Swiss think tank urges greater global cooperation on crypto regulation
The paper highlights investigators who work with crypto should invest in learning methods and technologies that are current with evolving criminal organization strategies.
Analysts assess the aftermath of the Terra (LUNA) collapse | Cointelegraph interview
Mike McGlone, senior commodity strategist at Bloomberg, and financial commentator Frances Coppola discuss the implications of last week’s Terra collapse in Cointelegraph’s latest interview.
How The Tether Peg Could Predict Raging Bitcoin Volatility
The whole UST debacle has seen traders emboldened in the market against stablecoins. The result of this had been more investors going after the pegs of other stablecoins such as USDT and trying to see if they can destabilize the coin. Most prominent of this had been Tether USD, whose peg saw the most opposition as its peg to the U.S. dollar was heavily challenged. This challenge suggests that there could be more volatility coming.
Tether Challenge Ramps Up
One thing to note is that periods of challenges like these are mostly arising from periods of extreme market stress and liquidations. Such were the market conditions for the last week after the UST de-pegging. This ultimately leads to large deviations in the price of stablecoins such as USDT and USDC when it comes to the $ 1 peg. Although in this case, the majority of the deviations were recorded in USDT alone as USDC held up better in the market.
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Tether (USDT) which has always operated under high scrutiny from some in the market had begun trading below its $ 1 peg after the UST news broke. This gap would grow a bit wider with time although the stablecoin would regain its peg once more. However, the scrutiny that accompanies the stablecoin explains why it was the obvious target of the market.
USDT loses dollar peg following UST crash | Source: USDT/USD on TradingView.com
This had inadvertently created an opportunity for funds that had access to Tether redemptions. These funds had been able to take advantage of this slight de-pegging and presumably profited off it until the digital asset could return to its 1:1 peg.
More Volatility Coming?
On Thursday, the market saw one of the highest yearly volatility trends in a one-day period. This volatility had been brought on by the massive sell-offs that rocked the market, although this volatility has since declined since then.
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However, with the USDT peg being continuously challenged in the market, there may be more volatility yet to come. If a stablecoin such as USDT, which is currently the largest stablecoin in the market, were to lose its peg, it would no doubt have an even worse impact on the market than UST did. Basically, a de-pegging such as this could see the market dive deeper given that more than 50% of all open interest in the derivatives market are USDT collateral-based.
The asset also shares the most trading pairs of any other stablecoin. So a de-pegging could lead to historical level short squeezes which would essentially cripple the market. Also, an event like this would set mainstream acceptance back years as more people would become fearful of the market.
Loss of USDT peg could lead to extreme volatility | Source: Arcane Research Featured image from CoinGeek, charts from Arcane Research and TradingView.com
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Shiba Inu Vs. Dogecoin And LUNA: Which One Will Survive The Crypto Carnage?
Shiba Inu is proving that despite the previous weeks’ turmoil in the broader crypto market, it can stand its ground and be unfazed by what’s going on.
Following a severe selloff in the previous session, major crypto tokens recovered on Wednesday. However, the increases were modest, indicating sluggish market confidence.
Dogecoin and Shiba Inu, commonly known as “meme cryptocurrencies,” have seen the most growth in recent years, but they have also suffered significant losses as a result of this meltdown.
Except for Terra’s LUNA and the dollar-pegged Tether, other major crypto tokens saw rises. Shiba Inu was up nearly 10%, followed by Avalanche, Solana, which rose 5%. BNB and XRP both climbed by 3%.
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The cryptocurrency market showed signs of life on Wednesday, following the previous day’s precipitous drop, during which many of the leading coins lost 10% or more of their value.
Shiba Inu is weathering the storm better than its rivals (The Goa Spotlight) Shiba Inu Outperforms Dogecoin
Overall, the market is up a couple percentage points today, and when it comes to meme coins and tokens, Shiba Inu is outperforming its main competitor, Dogecoin.
Despite a 70% collapse in the first three months of 2022, which left the token severely bruised and likely on the verge of extinction, it managed to crawl back up and remain in survival mode.
According to CoinMarketCap data, SHIB is up roughly 5% in the last 24 hours as of this writing, and is currently trading at $ 0.00001615. Dogecoin (DOGE), on the other hand, is currently trading at $ 0.109833, up less than 1%.
Given the influential people behind Dogecoin, it’s likely that its drop was not as worrisome in comparison to other cryptos on the market.
In the wake of the broader crypto market upheaval, Shiba Inu struck a seven-month low yesterday, while Dogecoin is down to its lowest point in more than a year — since April 2021.
SHIB total market cap at $ 8.15 billion on the daily chart | Source: TradingView.com LUNA Being Hammered
The destabilization of UST caused panic selling of heavyweights such as BTC and ETH, increasing overall market volatility.
The recent UST crisis exposed big weaknesses in the algorithm-backed stablecoin system, which will need to be addressed openly in order to regain investor trust.
The value of UST’s counterpart, LUNA, has roughly halved in the last 24 hours. It was recently trading at $ 32 per share.
The recovery of LUNA will be dependent on the remedial actions made by the parent network/Luna Guard Foundation, which has amassed a sizable Bitcoin reserve through a series of large-scale BTC acquisitions.
Bitcoin has lost 20% of its value in the last few days. (iStock) … So Does Bitcoin
Meanwhile, over the previous week, Bitcoin’s value has dropped by more than 20%.
This affects everyone who has money invested in any sort of cryptocurrency, which is why many people are disposing of their holdings at an alarming rate.
The exact day and time of when or if this decrease will come to a stop is unknown.
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