On May 8, the Terra ecosystem announced a development roadmap and would be rebranding as Blocknet. The changes come after months of delays with the platform’s launch in 2018, which led to many users losing faith in their investments. On May 14, Robinhood became available on Binance but began trading at an incredibly high premium to other exchanges. Finally, there are reports that crypto trader Sam Bankman-Fried was sentenced for operating a ponzi scheme
The “selling bitcoin on robinhood” is a problem that has been present for a while. Sam Bankman-Fried, who was previously the CEO of Terra, bought Robinhood stock with his cryptocurrency earnings and became one of the first people to sell bitcoin on the platform. The crypto trader received a jail sentence for a ponzi scheme.
Every Saturday, Hodler’s Digest will keep you up to date on all of the major news stories from the previous week. A week on Cointelegraph in one link: the finest (and worse) remarks, adoption and regulatory highlights, top currencies, forecasts, and much more.
This Week’s Top Stories
Following the LUNA price crash, the Terra blockchain has been officially suspended.
After algorithmic stablecoin TerraUSD (UST) lost its peg to the US dollar — and proceeded to collapse – news concerning the Terra ecosystem dominated the headlines this week.
According to CoinMarketCap, UST plummeted to roughly At its lowest point during the week, UST fell to around $0.13, according to CoinMarketCap. The meltdown also affected LUNA due to its symbiotic relationship with its sister asset. After reaching a high of $120 in early April, LUNA’s value plummeted this week to basically zero..13 at its lowest point this week. Due to its symbiotic link with its sister asset, LUNA was also damaged by the breakdown. LUNA’s value has dropped to almost nil this week after hitting a peak of $120 in early April.
According to Cointelegraph’s publication on Thursday, Do Kwon, CEO of Terraform Labs, planned to implement various actions to right the sinking ship. The Terra blockchain abruptly ceased operations because LUNA’s hyperinflation drastically decreased the cost of a governance assault on the network, according to subsequent reports.
South Korea plans to build a crypto framework by 2024, according to a leaked study.
According to a leaked government document, South Korea aims to regulate crypto assets with a new set of rules that would take effect by 2024. The stolen paper has been confirmed as legitimate, although it is not a finished plan.
The new crypto rules, led by President Yoon Suk-government, yeol’s include a variety of categories, including NFTs.
Starting this week, Meta will test digital collectibles on Instagram.
Meta said earlier this week that it plans to experiment with NFTs on Instagram by enabling users to use digital treasures as profile images. Mark Zuckerberg, the company’s CEO, made the choice.
According to Zuckerberg, adding NFTs to Instagram is a step toward introducing digital collectibles to Facebook and other Meta organizations. NFTs are already available as profile images on other social networking networks, such as Twitter.
Sam Bankman-Fried takes a $650 million stake in Robinhood, sending the stock up 30%.
FTX CEO Sam Bankman-Fried has been buying shares of popular trading app Robinhood since March of this year, with his purchase only completed this week. Bankman-Fried purchased $648 million in Robinhood shares, giving him a 7.6% interest in the firm. The average price per share for the FTX CEO was $11.52.
The deal was just disclosed in a regulatory filing in the United States. The stock of Robinhood soared by more than 30% soon after the news broke.
The ECB proposes a “anonymous” digital euro in response to popular opposition to “slavecoins.”
The concept of central bank digital currencies (CBDCs) is gaining popularity. The European Central Bank’s recent working paper provided the most current information on the monetary authority’s position on the issue. A CBDC with anonymity characteristics, according to the central bank, might simplify payments while also allowing businesses to avoid banks from obtaining information about their payment flows.
Meanwhile, Europeans are reportedly opposed to CBDCs. CBDCs have been referred to as “slavecoin” by certain internet critics. Following the April 5 launch of a digital euro consultation, which lets the public to weigh in on the topic through online comments, the pushback has been steady.
Losers and Winners
Bitcoin (BTC) is at $29,994, Ether (ETH) is at $2,067, and XRP is at At the end of the week, Bitcoin (BTC) is at $29,994, Ether (ETH) at $2,067 and XRP at $0.42. The total market cap is at $1.28 trillion, according to CoinMarketCap..42 at the conclusion of the week. According to CoinMarketCap, the overall market cap is $1.28 trillion.
Only two altcoins gained ground this week among the top 100 cryptocurrencies: Maker (MKR) gained 1.22 percent and Fei USD (FEI) gained 0.27 percent.
Terra (LUNA) has lost 100 percent, TerraUSD (UST) has lost 81.61 percent, and Fantom (FTM) has lost -50.89 percent this week.
Read Cointelegraph’s market analysis for more information on crypto pricing.
The Most Memorable Quotes
“When it comes to mainstream adoption, it’s all about weighing the benefits of blockchain technology vs conventional alternatives.”
Ming Duan, co-founder and chief operational officer of Umee
“Crypto will ultimately be regulated and legal in most parts of the free world and democracies.” […] And the way we advance the discourse is by taking action.”
Coinbase CEO Brian Armstrong
“For example, if you want to create an algorithmic stablecoin, it must be 300 percent backed by solid assets, genuine crypto assets — not 105 percent, 110 percent, or even less.” […] That doesn’t add up.”
Chief technological officer of Bitfinex and Tether, Paolo Ardoino
“Everyone who has been here less than 18 months is probably surprised, but for those of us who have been here since 2016, 2017, it’s just part of the game.” Bitcoin and Ethereum are not going away because of LUNA or UST. “Everything is running well.”
Crypto expert and Cointelegraph writer Marcel Pechman
“The same laws that apply to investments in the real world apply to virtual world investments.”
Five regulatory agencies in the United States
“If platforms provide security-based swaps, whether in the decentralized or centralized finance sphere, they are subject to securities regulations and must comply with our securities regime.”
Chairman of the Securities and Exchange Commission, Gary Gensler (SEC)
The Week’s Prediction
As the Bitcoin price hovers around $30K, one expert cautions that the macro bottom isn’t in yet.
According to Cointelegraph’s BTC price index, bitcoin had a very tumultuous week, momentarily dropping below $27,000 at one point. Although the value has already risen above $30,000, BTC may still be a long way from a larger-scale macro bottom.
“IMO, the macro bottom is not in yet,” Twitter user Material Indicators said in making his case.
Former BitMEX CEO Arthur Hayes, for example, said in a May 12 blog post that “the crypto capital markets must be granted time to recover when the bloodletting stops.” He went on to say that he is keeping an eye on particular price levels for BTC and ETH.
The Week’s FUD
Galaxy Digital reported a $112 million loss in the first quarter, blaming cryptocurrency market volatility.
Galaxy Digital Holdings, a cryptocurrency investment business, just released its Q1 2022 results. The company reported a net comprehensive loss of $112 million in the first quarter of 2021, a significant drop from its Q1 2021 earnings of $858 million. The company’s results reflect the recent dramatic change in market opinion toward crypto assets.
A’mortified’ crypto trader who said he was a complete gun was sentenced to 42 months in prison for fraud.
A New York court sentenced Jeremy Spence, also known as “Coin Signals,” to 42 months in prison for conducting a Ponzi scam. Making false claims about his crypto-trading successes, stealing money from investors, and then paying back older investors with money from younger ones was all part of the plan. Other elements of the sentencing were also mentioned in the court order.
Binance has suspended LUNA and UST trading due to Terra blockchain concerns.
Binance has decided to halt spot trading for the UST/BUSD and LUNA/BUSD trading pairs due to the recent turbulence surrounding LUNA and UST. Binance briefly suspended UST and LUNA withdrawals earlier this week. Certain LUNA-related trading features have also been tweaked by Binance Futures.
Cointelegraph’s Best Features
Will the true maximalists please rise up in 2022?
“Cryptocurrency is under assault.” This is the fucking assault.”
Despite frequent outages, can Solana become the dominant PoS chain?
While attempting to solve the industry’s blockchain trilemma, the Solana network seems to be experiencing frequent outages.
What went wrong? The Terra fiasco reveals vulnerabilities in the cryptocurrency business.
Terra’s demise throws into doubt algorithmic stablecoins’ real-world value and long-term survival.