Crypto Flipsider News – Bitcoin Sets New Record And Drops, Terra Burns $4.5B Tokens, SEC Halts Two DAO Tokens -Breaking
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Crypto Flipsider News – Bitcoin Sets New Record And Drops, Terra Burns $4.5B Tokens, SEC Halts Two DAO TokensThe Digest
- Inflation behind Bitcoin’s New $69K All-Time High, Evergrande Defaults on Interest Payments
- (LUNA), Hits an All-Time High As the Community Accepts Burn Proposals
- SEC Bans Two Digital Tokens Registrations. Half of American Millennials Feel Comfortable With Crypto Investment
- Twitter (NYSE) is Building a Crypto-Team, Tencent believes it can support the Metaverse
Inflation Behind Bitcoin’s New $69K All-Time High, Evergrande Defaults on Interest Payments
The price of Bitcoin hit $69,000, a new record high after it reached $68.5k. Experts have opined that Bitcoin’s push to a new ATH results from investors looking to dodge rising inflation.
U.S. stock prices fell slightly Wednesday as the inflation rate in the United States hit its highest level for 30 years. The likes of Jack Dorsey and Elon Musk have voiced their fears about hyperinflation, and crypto analyst Simon Peters believes inflation is linked to Bitcoin’s ATH. He pointed out:
It is not only a sign that the market is very averse towards inflationary pressure but it also indicates that investors now use bitcoin to hedge against rising prices.
Bitcoin’s rise did not last long, as traders began taking profit, leading to a nearly $7,000 price drop. After falling to $63k, Bitcoin is making its way back. BTC currently trades at $65,183
A 7-day chart showing the price of Bitcoin (BTC) Source: Tradingview
Flipsider
- China’s Evergrande Group has once again defaulted on interest payments, with DMSA preparing to file for bankruptcy against China’s second-largest real estate developers
- Last time Evergrande may go bankrupt due to its debts, according to reportsMajor markets including the cryptocurrency market collapsed
Why you should care
It is clear that cryptocurrency remains connected to reality, despite the impact of inflation and Evergrande’s bankruptcies on the crypto market
Terra (LUNA), Hits an All-Time High As Community Accepts Burn Proposal
Crypto projects are increasingly using burning to increase their popularity. This is when miners or developers take a certain portion of a coin out of circulation in order to maintain a price.
The Terra community approved Tuesday’s proposal to torch 88.7 millions LUNA tokens. This is approximately $4.5 billion in current market prices. Project proceeded to torch 520,000 LUNA Tuesday night. The rally in LUNA’s price was caused by this.
Terra’s (LUNA) price peaked at $54.95, but then retraced. LUNA is now trading at $51.344, having gained 32% in less than a month. CoinMarketCap ranks it 12th in crypto market capital with $24.8 billion.
Terra’s 30-day price graph (LUNA). Source: Tradingview
Over the next two week, the burn that began October 8th will continue. The $4.5 billion Terra token burn (LUNA), is the biggest layer-1 token burning in crypto history.
Flipsider
- Terra’s co-founder Do Kwon has commented that the projects community pool is too large, and could be a systemic risk
Why you should care
The dynamics of demand and supply are directly affected by coin burning, creating a deflationary phenomenon. The price of Terra (LUNA), which is a form of terra, could rise as more Terra (LUNA), is burned.
SEC Stops Registration of Two Digital Tokens. Half of American Millennials Feel Comfortable With Crypto Investment
Two digital tokens that were offered by Wyoming’s American CryptoFed DAO LLC to be registered was stopped by the Securities and Exchange Commission on Wednesday. It is the first decentralized autonomous company (DAO), legally recognized in the country.
American CryptoFed DAO had provided insufficient and misleading information to their registration form, the regulatory agency stated. SEC also claimed the company has omitted and misrepresented information about securities, such as Ducat tokens and Locke tokens.
A Bankrate survey found that 49% of American millennials are happy to invest in crypto, in spite of unfair regulations.
The survey added that 15% of people in the age group of 25-40 years (millennials) answered that they are “very comfortable” with investing in cryptocurrency. The remaining 34% picked “somewhat comfortable.”
Flipsider
- American investors should continue to invest in real estate and cash, even with crypto-investors on the rise.
Why you should care
Due to its growth, the cryptocurrency industry is now subject to stricter regulations. Projects will have to be more in line with regulations.
Twitter Builds a Crypto Team. Tencent Thinks it Can Support The Metaverse
Twitter’s crypto tipping service was launched on the platform less than 2 months ago. Now, Twitter is expanding its reach into crypto with the creation of a Crypto Team. According to Tess Rinearson, the head of Twitter’s crypto team, the initiative will extend beyond cryptocurrencies.
She explained that the initiative serves as a “center of excellence” for all things blockchain and web3 at Twitter. She explained that “as I build out the team, we’ll be working to figure out what crypto can do for Twitter, as well as what Twitter can do for crypto.”
In China, the world’s biggest gaming company, Tencent Holdings (OTC:), believes it has the tech to support the “metaverse” virtual environment services. The company believes that Beijing doesn’t oppose the building of a metaverse.
China’s regulators have banned mining and crypto transactions. They also tightened surveillance of the gaming sector. Tencent therefore believes that it has to comply with Chinese regulations in order to build a metaverse.
Flipsider
- The company acknowledged that China’s version of the metaverse would need to be different from the rest of the world’s.
Why you should care
Tencent and Twitter are among the tech titans that are expanding their exploration of Web 3 and metaverse. These technologies are fundamental to how the world will function in the future.
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