You can read the Digest here:

• TerraUSD peg falls under $0.7 as LUNA loses 60% – Binance suspends withdrawals.

• India is considering imposing 28% GST for all crypto transactions.

• Azuki founder attributes NFT’s success to previous failures, and floor price drops.

• ApeCoin rises to third in the top 100 ETH whales’ coin sales despite an ongoing downtrend.

• Nigeria plans to update its CBDC (the eNaira) to expand coverage

TerraUSD Peg Falls Under $0.7 as LUNA Loses 60% – Binance Suspends Withdrawals

(LUNA) experienced its largest single-day loss Monday, as flagship algorithmic TerraUSD(UST) stablecoin fell to an all-time low $0.6841

LUNA traded at $65.14 before falling to $24.14 after the UST dollars peg was broken. LUNA trades at $32 today, after a slight recovery over the past 8 hours.

Terra (LUNA) 7-day price chart Source: CoinMarketCap

Terra (LUNA), which was ranked 10th in crypto market capital, lost its position and fell to $9.5 billion within a matter of hours.

The UST dropped to below $0.99 over the weekend. This forced the Luna Foundation Guard (LFG), into action. However, measures weren’t enough to stop UST from further falling.

Further piling on the misery, the world’s largest cryptocurrency exchange, Binance, has suspended all withdrawals of LUNA and UST tokens, citing “network slowness and congestion.” Binance intends to reopen withdrawals once the network is stable.

Flipsider:

• UST has recouped some of its losses and now trades at 0.92 USD.

Care is a must

Due to the UST being backed, the broken peng has exacerbated BTC’s losses and that of the wider crypto market.

India is considering imposing 28% GST for all crypto transactions

Indian cryptocurrency market, already reeling from the 30% flat tax announced by the government on crypto-generated income in January, may face more difficulties.

According to reports, the Goods and Service Tax (GST), Council of India has been considering an idea for a tax of 28% on cryptocurrency transactions.

The current tax rate for services offered by crypto-exchanges is 18%. This includes the purchase and selling of crypto tokens through various exchanges. It also covers holding assets in centralised, decentralised wallets. Staking is possible on many platforms.

The reports state that a committee was already established to examine the idea of imposition of 28% GST on crypto-related activities and services. This proposal might be submitted as soon as possible to the GST Council.

Flipsider:

• India has created a framework that will facilitate the creation Official digital currency issued by the Reserve Bank of India.

What You Need to Care About

The legislative proposal could lead to further shrinkage of the Indian crypto community. It is currently required to pay enormous taxes.

Azuki founder credits NFT success to past failures, and sees floor price plummet

Zagabond, the pseudonymous founder and creator of Azuki, the non-fungible token (NFT), was revealed to have been involved in NFT projects past.

In the blog post, which was published to share his “Builder’s Journey” leading up to Azuki, Zagabond stated that he had been part of three NFT projects that were abandoned by their founding team, ‘Cryptophunks‘, ‘Tendies‘ and ‘Cryptozunks‘.

According to Zagabond, the failures of these projects acted as “formative times” for him, and he even credited much of Azuki’s success to what he learned from the failures of those projects.

The news was not well received by the Twitter (NYSE:) crypto community, with the host of a Twitter Space titled “The Death of Azuki” boldly asserting that “Azuki is dead.”

Flipsider:

• Following the revelation by Azuki’s founder, the collection’s floor price plummeted by as much as 45%, from close to 19 ETH (or $41,800 USD at today’s prices) to approximately 10.9 ETH. Azuki currently has a floor price of 15.9 ETH.

Source: Azuki

What You Need to Care About

This incident has sparked conversations about founder transparency regarding NFT projects.

ApeCoin is third most-purchased coin by Top-100 Ethereum Whales, despite the downtrend

ApeCoin was quickly voted the best-traded cryptocurrency by whales just a few days after its initial launch. It seems that it has caught the eye of Ethereum investors. APE is now the third-most purchased coin by whales.

Since its launch in March, Ethereum’s top 100 richest bagholders have quietly, but steadily increased their stakes in ApeCoin (APE), the native asset of the ApeCoin ecosystem.

WhaleStats data shows that the top 100 Ethereum wallets have an average ApeCoin buy amount of $157 609 and an average amount of 12,721 ApeCoin.

ApeCoin, which excludes Ethereum (ETH) or the USDC (stablecoin), is the most frequently purchased crypto among the top 100 Ethereum whales.

Flipsider:

• ApeCoin has been one of most significant losers in ongoing market selloff. The company’s value fell 21% within the last 24 hour and 43% during the week.

This is the ApeCoin (7-day price chart) Source: CoinMarketCap

Care is a must

The popularity of the Bored Ape Yacht Club NFT collection, and use of APE in the ‘Otherside’ Metaverse land sale, continues to drive accumulation of ApeCoin.

Nigeria Upgrades Its CBDC, The eNaira to Expand Coverage

The Central Bank of Nigeria (CBN) is progressing with plans to improve the country’s central bank digital currency, the eNaira, to include a wider range of goods and services.

According to a report, on May 9th, Bariboloka Koyor, the CBN Controller, spoke at a market in Lagos, the most populated city in Nigeria, as part of a marketing campaign dedicated to “raising awareness” about the eNaira among businesses in the country.

Koyor said that the upgrade will improve the speed and use of the eNaira, and went on to highlight that the app “will permit users to do transactions like paying for DSTV or electric bills or even making flight tickets payments” from next week.

The eNaira application will not incur transaction fees and be comparatively quicker than mobile banking apps in Nigeria. He said that the future will see eNaira as the only method to get financial assistance from the government.

Flipsider:

• Despite the crypto ban in the country Nigeria’s P2P trade volume has continued to increase so far in 2022.

What You Need to Care About

According to a report, Nigeria’s ban on crypto has crippled international funding in the fintech industry, which has adversely affected millions

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