On the eve of Terraform Labs’ May 27 second coming, to be known as Terra 2.0, trading platforms were said by Terra to be showing “overwhelming” support for the revival of the collapsed network by listing its new token as it completes its crawl from the wreckage.
1/ Terra 2.0 is coming. With overwhelming support, the Terra ecosystem has voted to pass Proposal 1623, calling for the genesis of a new blockchain and the preservation of our community.
— Terra đ Powered by LUNA đ (@terra_money) May 25, 2022
No Fork for New Chain
The new chain will not be a fork, as previously proposed by Terraform Labs CEO Do Kwon. It will be created instead from the genesis block and shares no history with Terra Classic, as the old chain has been dubbed. The new Terra token will be named LU, replacing the old token referred to as Luna Classic (LUNC):
Dear Traders,@terra_moneyâs new chain token (LUNA) will be available on HitBTC on May 27th, 2022.
The old chain will be renamed to Terra Classic (LUNC).
Among the exchanges intending to cooperate with Terraform Labs in its new incarnation are HitBTC and Binance.
Earlier this month, a “heartbroken” Kwon flagged his intention to create a new Terra chain without Terraâs algorithmic stablecoin, TerraUSD (UST), suggesting LUNA airdrops across LUNC stakers and holders, UST holders and Terra Classic app developers.
Terraâs revival comes after Terraform Labs halted the Terra chain on May 12 following a massive network crash, with the Luna token plummeting as low as 99.7 percent and UST losing its peg to the US dollar. The revival plan is moving forward after a second vote by validators on May 25, this time with a 65 percent approval rating.
The supply of tokens on the new blockchain will be just over 116 million, according to developers. Investors who held over 10,000 LUNA tokens before USTâs implosion will receive the new tokens in instalments to prevent immediate sell-offs.
At the time of writing, LUNA was reportedly up over 6.2 percent in the previous 24 hours.
The metaverse is proving its popularity, according to data contained in a recent report from the Analysis Group that estimates the so-called “internet on steroids” could make a US$3 trillion GDP contribution in its first decade.
The metaverse, a $3 trillion opportunity in 3D.
Opportunity in the Metaverse
The report suggests that metaverse adoption could “contribute 2.8 percent of global GDP in the 10th year after the adoption begins”, providing adoption starts this year. However, such growth is only likely if the industry reaches its expected potential:
Analysis Group is not the only company assessing the latent profitability of the metaverse sector. Global investment bank Goldman Sachs predicts as much as US$8 trillion potential earnings. More conservatively, leading crypto asset manager Grayscale foresees a US$1 trillion opportunity. Regardless, JPMorgan â another global investment bank â believes the metaverse is likely to infiltrate every sector in coming years.
Metaverse Success Stories
Lately, the metaverse has been gaining traction through several differing channels. Most recently, Mark Zuckerbergâs Meta (formerly Facebook) launched a metaverse-themed store in San Francisco. The store incorporates wall-to-wall LED screens displaying what users could witness through VR headsets, with the aim of providing interactive demos to anyone interested.
Also this year, metaverse token âCEEK VRâ surged by 100 percent following the exposure it gained at the 2022 Grammy Awards. CEEK hosted a booth at the event which evidently attracted the attention of many investors, successfully driving sales.
Despite not technically trespassing on Kwonâs property, the investor is believed to have broken South Korean law by trying to approach Kwon and will likely face a fine.
Lack of Public Statements Prompted Personal Visit
The investor, a social media personality known as âChancersâ, says he was distressed after suddenly losing three billion won (US$2.4 million) in the catastrophic collapse of Terra, after the Terra-based stablecoin UST lost its peg to the US dollar.
I felt like I was going to die. I lost a lot of money in a short period of time. Around $2.4m of my cryptocurrency was wiped out.
Chancers, aggrieved LUNA investor
This combined with virtual silence from anyone involved with Terra regarding the state of the network drove Chancers to attempt to speak with Do Kwon directly.
After finding Kwonâs address online, Chancers travelled across Seoul to confront him in person, while live-streaming to about 100 viewers. Explaining the intention of his visit, Chancers said: âI wanted to ask him about his plans for LUNA; I suffered a huge loss and wanted to talk to him directly.â
Wife Calls Police, Investor Turns Himself In
When Chancers arrived at Kwonâs property, he was greeted by Kwonâs wife who said Kwon wasnât home and called the police.
The following day Chancers found out police were searching for him and on May 13 he turned himself in to the local station. Despite the fact he didnât trespass on or damage any property, Chancers now expects to be charged and faces a fine and a criminal record.
âItâs so hard,” Chancers lamented. “I lost a lot of money and now Iâm being investigated by the police. I originally served as a civil servant in Korea. But if I am convicted of this case, I may not be able to return to the civil service again.â
Other affected LUNA investors rallied to support Chancers on Twitter, and at least one of them offered some sage advice – albeit in hindsight:
I lost some cash in Luna as well but u Shouldnât put all the eggs in one basket , and only invest money u r willing to risk . Itâs messed up though losing 2.4 mil hope he bouncers back .
In welcome news, South Korean authorities are also investigating the collapse of Terra to see if any crimes were committed in the lead-up, something many investors will be very interested to know.
Letâs take a closer look at todayâs altcoins showing breakout signals. Weâll explain what the coin is, then dive into the trading charts and provide some analysis to help you decide.
1. Orion Protocol (ORN)
Orion ORN aims to solve the difficulties in performing profitable transactions associated with the lack of liquidity on the majority of crypto exchanges. This is the case for both centralised and decentralised exchanges. Orionâs solution to this is to aggregate exchangesâ order books into one simple-to-use-and-understand terminal.
The Orion Protocolâs goal is to help users get the best returns out of their investments while also lowering the risks associated with using multiple exchanges.
ORN Price Analysis
At the time of writing, ORN is ranked the 420th cryptocurrency globally and the current price is US$1.38. Letâs take a look at the chart below for price analysis:
After a 70% retracement from its March highs, ORN found a temporary low near $1.30. A recent move above $1.50 could be the first sign of a bullish shift â but could also signal a stop run before the next drop lower.
If the market adopts a more bullish tone, the price could run through the most recent swing high. If this bounce occurs, it would likely find some resistance near $1.65, possibly reaching up to $1.86.
However, a move below the closest support near $1.26 makes stop runs on the swing lows near $1.22 and $1.20 likely. A confluence of several levels near $1.17 could provide a temporary bounce. Still, a sustained bearish market will likely target $1.15 and even $1.06.
2. KuCoin Token (KCS)
KCS is the native token of KuCoin, launched in 2017 as a profit-sharing token that allows traders to draw value from the exchange. It was issued as an ERC-20 token running on the Ethereum network and was supported by most Ethereum wallets. The total supply of KCS was set at 200 million, and there is a planned buyback and burn until just 100 million KCS remain. Sooner or later, as the KuCoin decentralised trading solution goes live, KCS will be the native asset of KuCoinâs decentralised financial services as well as the governance token of the KuCoin community in the future.
KCS Price Analysis
At the time of writing, KCS is ranked the 40th cryptocurrency globally and the current price is US$15.84. Letâs take a look at the chart below for price analysis:
KCS has been trading through a massive range during Q1, with the price showing mild bullishness during March.
Bulls bought near $12.20. The weekly level and daily gap near $13.90 could prompt buyers to step in again as the price challenges the swing high and resistance around $16.50. A strong move and acceptance above this level may reach for the swing highs at $18.75 and $19.66, which mark another area of resistance.
However, rejection from the current area may send the price down to retest support near $13.40. Relatively equal lows around $12.78 provide a rich target for a stop run. Sustained bearishness may reach the low near $11.90 and possibly as low as $11.14 into higher-timeframe support.
3. Avalanche (AVAX)
Avalanche AVAX is the fastest smart contracts platform in the blockchain industry, as measured by time-to-finality, and has the most validators securing its activity of any proof-of-stake protocol. Avalanche is blazingly fast, low-cost, and green. Any smart contract-enabled application can outperform its competition on Avalanche. AVAX is the native token of Avalanche. It is a hard-capped, scarce asset that is used to pay for fees, secure the platform through staking, and provide a basic unit of account between the multiple subnets created on Avalanche.
AVAX Price Analysis
At the time of writing, AVAX is ranked the 14th cryptocurrency globally and the current price is US$24.99. Letâs take a look at the chart below for price analysis:
AVAX‘s gains during Q1 ended with an almost 69% retracement as the rest of the altcoin market dropped from early this month. Bulls stepped in near the 52.8% retracement of Q2âs move, creating a consolidation that ended with the bullish impulse to resistance near $44.35.
With the 9, 18 and 40 EMAs stacked bullish and a bullish higher-timeframe trend, itâs reasonable to anticipate retracement to possible support before further bullish expansion.Â
Near the 40 EMA, a broad zone from $35.15 to $29.45 could see interest from bulls before further expansion. Bears might capitalise on any sharp moves down in Bitcoin, aiming for possible support near the 70% retracement, at $23.70, and potentially lower to a higher-timeframe support zone between $21.42 and $20.80.
If the higher-timeframe recovery trend resumes and the current resistance near $37.35 breaks, the wicks near $49.84 and the new monthly highs may see profit-taking.
These coins have high liquidity on Binance Exchange, so that could help with trading on AUD/USDT/BTC pairs. And if youâre looking at buying and HODLing cryptos, then Swyftx Exchange is an easy-to-use popular choice in Australia.
Despite previous displays of disdain for the sector, cryptocurrencies have featured prominently in this year’s edition of the World Economic Forumâs (WEF) annual meeting in Davos, Switzerland.
Ripple CEO @bgarlinghouse: âHere in Davos when I came four years ago, crypto was considered a bad word. Today, that is dramatically different.â
— Mornings with Maria (@MorningsMaria) May 24, 2022
Crypto, Blockchain and a Meeting of the Global Elite
It’s that magical time of year when the world’s political and corporate elite congregate at the WEF’s annual meeting to “shape the future”, according its founder, Klaus Schwab.
Since the last conference in 2020 (the 2021 meeting was deferred due to Covid), crypto has gone mainstream and become an institutional asset class. Unlike years gone by, Davos 2022 has been a veritable crypto-fest with advocates making sure their voice is heard.
Five years ago, we were the only crypto company on Promenade; look at it now.
Sandra Ro, CEO, Global Blockchain Business Council
As attendees alighted from their private planes, they could hardly miss the cacophony of crypto messaging:
Polkadot signage featured prominently nearby. Source: Yahoo
— đșđŠCryptoCossacks ĐĄlub | WHITELIST IS LIVE (@crypto_cossacks) May 24, 2022
Hot Button Topics
Given the recent LUNA/UST meltdown, several sessions were held in relation to the safety and regulation of stablecoins.
Representatives from both Circle (USDC) and Ripple (XRP) were present at a panel discussing remittances and digital money entitled “Remittance for Recovery: A New Era of Digital Money”.
Sara Pantuliano, Asif Saleh, Ripple CEO Brad Garlinghouse and Circle CEO Jeremy Allaire discuss remittances. Source: Coindesk
According to Circle CEO Jeremy Allaire, the idea of cross-border remittances will in time disappear:
We donât think about cross-border emails. We donât think about having a cross-border web browsing session, itâs absurd to think about that. And I believe weâre on the cusp of that with money. And I think when it comes to remittances, I believe the concept of a remittance will also disappear.
Jeremy Allaire, CEO, Circle
On a WEF congress main stage, Kristalina Georgieva, managing director of the International Monetary Fund (IMF), downplayed the idea of cryptocurrencies such as bitcoin as money, adding that “a prerequisite for something that would be money is to be a stable store of value”.
Presumably, Georgieva would view stores of value along a spectrum, given the US dollar’s decline since the establishment of the Federal Reserve:
Devaluation of US dollar since 1913. Source: Howmuch
Call for Consumer Education in the Wake of Terra Meltdown
The international lender also commented on the recent Terra collapse, suggesting that regulators should do more in the way of education to make consumers aware of the risks.
Earlier this year, the IMF recommended a common framework for central bank digital currencies (CBDCs) and crypto. Central bankers in attendance at Davos concurred, saying that good design was “crucial” to the success of retail CBDCs.
Overall, it’s evident that the industry has made dramatic strides in the recent past. Even mainstream finance is coming to the realisation that crypto, in one form or another, is here to stay.
As newly minted Prime Minister Anthony Albanese settles in to his role after the Australian Labor Party’s victory in last weekend’s federal election, emphasis is being placed on crypto regulation as one of the new governmentâs top priorities.
Australia’s new prime minister, Anthony Albanese, vows to prioritise the crypto industry.
Albanese Prioritises Crypto
Labor has a lot of priority policies to install as it gets stuck into its term and, notably, crypto is a highlight on the list. Alongside its plans to tackle the cost of living and more urgently address the issue of climate change, Albaneseâs government will be continuing the outgoing Liberal Party’s work towards regulating the industry as efficiently as possible.
Caroline Bowler, CEO of BTC Markets, has weighed in on the subject, stating that Labor will be looking to create a digital assets-focused regulatory bill. However, it will be a priority to avoid the restriction of future innovation while developing such a bill:
The primary concern would be to put together the appropriate regulatory regime for the marketplace, but also to leave room for innovation.
Caroline Bowler, CEO, BTC Markets
As Labor has inherited an increasingly difficult economic situation, crypto is unlikely to be the only financial sector up for examination.
Roadmap to Regulation
Crypto regulation had been a hot topic in government prior to Laborâs electoral win. April 23 saw the Australian Prudential Regulation Authority (APRA) produce a regulatory roadmap for the crypto industry. The roadmap outlined APRAâs preliminary risk management expectations for “regulated entities dealing with digital assets”.
Conversations surrounding the regulation of crypto really picked up in late 2021 as billions of dollars of investors’ money caused an industry boom, with the associated risks noticeably high for both investors and businesses.
Stripe, one of the world’s largest payment processors, is partnering with OpenNode to allow instant fiat-to-bitcoin conversions for a host of businesses. The new OpenNode app will launch on the Stripe App Marketplace in coming weeks:
To instantly convert all or portions of incoming payments to bitcoin, businesses will have the choice of setting an automatic amount or manually converting any amount they wish.
According to OpenNodeâs head of strategy, Josh Held, âThe app gives businesses a simple and secure way to convert incoming payments to bitcoin in real-time, automatically or on-demand.â The functionality will be available via a new app from Bitcoin Lightning Network infrastructure provider OpenNode on Stripeâs new app marketplace within the next couple of weeks.
Businesses will be able to see their bitcoin wallets and conversion rates within the apps, as seen below:
Source: Stripe Marketplace
Direct Link to Bank Accounts
The app will also allow businesses to connect directly with their bank accounts, thereby enabling accessible bitcoin conversions from fiat at any time.
The automatic conversion from fiat to bitcoin will be accomplished through a split-payment feature located in the app, which businesses will be prompted through when undertaking the initial setup process. If businesses choose not to set up split conversion initially, they can return to the appâs setting and enable the feature at any time.
Coinbase has become the first crypto company to enter Fortune 500, a list ranking the 500 top US companies by revenue.
The San Francisco-based exchange ranked 437th on the list thanks to a record of US$7.8 billion in revenue for the 2021 fiscal year, which represents 514 percent annual growth:
đ„BREAKING: Coinbase becomes first #Bitcoin and crypto company to make the Fortune 500
— Bitcoin Archive đđđ (@BTC_Archive) May 24, 2022
Coinbase ‘Thrived’ Despite Covid
Fortune’s editor-in-chief Alyson Shontell noted that Coinbase and Moderna were among the few companies that “thrived under the freakish circumstances of Covid”.
However, Coinbase’s Q1 financial results for 2022 weren’t so encouraging. According to a shareholder letter, the exchange suffered a US$430 million loss.
In April last year, Coinbase registered as a publicly traded company on the Nasdaq offering the COIN stock, which has since plummeted more than 80 percent from its all-time high of US$368.90 in November 2021:
Coinbase earnings after the bell
-80% since IPO
How do they explain that Coinbase NFT has not ticked over $1m in volume since launch? pic.twitter.com/TyWhMvOT7u
CEO Brian Armstrong is nonetheless optimistic, believing that bearish market periods provide the company with opportunities to focus on product development:
These periods of low volatility can provide the opportunity to focus more intently on product development (as opposed to peak periods, when we are more focused on meeting high demand). We approach the opportunities ahead with confidence and [a] steady hand.
Brian Armstrong, CEO, Coinbase
A month ago, Coinbase launched its own NFT marketplace that features social tools to help connect users and creators in what it describes as a sort of “Web3 social marketplace”.
In what Brave describes as its first steps toward full integration with the Solana ecosystem, it will also offer support for Solana’s decentralised applications (dApps), allowing them to run natively within the browser.
We've partnered with @solana to integrate it into the browser and make it the default for DApp support. We will soon bring best-in-class wallet features for the Solana blockchain into our desktop & mobile browsers. #BreakpointLisbonhttps://t.co/tTB7NXKWjI
Addressing the Breakpoint conference in Lisbon, Portugal earlier this week, Brave CEO and co-founder Brendan Eich said the browser’s default support for Solana would help provide fast and affordable Web3 access and thus âpave the way for the next billion crypto usersâ, adding that he expected the integration process to be completed by the end of June.
The partnership brings the Solana blockchain to Braveâs 42 million monthly active users and 1.3 million verified creators. In return, Solana will implement Themis, a privacy-by-design advertising protocol considered a key milestone in the BAT 2.0 roadmap.
Over the past week, the Solana (SOL) token became the fourth-largest cryptocurrency by market capitalisation, overtaking Cardano and stablecoin provider Tether.
A May 23 post on the governmentâs official Facebook page referred users to a landing page at sango.org. Users were then requested to register for the waitlist and provided with a link to a 24-page online presentation with more detail regarding the planned initiative.
The president of CAR, Faustin-Archange Touadera, did not confirm the plans, but tweeted on the weekend with the hashtag #bitcoin that the next phase would be announced âvery soon”:
As a nation, we aim for a bright #future with #peace & #stability for our next generations. Today marks a month since weâve started on this path. Other important #news will follow. Very soon we will announce the next planned phase.#Bitcoin#crypto#CAR#RCA
The Sango Project, according to the presentation, entails developing âthe first legal crypto hub recognised by a countryâs parliamentâ. The countryâs ambitions also include establishing a Digital Nation Bank, allowing Bitcoin land sales, and constructing a crypto wallet.
The presentation adds that the government will facilitate crypto enterprisesâ access to natural resources such as gold, diamonds and uranium, as well as implement a âcitizenship by investmentâ program with zero-rate income and company taxes.
This news is significant as the landlocked African nations rank among the least developed economies in the world, with agriculture being the largest contributor to their gross domestic product. According to figures from the World Bank, the CARâs economic output stood at US$2.38 billion as of 2020 and the country ranks near the bottom of the United Nations’ Human Development Index.
