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

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Coming each Saturday, Hodler’s Digest volition assistance you way each azygous important quality communicative that happened this week. The champion (and worst) quotes, adoption and regularisation highlights, starring coins, predictions and overmuch much — a week connected Cointelegraph successful 1 link.

Top Stories This Week

Breaking: Terra blockchain officially halted pursuing LUNA terms collapse

This week, quality astir the Terra ecosystem dominated the headlines aft algorithmic stablecoin TerraUSD (UST) mislaid its peg to the U.S. dollar — and continued to crash. 

At its lowest constituent during the week, UST fell to astir $0.13, according to CoinMarketCap. The meltdown besides affected LUNA owed to its symbiotic narration with its sister asset. After reaching a precocious of $120 successful aboriginal April, LUNA’s worth plummeted this week to fundamentally zero. 

Do Kwon, CEO of Terraform Labs, looked to impliment definite measures to close the sinking ship, arsenic per Cointelegraph’s reporting connected Thursday. Subsequent reporting showed that the Terra blockchain halted operations concisely aft LUNA’s hyperinflation importantly reduced the outgo of a governance onslaught connected the network.

Leaked report: South Korea to found crypto model by 2024

South Korea plans to govern crypto assets with a caller acceptable of laws intended to travel into play by 2024, according to a leaked authorities document. Although verified arsenic valid, the leaked papers is not a finalized plan. 

Led by the medication of President Yoon Suk-yeol, the caller crypto regulations pertain to respective categories, including NFTs.

Meta volition trial integer collectibles connected Instagram starting this week

Earlier this week, Meta said it intends to experimentation with NFTs connected Instagram by allowing integer collectibles to beryllium utilized arsenic illustration pictures. The determination came straight from CEO Mark Zuckerberg. 

Adding NFTs to Instagram serves arsenic a precursor to bringing integer collectibles to Facebook and different Meta entities, Zuckerberg said. Other societal media platforms, specified arsenic Twitter, person already moved toward offering NFTs arsenic illustration pictures.

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

Since March of this year, FTX CEO Sam Bankman-Fried has been buying shares of fashionable trading app Robinhood, concluding his purchasing this past week. In total, Bankman-Fried picked up $648 cardinal successful Robinhood stock, equating to a 7.6% institution stake. The FTX CEO’s mean terms per stock was $11.52. 

A United States regulatory filing precocious revealed the purchase. Robinhood shares accrued much than 30% instantly aft the quality became public.

ECB lays retired ‘anonymous’ integer euro arsenic nationalist opposes ‘slavecoins’

The taxable of cardinal slope integer currencies (CBDCs) has go progressively common. A caller moving insubstantial from the European Central Bank gave the latest update connected wherever the monetary authorization stands connected the matter. According to the cardinal bank, a CBDC with anonymity features could streamline payments portion besides enabling merchants to forestall banks from extracting accusation astir their outgo flows. 

Meanwhile, Europeans person seemingly travel retired against CBDCs. “Slavecoin” is the word immoderate online commentators person utilized to picture CBDCs. The backlash has steadily flowed successful pursuing the April 5 motorboat of a integer euro consultation which, successful part, allows the nationalist to measurement successful connected the contented via online comments.

Winners and Losers

At the extremity of the week, Bitcoin (BTC) is astatine $29,994, Ether (ETH) astatine $2,067 and XRP astatine $0.42. The full marketplace headdress is astatine $1.28 trillion, according to CoinMarketCap.

Among the biggest 100 cryptocurrencies, determination were lone 2 altcoin gainers of the week: Maker (MKR) astatine 1.22% and Fei USD (FEI) astatine 0.27%. 

The apical 3 altcoin losers of the week are Terra (LUNA) at -100%, TerraUSD (UST) astatine -81.61%, and Fantom (FTM) astatine -50.89%.

For much info connected crypto prices, marque definite to work Cointelegraph’s marketplace analysis.

Most Memorable Quotations

“When it comes to wide adoption, it’s truly astir comparing what blockchain exertion tin bring to users done existing solutions.”

Ming Duan, main operating serviceman and co-founder of Umee

“In astir places successful the escaped satellite and successful democracies, crypto is going to yet beryllium regulated and legal. […] And the mode that we propulsion the speech guardant is by taking action.”

Brian Armstrong, CEO of Coinbase

“If you privation to bash an algorithmic stablecoin, for example, it has to beryllium 300% backed by coagulated assets, coagulated crypto assets — not 105%, oregon 110%, oregon adjacent less. […] That does not marque sense.”

Paolo Ardoino, main exertion serviceman astatine Bitfinex and Tether

“Everybody who has been present for little than 18 months is astir apt shocked, but for america who person been present since 2016, 2017, it’s portion of the game. Bitcoin is not going away, Ethereum is not going distant due to the fact that of LUNA oregon due to the fact that of UST. Everything is concern arsenic usual.”

Marcel Pechman, crypto expert and Cointelegraph contributor

“The aforesaid rules that use to investments successful the carnal satellite proceed to use to investments successful virtual worlds.”

Five U.S. authorities regulatory bodies 

“If platforms — whether successful the decentralized oregon centralized concern abstraction — connection security-based swaps, they are implicated by the securities laws and indispensable enactment wrong our securities regime.”

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

Prediction of the Week 

Bitcoin macro bottommost ‘not successful yet’ warns expert arsenic BTC terms holds $30K

Bitcoin is coming disconnected a highly volatile week, concisely falling beneath $27,000 astatine 1 point, according to Cointelegraph’s BTC terms index. Although the plus subsequently rallied supra $30,000, BTC whitethorn not beryllium retired of the woods yet successful presumption of a larger standard macro bottom.

In presenting his case, Twitter idiosyncratic Material Indicators noted: “IMO, the macro bottommost is not successful yet.”

Other marketplace evaluations included 1 from erstwhile BitMEX CEO Arthur Hayes, who said successful a May 12 blog post: “The crypto superior markets indispensable beryllium allowed clip to heal aft the bloodletting concludes.” He continued with different comments, noting definite terms levels helium is watching for BTC and ETH.

FUD of the Week 

Galaxy Digital reports $112M Q1 loss, citing crypto terms volatility

Crypto concern steadfast Galaxy Digital Holdings precocious published its results for Q1 2022. The steadfast posted a nett broad nonaccomplishment of astir $112 cardinal during the quarter, a sizeable alteration of gait from its astir $858 cardinal profits during Q1 2021. The company’s results reflector the important displacement successful marketplace sentiment for crypto assets implicit the past 12 months.

‘Mortified’ crypto trader gets 42 months for fraud, claiming helium was a full gun

A New York tribunal dealt Jeremy Spence, known nether the pseudonym “Coin Signals,” a 42-month jailhouse condemnation for moving a Ponzi scheme. The strategy progressive making mendacious assertions astir his crypto-trading profits, taking wealth from investors and past paying retired older investors with wealth from newer ones. The tribunal ruling besides included different presumption of the sentence.

Breaking: Binance suspends LUNA and UST trading amid issues connected 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 halted by Binance earlier successful the week. Binance Futures has besides adjusted definite LUNA-related trading features.

Best Cointelegraph Features

Bitcoin 2022 — Will the existent maximalists delight basal up?

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

Can Solana go the ascendant PoS concatenation contempt persistent outages?

The Solana web seems to beryllium battling persistent outages portion seeking to code the industry’s blockchain trilemma.

What happened? Terra debacle exposes flaws plaguing the crypto industry

The downfall of Terra calls into question the real-world inferior and semipermanent viability of algorithmic stablecoins.

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