Hodler’s Digest, May 29 – June 4
Coming every Saturday Hodler Digest It will help you keep track of every important news that happened this week. Best (and worst) quotes, top adoption and regulation, leading currencies, forecasts and much more – a week on Cointelegraph in one link.
This week’s top news
The Federal Reserve Money Printer is headed in the opposite direction: What does this mean for cryptocurrencies?
Over the past two years or so, the US Federal Reserve has flooded the financial system with excess liquidity – benefiting stocks, cryptocurrency, and other markets as well. Now, the Fed is going in the opposite direction in order to fight inflation. In addition to raising interest rates, the central bank has begun the process of quantitative tightening (QT). It’s not entirely clear how crypto markets will respond to the Fed’s Qt efforts, but the short-term outlook may not be good for risky assets.
The Commodity Futures Trading Commission (CFTC) is suing Gemini, claiming that the cryptocurrency exchange lied in its futures valuation
US cryptocurrency exchange Gemini is facing action from the US Commodity Futures Trading Commission (CFTC) over certain alleged activity dating back to 2017. The CFTC essentially maintains that Gemini acted dishonestly in 2017 while pushing to add Bitcoin futures trading contracts to its offerings. The committee claims that Gemini was not honest during the evaluation process.
“Gemini has been a pioneer and supporter of thoughtful regulation from day one,” Jiminy told Cointelegraph in response to the lawsuit. “We have an eight-year track record of asking for permission, not forgiveness, and always doing the right thing. We look forward to conclusively proving that in court.”
Shenzhen drops 30 million yuan in free digital yuan to stimulate consumer spending
Shenzhen residents can obtain some of China’s central bank digital currency, e-CNY, as part of an airdrop. Shenzhen is working with one of the top food delivery apps in China to drop a total of 30 million CNY in a lottery-style giveaway for specific app users. No less than 15,000 in-app merchant portals allow e-CNY as a payment method. China has adhered to strict rules on restrictions imposed on the spread of the Corona virus, which has led to economic difficulties. Airdrops are aimed at stimulating consumer spending and stimulating the economy.
The South Korean government became one of the first investors in Metaverse
South Korea has made several crypto-centric headlines in recent weeks, from its interest in regulating crypto to now investing in the Metaverse. The state plans to put approximately $177 million into the Metaverse as part of its “Digital New Deal.” The money will go towards developing a Metaverse platform that promotes government services to citizens, as well as towards various Metaverse projects. This investment ranks South Korea as a global leader in terms of government Metaverse interest.
Japan passes bill limiting stablecoin issuance to banks and trust companies
A new bill from Japan, said to come into effect in 2023, will allow only authorized banks and registered money transfer agents to issue stablecoins. The regulation aims to provide more protection around stablecoins, given their growing popularity. Japan’s intent to regulate stablecoins comes amid a bear market for cryptocurrencies that saw asset prices plummet and the major stablecoin, TerraUSD Classic (USTC) plummet.
Winners and losers
At the end of the week, Bitcoin (BTC) in $29,540ether (ETH) in $1750 And the XRP in $0.38. Total market value at $1.21 trillion according to To CoinMarketCap.
Among the top 100 cryptocurrencies, Waves were the top three gainers of the week (waves) With a share of 114.63%, Cardano (ada) 24.19% and helium (HNT) by 22.49%.
The top three losers in altcoins for the week are Convex Finance (CVX) By -7.51%, Solana (sol) At -6.93% and 1 inch mesh (1 inch) by -3.40%.
For more information on cryptocurrency prices, be sure to read Cointelegraph’s market analysis.
Most unforgettable quotes
“We can actually imagine the entire global economy running on the blockchain like 30 or 50 years from now.”
Mark Andreessenco-founder of Andreessen Horowitz (a16z)
“If it’s managed properly, and if it’s managed well, I think theoretically stable algorithms should work.”
Changpeng “CZ” ChowCEO of Binance
“How will we reduce wealth inequality when financial discrimination is at the core of our regulatory system? It is time to remove the “sophisticated investor” discrimination rules that advisors use to hide and allow everyone access to financial advice and services.”
Ian LoveCEO and Founder of Blockchain Assets
“We have changed our stance on mining, and we have allowed cryptocurrency to be used in foreign trade and outside the country.”
Ksenia YudaevaFirst Deputy Governor of the Central Bank of Russia
“I don’t think we live in a world of one chain.”
Brad GarlinghouseCEO of Ripple Labs
“There are far too many general-purpose blockchains that are effectively competing with Ethereum (and some others) in a race down the fee. Only so many of them can survive.”
Andrew LevineCEO of Koinos Group
Predicting the week
Bitcoin Could Reach $14,000 in 2022, But Buying Bitcoin Now Is ‘As Good As It Gets:’ Analyst
Although Bitcoin charts saw some positive moves during the first part of this week ending in May, June brought back a price movement below $30,000, based on Bitcoin Price Index on Cointelegraph.
Using past BTC price data as a background in line with the Bitcoin halving cycle (around four years), pseudonymous Twitter user and CryptoQuant Venturefounder contributor suggested that the asset could see a macro price bottom in the next half year. As part of a series of tweets, the analyst said that bitcoin could reach a depth of between $14,000 and $21,000. The analysis included parallels with 2018, the pivotal year for the last bear market for cryptocurrencies. The price action is currently in line with Bitcoin’s historical cycles.
FUD of the week
Investors Sink 70% In Terra Tanks As LUNA 2 In 2 Days
In the wake of the collapse of the Terra ecosystem, Terra 2.0 and its associated LUNA 2.0 origin were launched on May 28, with the price of the token dropping sharply following the reveal. The plan to revive Terraform Labs CEO Do Kwon included distributing LUNA 2.0 to some participants in the legacy Terra ecosystem. About a day later, Binance announced that it had done so Complete the first airdrop of new LUNA codes for certain users. Between the time of the Cointelegraph article on Monday (linked above) and the writing of the Binance airdrop article on Tuesday, the price of LUNA 2.0 rose from $5.71 to $9.25.
New York State Senate votes to stop bitcoin mining
Additional Proof of Work (PoW) mining operations in New York can be suspended for two years, pending approval by the state governor. The New York State Senate has passed a bill that temporarily bans new Proof of Work mining equipment, as well as license renewals for existing players. However, the only exception to the bill is to allow new mining players in Proof of Work who use only renewable energy in their work.
The former product manager at OpenSea is charged with insider trading
Former OpenSea employee Nathaniel Chastain has been charged with insider trading, electronic fraud and money laundering. During his time as a product manager for the NFT exchange, Chastain allegedly traded several NFTs based on non-public knowledge. The allegations include that his job allowed him to influence the NFTs on the platform’s homepage, which he then used for his own benefit. Chastain resigned from his position at OpenSea after the entity requested his exit as a result of faulty gameplay detection, according to OpenSea. The Development raises questions NFTs may be marked as securities.
Cointelegraph’s Best Features
You can now clone NFTs as ‘imitation’: here’s what that means
“I think I broke the NFT market.”
Better Fail: Scott Melker Defying Odds With Cryptocurrency Trading
“It’s an arithmetic game of small losses and big wins.”
The anonymous culture of cryptography may lose its relevance
Although the anonymous teams have built some of the leading crypto infrastructure, many of the new participants in the ecosystem are using their true identities.