๐๐ฟ๐๐ฝ๐๐ผ๐บ๐ฎ๐ฟ๐ธ๐ ๐ด๐ฒ๐ฟ๐ฎ๐ฑ๐ฒ ๐๐ผ๐น๐ฎ๐๐ถ๐น
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.
๐๐ข๐ด ๐ช๐ด๐ต ๐ฑ๐ข๐ด๐ด๐ช๐ฆ๐ณ๐ต?
Since the beginning of May, many cryptocurrencies have lost significant value and continue to lose value every day. For example, Bitcoin is $BTC (+0,05%) 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 (-0,1%) (-41%) and $XRP (-0,13%) XRP (-47%) have fallen even more.
๐๐ฐ๐ณ๐ข๐ฏ ๐ญ๐ช๐ฆ๐จ๐ต ๐ฅ๐ข๐ด?
The culprit may be. $LUNA (+1,21%) Luna, a cryptocurrency that had a market cap of around 27 billion a week ago. Now $LUNA (+1,21%) but is almost worthless. Investors are dumping many other digital currencies, which has undermined confidence in crypto markets.
๐๐ข๐ณ๐ถ๐ฎ ๐ช๐ด๐ต ๐๐ถ๐ฏ๐ข ๐ง๐ข๐ด๐ต ๐ธ๐ฆ๐ณ๐ต๐ญ๐ฐ๐ด?
Luna is a cryptocurrency that is related to the currency TerraUSD $UST (+0,96%) 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.
๐๐ถ๐ด๐ธ๐ช๐ณ๐ฌ๐ถ๐ฏ๐จ ๐ข๐ถ๐ง ๐๐ฏ๐ต๐ฆ๐ณ๐ฏ๐ฆ๐ฉ๐ฎ๐ฆ๐ฏ/๐๐ณ๐ฐร๐ข๐ฏ๐ญ๐ฆ๐จ๐ฆ๐ณ
Major investors such as Elon Musk, the CEO of Tesla ( $TSLA (-3,59%) ), Brian Armstrong, the CEO of Coinbase ($COIN (-4,11%) ), 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 (-3,59%) 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 (-4,11%) was trading 84% lower than when it went public.
๐๐ฐ๐ช๐ฏ๐ฃ๐ข๐ด๐ฆ
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.
๐ฅ EPS: -$1.26 vs. $0.91 expected (-238.20%)
๐ฅ 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?
๐ฅ $UST (+0,96%) TerraUSD, 0.1705 (๐ฝ-82.94%)*
๐ฅ $LUNA (+1,21%)Terra, 0.0000516 (๐ฝ-99.99%)*
Sources:
*Values: https://coinmarketcap.com/ at 10:00 CEST 13.05.2022 7-day.
