Crypto Flipsider News – Terra Buys More Bitcoin Hits ATH, BTC Set New 2022 High; Crypto Receives $193M Institutional Inflow, Grayscale to Sue SEC; Greenpeace Call for Change in Bitcoin Code; Vietnam on Legal Crypto Framework
Read in the Digest:
- Terra (LUNA) hits ATH after bitcoin purchase, Bitcoin sets new yearly high.
- Crypto records its highest institutional inflow in 3 months, Grayscale could sue the SEC.
- Greenpeace, Ripple co-founder and more start campaign to reduce Bitcoin energy consumption.
- Vietnam is working on a legal framework for cryptocurrencies.
Terra (LUNA) Hits ATH After Bitcoin Purchase, Bitcoin Sets New Yearly High
Continuing its history of Bitcoin purchases to back UST, the stablecoin issued by Terra, the Terra Foundation has announced the purchase of a further $135 million worth of Bitcoin. The recent addition now means that Terra has bought over $1 billion worth of bitcoin since January.
Following the announcement, LUNA, one of Terra’s native tokens, embarked on a rally that has seen it set a new all-time high.
Gaining 12% in the last 24 hours, Terra (LUNA) set a new ATH at $106.14. Now trading at $103.55 as of this writing, LUNA is the 8th largest crypto, with a $36.7 million market cap.
The 24 hour price chart for Terra (LUNA). Source: Tradingview
Bitcoin remains in the green for the eighth consecutive day. Bitcoin’s extended run of form has seen the world’s biggest crypto gain by over 15% in the last seven days, resulting in Bitcoin setting a new 2022 high of $48,086.
The seven day price chart for Bitcoin (BTC). Source: Tradingview
Bitcoin is now trading at $47,975, as of this writing, and retains its position as the world’s largest crypto, with a market cap of $910.5 billion.
Flipsider:
- Despite the rally which has helped the crypto market cap appreciate to above $2 trillion, it is still down 32% from its November ATH when it peaked above $3 trillion.
Why You Should Care
Backing the Terra ecosystem with Bitcoin reduces its chances of failure, as the underlying value comes from another asset.
Crypto Records Its Largest Institutional Inflow in 3 Months, Grayscale Could Sue the SEC
The crypto industry has largely been on the back foot so far in 2022, with weeks of institutional outflows and plunging prices. However, institutional investors returned in force last week, recording the year’s largest combined weekly net investment.
In the week ending March 25th, the crypto industry recorded $193 million in institutional investments. ProShares and ETC Group led the investments, each tallying $48.3 million in net inflows this week. Bitcoin and Solana were the preferred assets, receiving $97.8 and $87.1 million respectively.
Fed up with the rejection and postponement of its Bitcoin Spot ETF, Grayscale, the world’s largest digital currency asset manager, could look to sue the SEC if its Bitcoin ETF application is rejected.
Michael Sonnenshein, CEO of Grayscale, said that his team would be putting the full resources of the firm behind converting GBTC into an ETF. When asked if Grayscale would sue the SEC, Sonnenshein replied, “I think all options are on the table.”
Flipsider:
- With crypto becoming a more significant part of tomorrow’s finance, the Biden administration anticipates that $10 billion in revenue will be generated from crypto over the next decade.
- Events could see crypto investors pay more taxes on their crypto-generated profits.
Why You Should Care
A spot ETF would provide investors direct exposure to Bitcoin and other cryptos – the reason why they are considered important for crypto’s growth.
Greenpeace, Ripple Co-Founder and More Start Campaign to Reduce Bitcoin Energy Consumption
The long-standing debate about Bitcoin’s energy consumption and subsequent impact on the environment has been reinvigorated by a campaign backed by Greenpeace, Chris Larsen (Ripple’s co-founder), and other climate groups.
The “Change the code, not the climate” campaign aims to convince industry experts to support a switch for Bitcoin from the Proof of Work mechanism to a less energy demanding consensus model.
The most prominent concern raised is that the energy required to mine Bitcoin is generated mostly from fossil fuels, with some miners using coal waste and associated natural gases. They believe that Bitcoin’s energy consumption would drop by 99.9% by moving to a Proof of Stake model.
As part of the campaign, digital advertisements will be run in the Wall Street Journal, New York Times, Marketwatch, Politico, Facebook, and other publications. Legal action will also be taken against proposed mining sites.
Flipsider:
- Some Bitcoin miners have been powering their operations using renewable energy from wind and solar.
Why You Should Care
With the value and use of Bitcoin rising, the campaign’s organizers argue that it is vital that Bitcoin becomes more environmentally friendly.
Vietnam Is Working on a Legal Framework for Cryptocurrencies
Since 2017, when the Vietnamese central bank’s initially issued a ban on crypto, the nation has become one of the leading crypto adopters in the world. To further its foray into the cryptoverse, the Asian nation is now working on creating a legal framework for cryptocurrency.
The Ministries of Justice, Information, and Communications will work together with the State Bank of Vietnam to create a legal framework for digital assets according to the details laid out in ‘Decision 1255' – the 2017 crypto ban.
According to a report by local news outlet Vietnamnet on Monday 28th, the ministry must identify specific legal documents requiring amendment or enactment for the management of the nascent asset class.
The report also adds that the requirements to develop legislation that controls the risks of digital assets will be assessed. However, the framework will reportedly not affect other sectors, such as e-commerce and information technology.
Flipsider:
- While Vietnam looks to move forward with crypto, fellow South-East Asian country Thailand has elected to ban crypto as a means of payment.
Why You Should Care
The news marks another step in the Vietnam’s march to formally legislate digital assets following the 2017 ban issued by the nation’s central bank on the use of bitcoin and other cryptos as a means of payment.
Text source: DailyCoin.com
