While much of the industry’s attention was devoted to the autopsy and recovery of Terra historical collapse and the simultaneous market crash, zooming out and examining the big picture shows a possibly more hopeful week than the previous week.
For starters, the market’s seven-week free fall has finally slowed.
Bitcoin, the leading cryptocurrency, was actually up 0.69% to $29,265while Ethereum was only down 0.88% over the seven days to $1,968, at the time of writing.
There were no major losses among the top 40 cryptocurrencies by market cap. Some projects even thrived, with BNB rising 10% to $307, privacy coin Monero rising 24% to $175, and Cosmos adding 9% to $10.86.
And the view from the wreckage?
TerraUSD (UST), formerly a dollar-pegged stablecoin, is currently trading for a fraction of over 6 cents. Meanwhile, LUNA, the coin that gave UST its value, is currently worth around $.0001.
Just fifteen days ago there were 342 million LUNA in circulation. Today, there are just over 6.5 billion.
the news of the week
On Monday, the Australian Taxation Office issued a statement outlining his top four priorities for “Tax Time 2022,” and among them was tax capital gains from cryptocurrencies. ATO Deputy Commissioner Tim Loh said: “Through our data collection processes we know that many Australians are buying, selling or trading currencies and digital assets so it is important that people understand what this means. for their tax obligations.
Loh also issued a stark warning to crypto investors who may be reporting losses: “Remember that you cannot offset your crypto losses with your salary and wages.” According to the ATO Guidelinesthe recording of a net capital loss may entitle the taxpayer to a reduction on future capital gains, but not on any other income.
Australian authorities are keen to regulate crypto quickly and have promised bring the sector “out of the shadows” with a “world leading” regulatory framework. On Friday, the country’s largest bank, the Commonwealth Bank of Australia, stopped its crypto trading pilot. Commonwealth Bank CEO Matt Comyn emphasized the volatility of crypto assets and recommended further regulation at a tech briefing this week.
According to CoinShares’ Monday edition”Weekly Digital Asset Fund Flows,” during last week market crash institutions poured almost $300 million in exchange-traded Bitcoin funds. CoinShares head of research James Butterfill said decipher: “He is bigger [investment in Bitcoin funds] since October 2021, and the 19th largest weekly since records began in 2015.”
On Twitter that day, Twitch co-founder Kevin Lin announced that his Web3 gaming company Metatheory had raised $24 million in a financing round led by Andreessen Horowitz.
Metatheory currently uses NFT in its dust breaker game, although more blockchain-based titles are expected under Lin. He said in a statement: “After moving away from Twitch to explore what’s next in the industry, I truly believe that blockchain will open the door to even more possibilities and have a huge impact on the gaming, storytelling and community building space.” “.
On Tuesday, South Korean media reported that the country’s Financial Services Commission (FSC) and Financial Supervisory Service (FSS) have released ““emergency” inspections on domestic crypto exchanges after the collapse of Terra. On the same day, the press reported that conservative lawmaker Yun Chang-Hyun is calling hearings to potentially unscrupulous speculation by some of the major cryptocurrency exchanges in the country during the LUNA crisis.
Stock photography giant Getty Images announced on Tuesday which is teaming up with digital collectibles firm Candy Digital to convert some never-before-seen images in its 500 million library into NFTs, to be sold on Candy’s marketplace.
Former music-sharing service LimeWire, which announced its own Algorand-based market in Marchsaid on Tuesday that it is signed to Universal Music Group record label to your platform. The deal will allow artists from Universal or its many labels (Interscope, Def Jam, Motown, Geffen, EMI and Virgin among them) to release tokenized collectibles through the upcoming LimeWire marketplace.
Testifying before a congressional subcommittee on Wednesday, United States Securities and Exchange Commission (SEC) Chairman Gary Gensler told cryptocurrency exchanges to register with the SEC “or Frankly, we are going to continue bringing, using what Congress has given us, in our oversight and oversight functions.”
While Gensler’s words may not have given the likes of Binance and Coinbase goosebumps, they do indicate Washington’s growing attention on cryptocurrencies. Speaking on a video screen at this year’s Chainalysis Links conference on Wednesday, Commodity Futures Trading Commission (CFTC) Chairman Rostin Behnam said the US derivatives regulator will continue to add more resources to combat fraud and manipulation in crypto markets.
Elsewhere, the recent market crash was enough to spook the world’s seven largest economies into multilateral action. Thursday, Reuters reported that a draft letter from the finance ministers and central bankers of the G7 countries is asking the Swiss-based Financial Stability Board (FSB) to move forward”consistent and comprehensive regulationahead of the next G7 meeting in Germany.
Panamanian President Laurentino Cortizo told a Bloomberg reporter Thursday that he can veto a cryptocurrency bill passed by his country’s Legislature last month. Cortizo wants a guarantee that the bill will meet global anti-money laundering standards before passing it. If it passes, Panamanians will be able to pay for things with crypto. The bill also mentions that Bitcoin, Ethereum, XRP, Litecoin, and Stellar will be accepted.
On Friday, a group of Republicans in Congress introduced a bill to “protect” the ability of investors to add Bitcoin to 401(k) retirement plans If passed, the bill would prohibit the Department of Labor from restricting the type of investments 401(k) account holders can add to their retirement savings, such as Bitcoin, which Fidelity Investments plans to make available . later this year.
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