Digital Currencies incl NFT etc. 02; (Apr 21 - Feb 23)

[behappyalways]

穩定幣崩盤.拖累加密貨幣挫! 近6兆市值蒸發｜方念華｜FOCUS全球新聞 20220513
https://m.youtube.com/watch?v=wq6IiP5qSvs

[winston]

Billionaire, ex-Goldman Banker Novogratz Caught Up in Luna Collapse

The spectacular collapse of Luna and its sister token UST has shaken the credibility of cryptocurrencies and the trust placed in crypto evangelists.

by LUC OLINGA

In the crypto sphere, he is part of a closed circle of names that includes billionaires Elon Musk, Michael Saylor, Mark Cuban, Kevin O'Leary, Bill Miller, Sam Bankman-Fried, Jack Dorsey, Brian Armstrong, Changpeng 'CZ' Zhao , brothers Tyler and Cameron WInklevoss and investor Anthony Pompliano, who can influence market prices with a single tweet.

Five months after this proof of love, the price of Luna collapsed. The cryptocurrency was worth $0.0000914, down 99.5%, according to CoinGecko, as of time of writing.

Its market value fell from over $41 billion to some $623 million. In other words, Luna investors have lost almost everything.

This is also the case for investors in UST, the sister token of Luna with which the crypto operated in tandem. UST has lost its peg to the dollar and is currently worth $0.143576. Its market value fell from $18.770 billion on May 9 to $1.613 billion.

Galaxy Digital said it has a liquidity position of approximately $1.6 billion, including $800 million in cash and over $800 million in net digital assets, with the majority of net digital assets in non-algorithmic stablecoins.

If the company is relatively spared, this is not the case of the personal fortune of Novogratz. The billionaire saw his fortune melt from $8.5 billion on paper to $2.5 billion, according to Bloomberg Billionaires Index.

Source: The Street

https://www.thestreet.com/investing/cry ... 2BCollapse

[winston]

Money markets are insulated, for now, from the stablecoin mess

by Alexandra Harris

Some stablecoins are backed by assets like Treasury bills and short-term corporate IOUs -- key elements of the dollar funding markets -- and the concern is that if redemptions are big enough they could spark problems in the markets for these underlying assets.

Redemptions in Tether are only likely to cause notable strains in traditional money markets if they climb beyond half of the stablecoin’s total holdings.

Only if the redemptions start affecting Tether’s commercial paper holdings and certificates of deposit that they’re likely to really roil things.

Officials said in a statement they had honored more than US$300 million redemptions and processing more than US$2 billion “without issue.”

Tether -- which disclosed that it was holding about US$35 billion of bills as of end-2021 -- would be unlikely to cause “much of a ripple”.

Tether updates its portfolio holdings quarterly, which for a portfolio of short-maturity assets reduces the amount of insight investors have about its liquidity risk.

Source: Bloomberg

https://www.theedgemarkets.com/article/ ... ecoin-mess

[winston]

Luna Cryptocurrency Collapse: How UST Broke and Why It Matters

Last week, a luna coin was worth $85. Now it's worth a penny. Here's why that matters.

by Daniel Van Boom

The UST coin is designed to retain a value of one US dollar at all times, but depegged on Saturday and has since fallen to as low as 30 cents.

Luna's price fell from $116 in April to just a penny on Thursday. Its market-cap now stands at $641 million, down from a peak of over $40 billion.

Stablecoin: it's a cryptocurrency that's pegged to a more stable currency. The biggest such coins are Tether and USDC.

Stablecoins are integral parts of "DeFi" (decentralized finance), designed to be ways for investors to hedge against the volatility of the cryptocurrency market.

Source: CNET

https://www.cnet.com/personal-finance/c ... t-matters/

[behappyalways]

What Terra's 'Hyperinflationary' Collapse Teaches About 'Crypto' & Bitcoin
https://www.zerohedge.com/crypto/what-t ... to-bitcoin

[behappyalways]

Evidence suggests that it was a well-funded attack that affected the timing of the Terra/Luna unravel; a large entity apparently sold bitcoin short and went after the TerraUSD peg, right along the lines of how people described that the protocol could be attacked back in 2021. For macro investors, think of it like George Soros going after the Bank of England.

Blaming the attacker misses the point; if something in markets can be successfully attacked, it eventually will be successfully attacked. Algorithmic stablecoins have had a bad track record of failure, and this was the biggest one yet. Since most of their adjustment mechanism was public knowledge, an attacker could know all the specific ways in which to strike it.

Digital Alchemy: A Post-Mortem of the Crypto Crash
https://www.lynalden.com/digital-alchemy/

[behappyalways]

Luna Foundation Sold 80,000 Bitcoin Amid UST Crash
https://www.zerohedge.com/crypto/luna-f ... -ust-crash

[winston]

Lagarde says crypto is ‘worth nothing’ and should be regulated

by Cagan Koc

Source: Bloomberg

https://www.theedgemarkets.com/article/ ... -regulated

[behappyalways]

Crypto market value drops two thirds in six months - BBC News
https://m.youtube.com/watch?v=mObVrKTddy0

[behappyalways]

Lagarde Calls For Crypto Crackdown, Says They're "Based On Nothing"
https://www.zerohedge.com/markets/lagar ... ed-nothing