Crypto crash

The implosion of the audacious Luna and Terra coin project has left the crypto world shaken, regulators fired up, and lot of retail investors much poorer.

Kwon’s nonprofit took $1.5 billion, half of it in bitcoin, and tried to bail out Terra, which got back up to 90 cents a coin on Tuesday. Kwon tweeted that he was “deploying more capital,” then there was mostly silence until a Wednesday-morning thread took on a more formal tone and ended with a promise that Terra would “return.” The goal, said Cory Klippsten, CEO of the exchange Swan Bitcoin, appears to have been keeping the price as high as possible for as long as possible so investors could make a profit after a lock-up period ended and then bounce. Kwon — who had built up a persona as a proud crypto asshole, even saying once that he doesn’t “ debate the poor” in a thread about, I’m not kidding, financial panics — has lost whatever goodwill he had among his followers. For a while, it had been a cool way to make money out of nowhere, an excuse to move to Miami and show off your wealth. As 2022 wore on, it all started to feel more and more like the domain of weirdo-rap alleged money launderer Razzlekhan. Defenders have called it an “ attack,” though it’s unclear if this was anything more than a large withdrawal of money they weren’t prepared to cover. Meanwhile, shares in leading U.S.-based crypto exchange Coinbase were off by 25 percent, and the trillion-dollar-plus crypto industry is teeming with rumors about large funds or companies that may be on the brink of failure. While Terra should always be at $1, Luna could rise and fall with the markets — and the coins could freely be exchanged for each other for small profits. Terra is supposed to be trade reliable at the value of exactly one U.S. dollar, but it plummeted to 29 cents on Wednesday morning. At the time, Luna was on a massive run, up more the 1,000 percent over the prior six months. (The ex-Princeton wrestler also hired Hilary Duff to play at his birthday party a few years ago.) But even for Novogratz, the tattoo seemed a little over-the-top. “I’m officially a Lunatic!!!” he tweeted to his more than 400,000 followers.

The global cryptocurrency market's value today plummeted about 13% in the past 24 hours to $1.3 trillion.

The downfall of the stablecoin UST has impacted the crypto market to a great extent as most of the investors and institutions have invested in it. The world's largest and most popular cryptocurrency plunged more than 9% to $28,414. Cryptocurrency prices today crashed with Bitcoin falling to its lowest level since January 2021.

As much as markets are going through it right now, cryptocurrencies are really going through it, and the myriad disasters haven't abated just yet.

Some of its remaining users don’t even use it for Bitcoin trading and merely use the virtual wallet to store dollars, while other Bitcoin traders are switching their holdings to private wallets. On Tuesday, he revealed plans for “Bitcoin City,” a so-called smart city to be powered by the currency, and as the Bitcoin crash continued, his government made its biggest Bitcoin purchase yet, “buying the dip” to scoop up 500 coins at an average cost of $30,744. Many of them downloaded the wallet during its rollout last September only to ditch it after receiving a small sign-up cash bonus, and new downloads of the wallet have slowed down. The International Monetary Fund is pegging offers of a loan to demands for the country to stop using Bitcoin as legal tender. It’s too soon to predict whether this bodes apocalyptic—after all, hundreds of reports of crypto’s death over the years were greatly exaggerated. Well, as is true with stock markets, there appear to be a lot of Bitcoiners selling off their holdings in the wake of financial and economic insecurity. This led to further loss of confidence in the overall Terra platform; as Luna went down, so did TerraUSD. The CEO of Terra’s parent company utilized emergency reserves of Bitcoin— which the project buys to back TerraUSD in part—to try to prop the stablecoins’ value back up, to little avail. When the Fed announced its interest-rate hike and traders withdrew their currencies en masse, billions of dollars of value fled Anchor at once. The crypto project Terra produces the two coins: the TerraUSD coin, a stablecoin, and its sister token, Luna, whose price moves with demand. Nearly 40 percent of Bitcoin holders have lost all the money they’d invested in the currency, as the value of a single coin has dropped below even last year’s post-crash July low. Bitcoin gains its value from the limited amount of coins available in its network, the number of holders, and investor confidence. Within the world of crypto, there are different types of value systems.

Crypto Market Crash Latest Updates (LIVE) 12th May: The global cryptocurrency market seem to have landed itself in a free fall.

Meanwhile, price of TerraUSD (UST), which is believed to be the price driver of the current crypto market crash, has dropped by 32% in the last 7 days. “The effect of this move is not only being felt in the market, but has also raised concerns from regulators. In the last 24 hours, UST price dropped by over 18 per cent to $0.6782. In the last 24 hours itself, its price has come down by over 96%. Along with macroeconomic factors, the collapse of UST has largely impacted the crypto market. Crypto Market Crash Latest News Today (May 12) and Updates: The global cryptocurrency market seem to have landed itself in a free fall, with prices of several top tokens falling to new lows.

Bitcoin and cryptocurrencies have crashed further overnight, dropping to levels not seen since the crypto market began surging in late 2020...

The market inclines to sell on that kind of uncertainty and that is why stocks and crypto fell, but there is also a hope that inflation in the U.S. will continue to alleviate." Want to stay ahead of the market and understand the latest crypto news? Sign up now for the free CryptoCodex—A daily newsletter for crypto investors and the crypto-curious

While the cryptocurrency market is relatively small, recent downturns of Bitcoin and other digital assets could have an impact on traditional financial ...

In March, for example, the Acting Comptroller of the Currency warned that banks could be tripped up by crypto derivatives and unhedged crypto exposures, given they are working with little historical price data. Stablecoins are mostly used to facilitate trading in other digital assets. Most of the bitcoin and ethereum in circulation is held by a select few. While the overall crypto market is relatively small, the U.S. Federal Reserve, Treasury Department and the international Financial Stability Board have flagged stablecoins — digital tokens pegged to the value of traditional assets — as a potential threat to financial stability. While data on the proportion of retail versus institutional investors in the crypto market is hard to come by, Coinbase, the world’s largest cryptocurrency exchange, said institutional and retail investors each accounted for about 50% of the assets on its platform in the fourth quarter. In November, the most popular cryptocurrency, bitcoin, hit an all-time high of more than $68,000, pushing the value of the crypto market to $3 trillion, according to CoinGecko. That figure was $1.51 trillion on Tuesday.