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No $LUNA or $UST Were Sold This Crash Says Terra Founder Do Kwon Outlining Recovery Plan

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No $LUNA or $UST Were Sold This Crash Says Terra Founder Do Kwon Outlining Recovery Plan

From the last few weeks, and just three days ago, Terra Luna’s supply was just 340,000 according to Terra analytics. And the UST lost its peg from the dollar on Monday, and that is when the Luna started falling downward in reference to the related token which was supposed to prop up UST’s value. 

The sale of Luna was supposed to help the algorithmic stablecoin TerraUSD (UST) to keep in parity with the US Dollar. But inaction to UST’s loss in its peg and investors tried cashing out a masse, which affected the downward fall of Luna. 

The CEO and Co-founder of Terraform Labs have broken his silence on social media by making a trio of tweets this Friday. Regarding the collapse of Terra’s LUNA token and UST, an associated stablecoin. 

Stating ” I’ve spent the last few days on the phone calling Terra community members – builders, community members, employees, friends, and family, that have been devastated by UST depegging. I am heartbroken about the pain my invention has brought on all of you.” 

Continuing to this he again tweeted on May 14: “I still believe that decentralized economics deserve decentralized money – but it is clear that $UST in its current form will not be that money.” 

Adding to the above two statements of DO Kwon: ” Neither I nor any institution that I am affiliated with profited in any way from this incident. I sold no luna nor ust during this crisis.” he poured his heartfelt emotions into this. 

Terra Ecosystem Revival Plan

Kwon further floated a proposal in a Terra discussion forum to restart essentially the network with worth 1 billion tokens by distributing them to the affected holders and users. In reference to the recent reports made on UST, Terra’s native LUNA asset experienced steep losses to the ones that were exposed to the market. This disorder led to blockchain stoppages ultimately and market trading halted as the circulating supply of LUNA skyrocketed. 

The Terra devs tweeted about the report of everything that transpired the last weeks is in progress and will be published as soon as possible. Further, pouring an emotional statement he said that

“These are tremendously difficult times for everyone affected. The feelings are still raw. please be safe, The strength of #LUNAtics has been amazing. more to come.” 

Token Redistribution Plan

In a Friday post on Terra’s research forum, Kwon said, The Terra community must reconstitute the chain to preserve the community and the developer ecosystem.

Validators should reset the network ownership to 1B tokens, distributed among:

400M (40%) to Luna holders before the de-pegging event (last $1 tick before the depeg on Binance should be reasonable).

400M (40%) to UST holders pro-rata at the time of the new network upgrade.

100M (10%) to Luna holders at the final moment of the chain halt – last-minute marginal luna buyers should be compensated for their role in attempting to provide stability for the network

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100M (10%) to the Community Pool to fund future development.

All Luna besides the third tranche should be staked at the network genesis state.

The network should incentivize its security with a reasonable inflation rate, say 7%, as fees will no longer be enough to pay for security without the swap fees.

Although there’s no way to fully restore the blockchain’s value, Kwon said the redistribution plan has to compensate the network’s debt holders and “loyal community members and builders.”

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Panama President Mulls Crypto Bill Approval Due To Money Laundering Concerns

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Panama President Mulls Crypto Bill Approval Due To Money Laundering Concerns

The president of Panama, Laurentino Cortizo, has declared he will not sign the recently approved cryptocurrency bill passed by the National Assembly of the country in its current form. Cortizo stated that one of his main concerns about the bill is the stance it takes regarding money laundering activities and crypto. Cortizo may approve some parts of the bill while vetoing others.

Panama’s President Considers Crypto Bill Veto

Laurentino Cortizo, the president of Panama, has announced his opinion regarding the recently approved cryptocurrency bill, and how it might be too lax when it comes to dealing with unlawful activities like money laundering in the sector. While speaking at the Bloomberg New Economy Gateway Latin America conference in Panama City, Cortizo stated:

If I’m going to answer you right now with the information that I have, which is not enough, I will not sign that law.

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Furthermore, Cortizo explained that he and his government would have to be “very careful” if the crypto bill presented has clauses dealing with money laundering activities, remarking that these are very important to Panama.

Panama allows the president to have veto power over the bills presented by the National Assembly, and Cortizo could use this attribution to repel the bill in its current form. However, Cortizo declared he and his lawyers are still reviewing the law to make a decision.

Panama’s Crypto Law

Panama started its cryptocurrency regulation journey last year, when Gabriel Silva, a national representative, introduced a crypto bill with a proposal that aimed to modernize the country and bring it up to par with other countries in the area. The bill, which faced some changes during its discussion, establishes pivotal concepts about crypto, blockchain, and virtual asset service providers.

In addition to this, the approved version of the bill introduces blockchain as a tool to improve the transparency of state spending, like other projects introduced already in Latam. This would include the progressive migration of public records to the blockchain.

Another important proposal of the bill is the digitalization of the identification process, with issued IDs being published on a public blockchain. Cortizo might take some of the articles passed and make them law, and veto other parts of the bill. To conclude, Cortizo stated:

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It is an innovative law from what I have heard, it’s a good law. However, we do have a solid financial system here in Panama and one of the things I’m waiting on is when you have a global regulation of crypto-assets.

What do you think about the opinion of the president of Panama regarding the passed crypto bill? Tell us in the comments section below.

Sergio Goschenko

Sergio is a cryptocurrency journalist based in Venezuela. He describes himself as late to the game, entering the cryptosphere when the price rise happened during December 2017. Having a computer engineering background, living in Venezuela, and being impacted by the cryptocurrency boom at a social level, he offers a different point of view about crypto success and how it helps the unbanked and underserved.

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Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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Animoca Brands

Digital Collectible Owners Continue To Take Loans Out Using NFTs As Collateral

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Digital Collectible Owners Continue To Take Loans Out Using NFTs As Collateral

While non-fungible token (NFT) collectibles have become a hot commodity over the last 12 months, a number of NFT owners are taking loans out against their NFTs. This month, a project called Nftfi has facilitated $25.6 million in NFT loans so far, and last month the lending marketplace recorded nearly $50 million in NFT loans.

NFT Lending and Borrowing Continues to Grow

NFTs have become a billion-dollar industry during the last year and a popular blockchain technology use case. Even though sales have slid in recent times amid the crypto market downturn, NFTs are still selling for hundreds of thousands and even millions of dollars per digital collectible. In addition to the NFT sales and auctions, NFT owners are also loaning their digital collectibles for access to liquidity. For instance, a decentralized finance (defi) platform called Nftfi has seen $185.4 million in cumulative loan volume since the market’s inception.

In the last week, the peer-to-peer marketplace for NFT collateralized loans recorded four loans for more than $100K or more each. On May 16, Bored Ape Yacht Club (BAYC) 7,813 was used for a $100K loan, and Autoglyph 231 was leveraged for a $200K loan on May 12. BAYC 6,276 was used for a $150K loan on May 10, and the BAYC 371 owner was able to obtain a $115K loan for the NFT the day before. So far this month, Nftfi has facilitated $25.6 million in NFT loans, according to statistics from Dune Analytics. Nftfi is also partners with the blockchain firms Flow and Animoca Brands.

NFT Lending Competition

Nftfi is not the only NFT lending platform on the block, as there are others like Arcade, Nexo.io, and Drops. Statistics show the Drops loan market has facilitated $6,746,515 in lending. Arcade has raised $17.8 million from investors like Pantera Capital, Franklin Templeton Investments, Castle Island Ventures, and Protofund. Another competitor is the peer-to-peer NFT lending marketplace Flowty, which is built on the Flow blockchain network. Flowty raised $4.5 million in the company’s first investment round from two lead investors and 23 total.

Nftfi has a wide selection of NFTs and an assortment from a number of blue-chip digital collectible collections as well. For instance, there are ENS names, Unstoppable Domains, Axies, Doodles, Sanbox land, Otherdeeds, Hashmasks, Bored Ape Yacht Club, and Mutant Ape Yacht Club (MAYC). Just recently the platform phased out its old smart contract (Nftfi V1) on April 4, 2022, and launched a new smart contract called Nftfi V2. According to the web portal, Chainsecurity and Halborn audited the platform’s V2 smart contract.

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Animoca Brands, Arcade, axies, Blockchain, blockchain loans, Bored Ape Yacht Club (BAYC), Doodles, drops, ENS names, Flowty, Hashmasks, Marketplace, Nexo.io, nft, NFT borrowers, NFT Lenders, NFT loans, NFTfi, NFTs, Non-fungible tokens, Otherdeeds, Peer-to-peer, Sanbox land, Smart Contract, Unstoppable Domains

What do you think about people lending out their NFTs for collateral to acquire a loan? Let us know what you think about this subject in the comments section below.

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Jamie Redman

Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 5,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

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Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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16 cross-chain bridges

Terra Collapse Continues To Plague Defi — Value Locked In Cross-Chain Bridges Down 20% This Month

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Terra Collapse Continues To Plague Defi — Value Locked In Cross-Chain Bridges Down 20% This Month

Following the aftermath of the Terra blockchain fiasco, decentralized finance (defi) continues to feel the impact of the project’s fallout. During the last four days the total value locked (TVL) in defi has dropped 2.61% in value, and cross-chain bridges have lost roughly 20.3% during the last 30 days.

Value Locked in Cross Chain Bridge Tech Slips 20% Lower Than Last Month

Over $100 billion in USD value was recently removed from the total value locked (TVL) in defi and TVL statistics continue to slide. Four days ago, the TVL in defi was approximately $112.29 billion and today, the TVL is down 2.61% to $109.35 billion. In addition to the TVL in defi across a dozen blockchains, cross-chain bridge TVLs have slipped a great deal during the past month.

30-day metrics from Dune Analytics indicates that the TVL across cross-chain bridges is down 20.3%. Today, there’s $16.49 billion total value locked across 16 different cross-chain bridges. In addition to the cross-chain bridge TVL the number of ethereum bridge unique daily depositors has also dropped.

As of Thursday, May 19, 2022, Polygon has the largest TVL among the 16 cross-chain bridges monitored on Dune Analytics. Polygon has $5.15 billion today. The $5.15 billion on Polygon bridges represents 31.23% of the entire $16.49 billion cross-chain bridge TVL.

Polygon is followed by Avalanche ($3.55B), Arbitrum ($3.2B), Fantom’s Anyswap ($1.87B), Near Rainbow ($1.86B), Optimism ($585M), Harmony ($229M), Moonriver ($154M), and Xdai ($122M).

The top crypto asset leveraged on cross-chain bridges today is the stablecoin usd coin (USDC). The stablecoin has $5.1 billion locked and is followed by WETH or ETH with $4.57 billion locked. Tether (USDT) is the third-largest with $1.9 billion today and other notable cryptos leveraged on cross-chain bridges include WBTC, DAI, and MATIC.

The losses across defi stem from two different factors. One, the Terra blockchain fallout removed more than $40 billion from the defi ecosystem in a very short period of time. The remaining billions have left defi in various ways including using cross-chain bridges because defi users have been rattled by the Terra catastrophe.

Billionaire investor and crypto proponent Mike Novogratz published a blog post yesterday covering the recent Terra blockchain fiasco and he said “the collapse dented confidence in crypto and defi.”

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16 cross-chain bridges, Arbitrum Bridges, Avalanche Bridge, axie infinity, Blockchain, Bridge, Bridges, Cross-chain, DeFi, Defi TVL, ETH, Fantom, Fantom Anyswap Bridge, Harmony Bridges, Multi-Chain, multi-chain ecosystem, Optimism ERC20 Bridges, Polygon ERC20 Bridge, ronin, Solana, Terra Blockchain, Terra fallout, USDC

What do you think about the dent in confidence to the defi ecosystem and the value locked in cross-chain bridge tech dropping lower than last month? Let us know what you think about this subject in the comments section below.

Jamie Redman

Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 5,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

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Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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