Terra Ecosystem (LUNA): Has It Definitively Come to an End?

Audy Castañeda
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Terra Ecosystem (LUNA): Has It Definitively Come to an End?

Luna, LUNC, or USDTC: three tokens that are struggling to take off despite some flashes that will delight the most avid traders of speculation.

Luna, LUNC, and USDTC are three tokens that are struggling to take off despite some flashes that will delight the most avid traders of speculation. In fact, although LUNC and USDTC tokens sometimes manage to gain several hundred percent in a short period of time, the truth is that these tokens go back down just as quickly.

Since the Luna hard fork, both the first and second tests of the token are trending negatively, just like the rest of the cryptocurrency market.

Has Luna 2.0 Stopped?

At the time of its launch, the token was able to reach “highs” on Binance at $25, it has been in gradual decline ever since. Now, the asset is trading at $1.73, a drop of almost 93% for this new token.

This is quite an impressive drop for a month and a half when most altcoins have not lost that much, or at least for several months.

Analyzing the massive correction of the first version of the Luna token (now LUNC or Luna Classic) and its +99% drop, it seems that the second token follows a similar trajectory and seems destined for doom.

LUNC Continues to Suffer from Hyperinflation

Currently, the first version of the LUNA token (LUNC) still has several 0s in its price, and surely its owners have dreamed about erasing one after another. The token is trading at $0.000091.

Despite a few blowouts and the recent temporary removal of a zero, the token has steadily declined over the past month after seeing its price “explode” in late June.

Hyperinflation is the main reason for the token meltdown, and it remains an issue as the community looks to organize and get to work on achieving the “wild dream” of a $1 Luna Classic token in the coming months or even in the next few months.

According to the LUNCDAO Twitter account, the token burn seems like a no-brainer and a strategy for the token to find a decent exchange price. According to the words of this validator, millions of tokens have already been burned, acting as authentic arsonists.

USTC Regaining Its Parity: Rational or Irrational Design?

Even if it is clear that the USTC is no longer a stablecoin, is it rational to imagine it reaching parity? In fact, with an increase of several hundred percent in a few days, for some, the USTC makes it possible to obtain very expensive profits in a short time.

Interestingly, some price predictions for the next few years estimate that the Terra USD Classic could reach “highs” by 2030, with a price of $1.61 by 2027. An estimate that seems unrealistic, given that the usefulness of this token is now zero even. if the big shot could charter “pump and dump” sets or price gouging to make a profit on a dead project.

In short, the only ray of hope for LUNC and USTC token holders may come from the fact that the TerraForm Labs teams have moved away from these tokens and now only the community and validators are looking to solve this hyperinflation. However, the actual current burn capacity remains to be seen.

By Audy Castaneda

Some Bitcoin Holders Find a New Way to Make Profit amid this Bearish Market

Alexander Salazar
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Some Bitcoin Holders Find a New Way to Make Profit amid this Bearish Market

While traditional spot trading only allows profiting after the price rises, 100x leveraged futures trading does so regardless of the market going up or down. More than 3,000 traders on the stock exchange achieved returns on investment amid the crash, with 1366% being the highest.

According to Bloomberg, 60% of 950 investors surveyed believe Bitcoin (BTC) will suffer another drop of around 45% to reach USD 10,000. However, the remaining 40% think its price may return above the relevant psychological support at USD 30,000.

Over the last few months, the price of BTC has mirrored traditional stocks amid growing macroeconomic uncertainty. The US Federal Reserve (Fed) pledged to raise interest rates and take quantitative tightening measures to control skyrocketing inflation. For that reason, there have been many notable sell-offs in crypto and global markets.

The price of Bitcoin has lost more than 70% since the all-time high of USD 69,044 reached in November 2021. Jared Madfes, a partner at Tribe Capital, said it is easy to be scared because of the situation of cryptocurrencies worldwide. In addition, he commented that expecting another significant Bitcoin pullback reflects the people in the market are afraid.

If the results of surveys were reliable, Bitcoin could now be about to suffer another crash. Scott Minerd, the director of Guggenheim Partners Global Investment, previously predicted that Bitcoin would reach USD 8,000 before finding a market bottom.

However, some market holders took advantage of this drop to make profits by more than 2000%. It is necessary to understand the investment method 100x leverage cryptocurrency trading.

How 100x Cryptocurrency Trading Leverage Works

Traditional spot trading only allows buying and waiting for the price to rise to make a profit. With 100x leveraged futures trading, investors can buy (go long) or sell (go short), making profits regardless of the market going up or down.

With 100x leverage, traders can invest 1 BTC to open a position worth 100 BTC. They would go either long (predicting the price to rise) or short (predicting it to fall).

They can also use 1 BTC to open a perpetual short contract at USD 22,000 and close it when Bitcoin trades at USD 17,000. In that case, their profit will be (USD 22,000-USD 17,000) * 100 BTC/USD 17,000 ≈ 29.41 BTC, making a 2275% return on investment (ROI).

According to data from Bitwells, more than 3,000 traders on the stock exchange made profits amid the crash. While the highest return on investment was 1366%, the average ROI among the top 100 traders was 489%.

Some analysts and experienced traders see the collapse of the crypto market as an opportunity. While some prefer to hoard coins, others choose to invest in leveraged positions.

Bitcoin is trading at around USD 20,630 and has accumulated a 1.3% loss over the last week. While its trading volume is above USD 41.51 billion, its market capitalization is about USD 393.90 billion, according to CoinGecko.

By Alexander Salazar

JPMorgan Projects Bitcoin Cost of Production Could Experience a Fall Registered at 13K

Jenson Nunez
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JPMorgan Projects Bitcoin Cost of Production Could Experience a Fall Registered at 13K

According to JPMorgan, a reduction in the production costs of Bitcoin could cause prices to drop in the market.

The cryptocurrency market has experienced considerable decadence in recent months; prices have been crumbling down from Bitcoin’s all-time high peaks of around $69,000.

However, there are also vital aspects of this situation to take into account. According to JPMorgan, the cost of production of Bitcoin could fall to as low as $13K. This situation might affect the crypto market.

JPMorgan Explains the Facts that Have Lowered the Cost of Bitcoin Production

According to reports revealed by JPMorgan, a fall in Bitcoin production costs may negatively affect the market. Precisely, as expressed in the Telegram channel KEY ALERTS, they highlight that prices have declined from $24,000 to their current levels of around $13,000. All this situation took effect at the beginning of June and still happens to the current date.

On the one hand, Bitcoin miners managed to minimize their consumption rate of conventional energy. Since the current fight against carbon emissions has impacted many sectors of the world economy, Bitcoin miners have chosen to look for more sustainable solutions. But this decision could end up causing a more prominent drop in Bitcoin prices.

On the other hand, according to a group of strategists led by Nikolaos Panigirtzoglou, who appreciated the Cambridge Bitcoin Electricity Consumption Index, this change happens thanks to miners’ efforts to create a shield over the sustainability and generate more efficient mining rigs. However, they explained that this decision could become a significant obstacle that could cause Bitcoin prices to fall.

Why Bitcoin’s $13,000 is the Most Prominent Number to Watch in the Market

Regarding other details, the experts also expressed in the report that the market usually describes the cost of production of Bitcoin as a strong support zone when carrying out activities in a bear market like the one they are currently facing.

Therefore, it is worth watching the $13,000 for the following days. According to JPMorgan strategists, Bitcoin miners could push the price to the third quarter of 2022. Not only because of this fact but also because of the FED hikes, which strengthen the dollar and bring losses to the equity markets.

For many Bitcoin enthusiasts, this current decadence is reminiscent of the crypto winter that happened in late 2017 and early 2018, when the price of bitcoin fell from 80% to as low as $3,100 after making its first big rally to $20,000 and bringing with it many new digital assets and new investors.

In fact, if there is something scary in some seasons, it is because these periods in bitcoin also take effect in the form of cycles.

That ‘winter’ generated the failure of many initial coin offerings and led the most prominent banks and entities to shelve their intentions to become part of the crypto space. Bitcoin did not recover until reaching a new high peak in December 2020, at the start of the COVID-19 pandemic.

By: Jenson Nuñez

How the Failure of the Celsius Network Has Affected Its Customers

Alexander Salazar
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How the Failure of the Celsius Network Has Affected Its Customers

Since they do not have money to respond to creditors, it has had to suspend all withdrawals. Accelerating withdrawals would have allowed some customers to receive full payment, but others would have to wait in line.

The financial crisis dominating the crypto space has led Celsius Network, a blockchain-based financing network, to file for bankruptcy. Its native token, CEL, has lost half its value following the suspension of withdrawals, swaps, and transfers.

That situation has caused some of those investing in Celsius to lose their life savings.

Millions of investors are currently on a sinking ship and unsure when they will resume business. Besides, the recent events have discouraged investors, although Celsius Network asserted it would allow withdrawals.

CEL, the native cryptocurrency of Celsius Network, had large capital outflows due to the problems with the company. Its market capitalization has decreased by 85% since 2021, going from USD 1.06 billion in January to USD 0.15 billion in July.

Even though holders have made their best effort, the price of CEL has suffered significant losses. They wanted the cryptocurrency to resume its highs to save the collapsing society, but that did not seem to happen.

The Factors Leading Celsius Network to Declare Bankruptcy

Celsius Network recently stated that it had filed for voluntary bankruptcy to allow the company to stabilize its operations. Besides, they said they sought to complete a comprehensive restructuring operation that maximizes value for all stakeholders.

Since Celsius Network does not have money to make payments to its creditors, it is struggling to survive. That caused them to suspend all withdrawals, swaps, and transfers as a drastic measure.

Report on the Withdrawals by the Customers of Celsius Network

The firm provided a report on the withdrawals by its customers, but it is not a good one.

The Board of Directors of Celsius Network stated that the deposit includes their decision to suspend withdrawals to protect their customers. They explained that accelerating withdrawals would have allowed some clients to receive full payment. However, others would have to wait for Celsius to recover the value of the distribution of long-term assets.

Financial research firm Finbold reported that the company had fully paid off its Bitcoin mortgage, although user money remained locked up.

Furthermore, a former employee sued Celsius Network, claiming the company ran a Ponzi scheme. He said they could not provide adequate collateral for their clients.

Celsius Networks to Not Allow Withdrawing Money Yet

The company said it would not yet allow its customers to withdraw their funds yet. Their bankruptcy filing will cause their creditors to wait in line to collect the money owed.

Celsius Network depends on approval from the judge to act after filing for bankruptcy.

In addition, Celsius Network said that it will not yet request permission to allow customer withdrawals. They said they would use Chapter 11 procedures to address customer complaints instead.

CEL is trading at around USD 0.747 and has accumulated a 5.5% loss over the last 24 hours. While its daily trading volume is above USD 9.24 million, its market capitalization is about USD 309.67 million, according to CoinGecko.

By Alexander Salazar

Rise of Lawyers Specialized in Bitcoin, Blockchain, and Fintech

Audy Castañeda
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Rise of Lawyers Specialized in Bitcoin, Blockchain, and Fintech

The cryptocurrency boom has triggered the demand for specialized lawyers, but the specific experience is scarce.

Going from the legal advice of a company to a firm is something common in the legal sector when certain experience has been achieved. The opposite path is not so common, except in the highest positions, such as the secretary of a council. This has changed recently, as the cryptocurrency boom has triggered the demand for specialized lawyers. However, such experience is scarce and the fight to sign the best talent has already begun. In the United States, a position for an internal consultant can easily reach US$250,000 per year, in addition to other types of incentives.

These are not senior lawyers, but professionals who have between three and five years of experience in this field, whether it is in the issuance of some type of cryptoactive, in regulatory matters, or even in litigation. Cryptocurrency exchange platforms, as well as new fintech startups, have unleashed a real battle for the best legal talent in the US.

At stake are billions. Specifically, US$30,000 million. That is the amount that was invested last year in crypto assets around the world, according to data from KPMG. If the radar is extended to the fintech world, the amount skyrockets to US$210 billion.

Market on the Rise

Cryptocurrency exchange platforms are going through a crucial moment in the United States. While several cities, with Miami and New York in the lead, are vying for the title of the international hub of the crypto world, the Joe Biden administration is debating how this sector should be regulated, including whether or not it makes sense to launch a crypto dollar.

The director of Kraken’s legal practice, Marco Santori, announced in February that the cryptocurrency exchange planned to hire 30 lawyers before May. He himself assured that, in reality, the company really needed 60 lawyers. There was only one but: “Honestly, I don’t know how to get them.”

Statistics also show that in the US practically two out of every 10 positions that end up in the hands of a headhunter in the legal sector are related to the crypto world or new technologies applied to the financial field, while a few years ago that same Prominence was reserved for other star areas, such as commercial or fiscal, or failing that, for sectors with large margins, such as real estate.

SEC Also Needs ‘Cryptoexperts’

SEC, the United States stock market supervisor, is also recruiting experts in the world of crypto assets and has just announced the hiring of 20 new profiles to strengthen the department specialized in the digital world and which has just been renamed the Cybernetics and Security Unit. Crypto assets.

The profile most demanded by the SEC to cover these new 20 positions is that of a lawyer, followed by economists, or a double degree that combines both specialties. On the one hand, it will hire legal experts who know the crypto world and collaborate with the supervisor’s investigators to detect any type of threat in the markets. In addition, it will reinforce the team with trial lawyers who can work on the front lines before the US courts.

By Audy Castaneda

SEC Considered Freeing Crypto Entities from Some Securities Policies

Jenson Nunez
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SEC Considered Freeing Crypto Entities from Some Securities Policies

Policies

SEC Chair Gary Gensler expressed that the SEC might free the crypto market from some securities policies. Gensler desires to engage the crypto space and persuade its actors to comply with the law. Many significant incidents that have taken effect recently have increased the desire for shelter.

The United States Securities and Exchange Commission Chair Gary Gensler said the agency might consider freeing crypto entities from some securities policies.

The United States Securities and Exchange Commission is pondering whether to suspend various policies to regulate the crypto space. SEC Chair Gary Gensler highlighted this news during an interview with Yahoo! Finance on July 15. Specifically, the SEC considers liberating these companies from laws connected to securities.

The expectation is that this procedure will persuade more crypto entities to be part of the compliance with regulations. At the same time, Gensler explained that crypto entities are carrying out their activities without compliance standards, though he did not reveal the name of these entities.

However, Gensler is not getting an aggressive position. He expects to foster debates and engage with crypto assets. The SEC Chairman expressed there’s a potential road ahead waiting for the investors to take that ride.

At any rate, the SEC thinks about upgrading the crypto market with a more customized set of laws, which could be available in the industry. The crypto market also counts on a willingness to work within the regulatory policies and comply with standards.

Crypto Regulation in the United States of America Might Take Place this Year

Crypto regulation became a relevant debate among U.S. authorities, as the recent crash of many crypto entities, including Three Arrows Capital and Celsius Network, has accentuated the need for solid policies. Lawmakers worldwide feel the same way; they are afraid that the crypto market is now big enough to have knock-on effects that might affect the economy in the future.

The U.S. urgently desires to establish balanced policies for the asset class. Many signs indicate that this situation will take effect sooner rather than later, with stablecoins being one of the highest priorities on the agenda.

The U.S. Treasury recently asked for public comments about the risks and benefits of the crypto environment. The agency would soon present the report to President Biden for a proper review. The high pace of action highlighted that a wide-ranging crypto regulation policy could take effect before the end of the year.

The document focuses on many aspects linked to the crypto market. Chief among these is the protection of consumers, investors, and businesses, which many administrative agencies noted as the highest priority.

The U.S. also intends to protect the U.S, global financial stability, and the mitigation of systemic risk, illicit activity regarding finances, and national security risks.

Regarding the current allowance of the crypto market to evolve, the goals focus on putting the U.S. in a pioneering position concerning digital asset innovation, encouraging access to safe and affordable financial services, and the “support of technological advances that encourage responsible development and application of digital assets.”

By: Jenson Nuñez

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