The Digest contains the following:

• Binance, Huobi and Terra 2.0 Supporter to Reborn May 27, Binance

• Seven Blocks Have Been Reorganized on Ethereum’s Beacon Chain

• After the SEC Case is resolved, we will consider an initial public offering (IPO).

• Nvidia Stock Drops 10% Despite Exceeding Expectations for Q1

• Portugal’s Assembleia da República Rejects Proposals on Crypto Taxation

Terra will Reborn in May 27, Binance, and Huobi are to support Terra 2.0

Terraform Labs founder Do Kwon, cofounder of Terraform Labs, shared Terra Proposal 1603, which would create a new chain. With more than 65% of 200 million votes for Terra 2.0, the proposal was passed.

Terra now announces that Terra 2.0 will be created without the algorithmic stabilizecoin, UST. This was what caused Terra’s collapse. Terra 2.0 will launch on the mainnet this Friday, May 27, followed by an airdrop.

The world’s largest crypto exchange, Binance, has announced that they are working closely with the Terra team on the recovery plan. Huobi has also confirmed its support for the LUNA2.0 airdrop, a leading crypto exchange.

Other exchanges such as FTX, KuCoin and Gate.io have also announced their support of Terra 2.0, LUNA and Upbit ahead of the launch.

Flipsider:

• Terra is in South Korea. Terra was hit with a $78 Million fine and South Korean exchange Korbit’s delisting LUNA.

What You Need to Care About

Terraform Labs & Do Kwon have launched Terra 2.0 to try and resurrect Terra’s ecosystem and quell backlash from the community despite all the difficulties.

Seven Blocks Have Been Reorganized on Ethereum’s Beacon Chain

As all eyes fall on ahead of its transition from Proof-of-Work into a Proof-of-Stake consensus algorithm, in a process known as “the Merge,” Beacon Chain has experienced a 7-block deep reorganization.

Beaconscan reports that blocks 3887075-3887081 were forked/reorganized by the Ethereum beacon chain on May 25th. It is called reorganization, or reorg when blocks are removed from a chain because of a competitor block.

Martin Köppelmann noticed the event and criticized Ethereum, which had not experienced seven-block reorganization on its mainnet for years. Vitalik Buterin stated that they are working with developers to address the issue.

Preston Van Loon, an Ethereum developer suggested that the Beacon Chain’s known bugs and out-of-date software caused the reorganization.

Flipsider:

• Van Loon suggests that Ethereum may move the August Merge to September or October. Ethereum has taken a cautious approach to the Merge.

What You Need to Care About

Ethereum developers want to find the best method to migrate to PoS in order to reduce the number of issues such as these.

Ripple will consider an initial public offering (IPO) after the SEC case is closed

After the conclusion of the Ripple Vs SEC case, CEO Brad Garlinghouse announced that they are looking at the possibility to issue an initial public offer (IPO).

Garlinghouse stated that he hopes his 15-month-old lawsuit will provide clarity and certainty for the company’s operations in the United States.

Ripple will be considering an IPO after the case is closed, he says. However, he adds that he hopes that the SEC “will not slow that process down any more than they already have.”

Whales have been accumulating XRP (Ripple’s native token) at a discounted price of 50% in the last two months. Data from Santiment shows that Ripple whales who have wallets, not exchanges, now own 6.12% of $XRP.

Flipsider:

• Another motion was filed by the Securities and Exchange Commission for an extension to the Ripple case.

What You Need to Care About

Garlinghouse believes that Ripple, which has grown significantly outside the U.S., could do the same in the country with “clarity and certainty” from the SEC case.

Nvidia stock plunges 10%, despite exceeding expectations in Q1

On Wednesday, May 25, chip designer Nvidia Corp Nvidia released the Q1 performance report 2022. Nvidia exceeded analyst earnings and sales expectations in its Q1 2022 report.

Nvidia had hoped to make $8.11billion in Q1; but, Nvidia actually made $8.29billion. Nvidia’s sales in the first quarter of 2022 were $1.36 billion.

Nvidia shares (NVDA) fell as high as 10% on Wednesday despite releasing a strong quarter-end report. This is due to Nvidia’s weak guidance for the quarter.

Nvidia 1 Month Price Chart Source: Nasdaq

Nvidia reported today that the quarter’s sales of video games chips are expected to decline. Nvidia projects sales of $8.1 Billion in its second quarter. That’s a significant drop from the $8.44B analysts predicted.

Flipsider:

• Nvidia was Fined $5.8 MillionThe Securities and Exchange Commission was criticized for concealing a portion of their 2018 crypto-mining revenues.

What You Need to Care About

The share price drop of Nvidia is largely due to the “challenging macro environment” that has also affected cryptocurrencies.

Portugal’s Assembleia da República Rejects Proposals on Crypto Taxation

The Portuguese Parliament, Assembleia da República, rejected two bills presented by left-wing parties, Bloco de Esquerda and Livre, which aimed to tax cryptocurrencies during a voting session for the 2022 budget afternoon of May 25.

Livre’s proposal requested the government to explore taxing crypto profits above €5000 ($5,345.75). If the bill was passed, crypto investors would be able to pay as much as 28% for capital gains.

Portugal was long considered to be a cryptocurrency tax haven. However, the profits of trading cryptocurrencies has been exempted from tax since 2018. Digital asset trading in Portugal isn’t considered an investment income.

Flipsider:

• The country’s days of zero-tax on crypto may be drawing to a close as the Portuguese Minister of Finance Fernando Medina stated that the government would work on the regulatory framework.

What You Need to Care About

The tax-free policy of Portugal has encouraged investors to migrate there, growing the country’s crypto sector.

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