This Week in Markets
This week the crypto space started witnessing wild fluctuations soon after the stablecoin, UST, lost its peg, leading LUNA into a ‘death spiral.’ The market is going through a massive collapse for the first time in the history of cryptocurrencies. Exchanges are consistently on the lookout for a quick recovery but it seems far-fetched.
LUNA/USDT consolidating in between support and resistance.
Given below is the UST to USD Chart of the last 24 hours. We can see the decrease in the price of UST easily. The price of 1 UST was almost equal to 1 USD on 9th May 2022, but if we talk about the present situation, i.e., 10th May 2022, 1 UST is equivalent to 0.68 USD. UST has lost 32% of its value over the last 24 hours, according to CoinMarketCap.
During $BTC volatile action over the past few days, we spotted the largest inflow into centralized exchanges. On Tuesday, Bitcoin dropped to the low’s $30,000, and a total of 49.76k BTC were deposited into exchanges, the majority going into Binance – IntoTheBlock Insights.
In the graph below, we can see BTC making a bearish bat, now here we have to see the reaction of the market. Is it going to be long or short term bearish?
The Luna Fiasco – From Among Top 10 Cryptocurrency to Delisting
Up until May 7, UST was holding its peg but then lost it twice in 48 hours. The stablecoin is supposed to maintain its stability by maintaining a 1:1 mint and burn ratio with LUNA. For better understanding, we can say that in order to mint $1 UST, a trader will have to burn $1 LUNA. Now, let’s take a look at the graph below:
The crash in the value of LUNA makes us question, ‘How unstable can an algod stablecoin tether be?’
But, what caused this scenario? The Luna Foundation Guard in order to save UST’s peg came up with a rescue plan. First, it loaned out $750 million of BTC to the market makers and then another $750 million of UST to buy back BTC.
Consequently, UST depegged which led to the fall of LUNA. However, LUNA was still being minted and thus, its value started falling. On May 12, the value of the token plummeted by 99%. Several crypto-exchanges like Binance, Crypto.com, Bybit, and CoinDCX have currently delisted LUNA from their platform.
The correction pattern above shows what we are anticipating to happen next in the market.
The Happenings
- South Korea’s Largest Exchange, Upbit, puts Luna as a “Cautionary Item”. Here’s why.
- The KMSKA Museum Tokenizes a Million-Euro Masterpiece With ERC-3643 Standard. Know the full story.
- FASB to examine Accounting Rules for Digital Assets Held on Balance Sheets. Know more.
- Coinbase CEO Says ‘Informal Pressure’ From RBI led to the Halt of UPI-Based Crypto Transactions. Read more.
- Elon Musk has put the $44 billion Twitter acquisition on Hold. Know why.
- Utah Governor Approves a Task Committee on Digital Innovation and Blockchain. Know why.
Cryptocurrencies may Soon Attract 28% GST Like Betting and Casinos in India. What will happen next?
Grayscale met with the SEC to discuss Bitcoin ETF conversion. Learn more.
The Charts and Dips
- Crypto to look out for this week BTC, ETH, ALGO, 1INCH, PAXG [Link]
- MKR Price Analysis May 2022 [Link]
- GT Price Analysis May 2022 [Link]
Stolen/Rugged/Scammed/Hacked
- Solana Phishing Scam [Link]
- LUNA Price Drops Over 56% in Last 24 hours, UST Loses Dollar Peg for 2nd time in 48 hours [Link]
- Gray Boys Discord Hacked [Link]
- Is Day of Defeat a Scam Project? [Link]
- Is Pragma Money a Scam Project? [Link]
- Is UTG DAO a Scam Project? [Link]
- Is DIAOS a Scam Project? [Link]
- Ownly Platform Hacked, Around $35K Stolen [Link]
- icy.tools Discord Hacked [Link]
- Is GOAT a Scam Project? [Link]
- Is NewAge a Scam Project? [Link]
- Cashera Rug Pulled, Around $90K Stolen [Link]
- Hunter Global Rug Pulled, Around $1.2M Stolen [Link]
