𝗞𝗿𝘆𝗽𝘁𝗼𝗺𝗮𝗿𝗸𝘁 𝗴𝗲𝗿𝗮𝗱𝗲 𝘃𝗼𝗹𝗮𝘁𝗶𝗹
This week was a particularly turbulent one in the crypto markets. The total market capitalization of cryptocurrencies started at $1.58 trillion and hit a low of $1.13 trillion on Thursday, down 27%, but that doesn't give a full picture of what happened.
𝘞𝘢𝘴 𝘪𝘴𝘵 𝘱𝘢𝘴𝘴𝘪𝘦𝘳𝘵?
Since the beginning of May, many cryptocurrencies have lost significant value and continue to lose value every day. For example, Bitcoin is $BTC (-0.45%) Worth 32% less than it was a week ago. Ethereum, the second largest cryptocurrency, is down 36%, while other major coins such as Binance Coin $BNB (-1.17%) (-41%) and $XRP (+0.38%) XRP (-47%) have fallen even more.
𝘞𝘰𝘳𝘢𝘯 𝘭𝘪𝘦𝘨𝘵 𝘥𝘢𝘴?
The culprit may be. $LUNA (+0.88%) Luna, a cryptocurrency that had a market cap of around 27 billion a week ago. Now $LUNA (+0.88%) but is almost worthless. Investors are dumping many other digital currencies, which has undermined confidence in crypto markets.
𝘞𝘢𝘳𝘶𝘮 𝘪𝘴𝘵 𝘓𝘶𝘯𝘢 𝘧𝘢𝘴𝘵 𝘸𝘦𝘳𝘵𝘭𝘰𝘴?
Luna is a cryptocurrency that is related to the currency TerraUSD $UST (+1.56%) related. Both were issued by Do Kwon and his company Terraform Labs in the United States. TerraUSD is a so-called stablecoin whose value is supposed to be stable. Kwon's promise: At any point in time, one TerraUSD unit can be exchanged for one dollar worth of Luna coins. TerraUSD, on the other hand, lost its price stability in early May for unknown reasons. The value of Luna declined as a result. At the same time, the case undermines public trust in stablecoins.
𝘈𝘶𝘴𝘸𝘪𝘳𝘬𝘶𝘯𝘨 𝘢𝘶𝘧 𝘜𝘯𝘵𝘦𝘳𝘯𝘦𝘩𝘮𝘦𝘯/𝘎𝘳𝘰ß𝘢𝘯𝘭𝘦𝘨𝘦𝘳
Major investors such as Elon Musk, the CEO of Tesla ( $TSLA (-6.59%) ), Brian Armstrong, the CEO of Coinbase ($COIN (-3.83%) ), MicroStrategy chief executive Michael Saylor, and twins Tyler and Cameron Winklevoss are the "Horsemen of Cryptocurrencies" or the "Crypto Bros," whose cumulative crypto assets dropped by $20 billion during the crash.
The $1.5 billion investment of $TSLA (-6.59%) with Bitcoin has failed; Saylor's assets have fallen from $8.5 billion six months ago to possibly less than a billion dollars and $COIN (-3.83%) was trading 84% lower than when it went public.
𝘊𝘰𝘪𝘯𝘣𝘢𝘴𝘦
This week, Coinbase $COIN (+0%) , one of the largest cryptocurrency exchanges in the world, released its quarterly results, and they did not meet analysts' expectations.
🟥 EPS: -$1.26 vs. $0.91 expected (-238.20%)
🟥 Revenue: $1.17 billion vs. $1.48 billion expected (-20.98%)
The number of monthly users dropped by 19%. What worries investors and users even more is the update about the platform's risk. They warn that in case of bankruptcy, users could lose all cryptocurrencies in their accounts.
The crypto platform Binance has banned the trading of UST and LUNA. What do you guys think about the ban?
🟥 $UST (+1.56%) TerraUSD, 0.1705 (🔽-82.94%)*
🟥 $LUNA (+0.88%)Terra, 0.0000516 (🔽-99.99%)*
Sources:
*Values: https://coinmarketcap.com/ at 10:00 CEST 13.05.2022 7-day.
