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Whether the Current Terra(LUNA) Spike is Yet Another FOMO in the Bear Market?

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Whether the Current Terra(LUNA) Spike is Yet Another FOMO in the Bear Market?

Terra’s (LUNA) price currently appears to have stabilized to a large extent as the prices have surged magnificently. As soon as the exchanges resumed the LUNA and UST trades, people flooded into the market to accumulate LUNA at the cheapest price. And as a result, the prices skyrocketed massively but on the other hand, the traders may also be trapped in such a position that they may not be able to move or escape. 

Also Read: Stress Test for LUNA & UST, Is it a Maximalist’s Co-ordinated Attack or Terra’s Peg-Mechanism Failure: Report

This May be Why LUNA Price Rally May Eventually Plunge?

As the crisis skyrocketed and trembled the entire crypto space, the founder, Do Kwon presented a recovery plan. Here, he proposed to cut down the entire supply of LUNA to 1 billion and also distribute them within the community. However, this proposal is yet to be implemented and then a natural recovery could have been ignited. 

But currently, the prices have been magnified due to the pure-play of the traders or whales in the crypto space. And hence this carries a high risk of losing huge money for the people who believe the LUNA price has already stabilized. Why LUNA holders may have to lose most of their money is,

  • According to the Peg mechanism, UST & LUNA prices are correlated and hence LUNA price may be positively impacted only if UST regains its peg, where the LUNA coins will be burnt 
  • Interestingly, none of these events has occurred as of now and moreover, the price began skyrocketing quickly as trades were resumed
  • Therefore, it is evident that the recovery is being fueled by the whales rather than any fundamentals and hence they may be primed to fall if all liquidate at once

On the other hand, the star crypto, Bitcoin is losing its momentum as it slips down below $30,000. Interestingly, the BTC 24 hr trading volume has plummeted by more than 34%  and on the other hand, the volume of LUNA has risen massively by 830.86% to reach above $6 billion. And hence it is clearly evident that once the whales extract their profit, the Terra(LUNA) price is pre-programmed to dump heavily. 

As currently, large amounts of Bitcoin are constantly flowing into LUNA and hence these are to be flown back to the star crypto again. 

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Indian Regulator SEBI Proposes Banning Public Figures From Endorsing Crypto Products

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Indian Regulator SEBI Proposes Banning Public Figures From Endorsing Crypto Products

The Securities and Exchange Board of India (SEBI) has reportedly proposed banning public figures, including celebrities and sportsmen, from advertising and endorsing crypto products. The regulator also proposed that public figures be held liable for any law violations when promoting crypto products.

SEBI’s Crypto Advertising and Endorsement Proposal

The Securities and Exchange Board of India (SEBI), the country’s securities and commodity market regulator, has proposed prohibiting public figures, including celebrities and sportsmen, from endorsing crypto products, Businessline reported last week. In addition, the regulator proposed requiring advertisers to disclose possible law violations.

SEBI recently shared its view on the subject with India’s Parliamentary Standing Committee on Finance when it was questioned about various crypto issues, sources told the publication. The regulator subsequently submitted a detailed written response to the committee.

The Indian Ministry of Finance also asked SEBI to give its view on the crypto advertising guidelines published in February by the Advertising Standards Council of India (ASCI).

SEBI reportedly wrote:

Given that crypto products are unregulated, prominent public figures including celebrities, sportsmen, etc. or their voice shall not be used for endorsement/advertisement of crypto products.

Furthermore, the securities regulator proposed that public figures be held liable for endorsing crypto products, which could violate certain laws, including the Consumer Protection Act.

In addition, SEBI suggested adding the following statement to the ASCI disclaimer: “Dealings in crypto products may lead to prosecution for possible violation of Indian laws such as FEMA, BUDS Act, PMLA, etc.”

ASCI’s crypto guidelines, which went into effect on April 1, state: “Since this is a risky category, celebrities or prominent personalities who appear in such advertisements must take special care to ensure that they have done their due diligence about the statements and claims made in the advertisement, so as not to mislead consumers.”

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Meanwhile, the Indian government is working on the country’s crypto policy. Finance ministry officials have met with the International Monetary Fund (IMF) and the World Bank to discuss crypto regulation. India’s finance minister recently said that the decision on crypto regulation will not be rushed. Crypto income is currently taxed at 30% in India.

What do you think about SEBI’s view on prohibiting public figures from endorsing crypto products? Let us know in the comments section below.

Kevin Helms

A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.

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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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Iran Blocks 9,200 Bank Accounts Over Suspicious Foreign Currency, Crypto Transactions

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Iran Blocks 9,200 Bank Accounts Over Suspicious Foreign Currency, Crypto Transactions

Iran’s Ministry of Intelligence has reportedly blocked almost 10,000 bank accounts over suspicious foreign currency and cryptocurrency transactions. The action was carried out in collaboration with the country’s central bank.

9,219 Bank Accounts Blocked

Iran’s Ministry of Intelligence issued a statement Saturday stating that it has blocked a number of bank accounts due to suspicious foreign currency and cryptocurrency transactions, local media reported. The ministry detailed:

A total of 9,219 bank accounts belonging to 545 individuals were blocked.

The statement adds that the total transaction value blocked was over 60 trillion Iranian tomans, which is approximately $2 billion based on the daily dollar exchange rate in the Iranian open market. Iran’s currency recently hit a four-month low against the U.S. dollar.

However, the ministry did not provide any details on the accounts or how much of the turnover was in digital currency.

The Ministry of Intelligence’s action was carried out by the order of a judge and in collaboration with the country’s central bank. It was part of the Iranian government’s recent plan to combat illegal and unauthorized foreign currency and cryptocurrency transactions. In December last year, the ministry announced that it froze bank accounts of more than 700 “illegal” foreign exchange traders in the country.

Meanwhile, Iran is also cracking down on unauthorized cryptocurrency mining. The authorities have shut down about 7,000 unauthorized mining facilities in the past two years. The Iranian government has also drafted new rules to increase penalties for illegal cryptocurrency mining, including additional fines and imprisonment.

What do you think about Iran blocking bank accounts over suspicious crypto transactions? Let us know in the comments section below.

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Kevin Helms

A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.

Image Credits: Shutterstock, Pixabay, Wiki Commons

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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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Bitcoin [BTC]: Here are a few signals that point to a strong possibility of a recovery

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Bitcoin [BTC]: Here are a few signals that point to a strong possibility of a recovery

Bitcoin price seems to have found its stable footing at $29,100 after a recent flash crash below it. This quick recovery and retest will be a testament to the bulls’ power and determine the next course of action for BTC.

Bitcoin price to provide temporary gains

Bitcoin price created a bearish continuation pattern known as a bear flag between November 2021 and April 2022. After a brief consolidation in late April, BTC triggered a breakout from the setup, triggering a massive sell-off.

The pattern contains a massive downswing known as “flagpole” followed by a consolidation phase known as “flag.” A breakout from this coiling-up often results in the price continuing its descent, which is why the setup is referred to as the continuation pattern.

This technical formation forecasts a 46% downswing, determined by adding the flagpole’s height to the breakout point. On April 22, BTC breached the flag’s lower trend line at $40,032, forecasting a target of $21,584.

So far, the post-FOMC volatility combined with the LUNA-UST debacle has stirred the market and caused it to crash violently. As a result, BTC dropped to $25,333, taking altcoins with it. However, the recovery of Bitcoin price seems to be going well as it is back above the $29,100 support level.

If bulls can manage a successful retest, it will reveal that a further uptrend is likely. In such a case, investors can expect a move to $35,100. This uptrend would constitute a total of 17% gain and is likely where the upside is capped.

BTC Perpetual Futures | Source: Tradingview

Further removing the uncertainty for the retail investors’ minds is the recent tweet from the Luna Foundation Guard (LFG). The announcement stated that LFG has sold 80,081BTC from its reserve that held 80,394 BTC.

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1/ As of Saturday, May 7, 2022, the Luna Foundation Guard held a reserve consisting of the following assets:

· 80,394 $BTC

· 39,914 $BNB

· 26,281,671 $USDT

· 23,555,590 $USDC

· 1,973,554 $AVAX

· 697,344 $UST

· 1,691,261 $LUNA

— LFG | Luna Foundation Guard (@LFG_org) May 16, 2022

This news suggests that a further sell-off seems unlikely, which could push buyers to start bidding.

The tweet further stated,

“The Foundation is looking to use its remaining assets to compensate remaining users of $UST, smallest holders first. We are still debating through various distribution methods, updates to follow soon.”

Supporting this outlook for Bitcoin price is the supply on the exchanges chart. This index tracks the number of BTC held on exchanges, which could be interpreted as a potential sell-side pressure. In case of a sell-off, investors would not think twice and could panic sell, causing a cascade of sell orders that could steepen the downswing.

However, for Bitcoin, the number of tokens held on centralized entities has fallen by 50,000 BTC, denoting an effective decline in the potential sell pressure. This development falls in line with the bullish outlook from a technical perspective

Therefore, investors can expect BTC to rally in the near future.

Supply on Exchanges | Source: Santiment

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