Autor Cointelegraph By Sam Bourgi

Failed exit? Traders complain Crypto.com reversed profitable LUNA transactions

Failed exit? Traders complain Crypto.com reversed profitable LUNA transactions

Uverejnil používateľ | máj 13, 2022 |

Cryptocurrency exchange Crypto.com has halted the trading of Terra (LUNA) tokens after it determined that user transactions were quoted at an “incorrect price,” prompting severe backlash from the community.In a Friday news release, Crypto.com said that LUNA trades have been halted due to a pricing error between 12:40 and 13:39 UTC on May 12. “[U]sers who traded LUNA were quoted an incorrect price,” the exchange said. “Our systems quickly detected the error and trading was halted. Trading remains halted until further notice.”Market participants took this to mean that the exchange had basically reversed profitable LUNA transactions by traders attempting to exit the cryptocurrency, which has been in a death spiral for several days. That may explain why Crypto.com is attempting to compensate for the mistake by offering affected users $10 worth of Cronos, or CRO, the exchange’s native token.JUST IN: https://t.co/gp8AK4709L is reversing profitable $LUNA trades from May 12th, claiming users “were quoted at an incorrect price.”— Watcher.Guru (@WatcherGuru) May 13, 2022Some observers noted that Crypto.com should take responsibility for any pricing error on its platform rather than penalize traders for executing profitable transactions.@cryptocom u need to take responsibility for providing wrong prices to your customers, personally I would leave any exchange that would do this— wolf ⛓ (@Thecryptowolf4) May 13, 2022

Multiple exchanges have moved to delist LUNA and TerraUSD (UST) assets amid the protocol’s stablecoin collapse. As Cointelegraph reported, LUNA/USDT contracts were delisted by Binance on Thursday after the trading pair fell below 0.005 USDT. On Friday, the exchange suspended all spot trading for LUNA and UST. The Binance delistings began one day after Huobi removed LUNA margined swaps.Related: Why did Terra LUNA and UST crash? | Find out on The Market ReportLUNA’s price is down over 99% this week and was last seen trading at basically zero, or $0.00013, according to CoinMarketCap. Its UST stablecoin never managed to regain its peg to the United States dollar and was last seen trading at $0.15, down 57.7% on the day.

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Breaking: Terra blockchain officially halted following LUNA price collapse

Breaking: Terra blockchain officially halted following LUNA price collapse

Uverejnil používateľ | máj 12, 2022 |

Validators for the Terra blockchain have decided to officially halt network activity on Thursday in a move designed to prevent governance attacks following the severe devaluation of the network’s LUNA token. Terraform Labs’ official Twitter handle confirmed that the blockchain network was halted at a block height of 7,603,700. The move follows a series of dramatic events that triggered an unprecedented decline in the price of LUNA and its associated TerraUSD (UST) stablecoin. The stablecoin, which was designed to maintain algorithmic parity with the United States dollar, lost its peg earlier this week before plunging below $0.30.The Terra blockchain was officially halted at a block height of 7603700.https://t.co/squ5MZ5VDKTerra validators have decided to halt the Terra chain to prevent governance attacks following severe $LUNA inflation and a significantly reduced cost of attack.— Terra (UST) Powered by LUNA (@terra_money) May 12, 2022With LUNA’s price collapsing more than 99%, Terraform Labs is no longer confident that it can prevent governance attacks. In other words, the price decline “significantly reduced [the] cost of attack,” the ecosystem operator tweeted Thursday. As Cointelegraph reported, LUNA/UST contracts are slated for delisting on Binance once the trading pair falls below 0.005 USDT, which has already occurred. The delisting took place on Thursday at 3:30 pm UTC.Related: Why did Terra LUNA and UST crash? | Find out on The Market ReportEarlier this week, Terraform Labs co-founder Do Kwon shared details about a recovery plan that would help save the UST peg from further devaluation. Terra’s official Twitter handle further elaborated on those plans on Thursday by laying out a strategy to burn $1.4 billion UST and stake 240 million LUNA. However, the details of the rescue plan have failed to deter market sell pressure. 1/ The prevailing peg pressure on $UST from its current supply overhang is rendering severe dilution of $LUNA. The primary obstacle is expelling the bad debt from UST circulation at a clip fast enough for the system to restore the health of on-chain spreads.— Terra (UST) Powered by LUNA (@terra_money) May 12, 2022

Before the events of this week unfolded, Terra LUNA was a top-ten cryptocurrency project by market capitalization and its UST asset was the third-largest stablecoin behind only Tether (USDT) and USD Coin (USDC).

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Why did Terra LUNA and UST crash? | Find out on The Market Report

Why did Terra LUNA and UST crash? | Find out on The Market Report

Uverejnil používateľ | máj 11, 2022 |

Cryptocurrency investors never thought they’d have to ask which one of TerraUSD (UST) or LUNA would reach $1 first. On May 11, that question became the talk of the crypto-sphere as the Terra ecosystem imploded. As algorithmic stablecoin UST lost its dollar peg, crashing to a low of around 30 cents, Terraform Labs co-founder Do Kwon took to Twitter to share his rescue plan. At the same time, the value of sister token LUNA, once a top-ten crypto project by market capitalization, plunged over 98% to 84 cents, according to CoinMarketCap. For reference: LUNA was trading north of $120 in early April.Amid the chaos, Cointelegraph analysts Sam Bourgi, Jordan Finneseth, Marcel Pechman and Benton Yuan held an emergency edition of The Market Report, which normally airs on Tuesday, to discuss what exactly went down. Bourgi explained the theoretical underpinnings of algorithmic stablecoins and why they’re inherently risky before dissecting how UST lost its peg. Remember all that excitement surrounding Luna Foundation Guard’s Bitcoin (BTC) purchases? That was one of the biggest red flags, Bourgi said. Finneseth broke down the market psychology of market crashes and why investors can expect more pain in the months ahead. Yuan, meanwhile, discussed some potential theories as to who may have been responsible for orchestrating the BTC dump that triggered the panic inside Terra’s ecosystem. Related: Celsius Network execs deny rumors of significant losses amid market volatilityStaying true to form, Pechman put the LUNA crash within the context of the global financial system, concluding that crypto and Bitcoin are still the best assets to hold. You can watch the full replay on Cointelegraph’s YouTube page. Be sure to smash those like and subscribe buttons for all our future videos and updates.The views, thoughts and opinions expressed here and during the show are the analysts’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

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FCA-regulated Fasanara Capital raises $350M crypto and fintech VC fund

FCA-regulated Fasanara Capital raises $350M crypto and fintech VC fund

Uverejnil používateľ | máj 11, 2022 |

London-based asset manager Fasanara Capital has launched a $350 million investment fund to back fintech and cryptocurrency startups that can deliver new use cases for the emerging Web3 economy. The company, which manages $3.5 billion in assets, is targeting early-stage startups in the fintech and crypto spheres, where it plans to establish long-term relationships with project founders and other industry veterans. This includes potentially larger equity commitments than traditional venture capital firm. Founded in 2011, Fasanara Capital is a fintech investment firm increasingly specialized in digital assets and lending technologies. The company is regulated by the United Kingdom’s Financial Conduct Authority and has the backing of the European Investment Fund, a Luxembourg-based financial institution that facilitates small business loans through private banks and funds. Web3 participants need to recognize its potential to revolutionize participation in various fields. https://t.co/pf6seKA2hc— Cointelegraph (@Cointelegraph) March 14, 2022Two of Fasanara’s portfolio companies recently achieved unicorn status — ScalaPay, an Italian payment service provider, and Grover, a German smartphone and subscription service company. In the startup world, a unicorn is a company that achieves a valuation of $1 billion or more. Venture capital funding into fintech and cryptocurrency startups continues to grow as investors look to identify the next wave of disruptive technologies. In Europe alone, more than 750 fintech financing deals totaling over $27 billion were reported in 2021, according to the organizers of the Tech.eu Summit. Meanwhile, data from Cointelegraph Research shows that crypto startups closed 1,349 deals in 2021 at a total value of roughly $30.5 billion. Related: GameFi is showing signs of a mature landscape: ReportVC funds are allocating more resources to Web3 companies in 2022. Source: Cointelegraph Research Terminal.Despite evidence of a bear market looming over the cryptocurrency industry, venture funding in the space has shown no signs of slowing in 2022. In the first quarter alone, crypto startups saw $14.6 billion in cumulative inflows from the venture capital community.

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42.5K BTC reportedly moved from Luna Foundation Guard wallet as UST peg crumbles

42.5K BTC reportedly moved from Luna Foundation Guard wallet as UST peg crumbles

Uverejnil používateľ | máj 9, 2022 |

Roughly $1.4 billion worth of Bitcoin (BTC) was reportedly moved from a wallet tied to Luna Foundation Guard (LFG) on Monday, raising questions about its ultimate destination on a day that has seen Bitcoin’s price tumble more than 11%. Data from blockchain explorer Blockchair revealed Monday that 42,530.82827771 BTC was spent from the LFG wallet, though its destination was unknown. It has been speculated that the funds were split into two batches — roughly 12,500 BTC and 30,000 BTC, respectively — with a portion reportedly sent to cryptocurrency exchange OKEX. looks like they have split it up the funds 12.5k and 30k BTC going separate ways. Supposedly a chunk has been sent to OKEX as well pic.twitter.com/hlZtmMDcT5— Daxx (@DaxxTrader) May 9, 2022Around the same time, Twitter account Whale Alert revealed that 12,531 BTC had been transferred from an unknown wallet to another unknown wallet. Whale Alert provides tracker and analytics with reporting on large Bitcoin transactions. 12,531 #BTC (384,431,740 USD) transferred from unknown wallet to unknown wallethttps://t.co/4ZuCN34Fnr— Whale Alert (@whale_alert) May 9, 2022

The move came less than a day after LFG announced that it was taking decisive steps to “proactively defend the stability of the UST peg [and] broader Terra economy,” referring to its popular algorithmic stablecoin TerraUSD, which fell below its United States dollar peg. Measures included loaning $750 million worth of BTC to over-the-counter trading firms to help protect the peg of UST and to loan $750 million worth of UST to accumulate more Bitcoin as market conditions begin to stabilize. 1/ Over the past several days, market volatility across crypto assets has been significant. The market turmoil is also reflected by the past week’s uncertain macro conditions across legacy asset classes.— LFG | Luna Foundation Guard (@LFG_org) May 9, 2022

UST reached a low of $0.9428 on Monday, according to CoinMarketCap. UST has lost its peg on two occasions in the past, including the March 2020 COVI-19 liquidity event. Source: CoinMarketCap.Related: LUNA drops 20% in a day as whale dumps Terra’s UST stablecoin — selloff risks ahead?The value of Terra (LUNA) also declined significantly over the weekend, though project co-founder Do Kwon warned that the selloff was a result of a coordinated attack against the protocol. He also clarified on Sunday that LFG is “not trying to exit its Bitcoin position,” but that it was putting capital in the hands of a professional market maker to buy UST if the price falls below the peg and buy BTC if the price was greater to or equal to the peg.2/ First, *LFG is not trying to exit its bitcoin position*. The goal is to have this capital in the hands of a professional market maker such that: 1) Buy UST if price < peg2) Buy BTC if price >= pegthus significantly strengthening the liquidity around UST peg— Do Kwon (@stablekwon) May 9, 2022

On Monday, Kwon also tweeted that he would be “Deploying more capital,” though he didn’t specify to what extent. Extreme market volatility follows LFG’s acquisition of $1.5 billion in Bitcoin completed last week via over-the-counter swaps with Genesis Trading and direct purchases from crypto venture fund Three Arrows Capital. At the time, the nonprofit organization was said to hold roughly $3.5 billion worth of BTC at an average price of around $37,100 per coin. BTC price reached a low of around $30,300 on Monday, according to data from Cointelegraph Markets Pro and TradingView. This story is being updated. 

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