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Crypto Flipsider News – Crypto Rallies 15%; CFTC Chair Calls BTC & ETH Commodities; Bankman-Fried Contributes $31.5M to Super PAC; Do Kwon Doesn’t Support Burning Luna – Terra Trolled by Hoskinson and CZ; CoinSwitch Calls for Clear Regulation in India

Read in the Digest:

  • Cryptocurrencies stage minor comeback, global market cap rises above $1.3 trillion.
  • CFTC chairman considers Bitcoin and Ethereum to be commodities.
  • Crypto golden boy Samuel Bankman-Fried contributes $31.5M to super PAC.
  • Do Kwon doesn’t support burning LUNA – Hoskinson and CZ take jabs at Terra’s revival plan.
  • CoinSwitch CEO calls for “peace” and “certainty” in India’s crypto industry.

Cryptocurrencies Stage Minor Comeback, Global Market Cap Rises Above $1.3 Trillion

Following a brutal week in which unfavourable macro conditions and the implosion of the Terra ecosystem caused the crypto market to record double-digit losses, digital assets are beginning to stage a comeback.

The price of Bitcoin, the world’s largest cryptocurrency, has touched $30,600 for the first time in three days. Gaining more than 5% in the process.

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

Each of the top 50 cryptocurrencies have recorded varying gains over the last 24 hours, with the biggest gainers in the period being Fantom (FTM) with gains of 18%, Ethereum Classic (ETC) with 12.2%, Aave (AAVE) with 12%, and Uniswap with 7.5%.

The 24 hours price chart of Fantom (FTM). Source: CoinMarketCap

The 24 hour price chart for Ethereum Classic (ETC). Source: CoinMarketCap

The 24 hour price chart for Aave (AAVE). Source: CoinMarketCap

The 24 hour price chart for Uniswap (UNI). Source: CoinMarketCap

The shared gains have seen the valuation of the global cryptocurrency market rise by more than 13% in the last five days. The global crypto market is now capped at $1.306 trillion after falling to as low as $1.13 trillion.

Flipsider:

  • Despite the recent rally, Bitcoin and the crypto market are on track to record eight consecutive weeks of losses for the first time in history.

Why You Should Care

With Bitcoin and other Altcoins stabilizing, and even embarking on a mini-rally, the FUD (fear, uncertainty, and doubt) surrounding crypto could be reduced.

CFTC Chairman Considers Bitcoin and Ethereum to Be Commodities

Amidst regulatory uncertainty, Rostin Benham, the Commodity Futures Trading Commission (CFTC) chairman, has provided a degree of clarity. According to Benham, crypto falls into two categories for regulatory purposes: securities and commodities.

Benham opined that Bitcoin (BTC) and Ethereum (ETH) can be categorized as commodities, and should as such be regulated by the CFTC.

“I can say for sure Bitcoin, which is the largest of the coins and has always been the largest regardless of the total market cap of the entire digital asset market capitalization, is a commodity. Ethereum as well.”

However, other cryptocurrencies which are deemed as securities should be regulated by the Securities and Exchange Commission (SEC).

Flipsider:

Why You Should Care

Although there are differences between the CFTC and SEC, Benham underlines both agencies work to protect investors’ interests.

Crypto Golden Boy Samuel Bankman-Fried Contributes $31.5M to Super PAC 

Sam Bankman-Fried, popularly known as the “crypto golden boy”, has joined George Soros in donating money to super political action committees (organizations that promote a particular political candidate) for the U.S. midterm primaries which are due to be underway.

So far, Bankman-Fried has contributed $31.5 million to super PACs for the upcoming election. He has also contributed $6 million to the House Majority PAC, the super PAC supporting House Democrats. 

Crypto executives are utilizing super PACs as a means to push for crypto-friendly officials in the coming election.

Hedge fund billionaire George Soros has contributed $125 million to Democracy PAC II, a committee he uses to allocate funds to other organizations it supports.

Meanwhile, Bankman-Fried shelled out to Republican Richard Uihlein and his wife, contributing $31.5 million.

Flipsider:

  • The Financial Freedom PAC has been used to remove Republican Brad Sherman (D-Calif.) by endorsing  Aarika Rhodes, an elementary school teacher who is certain that bitcoin is the key to the democratization of finance.

Why You Should Care

The Blockchain association supports those crypto executives utilizing super PACs to push for crypto-friendly officials in the coming election.

Do Kwon Doesn’t Support Burning LUNA – Hoskinson and CZ Take Jabs at Terra’s Revival Plan

In a follow up to the recent Terra revival plan announced by Do Kwon, the founder of Terraform Labs has stated that he doesn’t support burning Terra (LUNA).

The burning of LUNA was suggested by the community as a means of regaining value after the massive inflation LUNA suffered from its crash to $0.00018 crash from the highs of $116.

Although providing a link to burn portions of the 6.5 trillion LUNA (from 340 million before the crash) in circulation, Kwon believes the process is pointless and “nothing will happen” to LUNA’s valuation.

Flipsider:

  • Charles Hoskinson, the founder of Cardano, has taken to Twitter to troll Do Kwon about the ensuing back and forth over the ecosystem’s revival plan.
  • Hoskinson, who is big on procedural building and not overnight miracles, has called the upcoming Terra 2.0 plan the “Wrath of Kwon”.
  • Binance CEO, Changpeng “CZ” Zhao, has not spared the project his thoughts either, calling the Terra team’s decision making “stupid”, and stating that he has “mixed feelings about the revival plans”.

Why You Should Care

The massive impact of the Terra crash could either be quelled or exacerbated by the success or failure of its revival plan.

CoinSwitch CEO Calls for “Peace” and “Certainty” in India’s Crypto Industry

Ashish Singhal, the CEO of ConSwitch, India’s largest cryptocurrency platform, has called for clearer rules, and a resolution of the long-standing regulatory uncertainty in India’s cryptocurrency space.

The Indian government seems to be in two minds about whether to ban or regulate the sector. As a result, crypto investors are unsure what will happen to their holdings.

Shortly after proposing a 30% income task on crypto, the Reserve Bank of India governor called cryptocurrencies a threat to “macroeconomic stability and financial stability.”

Speaking at the World Economic Forum in Davos, Singhal said that regulating cryptocurrencies in the country would bring peace and “more certainty” to investors.

Flipsider:

  • Regulatory uncertainty has taken a toll on the Indian crypto space, with leading exchanges like Coinbase, CoinSwitch, Kuber, and WazirX restricting their services in the region.

Why You Should Care

Regulatory clarity could serve to spur the growth of India’s crypto space, which is potentially one of the biggest in the world.

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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