Daily Archives: May 17, 2022

Crypto Carnage Causes Flight To Bitcoin Safe Haven, Dominance Demonstrates

Crypto Carnage Causes Flight To Bitcoin Safe Haven, Dominance Demonstrates

The crypto bloodbath continues to rage on, as bitcoin drops 13%, although to a lesser degree than what was experienced last week. Due to this, there have been several migration patterns recorded in crypto investors as they look for the best safe haven. The first had been the flight to stablecoins for cover from the unending losses. However, the tide has changed on this once again as investors look to now be flocking back to bitcoin, causing dominance to rise.

Bitcoin Re-Establishes Dominance

The decline has affected all cryptocurrencies in the market but data shows that some more than others have had a worse time of it. Altcoins, especially the small cap altcoins, have recorded the highest losses as expected. Bitcoin is not spared from this though.

Related Reading | Ethereum Hashrate Breaks All-Time High, Will Price Follow?

The largest cryptocurrency by market cap is now down 13% price-wise but this has not stopped it from re-establishing its dominance over the market, touching a new six-month high. It is now at a 44.4% dominance and it hasn’t been this high since October of 2021.

BTC dominance returns | Source: Arcane Research

Mostly, the decline of investor sentiment into the negative has been one of the major factors in driving investors towards bitcoin. Since altcoins are getting hammered in the market, investors are looking to BTC, which they believe to be a safer bet compared to the lesser cap coins.

The result of this has been money from altcoins being moved into bitcoin, leaving altcoins behind this. As such, bitcoin has only recorded a 23% decline since the month of May began, the lowest decline of all the indexes.

Others have recorded higher declines. The Large Cap Index came in with a 28% loss in the last two weeks, the Mid Cap Index with 31% in the same time period, while the Small Cap Index has been hit the worse with a 37% decline.

Stablecoins Take A Hit

The whole UST debacle has begun to settle but the effects of the third-largest stablecoin crashing continue to affect its counterpart. After the UST de-pegging, some of that low sentiment had flowed into the largest stablecoin, USDT, which had lost 10% of its market cap.

Bitcoin dominance chart from TradingView.com

BTC dominance reaches six-month high | Source: Market Cap BTC Dominance on TradingView.com

One of the reasons for this though had also been the peg of the stablecoin being challenged as bitcoin’s price declined. It is also speculated that some of the funds leaving USDT had flowed into another stablecoin, USDC, which happens to be the second-largest stablecoin.

Related Reading | Bitcoin Marks Seven Consecutive Red Candles, Paints Gruesome Picture For Market

Both these stablecoins have continued to maintain their dollar peg though. This leaves UST as the only stablecoin that lost its peg.

Featured image from Yahoo Finance, charts from Arcane Research and TradingView.com



Source link

South Korea Launches ‘Emergency’ Investigation Into Collapse of LUNA and UST – Regulation Bitcoin News

South Korea Launches ‘Emergency’ Investigation Into Collapse of LUNA and UST – Regulation Bitcoin News

South Korea’s top financial regulators have launched an emergency investigation into the collapse of cryptocurrency LUNA and stablecoin UST. The authorities have asked domestic cryptocurrency exchanges to provide information relating to transactions and investors of the two coins.

South Korea’s Emergency Investigation Into LUNA, UST

South Korea has launched an “emergency” investigation of domestic crypto exchange operators following the collapse of the terrausd stablecoin (UST) and terra (LUNA) cryptocurrency, Yonhap News reported Tuesday, citing unnamed sources.

Last week, UST lost its peg to the U.S. dollar, sending its price and the price of terra (LUNA) into free fall. At the time of writing, UST is trading at less than $0.09 while LUNA is near worthless.

South Korean top financial regulators, the Financial Services Commission (FSC) and the Financial Supervisory Service (FSS), have asked local cryptocurrency exchange operators to share information relating to UST and LUNA, sources told the news outlet.

An official of a local crypto exchange operator was quoted as saying:

Last week, financial authorities asked for data on the amount of transactions and investors, and sized up the exchanges’ relevant measures.

“I think they did it to draw up measures to minimize the damage to investors in the future,” the exchange official said.

The information requested by the authorities includes trading volumes, closing prices, and numbers of relevant investors, the publication noted, adding that the regulators also asked the exchange operators to provide their countermeasures to the recent crypto market crash and analyses of the cause of the collapse.

UST and LUNA were invented by Kwon Do-hyung (aka Do Kwon), a South Korean national. His company, Terraform Labs, is incorporated in Singapore. Since the collapse of the two cryptocurrencies, Kwon has come up with a few plans to revive the coins but none has worked so far.

Kwon’s wife reportedly sought police protection after an unidentified man trespassed into their apartment building in South Korea. According to media reports, the man was subsequently identified as an investor who lost roughly $2 million in LUNA’s collapse.

What do you think about South Korea launching an investigation into UST and LUNA after the two cryptocurrencies collapsed? 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.

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.

(function(d, s, id) {
var js, fjs = d.getElementsByTagName(s)[0];
if (d.getElementById(id)) return;
js = d.createElement(s); js.id = id;
js.src=”
fjs.parentNode.insertBefore(js, fjs);
}(document, ‘script’, ‘facebook-jssdk’));



Source link

Embracing Decentralization: Integrating and Building Protocols at Coinbase | by Coinbase | May, 2022

Embracing Decentralization: Integrating and Building Protocols at Coinbase | by Coinbase | May, 2022

By Jesse Pollak, Senior Director of Engineering at Coinbase

Tl;dr:

  • Coinbase is committed to its vision of investing in web3 and the broader cryptoeconomy.
  • We’re embodying this vision by integrating, building, and supporting protocols at Coinbase.
  • Protocols are increasingly integrated into our products, a focus for teams across the company, and a major investment area for Coinbase Ventures.
  • To support this work, we’re growing our Smart Contract Engineering team and building protocol expertise across every role.

Over the past year, Coinbase has begun laying the groundwork to transform into a web3 company. We’re doing this because we expect that large portions of the global economy will move “on-chain” in the coming years. This transition will occur as people globally demand greater access to financial services and ownership in the success of the businesses they support. Coinbase is positioned to play a key role in increasing economic freedom by doubling down on web3 innovation and supporting the development of protocols that put powerful financial tools in the hands of people around the world. Today, we’re sharing an update on how we’re integrating, building, and supporting these protocols.

Protocols offer a range of products and services that allow people anywhere in the world to transact directly with each other. For example, Compound makes it easier for individuals to lend or borrow crypto assets, giving them access to capital and higher yields with no intermediaries involved. Another example is USD Coin, the largest stablecoin on Ethereum with a market capitalization over $50B, that allows people to easily send and receive funds globally using a digital asset that is pegged to the US dollar. Protocols like these form the foundation of the cryptoeconomy that millions of people interact with daily.

In just over two years, the value locked in these protocols has gone from a few hundred million to over $200B. People all over the world want greater control over their financial futures and web3 protocols are making that a reality.

At Coinbase, we are embracing protocols across all our strategic pillars with four key initiatives:

  1. Integrating protocols into our products. In Coinbase Wallet, and our recently launched dapp wallet, we are natively integrating trading and yield features supported by protocols as well as enabling open access to protocols through our browser. We recently launched Coinbase NFT, which is powered by the 0x protocol to enable low fee NFT swaps. Additionally, through our DeFi Yield product, we are integrating with protocols like Compound to offer users in eligible jurisdictions higher yields on their holdings. We are excited about how protocols can enable better user experiences and aim to keep integrating them deeply into our products.
  2. Building protocols and supporting innovation. We support protocols, regardless of how they will directly integrate into Coinbase. We support protocol innovation through our Project 10% program, which funds moonshot ideas including the recent Coinbase Ventures investment in Backed. We’re also supporting protocol work in the ecosystem through our developer grants program and open source contributions like Rosetta, which makes it easier to integrate protocols into Coinbase. Today, we also announced that Coinbase Cloud is supporting a group of experienced founders and operators who are building the first enterprise-grade liquid staking protocol.
  3. Funding protocols in the broader ecosystem. Coinbase Ventures has invested in protocols throughout its lifetime and is an early investor in some of the most exciting web3 protocols, including Compound, UMA, Saddle, Radicle, Synthetix, Notional, Goldfinch, and others. In the first quarter of 2022 alone, Coinbase Ventures closed 70+ deals (300+ to date). It invests across the web3 technology stack and is expanding cross-chain investments beyond Ethereum with the goal of promoting an open multi-chain future of finance.
  4. Investing in top talent and core technology. We’re building a best-in-class Smart Contract Engineering team to support our protocol work and integrating protocol thinking into our product management practice. Through developer tooling, hackathons, and company wide knowledge sharing and experimentation, we are building a community that sets the standard for web3 talent. In the year ahead, we are also excited to contribute open source developer tools and libraries to support building protocols at scale.

Last year we wrote about Coinbase embracing decentralization by adding more assets, expanding internationally, integrating with third-party platforms, and emphasizing self-custody. We closed by saying:

Many of the most innovative use cases in crypto are being created in decentralized apps. By fully embracing this trend we can put crypto in the hands of more people around the world and thereby increase their economic freedom.

We’ve been hard at work embracing this vision by investing in web3 protocols at Coinbase — and while we’ve made extensive progress, we’ve got a long way to go. We’re excited for the journey.

If these challenges excite you, join our team and help build an open financial system for the world.



Source link

Crypto users react to Terraform Labs legal team purportedly leaving company

Crypto users react to Terraform Labs legal team purportedly leaving company

The ongoing saga with Terraform Labs, the blockchain developer behind Terra (LUNA), took a turn following a supposed change in employment status for many on the firm’s legal team.

According to their LinkedIn profiles, Terraform Labs general counsel Marc Goldich, chief litigation and regulatory counsel Noah Axler and chief corporate counsel Lawrence Florio have all stopped working for the blockchain firm as of May 2022. Goldich started at Terraform Labs in August 2021 while Axler and Florio joined in January 2022.

The change in employment status for three members of Terraform Labs’ legal team followed major volatility in the crypto market after the price of LUNA collapsed to $0.00 within two weeks. Stablecoins including Tether (USDT) depegged from the U.S. dollar, while the price of TerraUSD (UST) has dropped more than 88% since May 8.

Do Kwon, the co-founder of Terraform Labs, proposed a rescue plan on Wednesday in which the company’s team would mint more UST than usual. Validators for the Terra blockchain halted network activity two separate times amid extreme volatility, while Kwon later suggested users vote to fork the Terra Luna blockchain in an effort to save the ecosystem, still seemingly on a downward spiral.

Even before some of Terraform Labs’ lawyers seemingly cut ties to the firm, many crypto users, likely facing significant losses, called for legal action against Kwon. Others speculated the potential departure of Goldich, Axler and Florio could have been the result of a moral dilemma defending Terraform Labs, or concerns about from where their next paycheck would come.

Related: What happened? Terra debacle exposes flaws plaguing the crypto industry

Should their departure be due to concerns over the LUNA and UST crash, the legal team would not be the first players in the crypto space to abandon a seemingly sinking ship. In December 2021, SushiSwap chief technical officer Joseph Delong resigned, citing “chaos” in the running of the decentralized exchange.

Cointelegraph reached out to Marc Goldich, Noah Axler, and Lawrence Florio, but did not receive a response at the time of publication.



Source link

Amid Mining Bans, China Still Commands World’s Second-Largest Share of Bitcoin Hashrate – Mining Bitcoin News

Amid Mining Bans, China Still Commands World’s Second-Largest Share of Bitcoin Hashrate – Mining Bitcoin News

New data stemming from the latest Cambridge Centre for Alternative Finance (CCAF) report on bitcoin mining indicates that China still holds the second position in terms of global hashrate. While China commands close to 22% of Bitcoin’s global hashrate, the United States currently dominates with 37.69%, according to CCAF researchers.

China Is Still the World’s Second-Largest Concentration of Bitcoin Miners

The Cambridge Centre for Alternative Finance updated the organization’s bitcoin mining data and map in order to highlight 2022 hashrate statistics. In July 2021, Bitcoin.com News reported on the CCAF’s data that showed China’s hashrate dropping by 46%.

At the time, China’s government enforced a ban on bitcoin mining and a great deal of the country’s miners re-located. However, the latest CCAF stats show China’s hashrate is still very prominent as the country is the second-largest leader in terms of global hashpower dedicated to the Bitcoin (BTC) network.

The study’s authors believe the miners located in China are likely leveraging virtual private networks (VPNs) to conceal their locations. The report indicates that China’s share of the overall Bitcoin network hashrate was 21.11%.

CCAF’s data derives from the organization’s partner mining pools Foundry, Poolin, Viabtc, and Btc.com. Moreover, some of the hashrate stemming from China did not leverage VPNs and CCAF’s researchers believe those miners are comfortable with their locations unhidden.

Unites States Dominates Bitcoin’s Global Hashrate by More Than 37%

CCAF’s report notes that a “non-trivial” quantity of Chinese miners may have thought the ban wasn’t a big deal. “It is probable that a non-trivial share of Chinese miners quickly adapted to the new circumstances and continued operating covertly while hiding their tracks using foreign proxy services to deflect attention and scrutiny.”

Following CCAF’s updated data in July and October 2021, a CNBC report noted that unnamed sources told the reporter MacKenzie Sigalos that bitcoin miners were still located in China. China’s hashrate is sizable compared to a great number of other countries, however, the U.S. still dominates Bitcoin’s global hashrate by 37.69%.

CCAF’s data from last July showed the U.S. captured 16.8% of the global hashrate last year. If CCAF’s data is correct, that would mean the U.S. hashrate has climbed 124.34% since July 2021. Pool distribution metrics match with CCAF’s data as the mining pool Foundry USA has captured 19.5% of the global hashrate during the last three months. 13,182 blocks were mined during the three-month period and Foundry USA found 2,566 of them.

Tags in this story
Bitcoin mining, Bitcoin Mining Operations, BTC Mining, BTC.com, Cambridge Centre for Alternative Finance, CCAF, China, CNBC report, data, Foundry USA, Global Hashrate, metrics, Mining Pools, Poolin, Russia, United States, US hashrate, ViaBTC

What do you think about the latest CCAF data that shows close to 22% of the world’s Bitcoin hashrate still resides in China? 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.

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.

(function(d, s, id) {
var js, fjs = d.getElementsByTagName(s)[0];
if (d.getElementById(id)) return;
js = d.createElement(s); js.id = id;
js.src=”
fjs.parentNode.insertBefore(js, fjs);
}(document, ‘script’, ‘facebook-jssdk’));



Source link

Enterprise-grade Liquid Staking Standard with Support of Coinbase Cloud and Figment | by Coinbase | May, 2022

Enterprise-grade Liquid Staking Standard with Support of Coinbase Cloud and Figment | by Coinbase | May, 2022

Tl;dr: Enterprise-grade liquid staking is an industry gap. The first-ever enterprise-grade liquid staking protocol is being launched by a highly experienced team of founders, with early support from Coinbase Cloud and Figment.

We couldn’t be more excited to announce that Coinbase Cloud, in collaboration with Figment, is supporting a group of experienced founders and operators who are building the first enterprise-grade liquid staking protocol.

The founding team of Alluvial, the software development firm developing the new protocol, is led by Matt Leisinger, former Head of Liquid Staking products at Figment; Nicolas Maurice, the former CTO of Kiln staking-as-a-service platform, and Mike Taormina, former Head of Institutional Business at the Index Cooperative, a decentralized community powering on-chain crypto structured products. Alluvial’s vision is to grow the protocol — and the ecosystem at large — by building standards that are open, transparent, and incentive aligned, and move towards a community-governed future. Alluvial intends for the protocol to ultimately be governed in a decentralized manner by a DAO with broad industry participation.

Liquidity is a critical component of a maturing web3 economy and we are excited to be a part of a group of industry leaders tackling one of the most rapidly growing yet nascent segments of the market together: liquid staking.

Liquid staking opens up opportunities to efficiently utilize staked assets as collateral to trade, lend, and provision quickly and strategically. Staking requires assets to be locked to use as collateral to support network security in return for earning rewards. Traditionally, staked tokens remain locked and inaccessible while staked and are subject to “warm up” and “unbonding” periods.

With liquid staking, token holders don’t need to choose between staking, and accessing their assets to pursue other opportunities. They can stake their tokens, receive back receipt tokens that evidence ownership of their staked tokens and use those receipt tokens to participate in the broader web3 economy. Liquidity is key to unlock the next chapter of financial innovation in web3.

In just under a year, in Ethereum alone, liquid staking has gone from sub-1% penetration in January 2021 to around over 30% penetration. More and more enterprises and institutions are looking to participate in liquid staking every day. However, today’s solutions don’t meet their needs. Mature and regulated businesses need to know their counterparties and require enterprise-grade reliability, security, and KYC / AML processes.

Alluvial seeks to tackle this industry gap by creating the industry standard for enterprise-grade liquid staking across multiple protocols. The non-custodial protocol will require all contributors to enable embedded KYC/AML checks, allowing enterprises and institutions to meet their compliance standards while enabling seamless integration into their existing technology stack. We are proud to support the Alluvial founding team as they work to build and scale the protocol.

As part of the initial validator set, Coinbase Cloud and Figment intend to each perform staking services on the network, and run validators with distinct clients in different regions and cloud providers, with other industry-leading operators joining soon. Client diversity and multi-cloud/multi-region infrastructure will provide enterprises and institutions with the high uptime and reliability that they are looking for. Over time, new security focused validator operators will be added to the protocol to help it grow and scale further.

We are looking forward to supporting Alluvial’s experienced founding team, other industry leaders and the community at large to bring this initiative to life over the coming year. We aim to support the growth of the protocol by working with more builders, participants, and validators across the ecosystem. If you are an enterprise or institution looking to explore the world of liquid staking, or an ecosystem system partner looking to build on the protocol, get in touch with the Coinbase Cloud team.



Source link

Bitcoin Market Plunges Into Extreme Fear, How Scary Does It Get?

Bitcoin Market Plunges Into Extreme Fear, How Scary Does It Get?

Data shows the Bitcoin market sentiment has remained deep in extreme fear this week as broader financial markets also get fearful.

Bitcoin Fear And Greed Index Shows A Value Of 12 This Week

As per the latest weekly report from Arcane Research, the wider financial market is at its highest level of fear since the COVID crash in 2020.

The “fear and greed index” is an indicator that tells us about the general market sentiment among Bitcoin investors right now.

The metric displays this sentiment using a numeric scale that runs from one to hundred. All values of the index above “50” imply a sentiment of greed, while all those below the cutoff indicate a fearful market.

When the indicator has values towards the end of the range, that is, above 75 or below 25, the market is in a state of extreme greed or extreme fear.

Some investors believe that it’s best to buy when the market is extremely fearful as bottoms have historically tended to happen during such periods.

Similarly, tops have formed in the past while the market has gone through extreme greed so such times may be ideal for selling.

Related Reading | Bitcoin Whale Breaks 8 Year Long Silence With $30 Million Worth Of BTC Transfer

Contrarian investing is a trading technique that follows this idea. To quote Warren Buffet, “Be fearful when others are greedy, and greedy when others are fearful.”

Now, here is a chart that shows the trend in the Bitcoin fear and greed index over the past year:

Looks like the sentiment in the market has plummeted recently | Source: Arcane Research's The Weekly Update - Week 19, 2022

As you can see in the above graph, the Bitcoin fear and greed index has a value of 12 at the moment, indicating a sentiment of extreme fear.

The crypto market isn’t the only one scared, the broader financial markets have also been in a state of extreme fear for a while now.

Related Reading | Bitcoin Marks Seven Consecutive Red Candles, Paints Gruesome Picture For Market

The market has been observing the highest extreme fear values since the crash back in 2022 due to the onset of COVID-19.

Currently, it’s unclear if the sentiment has bottomed out or if Bitcoin will bleed more in the coming days, plunging the fear and greed index further.

BTC Price

At the time of writing, Bitcoin’s price floats around $30.4k, down 3% in the last seven days. Over the past month, the crypto has lost 24% in value.

The below chart shows the trend in the price of the coin over the last five days.

Bitcoin Price Chart

It seems like the price of the coin has been moving sideways in the last few days | Source: BTCUSD on TradingView
Featured image from Unsplash.com, charts from TradingView.com, Arcane Research



Source link

This Analyst Believes Ethereum May Lose 80% Of Its Value

This Analyst Believes Ethereum May Lose 80% Of Its Value

According to a recent Bloomberg article, John Roque of 22V research believes that Ethereum might fall to $420, a loss of 80% from its present price, and here’s why.

Ethereum May Fall 80%

The trader believes Ethereum, which is presently trading at $2,000, is about to break through the support zone and will most likely fall below $420. Roque drew attention to a price range in which $3,580 is the top and $2,000 is the bottom.

With Ether falling below $2,000, it is no longer within the previously specified range and will begin to fall to the next significant chart support at around $420.

Source: 22v Research

Because the second-largest cryptocurrency is rapidly losing value, it has fallen below all moving averages, including the 50-, 100-, and 200-day lines. The above-mentioned indicators’ downward movement is a significant bearish factor for any asset.

Ethereum is also oversold on both the weekly and daily charts, according to Roque, which is why it cannot rally in the foreseeable future.

ETH/USD trades aroun $2k. Source: TradingView

While the analyst claims that Ethereum is basically “over” key support levels for the second largest cryptocurrency on the market may still be seen. On the weekly chart, for example, traders have yet to test 200-week average support.

Related Reading | Bitcoin Indicator Hits Historical Low Not Seen Since 2015

ETH Exchange Supply Rising

Santiment, an on-chain data provider, gives us an insight into what Ethereum’s next price action might be (ETH). On an 8-hour chart, large shorts for Ethereum at $2,000 have built up, according to the data provider.

However, according to Santiment, this normally doesn’t work out with the shorter, and a short squeeze is likely to ensue. As a result, the price of Ethereum may rise again.

ethereum

Data shows funding rates history. Source: Santiment

The ETH exchange supply is another item to consider. Santiment observes:

“While we saw a nice drop in supply on exchanges for the past year or so, May 1st 2022 saw a huge increase in supply on exchanges as folks rushed to exit their positions, which is clearly reflected on the price itself.”

As a result, any future increase in the exchange supply will cause another decline. This indicates that investors are panicked and have given up totally. Although the situation appears to be dire, this may be an excellent time to fill new roles.

Related reading | Ethereum Hashrate Breaks All-Time High, Will Price Follow?

Featured image from iStockPhoto, Charts from TradingView.com



Source link

Terra Community Plans to Vote on Forking the Chain — Launch May Airdrop a Billion New Tokens to Network Participants – Bitcoin News

Terra Community Plans to Vote on Forking the Chain — Launch May Airdrop a Billion New Tokens to Network Participants – Bitcoin News

Following the aftermath of Terra’s UST implosion, the blockchain project’s founder Do Kwon has been actively discussing the Terra ecosystem revival plans and one specific proposal will be voted on May 18. The plan is to fork the blockchain into a new chain that does not include an algorithmic stablecoin, and the newly minted tokens from the network will be airdropped to Terra ecosystem participants and holders.

Terra Community Members Plan to Vote on a Fork Proposal to Revive the Broken Project

Last week the Terra blockchain ecosystem was obliterated and the project’s native tokens lost significant value. At the time of writing, a single LUNA token is trading for under a U.S. penny and the once-stable coin terrausd (UST) is changing hands for $0.09 per unit. During the last few days, Terra’s team — Terraform Labs — and the community have been discussing how to remedy the project’s fallout and give value back to the blockchain’s participants and holders. On May 16, Terra’s founder Do Kwon published a revival plan that aims to fix the project’s problems, and the proposal will be voted on Wednesday, May 18.

The proposal called “Terra Ecosystem Revival Plan 2” aims to fork the blockchain into a new chain that doesn’t involve adding an algorithmic stablecoin. The old chain will be called “token Luna Classic or LUNC” and the new chain will inherit the original branding by being called “Terra LUNA.” Following the split, the new tokens will be airdropped to Luna Classic holders, stakers, application developers, and residual UST holders. The wallet owned and operated by Terraform Labs (TFL) will be removed from the airdrop entirely.

Kwon says the “Terra ecosystem and its community are worth preserving” and the application ecosystem built on Terra has hundreds of developers. Terra Station has more than a million users worldwide and Kwon believes despite the recent fallout, “[Terra has a] strong brand recognition and a name that almost everyone in the world will have heard about.” Details concerning the token distribution note that there will be 1,000,000,000 new LUNA tokens tied to the Terra chain.

25% will be dispersed to the community pool for staked governance and 1% will be allocated to essential developers with no lockup period. 4% will be dispersed to essential developers after a one-year cliff and four-year vesting period. 35% will go to all bonded and unbonded LUNA stakers except for TFL. Wallets with one million LUNA or less will have different vesting periods. 10% will go to LUNA holders and 25% will go to UST holders.

Community Responses Indicate People Disagree With the Terra Revival Proposal

The proposal says that a “pre-attack snapshot” will be taken at Terra Classic block number 7,544,914. The chain fork will commence a few hours after the launch snapshot is taken and an estimated date for the new Terra network launch will occur on May 27, 2022. The proposal seems to have a lot of people who do not like the plan, while others favor the idea brought to the table. One individual wrote: “This is an interesting proposal and I’m glad the community will move forward with a new chain.” Another person against the idea said:

No one wants a fork. Just burn the current LUNA and fix the current algorithm to get back UST peg.

Some people did not like Kwon saying that “Terra was more than just UST.” “I agree that Terra is more than $UST,” the individual replied to Kwon’s post. “There should be a stable for all 180 fiat currencies. I do not want a fork. I believe 99% of the value of Terra remains in the current incarnation of the system.” Kwon thinks the proposal is “a chance to rise up — anew from the ashes” similar to a phoenix.

In fact, Terra did have a suite of fiat currencies in addition to the most used and most popular UST stablecoin. Terra’s KRW stablecoin was popular as well, but the token de-pegged from the Korean won’s value. A single KRW is worth $0.00079 today while the blockchain-based terrakrw token is only worth $0.00006945.

Tags in this story
Airdrop, Airdrop Tokens, Burn, Classic LUNA, Classic Terra, do kwon, Korean Won, KRW, LUNA, Luna Classic, LUNA fork, Network Fork, New Network, Terra Classic, Terra Community, Terra Fork, Terra Founder, terrakrw, Token Airdrop, token distribution, UST

What do you think about the proposal that aims to fork the Terra chain and airdrop tokens to the network’s participants? Do you think the idea is viable? Let us know what you think 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.

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.

(function(d, s, id) {
var js, fjs = d.getElementsByTagName(s)[0];
if (d.getElementById(id)) return;
js = d.createElement(s); js.id = id;
js.src=”
fjs.parentNode.insertBefore(js, fjs);
}(document, ‘script’, ‘facebook-jssdk’));



Source link

Coinbase Commerce expands merchant access to crypto payment acceptance with Primer | by Coinbase | May, 2022

Coinbase Commerce expands merchant access to crypto payment acceptance with Primer | by Coinbase | May, 2022

TL;DR: Our latest integration with Primer will enable merchants to quickly and easily add cryptocurrency acceptance into their checkout experiences.

As the payments ecosystem continues to evolve, the checkout experience is getting even more complex. Consumers are faced with an increasing number of options for payment, and it’s crucial for merchants to ensure that consumers are offered maximum flexibility otherwise they risk losing business. For business owners, establishing and managing all of the connections needed to provide this flexibility can be convoluted, expensive, and time consuming. 40% of consumers surveyed globally said they planned to use cryptocurrency to make a payment within the next 12 months.* Coinbase’s integration with Primer will help merchants meet this demand by creating a seamless cryptocurrency checkout experience leveraging Coinbase Commerce.

Compass Mining Chief Product Officer Jameson Nunney accurately summed up the value of the integration for merchants: “We love the simplicity of quickly adding new connections like Coinbase and other payment providers within the Primer platform. We believe that this implementation will be instrumental in helping us reach our goal of growing globally and helping more people learn, explore, and mine Bitcoin.”

Primer is the world’s first automation platform for payments and commerce that offers a completely unified checkout and payment infrastructure. Their unique platform means:

  • Merchants can connect and control their entire payment and commerce stack
  • Anyone can build sophisticated payment flows with a no-code editor
  • Any developer can build a connection with their open, agnostic framework

Collaborating with Primer will help make it simpler for mid-market and enterprise merchants across the globe to accept crypto payments with Coinbase Commerce.

Merchants interested in accepting cryptocurrency as a form of payment can learn more by heading to commerce.coinbase.com, and we’ll continue to share updates around integrations with new providers.

* Mastercard New Payments Index, 2021



Source link