursday. Subsequent reporting confirmed that the Terra blockchain halted operations briefly after LUNA’s hyperinflation considerably diminished the price of a governance assault on the community.





Leaked report: South Korea to ascertain crypto framework by 2024

South Korea plans to control crypto belongings with a new set of legal guidelines supposed to return into play by 2024, in response to a leaked authorities doc. Although verified as legitimate, the leaked doc shouldn’t be a finalized plan. 

Led by the administration of President Yoon Suk-yeol, the brand new crypto laws pertain to a number of classes, together with NFTs.


Meta will check digital collectibles on Instagram beginning this week

Earlier this week, Meta mentioned it intends to experiment with NFTs on Instagram by permitting digital collectibles for use as profile photos. The choice got here instantly from CEO Mark Zuckerberg. 

Adding NFTs to Instagram serves as a precursor to bringing digital collectibles to Facebook and different Meta entities, Zuckerberg mentioned. Other social media platforms, comparable to Twitter, have already moved towards providing NFTs as profile photos.




Robinhood shares spike 30% after Sam Bankman-Fried buys $650M stake

Since March of this 12 months, FTX CEO Sam Bankman-Fried has been shopping for shares of widespread buying and selling app Robinhood, concluding his buying this previous week. In complete, Bankman-Fried picked up $648 million in Robinhood inventory, equating to a 7.6% firm stake. The FTX CEO’s common value per share was $11.52. 

A United States regulatory submitting not too long ago revealed the acquisition. Robinhood shares elevated greater than 30% instantly after the information turned public.


ECB lays out ‘anonymous’ digital euro as public opposes ‘slavecoins’

The matter of central financial institution digital currencies (CBDCs) has grow to be more and more widespread. A current working paper from the European Central Bank gave the most recent replace on the place the financial authority stands on the matter. According to the central financial institution, a CBDC with anonymity options may streamline funds whereas additionally enabling retailers to forestall banks from extracting details about their fee flows. 

Meanwhile, Europeans have apparently come out towards CBDCs. “Slavecoin” is the time period some on-line commentators have used to explain CBDCs. The backlash has steadily flowed in following the April 5 launch of a digital euro session which, partially, permits the general public to weigh in on the difficulty through on-line feedback.






Winners and Losers


At the top of the week, Bitcoin (BTC) is at $29,994, Ether (ETH) at $2,067 and XRP at $0.42. The complete market cap is at $1.28 trillion, in accordance to CoinMarketCap.

Among the most important 100 cryptocurrencies, there have been solely two altcoin gainers of the week: Maker (MKR) at 1.22% and Fei USD (FEI) at 0.27%. 

The high three altcoin losers of the week are Terra (LUNA) at -100%, TerraUSD (UST) at -81.61%, and Fantom (FTM) at -50.89%.

For extra information on crypto costs, ensure that to learn Cointelegraph’s market evaluation.





Most Memorable Quotations


“When it comes to mass adoption, it’s really about comparing what blockchain technology can bring to users through existing solutions.”

Ming Duan, chief working officer and co-founder of Umee


“In most places in the free world and in democracies, crypto is going to eventually be regulated and legal. […] And the way that we push the conversation forward is by taking action.”

Brian Armstrong, CEO of Coinbase


“If you want to do an algorithmic stablecoin, for example, it has to be 300% backed by solid assets, solid crypto assets — not 105%, or 110%, or even less. […] That does not make sense.”

Paolo Ardoino, chief expertise officer at Bitfinex and Tether


“Everybody who has been here for less than 18 months is probably shocked, but for us who have been here since 2016, 2017, it’s part of the game. Bitcoin is not going away, Ethereum is not going away because of LUNA or because of UST. Everything is business as usual.”

Marcel Pechman, crypto analyst and Cointelegraph contributor


“The same rules that apply to investments in the physical world continue to apply to investments in virtual worlds.”

Five U.S. state regulatory our bodies 


“If platforms — whether in the decentralized or centralized finance space — offer security-based swaps, they are implicated by the securities laws and must work within our securities regime.”

Gary Gensler, chair of the U.S. Securities and Exchange Commission (SEC)


Prediction of the Week 


Bitcoin macro backside ‘not in yet’ warns analyst as BTC value holds $30K

Bitcoin is coming off a extremely unstable week, briefly falling beneath $27,000 at one level, in response to Cointelegraph’s BTC value index. Although the asset subsequently rallied above $30,000, BTC is probably not out of the woods but by way of a bigger scale macro backside.

In presenting his case, Twitter person Material Indicators famous: “IMO, the macro bottom is not in yet.”

Other market evaluations included one from former BitMEX CEO Arthur Hayes, who mentioned in a May 12 weblog submit: “The crypto capital markets must be allowed time to heal after the bloodletting concludes.” He continued with different feedback, noting sure value ranges he’s watching for BTC and ETH.



FUD of the Week 

Galaxy Digital studies $112M Q1 loss, citing crypto value volatility

Crypto funding agency Galaxy Digital Holdings not too long ago printed its outcomes for Q1 2022. The agency posted a web complete lack of roughly $112 million through the quarter, a appreciable change of tempo from its roughly $858 million income throughout Q1 2021. The firm’s outcomes mirror the numerous shift in market sentiment for crypto belongings over the previous 12 months.


‘Mortified’ crypto trader will get 42 months for fraud, claiming he was a complete gun

A New York court docket dealt Jeremy Spence, identified underneath the pseudonym “Coin Signals,” a 42-month jail sentence for working a Ponzi scheme. The scheme concerned making false assertions about his crypto-trading income, taking cash from buyers and then paying out older buyers with cash from newer ones. The court docket ruling additionally included different phrases of the sentence.


Breaking: Binance suspends LUNA and UST buying and selling amid points on Terra blockchain

Amid the turmoil surrounding LUNA and UST, Binance determined to droop spot buying and selling for the UST/BUSD and LUNA/BUSD buying and selling pairs. UST and LUNA withdrawals had been quickly halted by Binance earlier within the week. Binance Futures has additionally adjusted sure LUNA-related buying and selling options.



Best Cointelegraph Features

Bitcoin 2022 — Will the true maximalists please arise?

“The attack is cryptocurrency. That’s the fucking attack.”

Can Solana grow to be the dominant PoS chain regardless of persistent outages?

The Solana community appears to be battling persistent outages whereas in search of to deal with the business’s blockchain trilemma.

What occurred? Terra debacle exposes flaws plaguing the crypto business

The downfall of Terra calls into query the real-world utility and long-term viability of algorithmic stablecoins.




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