Cointelegraph Magazine

US Federal Reserve begins to tighten volumes, Japan restricts issuance of stablecoin and LUNA 2.0 launches price hike: Hodler’s Digest, May 29 – June 4 – Mail Bonus

Comes every Saturday, Hodler’s Digest will help you keep track of every single important news that happened this week. Best (and worst) quotes, recordings and highlights of regulation, leading currencies, predictions and much more – a week on Cointelegraph in one link.

Top news this week

Fed money printer goes into reverse: What does that mean for cryptocurrencies?

For the past two years or so, the US Federal Reserve has flooded the financial system with excess liquidity – benefiting equities, cryptocurrencies and other markets as well. Now the Fed is going in the opposite direction to fight inflation. In addition to raising interest rates, the Central Bank has begun a process of volume restraint (QT). It’s not entirely clear how cryptocurrencies will respond to the Fed’s QT efforts, but the short-term outlook is probably not good for risky assets.

The CFTC is suing Gemini, claiming that the cryptocurrency deal was a lie in evaluating future contracts

The US cryptocurrency exchange Gemini is facing action by the US Commodity Futures Trading Commission (CFTC) for certain alleged activities dating back to 2017. The CFTC essentially claims that Gemini acted dishonestly in 2017 while adding Bitcoin futures to its bids. The Commission claims that Gemini was not honest during the evaluation process.

“Gemini has been a pioneer and advocate of well-thought-out regulation since day one,” Gemini told the Cointelegraph in response to the lawsuit. “We have an eight-year track record in asking for permission, not forgiveness, and always doing the right thing. We look forward to proving this once and for all in court. “

Shenzhen City releases $ 30 million in free digital yuan to stimulate consumer spending

Residents of the city of Shenzhen could receive part of China’s digital currency, e-CNY, as part of a flight. Shenzhen is working with one of China’s leading food delivery services to send out a total of 30 million e-CNY in lottery-style giveaways for specific app users. At least 15,000 in-app sales portals allow e-CNY as a payment method. China has adhered to a strict textbook on COVID restrictions, which has led to economic difficulties. The air drop is intended to stimulate consumption spending and revive the economy.

The South Korean government will soon invest in Metaverse

South Korea has made a number of headlines in recent weeks, ranging from its interest in cryptocurrency to investing in Metaverse now. The country plans to invest approximately $ 177 million in Metaverse as part of its “Digital New Deal” program. The money will go to developing a Metaverse platform that provides government services for citizens, as well as to various Metaverse projects. This investment marks South Korea as an international pioneer in the government’s interest in Metaverse.

Japan approves bill to restrict issuance of stablecoin to banks and trusted companies

A new bill from Japan, which is said to be in force in 2023, will only allow banks and registered money lenders to issue stablecoins. The regulation aims to provide more protection around stablecoins, given their growing popularity. Japan’s plan to control stablecoins comes amid a cryptocurrency market that has seen falling asset prices and the collapse of a major stablecoin, the TerraUSD Classic (USTC).

Winners and losers

At the end of the week, Bitcoin (BTC) is at $ 29,540Ether (ETH) at $ 1,750 and XRP at $ 0.38. The total market value is at $ 1.21 trillion, according to to CoinMarketCap.

Among the 100 largest cryptocurrencies are the top three winners of the week for altcoin, Waves (WAVES) at 114.63%, Cardano (ADA) at 24.19% and Helium (HNT) at 22.49%.

The top three altcoin losers of the week are Convex Finance (CVX) at -7.51%, Solana (SUN) at -6.93% and 1 inch net (1 INCH) at -3.40%.

For more information on cryptocurrencies, be sure to read the Cointelegraph market analysis.

The most memorable quotes

“We could really imagine the whole world economy going on a blockchain like 30 or 50 years from now.”

Marc Andreessenco-founder Andreessen Horowitz (a16z)

“If they are managed properly, if managed well, then I think algorithmic stablecoins in theory should work.

Changpeng “CZ” ZhaoCEO of Binance

“How will we ever reduce wealth inequality when our supervisory system has financial discrimination at its core? It’s time to remove the “sophisticated investor” discrimination policies used by advisers to hide behind and allow everyone access to financial advice and services. “

Ian loveCEO and Founder of Blockchain Assets

“We have changed our position on mining and also allow the use of cryptocurrencies in foreign trade and abroad.

Ksenia Yudaevathe first Deputy Governor of the Central Bank of Russia

“I do not think we live in one chain of the world.

Brad GarlinghouseCEO of Ripple Labs

“There are too many general purpose blockchains that are actually competing with Ethereum (and each other) in a race to the bottom of the charts. Only so many of them can survive. “

Andrew LevineCEO of Koinos Group

Forecast of the week

Bitcoin could reach $ 14K in 2022 but buying BTC now “as good as it gets:” Expert

Although Bitcoin charts saw some positive movements in the first half of this week to close in May, June brought back a sub- $ 30,000 price action, based on BTC Cointelegraph Price Index.

Using the former BTC price information as a backdrop in line with Bitcoin’s halving history (approximately four years), the Twitter user’s pseudonym and CryptoQuant’s venturefounder contribution suggested that the asset could see a macroeconomic bottom in the next six months. As part of a tweet, an expert said that Bitcoin could reach depths between $ 14,000 and $ 21,000. The analysis included parallels to 2018, the focus year of the last cryptocurrency bear market. Pricing measures are now in line with historical Bitcoin cycles.

FUD of the week

Investors shed Terra who LUNA 2 tanks 70% in two days

Following the collapse of the Terra ecosystem, Terra 2.0 and its LUNA 2.0 assets came on the market on May 28, as the price of tokens fell sharply after the unveiling. Do Kwon’s resuscitation program, CEO of Terraform Labs, included the distribution of LUNA 2.0 to specific participants in the old Terra ecosystem. About a day later, Binance announced that this was the case completed its first flight of the new LUNA icons to specific users. From the time of Monday’s Cointelegraph article (linked above) to the writing of the Binance airdrop article on Tuesday, LUNA 2.0 has risen in price from $ 5.71 to $ 9.25.

New York State Senate approves moratorium on Bitcoin mining

New York Mining Evidence (PoW) could be postponed for two years, pending the approval of the Secretary of State. A bill banning new PoW minesuits, as well as renewing existing players’ licenses, was approved by the New York State Senate. One exception to the bill, however, is the licensing of fresh PoW miners who use only renewable energy for their work.

Former OpenSea product manager accused of insider trading

A former OpenSea employee, Nathaniel Chastain, has been charged with insider trading, telephone fraud and money laundering. During his time as NFT’s product manager, Chastain was to trade numerous NFTs based on non-public knowledge. Claims include that his work has enabled him to influence which NFTs the main page of the platform included, which he then used for personal gain. Chastain resigned from OpenSea after the unit requested his departure because he discovered the crime, according to OpenSea. The development raises questions about NFTs are potentially marked as securities.

Best features of Cointelegraph

You can now clone NFT as a “simulator”: Here’s what it means

“I think I just broke the NFT market.

Failing Better: Scott Melker Challenges Probability With Cryptocurrency Trading

“This is a math game where there are small losses and big wins.

Anonymous culture in cryptography may be losing its relevance

Although anonymous teams have built some of the leading infrastructure in cryptography, many new entrants to the ecosystem are using their real identities.

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