Crypto Flipsider News – FTX Launches Stock Trading; Terra Amends Revival Plan; USDT Backed by Non-U.S. Bonds; Ethereum Merge to Happen in August; Singapore Court Blocks BAYC Sale
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Crypto Flipsider News – FTX Launches Stock Trading; Terra Amends Revival Plan; USDT Backed by Non-U.S. Bonds; Ethereum Merge to Happen in August; Singapore Court Blocks BAYC SaleYou can read the Digest here:
- FTX launch stock trading platform for stablecoins in U.S.
- amends Do Kwon’s revival plan – Terra crash as bad as Mt. Gox according to founder.
- USDT stabilitycoin claims to be backed by bonds from non-U.S.
- Vitalik Buterin and ETH developers confirm that the ‘Merge’ will happen in August.
- Singapore courts ban the sale or transfer of Bored Ape Yacht Club NFT.
FTX Creates a Stock Trading Platform Against Stablecoins In the U.S.
The U.S.-based affiliate of crypto exchange FTX recently announced it would launch a stock trading portal. The platform, ‘FTX Stocks’, will allow investors to trade crypto and stocks against stablecoins.
FTX Stocks offers free stock trading. It will begin with a few U.S. customers, who will then be selected from a waiting list. Additionally, there won’t be any brokerage fees. There will also not be a minimum account balance.
Stock trading will be available directly via the FTX U.S. app. Users will have the ability to invest and trade in thousands of U.S.-listed shares or exchange-traded funds.
FTX claims to be the first platform that allows retail investors to use fiat-backed stablecoins such as USDT or USDC to fund their accounts. FTX will route all operations orders via Nasdaq in order to guarantee fair pricing and transparent execution of trades.
Flipsider:
- After the acquisition of a New York-based stock market IEX and an investment in FTX Stocks, the company launched FTX stocks. A stake of 7% in Robinhood, a popular trading app (NASDAQ:)..
Why you should care
The exchange introduced FTX Stocks to give its users a comprehensive range of options for asset classes in a single investment shop.
Terra Amends Do Kwon’s Revival Plan – Terra Crash as Bad as Mt. Gox according to Avalanche founder
Following the shocking collapse of the Terra (LUNA) and TerraUSD (UST), the ecosystem’s founder, Do Kwon, released a revival plan to save the Terra ecosystem. The Terra (LUNA) blockchain team has since made three revisions to Kwon’s revival plan.
Terra proposed first increasing genesis liquidity, from 15% to 30 percent. Pre-attack UST holder, post-attack LUNA holder, and post attack UST holder will share the liquidity.
LUNA wallets containing less then 10,000 coins will receive 30% at launch. 70% of the remainder will be vested in two years. The allocation to post-attack UST holders was reduced from 20% down to 15%.
Flipsider:
- Emin Gün Sirer, the founder of Avalanche, has said that the severity of the Terra ecosystem crash on investors is worse than the infamous Mt. The 2014 Gox scandal
- Sirer thinks the Terra situation will result in more Crypto industry regulators are under scrutiny.
What You Need to Care About
To ensure de-peg-related allocations match pre-attack LUNA allocations, the genesis liquidity adjustments were made.
Tether claims that the USDT Stablecoin is backed by non-U.S. bonds
The regulatory scrutiny on stablecoins increased after the TerraUSD de-pegging (UST) which resulted in the destruction of Terra ecosystem.
Tether, the issuer of the world’s biggest stablecoin, USDT, has boasted that its stablecoin is now backed in part by “non-U.S.” government bonds. Tether is the first to buy government debt from countries other than the U.S.
In Tether’s latest “attestation” report, the company announced that its holdings of U.S. Treasury bills ros by 13% to $39.2 billion in the first quarter of 2022. Tether revealed it also holds U.S. Government debt.
Tether further disclosed that it had reduced its holdings of short-term commercial paper (short term loans to businesses) by 17% in Q1 to $20.1 billion, and that this has fallen another 20% since April 1st.
Flipsider:
- Tether currently is a defendant in 2 ongoing legal proceedings, whose outcomes are still pending.
Why you should care
Tether claims that USDT will be 100% back and that stablecoin’s quality will remain stable.
Vitalik Buterin and ETH Developers Confirm That the ‘Merge’ Will Happen in August
Co-Founder Vitalik Buterin has suggested that the network’s long-awaited migration to a Proof of Stake (PoS) consensus mechanism, initially scheduled for June, could happen in August.
Buterin made the announcement at the ‘Ethereum Shanghai Summit‘. He cautioned however that the Ethereum development team could encounter potential risks and the event might be moved to October or September.
Preston Van Loon a core developer for the Ethereum network, confirmed that date. Van Loon said at the ‘Permissionless‘ conference that the transition could take place sometime in August “if everything goes to plan.”
Justin Drake, an Ethereum researcher, remarked that the Ethereum team has a “strong desire to make this happen before the difficulty bomb in August.” ETH developers expect the Merge to happen before the next difficulty bomb, or they will otherwise need to deploy an additional update to delay the bomb.
Flipsider:
- Ethereum is close to completing a milestone. It will also perform the Merge on its platform. major testnet, ‘Ropsten’, on June 8th.
Why you should care
In addition to introducing PoS, implementing the ‘Merge’ will prepare the Ethereum network for its final landmark on the roadmap—the sharded chains upgrade.
Singapore Court bars Sale and Transfer of Bored Ape Yacht Club NFT
A court case is ongoing in Singapore. The Singapore High Court issued an injunction, allowing the sale and transfer ownership of an NFT from the Bored Ape Yacht Club collection to be stopped.
Janesh Rajkumar, a Singaporean investor was granted the injunction against unidentified defendant. Bored Ape BAYC #2162.
The law firm claims that BAYC #2162 was the collateral used to secure a loan agreement, which was entered into via NFTfi on March 19, 2022. Rajkumar couldn’t pay off the loan by the due date but was allowed to prolong the repayment period.
However, the defendant, going by the online alias ‘chefpierre‘, did not abide by the extension agreement and foreclosed on the loan. The NFT was thus made available to the defendant. This recent decision means that the item is now ineligible for sale, at least until the case has been resolved.
Flipsider:
- Following Singapore’s high court ruling, OpenSea has BAYC allows disabled trading #2162, with a “reported for suspicious activity” tag on the NFT.
Care is a must
It is the first worldwide injunction protecting digital art. This shows the increasing acceptance of NFTs being property.
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