Terra’s meltdown has forced crypto investors to ask a question they never thought possible: Will TerraUSD (UST) or Terra (LUNA) reach $ 1.00 first? The magnitude of this question provides a sober reminder of how quickly things can change in crypto. While Terraform Labs co-founder Do Kwon remains challenging, many people in the industry are starting to distance themselves from the protocol they thought would deliver a real benefit for stable currencies and Bitcoin (BTC).
The threat of contagion from Terra’s apparent collapse could take months or even years to fully quantify, but it seems the cry of winter crypts is growing louder. Fortunately, blockchain projects are underway with tens of billions of dollars. They will continue to build. Can you wait a little longer to complete your digital investment thesis?
Celsius Network executives deny rumors of significant losses amid market volatility
The aftermath of the UST / LUNA failure shone a negative spot on Celsius Network, a crypto-focused rich management platform that was supposedly “removed” due to the events of the past 72 hours. But, nothing could be further from the truth, Celsius’ leadership team confirmed on Wednesday. Rod Bolger, the company’s chief financial officer, told Cointelegraph that “we are not significantly exposed to market swings,” including the crypto crash caused by LUNA. CEO Alex Mashinsky also tried to set the record straight.
Despite the extreme market volatility, Celsius has not suffered any significant losses and all funds are safe.
– Alex Mashinsky (@Mashinsky) May 11, 2022
FCA-regulated Fasanara Capital raises $ 350M crypto and fintech VC fund
If you managed to read anything other than Terra news this week, you would know that a prominent United Kingdom investment firm has raised $ 350 million for a new crypto and fintech venture capital fund. Fasanara Capital, which manages $ 3.5 billion in assets, has identified Web3 and crypto as a major investment opportunity – so much so that it plans to make greater equity commitments to start-ups than traditional businesses. Project firms don’t care about crypto market cycles. They just want to accumulate as much equality as possible in the sector.
Latin America’s largest digital bank will allocate 1% to BTC, offer crypto investment services
A digital bank in Brazil with exposure to more than 50 million customers invests 1% of its net assets in BTC and makes it easier for people to buy, sell and store digital assets. Nubank, the largest new bank in Latin America, announced this week that it has partnered with Paxos to make its crypto ambitions a reality. Cointelegraph reports for years that Latin America is an emerging crypto center. If you’re feeling nervous about the market, take a look at what Nubank’s management team is saying about the potential of crypto in the region.
Michael Saylor reassures investors after market crashes hurt MSTR, BTC
With Bitcoin diving below $ 30,000 – and MicroStrategy’s average BTC cost base – CEO Michael Saylor reassured investors that his crypto-heavy trading spy firm was at no risk of being called a margin. Saylor said it would take a Bitcoin price collapse below $ 3,600 before the company had to post other guarantees. Crypto Twitter has already accused Saylor of secretly selling part of its BTC stash. That’s not true, nor is it rumored that MicroStrategy is going bankrupt because of its Bitcoin reserves.
MicroStrategy has an ongoing loan of $ 205M and must keep $ 410M as collateral. $ MSTR has 115,109 BTC it can promise. If the price of #BTC falls below $ 3,562, the company could post some other guarantee. See slides 11-12 in Q1 2022 presentation. #HODLhttps://t.co/9WHsIB6Usx
– Michael Saylor⚡️ (@saylor) May 10, 2022
Can you stomach more LUNA analysis? Watch this video
La Market Report panel met outside of their usual hours this week while I joined fellow analysts Jordan Finneseth, Marcel Pechman and Benton Yuan to talk about Terra Luna. We talked about exactly what went wrong with the Terra ecosystem, how UST lost its peg, and what that could mean for your portfolio over the next 12 months. You can watch the full replay below.
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