Crypto news

A popular token pegged to the dollar dramatically collapsed on Monday, causing the crypto market capitalization to lose a staggering $300 billion.

It is also fair to wonder if or when there will ever be a successful algorithmic stablecoin. Of course, decentralization is a spectrum, so perhaps there is a middle ground between purely algorithmic tokens and the decentralized model. In UST’s world, LUNA is supposed to be a stabilizing mechanism to help return the price of UST back to $1 when it deviates. LUNA saw its market capitalization drop from over $30 billion to $10 billion in the past five days and its price is down 64% over this time frame. That said, those appear to be a paragon of stability when compared to UST. Instead of being backed 1:1 by tangible assets at a bank or custodian, UST uses a complicated setup with another token, LUNA, to try and maintain its peg. The report noted how stablecoins can be subject to runs on money market funds, especially during times of stress when the assets backing these tokens can become illiquid.

The venture fund will have 20% of its capital set aside for investments in cryptocurrency tokens, while the other 80% will go to equity investments in web3, ...

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Digital asset prices have slumped, mirroring a plunge in equities on fears of aggressive interest rate hikes across the globe to stave off decades-high ...

Signs of weakness in stablecoins, typically a safer crypto currency, further spooked investors. Despite bitcoin’s price slump, funds and products linked to it posted inflows of $45 million last week as investors took advantage of price weakness, according to digital asset manager Coinshares in a report released on Monday. Crypto assets bled nearly $800 billion in market value over the past month, touching a low of $1.4 trillion on Tuesday, according to the data site CoinMarketCap, as the end of easy monetary policy diminishes appetite for risk assets.

The native token of Terra blockchain named 'LUNA' tumbled to $24.14 from $61.99, registering a massive drop of 60 per cent within a day.

Kapoor said that Terra is still a good buy, but it's time to be cautious. "While for those with less-risk appetite, investors should observe the market movements closely," he adds. The Luna Foundation Guard deployed $1.5 billion in reserve assets to shore up UST's peg. Ideally, market makers would step in and correct the peg," he added. It's only a matter of time before it fails, he added. The token is trading about 80 per cent below its peak close to $118, scaled last month.

Stablecoins like TerraUSD were designed to provide stability in a volatile world. Now, their failure is creating systemwide ripple effects.

Even “meme” cryptos like Dogecoin weren’t spared. - Print Article - Order Reprints

TerraUSD, one of the world's largest stablecoins, lost a third of its value on Tuesday, spooking cryptocurrency investors and partly contributing to ...

Register now for FREE unlimited access to Reuters.com Stablecoins are digital tokens pegged to the value of traditional assets, such as the U.S. dollar. TerraUSD, also known as 'UST', is a so-called algorithmic stablecoin, one of the largest by market capitalisation. Register now for FREE unlimited access to Reuters.com Register now for FREE unlimited access to Reuters.com "Additionally, the increasing use of stablecoins to meet margin requirements for levered trading in other cryptocurrencies may amplify volatility in demand for stablecoins and heighten redemption risks," it added.

The cryptocurrency market continues to bleed as investors rush to sell their holdings in anticipation of a steeper correction. Crypto Market Rebounds With ...

Until Bitcoin regains $35,190 as support and Ethereum surges above $3,270, the crypto market is likely to look shaky. The sudden downswing allowed Ethereum to break out of a symmetrical triangle in a negative posture. The height of the triangle’s Y-axis suggests that Ethereum is primed for a 64% correction. Based on the on-chain data, Bitcoin likely needs to print a weekly close above $35,190 to have a chance of invalidating the bearish thesis. Glassnode data shows that the number of addresses holding more than 1,000 Ethereum has decreased by 0.83% over the past week. Sentiment in the crypto market shifted after Bitcoin broke through a historic rising trendline spotted on its weekly chart.

Swing…and a miss. The Washington Nationals, following an effort on Twitter to promote its ties to crypto project Terra, received blowback from users for ...

Do Kwon, the founder of Terraform Labs, which developed Terra, is also a controversial character in the crypto space. The franchise also said it may start accepting Terra’s UST coin as a payment method at Nationals Park this season. Brands dipping their toes into Web3 should heed the Nationals’ flub as a reminder that the crypto space is highly volatile, and education and awareness of its vagaries are a must.

Investors in bitcoin are in panic mode as the controversial terraUSD stablecoin slips further from its intended $1 peg.

In a follow-up tweet, the organization said it had withdrawn 37,000 bitcoins — worth over $1 billion at current prices — to lend out. In simple terms, the Terra protocol destroys and creates new units of UST and luna to adjust supply. As of 7:00 a.m. ET, bitcoin was trading at $31,324, down around 5% in the last 24 hours. The theory was that UST could eventually be redeemed for bitcoin instead of luna, but this is untested and hasn't yet been put into practice. TerraUSD, or UST, sank below 70 cents for the first time late Monday, as holders continued to flee the token in what some have described as a "bank run." However, unlike with those cryptocurrencies, Terra doesn't have cash and other assets held in a reserve to back its token.

Most signs have pointed downward, but predicting price trends in the days and weeks ahead is difficult; major cryptos have a mixed day.

Bitcoin and pals seemed to be half a chance for a recovery earlier. But that proved about as short lived as a Squid Game minor character…

• A plan fromTerra’s Luna Foundation Guard (LFG) to lend US$1.5 billion worth of Bitcoin to help TerraUSD regain its dollar parity was enacted. This is one of the most exciting years in the Ethereum project's history and sentiment has not changed for us working on this • MXC (MXC), (mc: US$204m) +15% • Orion Money (ORION), (mc: US$8m) -41% • Waves (WAVES), (mc: US$1.18b) -12% But here’s hoping for that “V-shaped generational bottom”, eh? We’ll get into that a little more, further below. • STEPN (GMT), (mc: US$1b) -20% In the meantime, here’s the visual and statistical representation of the crypto market sentiment over the past 24 hours. • TerraUSD (UST), (mc: US$12.65b) -20% But that proved about as short lived as an unnamed character in Squid Game, as Terra’s UST stablecoin drifted further away from its dollar peg. Probably. This time tomorrow, we might know.

Bitcoin and the wider suffered a severe sell-off on Monday. This article explores the external and internal factors that drove the price drop.