42nd Edition

This week in The Flippening, TL;DR

LUNA's revival plan, community not happy with the proposal; exchange think tank publishes report to state how crypto is not riskier than stocks; Japan's largest investment bank's crypto subsidiary; Coin of the week, market performance; Anatomy of the UST-LUNA meltdown and the proposed revival; featured Mudrex Coin Sets, memes, and more.

Top Highlights of the Week (ending 20th May)

Voting begins on LUNA’s revival plan; the community doesn’t seem to like the proposed plan

The Terra community seems to be hugely divided on the revival plan put forward by Terra founder, Do Kwon. The official proposal states that the Terra chain should be forked into a new chain without algorithmic stablecoins called “Terra” (token Luna - $LUNA), and the old chain will be called “Terra Classic'' (token Luna Classic - $LUNC). UST and LUNA investors believe that ‘coin burning’ might be a better alternative than forking.

Coinbase think tank publishes report on ‘crypto is not riskier than stocks’

Cryptocurrency exchange Coinbase launches its ‘think tank’, which can help shape the digital assets policies. The think tank will also be publishing research on Web3 and crypto. This can help the public, policymakers, and academicians understand the crypto ecosystem better.

Nomura, Japan’s largest investment bank, plans for a new crypto subsidiary

The largest investment bank in Japan, Nomura, plans to establish a new crypto subsidiary company to help institutional investors in crypto and NFTs. The step will expand the crypto services in Japan.

Other Highlights:

• Ethereum Merge may happen in August as final testing starts: Read it here
• Russia to legalise crypto payments soon: Read it here
• Brazil’s Stock Exchange set to launch BTC and ETH futures: Read it here
• El Salvador President says country spent $15M on latest Bitcoin Dip : Read it here

Disclaimer: All price movements are recorded up to 10:00 AM UTC

The cryptocurrency market has finally been able to put brakes on the downward spiral. Most of the top cryptos ended the week on a flat note. Solana and Binance Coin managed to end the week with modest gains. Trading volumes seem to have risen, indicating that the market might soon move out of the bearish phase.

Disclaimer: All price movements are recorded up to 10:00 AM UTC

Even though some of the top cryptos ended the week in red, on a sectoral level all the sectors ended the week with modest gains. This is why investing in sectors is more prudent than in dividual cryptos. With Mudrex Coin Sets, you can invest across different sectors in one click!

Coin of the week

Algorand: $ALGO

This has been a tough couple of weeks for crypto investors. With bear markets providing a good chance to find fundamentally strong projects, our coin of the week is Algorand. The ALGO community has been hard at work expanding its ecosystem. Dozens of dApps have been deployed in the past few months, and there's hundreds of millions in total value locked in its DeFi protocols, with tens of thousands of users.

 Crypto simplified

We recently emerged from one of the biggest collapses in the cryptocurrency ecosystem. Let us unfold the de-pegging of the third-largest stablecoin and the group’s subsequent fall and revival plans.

UST’s peg first felt the brunt on Saturday, May 7th, after an $85 million swap from UST to USDC. UST also began to trade below its peg on Binance, with its price reaching as low as $0.985 on the exchange.

Between May 7th - May 8th, Anchor saw more than $2.86 billion in outflows, with deposits falling ~20.4% from $14.02 billion to $11.16 billion over the two days. Meanwhile, the price of LUNA dropped roughly 17.1%, from $76 to $63.

On May 9th, the peg once again began to break down. The price of UST kept dropping throughout the day, falling as low as $0.60 on Binance, with the exchange at one point blocking traders from placing bids lower than $0.70.

Furthermore, the price of LUNA finished the day down 48%, crashing from $60 to $31, as redemptions ramped up, further decreasing the available runway for UST holders to exit.

With liquidity gone, this means that, as touched on above, the only way in which UST holders can exit the system is through redemptions, i.e. minting new LUNA and selling it on the open market.

However, Da Kwon put forward an ambitious revival plan following the epic crash. It has been proven time and again that a hard fork does not do justice to the existing investors. Ethereum and Ethereum Classic are a case in point, where the latter is the original chain and has faced the brunt of bad actors multiple times. Moreover, forking does not give the new fork any value. Existing investors want their original investments to build the same value as previously held.

The decision has been put for a vote to the community members. It will be interesting to see what unfolds.

Featured - Invite only access to 'OWN' NFT minting for Mudrex members

All of us have heard of Crypto Coins and NFTs. But have you ever heard of NFTs of Crypto Coins? Intriguing, right! That's what the One World Nation [OWN] is doing. On the OWN cryptoverse Crypto Coins are getting personified into NFT characters and they are called Cryptonites. You can collect these Cryptonites and play games which will be linked to the Crypto Market.

OWN NFTs are minting today in a Private Sale! But don't worry. We were able to get 25 Whitelist Spots just for Mudrex members. Fill in the form on the link and you might get Whitelisted.