Hindsight is a wonderful thing – in this case, the discovery of an Australian poll dating back to March that predicted the LUNA token would top US$143 this year.
The crypto industry has proved its volatility lately as Terra fell and LUNA crashed. It was a crash, it seems, no one was expecting, not even the professionals. The Finder survey from March this year, for example, demonstrated the confidence that 36 fintech specialists had in Terra:
In late March to early April – prior to Terra (UST) losing its peg -Finder surveyed 36 fintech specialists for their thoughts on how LUNA [would] perform over the next decade. At the time, they thought Terra (LUNA) would be worth US$143 by the end of 2022 before rising to $390 by 2025.”
Finder.com
The biggest lesson to take out of this is that crypto is unfortunately still very unpredictable. While uncertainty still surrounds the future of LUNA and Terra, no token is exempt from the industry’s volatility and investors need to be smart, rather than taking predictions as gospel:
The LUNA collapse has had industry-wide knock-on effects. One of the most prominent outcomes has been significant falls across the DeFi market, as the crash was not restricted to the Terra ecosystem. With LUNA plummeting by 97 percent, there have now been approximately US$900 million worth of liquidations.
LUNA’s heartbroken founder, Do Kwon, has set to work on a revival plan, which is essentially a restart of the whole Terra blockchain. However, previous fans of LUNA are now struggling to trust the word of Kwon and are sceptical of the project’s return.
Robinhood is diving into the world of Web3 with the announcement of a non-custodial wallet, allowing customers to access NFTs, decentralised exchanges and swap tokens through a new interface.
According to the announcement made at the Permissionless Web3 conference, the newly launched non-custodial wallet will operate much like rival MetaMask, which remains the wallet of choice in the world of Web3 despite recent issues concerning phishing attacks and user downtime:
Robinhood just announced they are launching a self custody Web3 wallet at #permissionless
– trading and swapping with no network fees or commissions
– Will be able to access defi protocols to earn yield
– Will be able to store NFTs and connect to marketplaces
The wallet will operate separately from Robinhood’s existing stock platform, and has been specifically optimised for user experience. This was apparently done in order to provide beginners with a simple and intuitive design to easily navigate a space that can be complex.
Co-founder and chief executive Vlad Tenev confirmed as much, saying:
With our Web3 wallet, we’re building a product that will satisfy the most advanced DeFi believers while creating a secure on-ramp for those who are just starting out in crypto to go deeper into the ecosystem.
Vlad Tenev, co-founder and CEO, Robinhood
Robinhood’s crypto CTO Johann Kerbrat reiterated the importance of being user-friendly to beginners, adding: “We’re [Robinhood] making it [the wallet] not scary, [but] easy to use.”
Aside from providing a newbie-friendly interface, users may also be pleased to hear that the company intends on subsidising gas fees, elevated levels of which have plagued the sector of late.
Shift in Public Perception
Robinhood has been making news since inception, more often for the wrong reasons – from revelations that “free trades” came at the expense of selling users’ order flow, to its role in the infamous GameStop short squeeze.
BIFI, Beefy Finance’s native cryptocurrency, spiked 168 percent overnight after the protocol upgraded its network and capitalised on TerraUSD’s collapse.
After hitting a low of US$387.80 on May 14, the token is now trading at US$646.67 with 24-hour trading volume up 7 percent.
BIFI/USDT Chart: Source: coinmarketcap.com
BIFI’s price surge can be attributed to three important updates. According to recent tweets, Beefy Finance has upgraded its 12 stablecoin vaults to offer higher yields, added new options in its liquidity pools, and integrated with layer-1 protocol Oasis Network.
Taking Advantage of the UST Aftermath
A collapsing TerraUSD, alongside the 20 percent yield offered by Anchor Protocol for UST deposits, has allowed Beefy Finance to take advantage of the aftermath, introducing new options in liquidity pools and opening new vaults in an attempt to capture idle users and capital:
The integration with Oasis Network enables Beefy Finance to support numerous blockchains including Ethereum, Binance Smart Chain, Polygon, Matic, and more, making it one of the largest cross-chain protocols in existence.
The protocol also integrated Tron Network’s USDD stablecoin with a 62.5 percent APY (Annual Percentage Yield) for depositors on the quad stablecoin pool:
While the crypto market is experiencing one of the roughest months in its history, decentralised protocols like Beefy Finance are shedding some light on the industry. The opening of new vaults alone attracts fresh liquidity to the protocol by adding support to several assets from different blockchains.
Let’s take a closer look at today’s altcoins showing breakout signals. We’ll explain what the coin is, then dive into the trading charts and provide some analysis to help you decide.
1. 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 KuCoin’s 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 44th cryptocurrency globally and the current price is US$14.24. Let’s 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 $12.26. The weekly level and daily gap near $13.80 could prompt buyers to step in again as the price challenges the swing high and resistance around $15.50. A strong move and acceptance above this level may reach for the swing highs at $17.75 and $18.66, which marks another area of resistance.
However, rejection from the current area may send the price down to retest support near $13.05. Relatively equal lows around $12.48 provide a rich target for a stop run. Sustained bearishness may reach the low near $11.96 and possibly as low as $11.23 into higher-timeframe support.
2. Monero (XMR)
Monero XMR allows transactions to take place privately and with anonymity. Even though it’s commonly thought that BTC can conceal a person’s identity, it’s often easy to trace payments back to their original source because blockchains are transparent. On the other hand, XMR is designed to obscure senders and recipients alike through the use of advanced cryptography. The team behind Monero says privacy and security are their biggest priorities, with ease of use and efficiency coming second. It aims to provide protection to all users irrespective of how technologically competent they are.
XMR Price Analysis
At the time of writing, XMR is ranked the 29th cryptocurrency globally and the current price is US$163.21. Let’s take a look at the chart below for price analysis:
XMR‘s 70% rally during Q1 ran into resistance near $268. Since then, the price has been consolidating in a 120% range between $140 and $210.
Just below the monthly open, $160 is the first level likely to provide substantial support. If the price breaks down through this level, overlapping levels near $153 might cap a run on the lows near $146 and $138.
The higher-timeframe analysis points to the area near $184 as the next substantial resistance. Significant selling has been occurring here on the daily chart. If this level breaks, the swing highs near $198 and $223 may be the next target.
3. Gala (GALA)
GALA aims to take the gaming industry in a different direction by giving players back control over their games. Gala Games’ mission is to make “blockchain games you’ll actually want to play”. The project wants to change the fact that players can spend hundreds of dollars on in-game assets and countless hours playing the game, all of which could be taken away from them with the click of a button. It plans to reintroduce creative thinking into games by giving players control of the games and in-game assets with the help of blockchain technology.
GALA Price Analysis
At the time of writing, GALA is ranked the 84th cryptocurrency globally and the current price is US$0.07883. Let’s take a look at the chart below for price analysis:
After setting a low last week, GALA turned into a recovery trend to make the new highs.
The following 70% plummet found support near $0.05439, sweeping under the 40 EMA into the 60.8% retracement level before bouncing to resistance beginning at $0.07320.
This area could continue to provide resistance, possibly causing a retracement to the 9 EMA and 18 EMA near $0.08412, where aggressive bulls might begin bidding. The level near $0.08950, which has confluence with the 40 EMA, may see more interest from bulls loading up for an attempt on probable resistance beginning near $0.09785.
However, if Bitcoin continues its sideways trend, much lower prices could be seen. The old support near $0.06280 could provide at least a short-term bounce. If this level fails, the old highs near $0.05635 might also give support and see the start of a new bullish cycle after retesting these support levels.
These coins have high liquidity on Binance Exchange, so that could help with trading on AUD/USDT/BTC pairs. And if you’re looking at buying and HODLing cryptos, then Swyftx Exchange is an easy-to-use popular choice in Australia.
This week, the charismatic leader continued his efforts, attempting to orange-pill central bankers and financial ministers from 44 countries:
Tomorrow, 32 central banks and 12 financial authorities (44 countries) will meet in El Salvador to discuss financial inclusion, digital economy, banking the unbanked, the #Bitcoin rollout and its benefits in our country.
According to a tweet from Bukele, who regularly buys the dip, the president hosted a meeting this week with 32 central banks and 12 financial authorities “to discuss financial inclusion, [the] digital economy, banking the unbanked, the Bitcoin rollout and its benefits in our country”.
The meeting involved representatives from Paraguay, Nigeria, Angola, Ghana, Namibia, Uganda, Republic of Guinea, Madagascar, Haiti, Burundi, Gambia, Honduras, Madagascar, Bangladesh and Maldives.
Attendees of meeting with Nayib Bukele. Source: Nayib Bukele via Twitter
‘Gradually, Then Suddenly’
An opt-repeated hypothesis for global Bitcoin adoption is how Ernest Hemingway described going bankrupt – “gradually, then suddenly”.
Noting that attendees to the meeting were those who seemingly benefited least from the current financial system, commentators quickly started speculating as to how things could play out.
Derek Ross of Swan Bitcoin envisioned the possibility of bitcoin-denominated trade:
I’m just sitting here imagining what would happen if even 1/4 of these countries decided to establish trade and commerce between one another denominated in Bitcoin. I hope all 44 do, but even 11 would be incredibly wild and change the entirety of the world. 🧡🇸🇻
Others zoomed out, looking at the potential impact on US dollar hegemony, and how supranationals such as the International Monetary Fund would take to the news (hint – badly):
we like it! make the @IMFNews sweat,it is inevitable for #bitcoin adoption to take hold in these resource rich nations & many more as the US $fiat swift hegemony continues to break & blackmail traps, WB loans, economic hitmen shall not prevail this time..https://t.co/taYygTZVCP
In response to the news, OG Bitcoiner Simon Dixon put out an “emergency broadcast” to his subscribers to share his thoughts. After providing a compelling account of financial history and how we arrived at the modern fiat monetary system, Dixon went on to describe the El Salvador meeting as a potential “Bretton Woods of Bitcoin” moment:
At this early stage, it’s too soon to tell what the policy ramifications from the meeting are likely to be. Chances are, however, that they will be significant.
32 central bankers, 12 financial authorities from 44 countries in total meeting in El Salvador
Music streaming giant Spotify will soon allow artists to promote their NFTs on the platform, pending the results of a trial rollout.
Starting with a single pilot group of artists, among them American DJ/producer Steve Aoki and English indie band the Wombats, Spotify will test NFTs on the platform on behalf of “selected” US users.
Spotify Won’t Sell NFTs Directly, Nor Take a Cut of Sales
However, Spotify will not sell NFTs directly – users will need to tap through to an external marketplace to make purchases. The streaming platform says it will not take a cut of the sales as part of the test.
According to a Spotify spokesperson:
We routinely conduct a number of tests in an effort to improve artist and fan experiences. Some of those tests end up paving the way for a broader experience and others serve only as an important learning.
Spotify spokesperson
Surveys Meet With Derision on Twitter
Users report that Spotify has also sent out surveys and even offered people compensation for chats with team members about their attitudes toward NFTs and Web3. Some of these survey questions have been met with outright derision on Twitter:
so i got a pop up on Spotify asking for a survey but it’s actually about them implementing NFTs into their service wtf pic.twitter.com/O8iAf0ORXn
not spotify checking to see how i feel about NFTs 🙄 please do better and stop listening to the guys in the meetings that get No Bitches. work on your established problems first
— 🧋🦄Carina Daydream💙💛 (@daydreamSereia) May 12, 2022
Spotify officially entered the Web3 world earlier this month with the May 3 launch of ‘Spotify Island‘ on Roblox. The move had been flagged back in March when the company posted two job ads related to working with early-stage Web3 projects.
Well might Spotify get on board with Web3, if only to compete with the likes of streaming app Audius, the world’s first fully decentralised music platform. Last year, pop superstar Katy Perry (and others) invested in a US$5 million funding round for the crypto-powered service. Interestingly, one of the other investors happens to be Steve Aoki.
The High Court of Justice in the UK has ruled to recognise NFTs as private property. The ruling has been hailed as a “landmark” but in reality will not actually change much, apart from helping to combat fraud. NFTs are already treated as private property in the US:
1/ My latest story in @artnet is about NFTs reportedly being ruled as "property" in the UK. I spoke with several lawyers in the US to get their feedback. https://t.co/6dHBnPub44
The catch in the ruling is that this conferred private property status does not extend to the underlying content an NFT represents.
OpenSea Caught Up in Case
The court case came about when Lavinia Osbourne, founder of Women in Blockchain Talks, claimed that two Boss Beauties NFTs had been stolen from her MetaMask wallet earlier this year. The NFTs ended up in two anonymous accounts on OpenSea and in an effort to reclaim the stolen property, Osbourne filed an injunction against the NFT marketplace.
A judge overseeing the case ruled that the NFTs were technically property and thereby enabled the court to issue an order requiring OpenSea to freeze the accounts so the NFTs could not be traded or sold.
Since no one knew the identities of the wallet holders, the injunction was granted against “persons unknown”. In a comment regarding the decision, Stevenson Law firm described the ruling as “a draconian remedy”.
Osbourne commented following the ruling:
Women in Blockchain Talks was founded to open up the opportunities blockchain offers to anyone, regardless of age, gender, nationality or background. This case will hopefully be instrumental in making the blockchain space a safer one, encouraging more people to interact with exciting and meaningful assets like NFTs.
Lavinia Osbourne, founder, Women in Blockchain Talks
UK authorities have been cracking down on the fraudulent use of NFTs, with the country’s first NFT seizure worth US$1.9 million earlier this year having been part of an investigation into an elaborate tax evasion scheme.
Let’s take a closer look at today’s altcoins showing breakout signals. We’ll explain what the coin is, then dive into the trading charts and provide some analysis to help you decide.
1. SushiSwap (SUSHI)
SushiSwap SUSHI is an example of an automated market maker (AMM). An increasingly popular tool among cryptocurrency users, AMMs are decentralised exchanges that use smart contracts to create markets for any given pair of tokens. SushiSwap aims to diversify the AMM market and also add features not previously present on Uniswap, such as increased rewards for network participants via its in-house token, SUSHI.
SUSHI Price Analysis
At the time of writing, SUSHI is ranked the 155th cryptocurrency globally and the current price is US$1.34. Let’s take a look at the chart below for price analysis:
After retracing nearly 75% from its Q1 highs, SUSHI set a low near $1.22 as it formed its current range.
Last week, the price swept highs near $1.53, which now also marks the previous monthly high. Relatively equal daily highs near $1.60 provide a reasonable target, although resistance beginning near $1.64 could cap the move. A break of this resistance is likely to target the swing high near $1.77 into higher-timeframe resistance beginning near $1.90.
The current area near $1.30 could provide support, although bulls may be more likely to buy near the price fractal near $1.24 if a retracement reaches this level. A break of this area could continue down to sweep the low near $1.13 into possible support beginning near $1.02.
2. Axie Infinity (AXS)
Axie Infinity AXS is a blockchain-based trading and battling game that is partially owned and operated by its players. The Axie Infinity ecosystem has its own unique governance token, known as Axie Infinity Shards AXS. These are used to participate in key governance votes and give holders a say in how funds in the Axie Community Treasury are spent.
AXS Price Analysis
At the time of writing, AXS is ranked the 48th cryptocurrency globally and the current price is US$21.21. Let’s take a look at the chart below for price analysis:
AXS‘s relatively small 25% range could suggest that a recovery is setting up in May.
Aggressive bulls could look for entries at the most recent area of support formed near $20.34. However, equal lows near $19.42 make a tempting target for a stop run into this support. This move could reach support near $18.90.
A decisive move to the downside could run stops below the second set of relatively equal lows near $17.23, possibly reaching support at an old swing high and a daily gap near $15.58.
A recent level near $27.84 provided resistance and caused a swing high to form near $30.88, offering first targets. A move through this high may arrive at new monthly high levels near $33.31 and $35.30.
3. PancakeSwap (CAKE)
PancakeSwap CAKE is an automated market maker (AMM) – a decentralised finance (DeFi) application that allows users to exchange tokens, providing liquidity via farming and earning fees in return. PancakeSwap uses an automated market maker model where users trade against a liquidity pool. These pools are filled by users who deposit their funds into the pool and receive liquidity provider (LP) tokens in return. PancakeSwap allows users to trade BEP20 tokens, provide liquidity to the exchange and earn fees, stake LP tokens to earn CAKE, stake CAKE to earn more CAKE, and stake CAKE to earn tokens of other projects.
CAKE Price Analysis
At the time of writing, CAKE is ranked the 44th cryptocurrency globally and the current price is US$4.63. Let’s take a look at the chart below for price analysis:
CAKE‘s 75% decline after Q1 created relatively equal lows near $3.56 before bouncing over the local range’s midpoint near $4.60. A bullish altcoin market could help CAKE bulls regain a stronger bullish trend.
Aggressive bulls could look for entries in the daily gap starting near 4.46. The monthly open aligns with more probable support near $4.28.
A stop run below the monthly open near $4.10 might provide a more favourable entry. A more substantial bearish move – perhaps from a sharp drop in Bitcoin’s price – could challenge support near $3.90, just above the equal lows.
Resistance rests just above, with the zone from $4.95 to $5.37 likely to provide a short-term ceiling. A break through this level might target resistance just under the cluster of relatively equal highs near $5.77.
Beyond these highs, resistance near $5.89 provides a final challenge before attacking an old daily swing high near $6.52.
These coins have high liquidity on Binance Exchange, so that could help with trading on AUD/USDT/BTC pairs. And if you’re looking at buying and HODLing cryptos, then Swyftx Exchange is an easy-to-use popular choice in Australia.
Two decentralised protocols, Blizz Finance and Venus Protocol, have declared losses due to a LUNA price discrepancy after Chainlink’s price feed for the token got suspended over market conditions.
Attackers Take Advantage of Price Discrepancies
TerraUSD (UST) – the stablecoin issued by the Terra blockchain – suffered a sudden de-pegging last week, causing massive congestion across the DeFi market. Several centralised exchanges such as Binance had to halt LUNA trading amid the stablecoin frenzy.
A few days after the incident, Chainlink – an oracle network that provides real-time data for blockchain companies – decided to suspend the price feed for LUNA, whose price remained at US$0.107 on the platform while the actual market price was $0.01.
According to Blizz Finance, this decision allowed several attackers to deposit millions of LUNA tokens in the $0.107 price range to borrow all the collateral. The protocol stated that it was drained before the team could stop it:
Chainlink pausing the LUNA oracle allowed several attackers to deposit millions of LUNA which is still worth $0.10 according to the Chainlink oracle to borrow all the collateral.
The protocol has been drained before we could pause due to our timelock.
Blizz Finance hasn’t disclosed the amount drained, or if it plans to reimburse affected users.
On the other hand, Venus Protocol issued a statement saying that Chainlink’s suspension of LUNA price updates had resulted in the loss of US$11.2 million for the protocol, which will use its Risk Fund to remedy the shortfall from this event:
Given the continued risks of the LUNA market and in order to eliminate the possibility of further shortfall, the community has asked to suspend the LUNA market, effective immediately. Venus Protocol also has a Risk Fund that will be utilised to remedy the shortfall that resulted from this event.
Venus Protocol blog post
Venus Protocol issued a statement saying that Venus Protocol lost $11.2 million due to Chainlink’s suspension of LUNA price updates, and the LUNA lending market is currently suspended. https://t.co/FBKne9EIRf
While both protocols have fingered Chainlink as responsible for this incident, one Twitter user stated that it was the fault of negligent developers, adding that Chainlink feeds have a date time associated with the price data which the protocol failed to use:
Feeds have a datetime associated with the price data. You should be using it, no excuse not to. That's simply negligent – and worse blaming Chainlink. Their docs call this out. See 4 things you didn't do: https://t.co/NdNHc9nwoP
— Dana 🦀⚓ Glass Farm◎◎◎r (@TheSoftwareJedi) May 13, 2022
Earlier this month, Do Kwon, the outspoken founder of Terraform Labs, said that 95 percent of projects in the crypto space would die, adding that there was also “entertainment in watching companies die”.
As it turns out, his creation may be next:
1/ I’ve spent the last few days on the phone calling Terra community members – builders, community members, employees, friends and family, that have been devastated by UST depegging.
I am heartbroken about the pain my invention has brought on all of you.
In a tweet thread, Do Kwon has said that he was “devastated” about the much-publicised UST depegging and LUNA collapse, adding he was “heartbroken” about the pain his creations has caused investors.
Not one to go down without a fight, he continued, saying:
I still believe that decentralised economies deserve decentralised money – but it is clear that $UST in its current form will not be that money.
Do Kwon, Terraform Labs
He then pointed to a “revival plan“, begging the question as to how decentralised the ecosystem truly is. Quite expectedly, the crypto community remained highly sceptical:
Do Kwon claims that UST is better because it is decentralized.
But the peg is managed in a non-transparent way: people are still wondering what happened to BTC which was held in reserves.
If you promise something decentralized but you control it as a dictator, you're a liar.
I am telling you right now, don't give more money to Do Kwon! He betrayed his community $LUNA-tics. He is behind this trust me, he was warned but he didn't care. He is not even heart broken as he said on his tweets. He took his billions now trying to get more of you! #UST#SCAMhttps://t.co/nAAPBBxijp
Kwon’s plan amounts to a restart of the entire Terra blockchain, with network ownership getting distributed entirely to UST and LUNA holders through 1 billion new tokens as follows:
400 million (40 percent) to LUNA holders before the depegging event;
400 million (40 percent) to UST holders pro-rata at the time of the new network upgrade;
100 million (10 percent) to LUNA holders at the final moment of the chain halt; and
100 million (10 percent) to the Community Pool to fund future development.
While a decentralised economy does need decentralised money, UST has lost too much trust with its users to play the role. The blockchain underpinning LUNA and UST was shut down twice by validators over the past day.
Do Kwon, Terraform Labs
UST Debt Holders ‘Deserve to be Compensated’
Kwon added that he did not sell any of his LUNA or UST during the “incident”, continuing: “Even if the [UST] peg were to eventually restore after the last marginal buyers and sellers have capitulated, the holders of Luna have so severely been liquidated and diluted that we will lack the ecosystem to build back up from the ashes.
“UST holders need to own a large share of the network; as the network’s debt holders, they deserve to be compensated for the tokens they have been holding to the end.”
At this juncture, it doesn’t appear as if the market is onboard with the plan. At the time of writing, UST had collapsed to US$0.15, erasing US$30 billion, not to mention LUNA, which has tanked from US$120 in April to $0.0001896.
On the bright side, some have reflected on the potential lessons investors can take away from the whole UST/LUNA saga:
I am thankful for Do Kwon and Terra for giving us such an excellent story to reference and use as a lesson to future shitcoin-ponzi believers.
All popular narratives in "crypto" are built with ponzi schemes as their engine.
