Crypto Flipsider News – Bitcoin Rebounds; LUNC Rallies; GameStop Partners with FTX; Sorare NBA Partnership; Aave Suspends ETH Loan

Read in the Digest:

  • Bitcoin (BTC) reclaims $19k as stocks rebound, interest rate hike looms
  • Community-led Terra Classic (LUNC) rallies to re-enter the top 30 cryptos
  • GameStop partners with FTX.US to strengthen its digital asset adoption
  • Sorare partners with NBA to launch an NFT-based fantasy basketball game
  • DeFi giant Aave temporarily suspends ETH loans ahead of the merge

Bitcoin (BTC) Reclaims $19k as Stocks Rebound, Interest Rate Hike Looms

After nosediving below $19,000 for the first time since June, the world’s biggest cryptocurrency, Bitcoin (BTC) is recovering along with the global stock market and has now recovered above $19k.

Bitcoin joins the rally, gaining 3.1% to hit an interday trading high of $19,427. BTC now trades at $19,300 and is showing enough momentum to attempt testing the important $20k psychological level.

BTC graph coinmarketcap bitcoin crypto token

The 24-hour price chart for Bitcoin (BTC). Source: CoinMarketCap

The Bitcoin and stock market recovery began in the late hours of Wednesday as Treasury yields slipped back from recent highs and oil prices dropped. Dow Jones gained 1.4%, while the S&P 500 and Nasdaq gained 1.83% and 2.14%, respectively.

Flipsider:

  • Bitcoin’s recovery comes as reports emerge that the Federal Reserve could hike interest rates by 0.75 points for the third consecutive time.
  • The price of Bitcoin could take another hit as previous interest rate hikes followed high volatility in markets.

Why You Should Care

Bitcoin’s increasing movement with the global stock market confirms claims of the IMF that the asset is now mainstream.

Community-Led Terra Classic (LUNC) Rallies and Re-enters Top 30 Cryptos

Since the “dead” Terra Classic (LUNC) was handed over to be run by the community, they have implemented several initiatives to boost the demand for the token, which has paid off with one of the biggest rallies.

Despite the crypto market falling back to its lowest point in 2022, LUNC has been the lone star, gaining over 63% in the last 24 hours and doubling its price in the last week. 

LUNC graph coinmarketcap

The 7-day price chart for Terra Classic (LUNC). Source: CoinMarketCap

While these gains are impressive, LUNC has spiked by more than 500% in the last 30 days, pushing the token back into the top 30 Cryptos ranked by market cap. LUNC is now ranked 24th with a market cap of $3.68 billion.

LUNC graph coinmarketcap

The 30-day price chart for Terra Classic (LUNC). Source: CoinMarketCap

Initiatives that have helped boost the demand for LUNC include token burning and attractive staking opportunities. According to LuncStaking_Bot, 8.8% of the LUNC supply is currently staked.

Flipsider:

  • The Do Kwon-led Terra (LUNA) has suffered a bad fate since its launch and is now ranked as the 112th largest crypto with a market cap of $254 million. 

Why You Should Care

The development and governance of Terra Classic (LUNC) were left to the community, who are doing all they can to ensure the success of the project.

GameStop Partners with FTX.US to Strengthen Its Digital Asset Adoption

GameStop, the video game retailer behind the famous meme stock rally of 2021, has announced a partnership with Sam Bankman-Fried’s crypto exchange, FTX.US, to boost the interaction between crypto and gaming.

The partnership will see GameStop FTX gift cards at some of its “select stores” across the country. GameStop is now FTX’s “preferred retail partner” in the US, which suggests that the video game retailer could carry other FTX products in the future.

GameStop says that the partnership aims to make FTX’s community and marketplaces for digital assets more accessible to GameStop customers. However, the financial terms of the partnership were not disclosed. 

Flipsider:

  • The news of the partnership comes along with its Q2 results, in which GameStop reported it didn’t meet its revenue target and a loss of $0.35 per share.

Why You Should Care

The partnership is part of GameStop’s business overhaul and intention to delve deeper into crypto and digital assets.

Sorare Partners with the NBA to Launch an NFT-Based Fantasy Basketball Game

Blockchain-based fantasy sports game Sorare has announced a partnership with the National Basketball Association (NBA) and National Basketball Players Association (NBPA) to build the first-ever NFT-based fantasy basketball game.

The game “Sorare: NBA” will allow players to buy and sell digital cards and also create a squad of NFT-based digital collectibles representing their preferred NBA players and teams to earn points based on real-life performance.

The French startup plans to launch Sorare: NBA in the next 2022-23 season, which begins on October 18. This is Sorare’e third collaboration with a major US sports league. Earlier this year, the firm launched Major League Baseball and Major League Soccer games.

Sorare currently has two million registered users across 185 countries, with most of them residing in Europe and Asia. Sorare is also licensed in over 280 top leagues and international soccer clubs like Spain’s La Liga, Italy’s Serie A, and Bundesliga.

Flipsider:

  • Sorare could face compliance checks, extra taxes, and user age restrictions, as it is being assessed by gambling authorities in the UK and France for being a gambling product.

Why You Should Care

Sorare’s expansion into basketball represents a great opportunity to attract existing NBA Top Shot users and others interested in basketball to its ecosystem.

DeFi Giant Aave Temporarily Suspends ETH Loans Ahead of the Merge

Decentralized lending platform Aave has temporarily halted Ethereum (ETH) loans to users to protect itself from the risks that could stem from a surge in borrowing demand due to the anticipated Ethereum merge.

The move follows a community vote from August 30 to September 2 in favour of halting ETH loaning. Aave is experiencing the risk of enormous utilization in the ETH market ahead of the merge. 

The utilization rate refers to the percentage of the pool loaned out. Crypto research firm Block Analytica speculates that increased ETH borrowing from users will propel utilization to a much higher level, hence the need for suspension.

Some ETH miners are suggesting that the chain be divided into a proof-of-stake and a proof-of-work. This will allow ETHPOW to be the native token of the PoW chain, which would be distributed to ETH holders for free.

Flipsider:

  • Aave’s rival, Compound Finance, has not announced whether it will suspend ETH transactions during the merge.

Why You Should Care

The move from Aave will prevent the protocol from coming under pressure as users try to maximize ETHPoW airdrops after the merge.

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed to be financial legal or tax advice. Trading Forex, cryptocurrencies, and CFDs poses a considerable risk of loss

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