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Crypto Flipsider News – Terra Raises $1 Billion to Support Ecosystem’s Growth, Tether Reduces Commercial Paper Holdings, Metamask: Phones as Hard Wallets, Apple Store Hostages Freed As Gunman Demands Millions In Crypto, Brazil’s Crypto Regulations Passed to Senate

Read in the digest

  • The Luna Foundation closes one of the largest fundraisers in the cryptocurrency ecosystem for Terra.
  • Tether has taken concrete steps to reduce its commercial paper holdings to secure them.
  • MetaMask’s new partnership will allow users to use their phones as a hardware wallet.
  • Apple Store hostages freed as gunman demands millions in crypto.
  • Brazil is set to become the largest Latin American country with concrete cryptocurrency legislation.

Terra Raises $1 Billion to Support Ecosystem’s Growth 

Terra has raised a sum of $1 billion for the purpose of stimulating growth in its ecosystem. The fund was raised by the Luna Foundation with the intent of also setting a reserve for Terra’s UST stablecoin. According to the foundation’s statement, the reserve will “provide a further layer of support using assets that are considered less correlated to the Terra ecosystem.”

Reports suggest that the fund will go further to include other “non correlated assets” in the future. The $1 billion raised marks one the largest in crypto history and rubs shoulders with NYDIG’s $1 billion funding round back in December 2021.  Terra’s fundraiser, via the sale of private tokens, was led by Jump Crypto and Three Arrows, with DeFiance Capital and Republic Capital also playing significant roles.

In the wake of the event, Terra (LUNA) spiked by a staggering 14% within less than a day and is now trading at $57.38. This gives the asset a market capitalization of $22 billlion, and a ranking of 9th place among cryptos by market cap.

Flipsider:

  • Despite the wave of positive news from the Terra ecosystem, the blockchain faces the seemingly insurmountable uphill battle in the task of unseating market leaders like Ethereum and Solana.

Why You Should Care

The race to become the next Ethereum Killer is heating up with the introduction of Terra as a dark horse. The blockchain supports over 70 projects and has further plans to expand.

Tether Reduces Commercial Paper Holdings

Tether, the issuers of ‘USDT‘, have announced the reduction of its investments held in commercial paper. The development was revealed in an accounting report released by the firm covering the fourth quarter of 2021 and is thought to also include certificates of deposits.

According to the report, the issuers of the world’s largest stablecoin possessed assets in the region of $78.7 billion, with the company investing $24.2 billion in commercial paper and certificates of deposits. This marked a significant reduction from September when Tether had northward of $30 billion in commercial paper.

According to experts, the reason for this reduction could be related to the regulatory hurdles faced by the stablecoin’s issuer. The trend of reduction has been noted among other issuers who are now choosing to back their stablecoins through other instruments. At the time of writing, Tether’s market capitalization stands at $79.47 billion with a trading volume of $60.5 billion.

Flipsider:

Why You Should Care

As cryptocurrencies become more mainstream, an increasing number of individuals have turned to stablecoins to facilitate their transactions and as such, the backing of these stablecoins have become a keen point of interest for such investors.

Metamask: Phones as Hard Wallets 

Metamask’s new partnership is set to allow users to move their cryptocurrencies away from exchanges by using their phones as hardware wallets. The wallet provider formed the agreement with Airgap  in order to allow users to turn their old phones into hardware wallets, thereby circumventing the costs associated with the purchase of the traditional wallets.

Users need simply download the android or iOS app on their chosen devices to gain the ability to store their cryptocurrencies even without internet access. Other features include the simple balance checking, cryptocurrency trading, and the purchasing of NFTs. The mobile phone hardware wallet comes with two-factor authentication for improved security.

AirGaps’ latest offering has been integrated into the Ethereum network and then Binance Smart Chain, and will allow users to take advantage of the dApps available on those chains.

Flipsider:

Why You Should Care

The recent and near relentless hacks against exchanges have amplified the calls for the transfer of cryptocurrency assets to hardware wallets. However, the prices of these wallets are expensive, meaning that they are typically out of reach for the average investor.

Apple Store Hostages Freed As Gunman Demands Millions In Crypto

In a bizarre story, a gunman who broke into an Apple Store and took hostages has been restrained by law enforcement agents. The unnamed man attempted a robbery in Amsterdam at around 17:00 local time on Tuesday 22nd, taking a hostage and demanding a sum of $200 million in cryptocurrencies in exchange for the safe release of the hostage.

The standoff between the attacker and police negotiators lasted several minutes and took an unexpected twist when a robot dog went to deliver water to the hostage. Seizing upon the distraction, the hostage attempted to dash to the door with the armed attacker giving chase. the police on the perimeter followed the attacker, who was soon hit by a moving vehicle. Authorities on the scene praised the quick-thinking of the hostage for their part in creating an opening.

Cryptocurrencies have seemingly become the go-to method for criminal actors to collect ransom in recent times. The Colonial Pipeline hackers similarly demanded a sum of $4.4 million in crypto as ransom, while the JBS meat supplier hack cost $11 million worth of Bitcoin.

Flipsider:

Why You Should Care

While cryptocurrencies are hailed as the next frontier in finance, bad actors and law enforcement agencies are embroiled in a never-ending battle to outdo each other. It is believed that improved regulations in the space will make it more difficult for criminals to thrive in the asset class.

Brazil’s Crypto Regulations Passed To Senate

Brazil is one step closer to following in the footsteps of El Salvador in adopting Bitcoin following a proposed bill to regulate cryptocurrencies. The bill was unanimously approved by the country’s Senate and, after a vote by the two Houses of Parliament, will now be sent to the President to be signed into law. 

According to Senator Iraja Abreu, the new bill will serve a wide range of purposes including stemming the tide of cryptocurrency fraud and other illegal practices. The Senator also disclosed in an interview that the approval of the regulation would lead to an increase in the adoption of crypto across the economy “ in supermarkets, in commerce, in a car dealership.”

The bill goes on to provide definitions for key cryptocurrency terms such as who exactly registers as a broker, and what entails a cryptocurrency exchange or virtual asset. The passing of the bill into law will be historic as it will make Brazil the largest Latin American nation to have installed comprehensive cryptocurrency legislation.

Flipsider:

Why You Should Care

If Brazil toes the path of El Salvador and goes all-in on cryptocurrency adoption, it could set off a chain reaction and open the floodgates of countries seeking to similarly adopt crypto.

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