Crypto Flipsider News – UST Loses Peg, LUNA Falls 99.9%, Bitcoin Falls Under $27K, USDT Loses Peg, Australia Finally Gets Spot ETFs, Nubank Launches BTC & ETH Trading, Elon Musk Twitter Purchase Undergoes Scrutiny
Read in the Digest;
- Terra (LUNA) Implodes After UST Loses Peg, Bitcoin Falls Under $27k, Stablecoin Regulation in View
- Tether (USDT) Loses $1 Peg as Ongoing Stablecoin Crisis Worsens
- Australia’s First ETFs Launch, Gather $2 Million on Debut
- Warren Buffett-Backed Digital Bank, NuBank, Launches Bitcoin and Ether Trading
- Elon Musk Twitter Purchase Undergoes Scrutiny Following SEC Report
Terra (LUNA) Implodes After UST Loses Peg, Bitcoin Falls Under $27k, Stablecoin Regulation in View
The cryptoverse was left in shock as its biggest algorithmic stablecoin, TerraUSD (UST), lost its $1 peg. However, nobody was prepared for the implosion of Terra (LUNA) and its ripple effects on the broader cryptocurrency market.
The 7d price chart of TerraUSD (UST). Source: CoinMarketCap
Three consecutive days of the UST losing its parity with the USD (falling as low as $0.2998) has caused Terra (LUNA) to implode. In the last 72 hours, LUNA has lost 99% of its value, dropping from $65 down to $0.095.
The 7d price chart of Terra (LUNA). Source: CoinMarketCap
The shockwave quickly spread across the broader crypto market, with Bitcoin and other altcoins posting double-digit losses in the last 3 days. The downtrend has seen Bitcoin fall under $27,000 for the first time in 16 months, with $600 billion wiped from the global crypto market cap.
The 7d price chart of Bitcoin (BTC). Source: CoinMarketCap
The UST incident has increased scrutiny on stablecoins, with the Federal Reserve calling stablecoins risky in its latest financial report. On the other hand, the U.S. Congress has called for the regulation of “stablecoins.”
Flipsider:
- With the UST finding its way back to $0.52, Terra founder, Do Kwon, has broken his silence and offered a proposal to restore the UST peg.
Why You Should Care
The UST saga, which has affected the entire crypto market, could be the push that births the regulation of the industry.
Tether (USDT) Loses $1 Peg as Ongoing Stablecoin Crisis Worsens
As pressure on stablecoins increases due to the implosion of the TerraUSD (UST), the first and largest dollar-pegged stablecoin, Tether (USDT), has lost its $1 peg.
Tether (USDT) briefly dropped 3.3% on Thursday, falling as low as $0.9798 from its intended $1 level. The stablecoin has recovered some but is still trading at $0.9857.
The 24-hour price chart of Tether (USDT). Source: CoinMarketCap
Despite the loss of parity with the USD, Tether’s CTO, Paolo Ardoino, announced on Twitter earlier today that Tether would continue to honor “USDT redemptions at 1$” via its website.
Unlike the algorithmic stablecoin, UST, which uses complex codes to create new coins or destroy old ones to maintain a steady price at $1, Tether is backed by;
“83.74% cash and cash equivalent, 4.61% corporate bonds and precious metals, 5.27% of secured loans, and 6.38% of other investments.”
Flipsider:
- The decentralized USD (USDD), the self-acclaimed Tether-killer, has launched on the Multichain DEX, with the Tron DAO approving $2 billion to protect TRX.
Why You Should Care
The weak sentiment and lack of trust surrounding stablecoins may have contributed to Tether losing its $1 peg.
Australia’s First ETFs Launch, Gathering $2 Million on Debut
After a delay that saw the much-anticipated ETF postponed in April, the five-year wait for the first spot cryptocurrency exchange-traded funds (ETF) in Australia has ended.
On Thursday, May 12, the Sydney-based ETF Securities’ spot Bitcoin and ether ETFs, built in conjunction with Switzerland’s 21Shares, began trading on the Cboe Australia exchange.
In addition, Cosmos Asset Management’s Bitcoin feeder ETF also launched on Thursday. However, the declining crypto market meant that these ETFs received a lukewarm start.
Thus far, the three ETFs have attracted approximately $2 million on their debut day of trading. The ETFs from 21 shares attracted investor inflows of $954,925 (Bitcoin ETF) and $604,305 (Ethereum ETF). The Cosmos Purpose Bitcoin Access ETF (CBTC) secured $454,002.
Flipsider:
- Following several disapprovals, global fund manager Grayscale has completed a “productive” meeting with the SEC to convert its fund into a Spot Bitcoin ETF.
Why You Should Care
Australia’s listings mark the latest stage in the globalization of exchange-traded products investing in “physical” cryptocurrency.
Warren Buffett-Backed Digital Bank, NuBank, Launches Bitcoin and Ether Trading
Nubank, the largest Brazilian digital bank by market value, has announced that it is adding the option for customers to buy and sell bitcoin (BTC) and ether (ETH) on its platform.
The trading and custody service launched by NuBank is being provided by the blockchain infrastructure company Paxos. NuBank will allocate roughly 1% of the cash on its balance sheet to Bitcoin.
NuBank, which is backed by Warren Buffett’s Berkshire Hathaway Inc., previously allowed users to invest in crypto via exchange-traded funds (ETFs).
According to NuBank, the pilot program, which launches on Thursday, May 12, will reach all of its customers by the end of July.
Flipsider:
- Although users will be able to buy and sell crypto with Brazilian reals, the pilot doesn’t allow withdrawal or deposit of crypto.
Why You Should Care
There has been a growing adoption of crypto in Brazil and Latin America, which NuBank believes will positively impact the region.
Elon Musk Twitter Purchase Undergoes Scrutiny Following SEC Report
On April 25, the world’s wealthiest man and self-aclaimed DOGE-Father announced the purchase of Twitter for $44 billion, promising drastic changes. According to reports, Musk’s purchase of the microblogging site is undergoing a lot of scrutiny in Washington.
The scrutiny of the purchase follows a report from the SEC investigating whether Musk complied with the required rules when he bought his large stake in the social media company in early April.
The investigation is being carried out by the SEC to ascertain if Musk submitted a form that investors must file when acquiring over 5% of a company. The Federal Trade Commission is also reviewing his initial 9% stake purchase in Twitter Inc.
In addition, the Federal Trade Commission recently opened an inquiry to know whether the CEO followed through with an antitrust reporting requirement when he bought his initial 9% stake in Twitter.
Flipsider:
- Elon Musk has announced that he would lift the Twitter ban placed on the former U.S. president, Donald Trump.
Why You Should Care
SEC Chair Gary Gensler has insisted that the rules on how investors must disclose that they’ve taken a major stake in a company be stricter and more transparent.
Text source: DailyCoin.com
