9621 Agnes Crossing, Lake Suzanneview, New Mexico Island 84604-9295.
Do Kwon proposed a hard fork of Terra, Peter Schiff predicted a test of $8,000 by Bitcoin, Ethereum developers explained the timing of the transition to the Proof-of-Stake
Do Kwon proposed a hard fork of Terra, Peter Schiff predicted a test of $8,000 by Bitcoin, Ethereum developers explained the timing of the transition to the Proof-of-Stake algorithm and other events of the week leading up to it.
Gold proponent and critic of the first cryptocurrency, Peter Schiff, said that the bitcoin price will test the lower end of the corridor around $8,000. He came to this conclusion based on technical analysis.
At the same time, Glassnode analysts noted that amid the collapse of the UST, BTC prices approached the fair price level.
At the time of writing, the initial cryptocurrency is trading around $29,900.
At the end of the week, almost all digital assets in the top 10 by market cap were in the red zone. The exception is Binance Coin (BNB) and Cardano (ADA). The price of the first increased by 7%, the second practically did not change.
According to the CoinCodex service, the ConstitutionDAO project’s PEOPLE management token has been the most bullish in price during the week among mid-cap digital assets. Its price has increased by more than 115%.
As expected, the TerraUSD algorithmic stablecoin price has dropped more than any other. The price of UST has dropped almost 60%.
The total capitalization of the cryptocurrency market has reached $1.34 trillion. The Bitcoin dominance index rose to 42.5 percent.
Terraform Labs president Do Kwon has proposed a hard fork of Terra, with the emergence of a new network and an airdrop. He described it as “a chance to revive the project from the ashes”.
The new network needs to keep the name Terra with the LUNA token. The first blockchain will be Luna Classic (LUNC) and Terra Classic, respectively.
The project will continue to develop without a new algorithmic stablecoin.
The total emission of LUNA will be 1 billion tokens, the target reward for staking (inflation) is 7%. Voting on Kwon’s proposal began on May 18 and will run until May 25.
Most of the community members did not support the hard fork idea in the pre-vote. However, in the main process, the proposal has already passed the quorum threshold.
Kwon also made changes to the proposals and edited them with the “opinions” of the ecosystem participants.
South Korean authorities have re-formed an interagency group that disbanded more than two years ago to investigate Terra’s downfall. The team was previously nicknamed the “Grim Reapers”.
There were also reports in the media about possible parliamentary sessions involving Kwon regarding the collapse of the project’s ecosystem.
Ethereum founder Vitalik Buterin urged Terraform Labs to focus on compensating small investors in LUNA and UST. According to him, “rich” people can take personal responsibility.
It is not entirely clear how exactly it is possible to return the lost funds. This week, the nonprofit Luna Foundation Guard said it has drained $3 billion of its reserve funding to keep the UST stable.
Billionaire Bill Ackman, CEO and founder of Pershing Square Capital Management, called Terra a crypto pyramid, while Tether CTO Paolo Ardoino said the product was “poorly designed.”
Mike Novogratz, the founder of cryptocurrency bank Galaxy Digital, also broke the silence. His build became one of Terraform Labs’ main investors, and the billionaire himself got a tattoo on his left arm, referring to LUNA.
Novogratz acknowledged that while the idea of creating an algorithmic stablecoin seems promising, the collapse of the Terra ecosystem has undermined trust in the DeFi industry and the cryptocurrency market in general.
Forbes journalists also drew attention to the impact of the event on the digital asset industry. According to them, the collapse of the project in terms of its impact on the industry is no less than the bankruptcy of Mt.Gox, the hack of the DAO, the bursting of the ICO bubble and the collapse of the crypto market in March 2020. .
Binance chairman Changpeng Zhao announced the company’s investments in the Terra ecosystem, noting that at the time of the crash, the exchange currently had 15 million LUNA, which was almost worthless.
The collapse of the Terra cost blockchain company resulted in $3.5 billion in losses. In the background, investment research firm Delphi Digital could also lose 13% of its holdings – the equivalent of the highest value of LUNA tokens purchased.
Emin Gün Sirer, founder of the Avalanche project, said that the non-profit organization Avalanche Foundation lost $60 million invested in Terra.
However, not all Terra investors lost money. Pantera Capital reported that the company has cashed out about 80% of investments in the project ecosystem with a huge profit.
UST is not the only algorithmic stablecoin losing par against the US dollar. On May 15, the price of DEI from the Deus Finance DAO project dropped to around $0.51. The event coincided with the release of a proposal from the DEUS Treasury to launch a flat rate debt token program.
In the first quarter of 2022, USDT stablecoin issuer Tether Holdings Limited reduced its reserves in commercial securities by 17%. At the end of the second quarter, the company plans to reduce the amount of collateral on these assets by another 20%.
The accounting firm that conducted the audit, MHA Cayman, confirmed that the company’s reserves exceeded the amount needed to fully repay USDT.
The developers of the second layer protocol of the NEAR network – Aurora – announced the launch of the Aurora + platform with native token staking. It will be distributed during an airdrop among users who signed up for the service in the first week.
The State Duma supported a bill on the taxation of transactions with digital financial assets (DFA) at first reading.
The document sets out the specifics of taxation of VAT on transactions for the sale of digital financial assets, corporate income tax on profits from the sale of digital assets, and personal income tax.
This week, the Ministry of Internal Affairs of the Russian Federation also agreed on the final draft laws “On Digital Currency” and “On Amending Certain Legislative Laws of the Russian Federation in connection with the adoption of the Federal Law on Digital Currency”. .
At the end of the week, a draft law on amendments to the Civil Code, which fixed the concept of NFT, was submitted to the State Duma.
Online broker Robinhood has announced the creation of an unsupervised Web3 wallet that will give users full control over the cryptocurrency and direct access to the DeFi and NFT segments.
Revolut founder Nikolai Storonsky announced neobank’s plans to issue its own digital token as part of developing a customer loyalty program.
Preston Van Loon, one of the leading developers, said that Ethereum’s planned transition to the Proof-of-Stake (PoS) consensus algorithm will take place in August.
According to him, the team is waiting to complete the process called “merging”. [The Merge]until the “difficulty bomb” is activated.
Earlier, Ethereum developers had said that on June 8, 2022, the project team will transfer the Ropsten testnet to the PoS algorithm.
Also on ForkLog:
In this particular article, ForkLog took a look at the causes of Terra’s collapse, assessing the current and potential consequences for the industry, as well as the project’s chances of recovery.
Interest in decentralized autonomous organizations (DAOs) in the cryptocurrency industry is growing rapidly. They talked about who came up with the concept of DAO, what types of decentralized organizations exist, and why people unite in distributed communities.
We have published a series of educational cards: Vitalik Buterin on algorithmic stablecoins, the hard fork and the 1-inch project.
In traditional recaps, we’ve rounded up the week’s main events in the areas of cybersecurity and artificial intelligence.
The cryptocurrency industry is attracting an increasing number of institutional players. This is evidenced by new investments in infrastructure and the growing interest of companies in bitcoin as an asset class. The most important events of the last weeks are in the ForkLog review.
On Monday, May 16, live ForkLog LIVE discussed what is happening in the cryptocurrency market. The guests were merchants Vladimir Cohen and Anatoly Radchenko.
Source: Fork Log
I’m Sandra Torres, a passionate journalist and content creator. My specialty lies in covering the latest gadgets, trends and tech news for Div Bracket. With over 5 years of experience as a professional writer, I have built up an impressive portfolio of published works that showcase my expertise in this field.
