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There is full moon, new moon and now - crashed LUNA; however, Bitcoin is bringing more fruits; but only until SEC takes stand - all that in our new release of crypto news!
Last week, the crypto world was astonished to watch the LUNA coin fall drastically and generally cease to exist, dragging the whole Terra blockchain with it. The algorithmic stablecoin TerraUSD lost its ties to USD and lost value in a matter of days, if not hours. Sure enough, users' truest to stablecoins was affected. Analysts disagree too: Forbes, for instance, forecasts the total extinction of algorithmic stablecoins, while Michael Novogratz, the Galaxy Digital CEO, is careful, but optimistic about the prospects of such stablecoins in the distant future.
The Terra collapse was caused by a huge demand for UST in the Anchor protocol with 18% profitability. As a result, other features of the crypto were not demanded and the pressure on the reserve assets along with stablecoins withdrawal created a big panic. The reserves the company had were not enough to save the project. Despite Forbes being pessimistic about the future of the stablecoins markets, they still talk about new opportunities for cryptocurrencies comparing the Terra crash to the GOX exchange hack in 2014 which also caused a major crypto crisis but later led to the creation of Coinbase and Kraken, some of the largest crypto exchanges today.
However, even such a dreadful event may be profitable for some people. Not every investor lost everything they had in the Terra crash, some managed to make good money. For instance, the Pantera Capital venture company managed to withdraw the 1,7 mln USD they had invested. Still, the foundation's investment was a little larger, so they only managed to save 80% of their funds.
Even though the first cryptocurrency rate is still falling and the forecasts are pretty depressive, mining it, against all odds, went into an uptrend. Mining farms don't just keep working, they show high profitability and grow their capacities. Recently, miners in many countries were suffering persecution; but despite all the oppression, they work more than ever and increase their profits accordingly.
Greenidge Generation, one of the largest US mining companies, reported profit growth of almost 240% over the first quarter. The total profit amounted to the impressive 37,7 mln USD.
The fall of Bitcoin even strengthened the financial goals of many mining farms. To stay afloat after the recent price landfall, they needed to increase their volumes. Thus the hash rate of the major cryptocurrencies like Bitcoin and Ethereum grew as well.
The American regulator started looking into crypto again. This time, Gary Gensler, the Chair of SEC, became quite interested in crypto exchanges. Or better say, crypto exchanges that are not registered with his administrative body. At Congress, he made it clear that all the exchanges should go through the registration process or they would face serious sanctions.
Before that, Gensler invited people to harsher control over stablecoins, while crypto exchanges have been asking for more regulation for quite a while by now, according to the Chair. Gary Gensler claims that all the measures to control the crypto industry in general and exchanges, in particular, are aimed at protecting investors' interests.