Read in the Digest:
- Bitcoin flounders under $30k amid longest bearish streak since 2015 – no future for Bitcoin as a payments network.
- Polygon helps Terra projects Mmgrate – LUNA trading volumes surge – LUNA burned to create value.
- Goldman Sachs and Barclays invest in Elwood – Square Enix to intensify Web 3.0 investment.
- The U.K. looks to regulate stablecoins after Terra’s collapse – Nigeria’s regulator forms new crypto rules.
Bitcoin Flounders Under $30k Amid Longest Bearish Streak Since 2015 – No Future for Bitcoin as a Payments Network
Bitcoin has once again fallen under the crucial $30k zone after recovering from last week’s massive price drop, induced by the Terra crash.
The May 15th price chart for Bitcoin. Source: CoinMarketCap
On Sunday, May 15th, Bitcoin hit a high of $31,308 but has gone on to trade under the $30,000 mark as bearish pressure persists.
The 1 day price chart for Bitcoin. Source: CoinMarketCap
The sell-off, which started gradually in December 2021, means that Bitcoin has suffered its longest bearish streak since early 2015.
Encapsulating Bitcoin’s woes, Sam Bankman-Fried, the CEO of FTX, has said that Bitcoin has no future as a payments network.
According to Bankman-Fried, Proof of Stake networks, which are cheaper and less power-hungry than Bitcoin’s Proof of Work network, will evolve crypto for payments.
- Bill Miller, a veteran investor, and fund manager who owns “a lot” of bitcoin, remains Bullish despite the sell-off, and has advised investors to turn to crypto.
Why You Should Care
Experts are increasing their calls for Bitcoin to evolve in order to retain its position as the world’s biggest crypto.
Polygon Helps Terra Projects Migrate – LUNA Trading Volumes Surge – Burn LUNA to Create Value
With Terra projects under duress after its the crash of its ecosystem token LUNA, Polygon has offered a helping hand, giving them the opportunity to migrate to the Polygon network. Polygon Studios’ CEO Ryan Wyatt made the announcement on Twitter.
Wyatt stated that the Polygon community is ready to welcome the developers and communities of struggling Terra projects. In addition, he outlined that Polygon would be contrbuting the necessary funds and resources to assist them in their migration.
After being pronounced dead by a variety of experts, Terra (LUNA) is beginning to stage an unlikely comeback. Despite losing 99% of its value last week, the trading volume of Terra spiked by over 200% as the token’s value gained over 600% on May 14th.
The May 14th price chart for LUNA. Source: CoinMarketCap
Binance CEO, Changpeng “CZ” Zhao, advised Do Kwon, the founder of Terraform Labs who has proposed a plan for Terra’s revival, that the project should buy back or burn LUNA. C.Z. believes that by doing so, the project will create value, thus improving LUNA’s price.
- Contrary to much speculations, Binance has announced that it doesn’t own any UST or LUNA and hasn’t invested in Terra.
Why You Should Care
Polygon is looking to create a lifeline for Terra based projects suffering as a result of the LUNA/UST crash.
Goldman Sachs and Barclays Invest in Elwood – Square Enix to Intensify Web 3.0 Investment
Institutional investors are slowly warming to crypto and its associated products, with a recent move seeing Goldman Sachs and Barclays invest in Elwood, a cryptocurrency trading platform.
The funding round has seen the value of Elwood, founded by British hedge fund billionaire Alan Howard, soar to $500 million. Dawn Capital, Commerzbank, and Galaxy Digital were also part of the funding.
In a similar move, Square Enix, the influential Japanese game development and publishing company, has outlined plans to issue tokens and invest in Web 3.0. The gaming giant recently sold its Western development studios for $300 million in order to fund its NFT and blockchain exploration.
Square Enix, which is working with Animoca Brands on developing the metaverse and Web 3.0 gaming, plans to increase its investment into the area. The company further plans to set up an overseas entity that will handle the “issuing, managing, and investing [of] our own tokens.”
- The market value of NFTs and digital assets has taken a major tumble In the wake of the Terra crash.
Why You Should Care
Institutional investors are steadily hedging their bets on cryptocurrencies as they push toward global adoption.
The U.K. Looks to Regulate Stablecoins After Terra’s Collapse – Nigeria’s Regulator Forms New Crypto Rules
In light of the collapse of algorithmic stablecoin TerraUSD (UST), which sent a ripple reverberating through the stablecoin sector, the U.K. Treasury Department has reaffirmed that it is committed to regulating stablecoins.
According to reports, the U.K. is progressing with plans to control payment stablecoins. The rules will pave the way for “issuers and service providers to work and grow in the U.K,” while also ensuring that stablecoins are reliable and safe.
Meanwhile, regulators in Nigeria, one of the fastest-growing crypto markets, have published 54 page-long regulations for digital assets. The move marks a stark turnaround from the ban imposed by the country’s central bank in 2021.
The ‘New Rules on Issuance, Offering Platforms, and Custody of Digital Assets‘ views the crypto industry as a space requiring regulation, as opposed to one that should be banned. According to the SEC, no digital assets exchange would be permitted to facilitate the trading of assets, except in the case that it obtains a “no objection” ruling from the commission.
- Any digital asset exchanges willing to trade in Nigeria will be required to pay a registration fee of 30 million Naira ($72,289 USD at today’s prices), among other fees.
Why You Should Care
Regulators are working to increase their hold on crypto in order to protect their citizens from the growing number of threats permeating the industry.