Crypto Week at a Glance: The Instability of Crypto and its De-Pegging
The volatility of Bitcoin (BTC) was on full display this week – from a high of $ 36,000, BTC briefly went below $ 27,000 before recovering to the level of $ 30,000 and finally losing it. BTC is trading around $ 29,000 today.
The story of the week though belongs to TerraUSD (UST) and Terra (LUNA). Both were in the top 10 cryptocurrencies at the start of the week. UST’s de-pegging led to the surrender of LUNA as it lost more than 99 percent of its value and dropped out of the top 200 list.
The catastrophic set of events began when Terra LUNA and its algorithmic stablecoin Terra USD suffered a major accident on May 10 and UST lost its $ 1 peg. The system, algorithmically designed to maintain its peg with the US dollar, ultimately fails to do so and causes a systematic devaluation of the UST. To compensate for this, LUNA tokens begin to mint at an unusually fast rate so that its supply increases rapidly. UST is trading below 0.2 today.
Terra founder Do Kwon has released a short-term roadmap for reviving the ecosystem.
Meanwhile, the portfolio of most crypto investors entering the ecosystem after 2021 is in red. They will have to undertake this step within the next 2-3 months before witnessing a recovery in crypto assets. News in the crypto world, though, continues to hold promise. We list some below.
Australia’s first ETF is live
After the initial delay, Australia’s first three cryptocurrency exchange-traded funds (ETFs), hosted on the CBOE exchange, went live. It will bring bitcoin and etherium products to the stock market. An ETF is a product that can give investors exposure to assets that they cannot invest directly. ETFs work by tracking the value of an underlying asset as shares traded on the stock market.
Of the three funds, Cosmos Purpose Bitcoin Access ETF (CBTC) is Cosmos Asset Management and Tracking Bitcoin ETF (BTCC-B.TO) on the Toronto Stock Exchange. The other two Australian ETFS Management (AUS) Ltd. And Swiss 21Shares AG was launched by spot-traded Bitcoin (EBTC) and Ether (EETH).
Sony 3D NFTs to enhance spatial reality display features
Sony, the Japanese electronics major, is working with Theta Labs, the makers of Theta Blockchain, to create a decentralized video streaming network or video delivery network with its own local crypto asset, Theta Network (THETA).
Sony will soon be releasing 10 ‘Tiki Guy’ NFT and two-dimensional versions of it. NFTs will sync with Sony Special Reality Display (SRD), a tablet that uses augmented reality and 3D enhancements. Offers for SRD devices will include NFTs and metaverse concepts.
NASA has called on developers to work on Martin Metavers
The US space agency NASA is in the process of creating a meteorological environment on Mars to assist in training. The company recently posted a challenge to attract developers. Interested developers can assist NASA in creating virtual reality (XR) ‘assets and situations’ for use by the agency in research of extraterrestrial activity on the surface of Mars.
The goal of this project is to create an existing metaverse called MarsXR. This metaver has already mapped 400 sq km of Mars with realistic day / night cycles. Using Epic Games’ Unreal Engine 5, developers should work on the challenge of submitting them. The Mars simulation is expected to help NASA reduce costs by using a virtual reality module known as Apache to train upcoming astronauts in a variety of experiences.
RCD football team will accept crypto
Reial Club Deportivo (RCD) will accept Bitcoin and other cryptocurrencies for purchasing Espanyol, tickets, merchandise and food and beverages. With this, RCD became the first team in La Liga (Spanish Football League) to officially accept crypto for transactions. Through this initiative, RCD identifies itself as a “pioneer in a field that is not the future but the present.”
Top winners this week:
(Only one beneficiary per week)
1. Maker (MKR): 8 percent
Top losers this week:
1. TerraUSD (UST): -80 percent
2. Phantom (FTM): -57 percent
3. Read DAO (LDO): -52 percent
(Note: Analysis only includes the top 100 cryptocurrencies. Source: Coinmarketcap)
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