Come every Saturday Hodler’s Digest will help you keep track of every single important news that happened this week. Best (and worst) rates, launch and regulation highlights, leading coins, predictions and more – a week on Cointelegraph in one link.
Top stories of this week
Breaking: The Terra blockchain has been officially halted after the LUNA price collapse
This week, news about the Terra ecosystem dominated the headlines after algorithmic stablecoin TerraUSD (UST) lost its peg to the US dollar — and continued to plummet.
At its low for the week, UST fell to around $0.13, according to CoinMarketCap. The meltdown also affected LUNA due to her symbiotic relationship with its sister asset. After peaking at $120 in early April, LUNA’s value plummeted to virtually zero this week.
Do Kwon, CEO of Terraform Labs, tried to implement certain measures to put the sinking ship back in order, Cointelegraph reported on Thursday. Subsequent reports showed that the Terra blockchain ceased operations shortly after LUNA hyperinflation, significantly reducing the cost of a governance attack on the network.
Leaked report: South Korea to set up crypto framework by 2024
According to a leaked government document, South Korea plans to regulate crypto assets with a series of new laws set to come into effect by 2024. Although confirmed to be valid, the leaked document is not a completed plan.
Led by President Yoon Suk-yeol’s government, the new crypto regulations cover multiple categories, including NFTs.
Meta will be testing digital collectibles on Instagram starting this week
Earlier this week, Meta said it intends to experiment with NFTs on Instagram by allowing digital collectibles to be used as profile pictures. The decision came directly from CEO Mark Zuckerberg.
Adding NFTs to Instagram serves as a precursor to bringing digital collectibles to Facebook and other meta-entities, Zuckerberg said. Other social media platforms like Twitter have already started offering NFTs as profile pictures.
Robinhood shares soar 30% after Sam Bankman-Fried bought a $650 million stake
FTX CEO Sam Bankman-Fried has been buying shares in popular trading app Robinhood since March this year and completed his purchase last week. In total, Bankman-Fried acquired Robinhood stock worth $648 million, representing a 7.6% stake in the company. The FTX CEO’s average price per share was $11.52.
A regulatory filing in the United States recently revealed the purchase. Robinhood shares soared more than 30% immediately after the news broke.
ECB Deploys ‘Anonymous’ Digital Euro As Public Opposes ‘Slave Coins’
The topic of central bank digital currencies (CBDCs) has become increasingly common. A recent European Central Bank working paper gave the latest information on where the monetary authority stands on the matter. According to the central bank, a CBDC with anonymity features could streamline payments while allowing merchants to prevent banks from extracting information about their cash flows.
In the meantime, Europeans have apparently spoken out against CBDCs. “Slavecoin” is the term some online commentators have used to describe CBDCs. Backlash continued after the launch of a digital euro consultation on April 5, some of which allows the public to comment on the issue online.
Winner and Loser
At the end of the week, Bitcoin (Bitcoin) is at $29,994ether (ETH) at the $2,067 and XRP at the $0.42. The total market capitalization is at $1.28 Trillion, according to to CoinMarketCap.
Among the top 100 cryptocurrencies, there were only two altcoin winners of the week: Maker (MKR) at 1.22% and Fei USD (FEI) at 0.27%.
The top three altcoin losers of the week are Terra (LUNA) at -100%, TerraUSD (UST) at -81.61% and Fantom (FTM) at -50.89%.
For more information on crypto prices, see Cointelegraph’s Market Analysis.
Most Memorable Quotes
“When it comes to mass adoption, it’s really about comparing what blockchain technology can bring to users through existing solutions.”
MingduanChief Operating Officer and co-founder of Umee
“In most places in the free world and democracies, crypto will eventually be regulated and legal. […] And the way we’re moving the conversation forward is by taking action.”
Brian ArmstrongCoinbase CEO
“For example, if you want to make an algorithmic stablecoin, it has to be 300% backed by solid assets, solid crypto assets — not 105% or 110% or even less. […] That makes no sense.”
Paulo ArdoninoChief Technology Officer at Bitfinex and Tether
“Anyone who’s been here less than 18 months is probably shocked, but for us who’ve been here since 2016, 2017 it’s part of the game. Bitcoin isn’t going away, Ethereum isn’t going away because of LUNA or because of UST. Everything is running as usual.”
Marcel PechmannCrypto analyst and Cointelegraph contributor
“The same rules that apply to investments in the physical world continue to apply to investments in virtual worlds.”
Five US state regulators
“When platforms — whether in decentralized or centralized finance — offer collateral-based swaps, they are impacted by securities laws and must function within our securities regime.”
Gary GenslerChairman of the US Securities and Exchange Commission (SEC)
forecast of the week
Bitcoin macro bottom ‘not yet reached’, analyst warns as BTC price sits at $30,000
Bitcoin has had a very volatile week, briefly dipping below $27,000 at one point, according to Bitcoin Cointelegraph’s BTC price index. Although the asset subsequently rallied above $30,000, BTC may not be out of the woods yet in terms of a larger macro bottom.
Presenting his case, Twitter user Material Indicators noted, “IMO, the macro bottom isn’t there yet.”
Other market assessments included one from former BitMEX CEO Arthur Hayes, who said in a May 12 blog post, “Crypto capital markets must be given time to recover after the bloodshed is complete.” He continued with other comments and noted certain price levels he observes for BTC and ETH.
FUD of the week
Galaxy Digital reports a $112 million loss in the first quarter, citing crypto price volatility
Crypto investment firm Galaxy Digital Holdings recently released its Q1 2022 results. The company posted an overall net loss of about $112 million for the quarter, a significant change from its approximately $858 million profit in the first quarter of 2021. The company’s results reflect the significant shift in market sentiment for crypto assets in recent years 12 months.
‘Disgraced’ crypto trader gets 42 months for fraud and claims he’s a total gun
A New York court sentenced Jeremy Spence, known by the pseudonym “Coin Signals,” to 42 months in prison for operating a Ponzi scheme. The scheme involved making false claims about its profits from crypto trading, taking money from investors, and then cashing out older investors with money from newer ones. The court’s verdict also included other terms of the verdict.
Breaking: Binance suspends LUNA and UST trading due to issues with the Terra blockchain
Amid the turmoil surrounding LUNA and UST, Binance decided to suspend spot trading for the UST/BUSD and LUNA/BUSD trading pairs. UST and LUNA withdrawals were temporarily stopped by Binance Start of the week. Binance Futures has also certain adjusted LUNA-related trading functions.
Best Cointelegraph Features
Bitcoin 2022 – Will the real maximalists please stand up?
“The attack is cryptocurrency. This is the damn attack.”
Despite persistent outages, can Solana become the dominant PoS chain?
The Solana network appears to be grappling with sustained outages as it attempts to address the industry’s blockchain trilemma.
What happened? The Terra debacle exposes vulnerabilities plaguing the crypto industry
The demise of Terra calls into question the real-world utility and long-term viability of algorithmic stablecoins.
https://cointelegraph.com/magazine/2022/05/14/terra-ecosystem-collapses-sam-bankman-fried-buys-robinhood-stock-crypto-trader-receives-jail-sentence-ponzi-scheme-hodlers-digest-may-8-14 The Terra ecosystem collapses, Sam Bankman-Fried buys Robinhood stock, and a crypto trader gets jailed for Ponzi scheme: Hodler’s Digest, Aug. 8-14 May