July 1, 2022 7:40 am

A new social media platform Truthbook.social built by the people for the people, a force for good.

First Mover Asia: Terra’s Difficult Post-Collapse Path: VCs Backing Away, Regulators Jumping on Stablecoins

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on pinterest
Pinterest
Share on whatsapp
WhatsApp
Share on telegram
Telegram

We are a not for profit Independent Media Group, which survives off donations. Even as little as $5 per month, from our generous readers. Please donate now, to help fund our work.

First Mover Asia: Terra’s Difficult Post-Collapse Path: VCs Backing Away, Regulators Jumping on Stablecoins

By Sam Reynolds, Damanick Dantes, James Rubin

Some investors see salvageable pieces in the rubble while others are bemoaning their involvement and want to forget the protocol ever existed; bitcoin edges up in weekend trading.

Prices: Bitcoin gains slightly in weekend trading but can’t break much beyond $30,000; ether and other major cryptos are in the green.

Insights: Terra’s post-collapse path will be difficult.

Technician’s take: BTC is roughly flat over the past week. Technical signals suggest a neutral to bearish outlook.

Prices

Bitcoin (BTC): $30,376 +3.3%

Ether (ETH): $2,044 +3.6%

Biggest Gainers

Asset Ticker Returns DACS Sector
Solana SOL +4.6% Smart Contract Platform
Polygon MATIC +4.4% Smart Contract Platform
Ethereum Classic ETC +4.2% Smart Contract Platform

Biggest Losers

There are no losers in CoinDesk 20 today.

Bitcoin and major cryptos post small gains

Bitcoin, ether and most other major cryptos improved a little over the weekend.

Compared to earlier in the week, they could brag. But in the larger picture, the largest cryptocurrency by market capitalization was still deep in a bear market with no end in sight, and struggling to hover above the $30,000 support line it has held for the past 10 days.

BTC was recently trading at approximately $30,370, a roughly 3.3% rise from its ending point Friday. Ether, the second largest crypto by market cap, was up similarly over the same period and holding just over $2,000 – its perch for much of the past few weeks. AVAX was among the big winners, recently rising more than 8%. SOL and TRX were both up over 5%.

“Bitcoin managed to retain the support levels it found last week and even attempted range breakouts,” Joe DiPasquale, CEO of crypto fund manager BitBull Capital wrote to CoinDesk. “However, $31K-$32K remains a strong resistance level [that] Bitcoin needs to successfully breach before we can look toward more upside.”

To be sure, equity markets ended their Friday with a surge, but all that did was help the S&P 500 escape the bear market territory where it lingered for much of the day. The S&P, which bitcoin has tracked increasingly in recent months, closed flat after spending the morning and afternoon in the red. Indices earn bear market designation when they are off 20% from their previous highs. The tech-heavy Nasdaq, which crypto markets have tracked increasingly, rallied late to also hold its ground from the previous day, as did The Dow Jones Industrial Average (DJIA). Still, the DJIA declined for the eighth consecutive week, its longest weekly losing streak since the Great Depression. Each of the indices fell 2.9% or more for the week.

Tech stocks have led the ongoing declines with Apple and Meta Platform’s (formerly Facebook) share price dropping 22% and 42% since the start of the year. But the retail sector, which fueled a large part of the economic recovery in 2021 and early 2022, has now also showed signs of weakening with Walmart, Target and Kohl’s underperforming on their most recent earnings. “Households are feeling the effects of higher prices everywhere,” First Republic Bank said in a note to investors, adding that “markets will remain under pressure with significant bouts of equity and bond volatility persisting as investors digest a regime shift toward tighter policy intended to slow inflation.”

Markets

S&P 500: 3,901 +0.01%

DJIA: 31,261 +0.02%

Nasdaq: 11,354 -0.3%

Gold: $1,846 +0.2%

Insights

Terra’s difficult post-collapse path

As the rubble is swept up after Terra’s collapse, some investors are sorting through it for pieces on which to rebuild, while other investors are posting mea culpas or trying to back away from the project entirely. At the same time, experts are warning that regulators will use this implosion as a need for comprehensive stablecoin regulation.

On Terra’s governance proposal portal, 80% of eligible token holders that voted are pushing to rebuild the protocol — minus the algorithmic component.

Terra’s dozen or so investors have plenty of incentive to support this. The losses from their gamble on the protocol are astronomical.

Galaxy Digital’s (GLXY.TO) Mike Novogratz has spoken about the need for a post-LUNA redemption cycle. Delphi Digital said it “always knew something like this was possible..[but] miscalculated the risk of a ‘death spiral.’” Hashed has stayed silent about its gargantuan loss.

When the rubble clears, what’s going to happen? Regulation, says Yves Longchamp, the head of research at Swiss digital asset bank SEBA.

“I have always been skeptical about algorithmic stablecoins. At SEBA we don’t offer any algorithmic stablecoins; I believe you can’t create stability out of the blue,” he told CoinDesk in an interview. “You need to have an underlying asset.”

Longchamp thinks that if stablecoins are here to stay, regulation is a must because there were some UST holders that had good faith in the project and were not aware of the underlying risks.

Regulators should discourage the use of algorithmically backed stablecoins, he says, by giving ones with sound backing a green light via a regulatory framework.

After all, with USDC, it’s well known what’s behind it. Stablecoin tether (USDT) has worked so far because the redemption requests for USDT have been successful, but it’s still unclear what’s behind it.

Decentralized finance (DeFi) and “stablecoins are right now going through what has been learned in the 19th century in the banking system, which at the end of the day, led to the rise of central banking,” he said.

But while banks like SEBA welcome regulation, and it would have likely prevented Do Kwon from imploding the market and forcing regulators down on the ecosystem, is this what the industry wants? Will venture capitalists, as hurt as they are with the hit on their balance sheets, think regulation gets in the way of their 100x returns?

Technician’s take

Bitcoin Drifts Lower, Support at $25K-$27K

CoinDesk - Unknown
Bitcoin weekly chart shows support/resistance (Damanick Dantes/CoinDesk, TradingView)

Bitcoin (BTC) continues to struggle around the lower end of a yearlong trading range. The cryptocurrency could find support at $25,000 and $27,000, although there is risk of additional breakdowns in price.

BTC was down by as much as 4% on Friday and is roughly flat over the past week. Recent returns reflect choppy trading conditions with no sense of direction.

Momentum signals remain mixed despite oversold conditions on the charts. That suggests a neutral to bearish outlook over the next few days.

Editor’s Note: 

New Global Currencies

New Resistance Global Currencies that support Independent Media and are against the “Great Reset” –

Our World Coin, a force for good and a peaceful revolution, is built to save humanity from the Globalists deadly Great Reset Totalitarian Agenda.

Bitcoin 2.0 is a new cryptocurrency that is looking to innovate the Global Payment System. It is backed by real value in independent media news sites & networks.

Truth Coin, a platform that’s free from Globalists’ control, and will not support the Great Reset Agenda or the vaccine digital passport. This enables everyone to support and benefit from building a better world, by the people for the people, a force for good.

*Note We Deliberately Miss Spell Some Words or Add Capital Letters To Get Around Big Tech Censoring.

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on pinterest
Pinterest
Share on whatsapp
WhatsApp
Share on telegram
Telegram

We are a not for profit Independent Media Group, which survives off donations. Even as little as $5 per month, from our generous readers. Please donate now, to help fund our work.

Truthbook.social offering hundreds of thousands in giveaways for those joining its new social media platform as many desert Facebook in droves because of censoring

Here is some of the current incentives being offered to new users

Subscribe for free to our ANR news emails and access 2 free ebooks plus Reports to share with family and friends about Covid fraud and the danger of the vaccines.

For ANR Smaller Donors please donate below to help fund our critical not for profit work. Together we can defeat mainstream media.

Help us help defend free speech and save democracy from the World Economic Forum planned Totalitarian Great Reset.

and help us expose the Covid Fraudsters

Leave a Reply

Your email address will not be published.

Play Video

McIntyre Report
Political Talk Show

Jamie McIntyre
TruthBook.social Videos

Help us help defend free speech and save democracy from the World Economic Forum planned Totalitarian Great Reset.

and help us expose the Covid Fraudsters

Raw Report

Ryan Jackson Saw show

in USD

in AUD

in GBP

in CAD

Jamie McIntyre

ANR on

Currency Exchange Rates in AUD

Live and updated every minute of the day

Current Price of Bitcoin 2.0
0.10 on Azbit

Nurses Speak Out

Get our free News Emails on latest articles, alerts and solutions for both legal templates and ways to help fight back against the Globalists vax Mandates , and health resources to boost your immune system and ways to Protect from deadly EMF 5G radiation and more.

FREE E-BOOKS AND REPORTS ALSO

ANR Meme Report

with Nadine Roberts

Episode 002

21st Century Political System

Play Video

Editor's Pick

Thank you for visiting the
Australian National Review

To continue accessing more articles for free simply enter your email address

Help us help defend free speech and save democracy from the World Economic Forum planned Totalitarian Great Reset and help us expose the Covid Fraudsters

Download the Full PDF - THE COVID-19 FRAUD & WAR ON HUMANITY