The latest crypto, blockchain and Defi news

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Calm week after the storm in the cryptocurrency market. The price of bitcoin is indeed in a clear consolidation zone after the sharp decline at the beginning of the month. At the same time, the overall market dominance index is gradually increasing, which means that: altcoins are currently struggling to hold their own.

We continue with what was the main theme of the two most recent weekly letters, the implosion of the stablecoin UST and its original token LUNA. Sequel and end of the saga? Unsurprisingly, the price for both assets remained at their lowest levels ($0.00018 for a LUNA and $0.07 for a UST at the time of writing). Even less surprisingly, the plan to ‘revive’ the network was accepted by a large majority. It was clear, while the actors invited to vote already have nothing to lose. Suddenly, a “snapshot” of the Terra channel should happen this Friday, before the launch of “Terra 2.0”, a so-called rebirth of the Terra ecosystem after the implosion of the original network.

Investors who held more than 10,000 LUNA before the UST implosion will receive the new tokens periodically to avoid an immediate sell-off. Over 30% of their tokens will be unlocked initially and the remaining 70% will be unlocked and released in two years. New tokens will be distributed to these holders after six months. Wallets that hold more than a million LUNA or UST before UST is removed will have to wait more than a year before receiving tokens, with a four-year waiting period after that, according to the plan. The idea of ​​taking a “snapshot” from before the crisis is to revive the network with a viable offering from LUNA. “The offer to Genesis is significantly lower than everyone expects, closer to 116.7 million and dropping to 182 million after a year,” the plan reads.

End of story next week as we will see how much the market will appreciate these new tokens made out of the wind. Certainly, no offense to the perennial optimists, this is a blatant case where it is impossible to put the toothpaste back in the tube.

Important and encouraging news about the integration of cryptocurrency payments into everyday life. Payments giant Stripe has announced that customers will be able to convert their incoming payments or credits back to bitcoin, four years after the service was discontinued. This time, Stripe’s Bitcoin transactions are powered by an app created in partnership with OpenNode. The crypto startup, which just raised $20 million in the Series A round, is building on the Lightning Networka blockchain scaling solution that processes transactions off-chain, making main-chain operations faster and cheaper.

In 2018, when bitcoin services were first taken down, the company cited rising fees and delayed transactions as evidence that bitcoin had “become better suited to be an asset than a medium of exchange.” We could only agree. At that time, Stripe identified the lighting network as a promising technology that could one day improve Bitcoin’s status as a convenient digital currency for customers. Here we are today.

The Ethereum ecosystem is poised for a massive testing phase. The Ropsten testnet merger is indeed scheduled for June 8. Ropsten is one of several testnets created by the Ethereum Foundation in 2017. This particular testnet is considered to be the best replica of the Ethereum mainnet as it follows a similar structure. This allows developers to run realistic implementation tests before making updates to the actual mainnet. The Ropsten testnet merger will combine the proof-of-work (PoW) network with a new proof-of-stake (PoS) consensus layer testnet, slated to emerge on May 30. It will simulate what will happen once the actual merger between Ethereum and the Beacon chain finally takes place and it becomes a PoS network.

The actual migration is currently scheduled for August.

GameStop continued to make financial news with individuals’ enthusiasm for the action, creating an unexpected counterpart for institutional investors in short positions. The video game retailer launched its custodial browser-based Ethereum wallet on Monday, similar to MetaMask. The latter allows users to store, send and receive cryptocurrencies and non-fungible tokens (NFTs) in various crypto applications. It will support NFT exchanges through the impending launch of GameStop’s NFT Marketplace in Q2 2022. The wallet uses Loopring’s ZK rollup technology, a Layer 2 scaling protocol from Ethereum.

According to a new study from the Federal Reserve, people who transact with cryptocurrencies in the United States were twice as likely to become unbanked than those who don’t use them at all. The Fed found that 13% of Americans who use cryptocurrency for payments do not have a bank account, compared to 6% of people who use no cryptocurrency at all. At the same time, 27% of people who use cryptocurrencies for their payments say they don’t have a credit card, compared to 17% of people who don’t have or use cryptocurrencies.

Finally, note that this week marks 12 years since Laszlo Hanzecz bought 2 pizzas with 10,000 bitcoins. This is the first-ever recorded transaction with a decentralized digital currency in exchange for physical items. While the deal is worth $295 million today for two pizzas, Hanzecz said he doesn’t regret it. After that first transaction, Hanyecz did it several more times, and that summer he spent a total of 100,000 bitcoins on pizzas, which are now worth $2.9 billion.

A reminder that despite the current low, it’s an absolutely breathtaking path that bitcoin has traveled in just a few years.

Compared to a closing figure of $31,300 on May 16, bitcoin closed at about $30,287 on Monday. This is the eighth consecutive week of decline, a record in parent crypto history. Ahead of last week’s record, the seventh consecutive week of red candles, the previous figure for consecutive losing weeks was six, during bitcoin’s 2014 bear market, August 25 to October 6.

Not everything is gray, however. Action over the past few days has shown some resilience, with bitcoin still making its way to buyers below $30,000. If the Nasdaq BTC’s steep declines pull further down, it looks like it will be looking to recover more easily. This week, the correlation has also been weaker so far.

The consolidation channel in particular is clearly visible. As long as we’re here, the fund will remain in a defensive position, which it has done extremely well over the past few weeks.

This article is brought to you by Fonds Rivemont. The Rivemont crypto fund is the first and only actively managed cryptocurrency fund in Canada. RRSP and TFSA are eligible. Accredited investors can learn more here

Disclaimer: This column does not necessarily reflect the views of CryptonewsFR and does not constitute investment advice or instructions to trade.

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