Crypto Guides, Knowledge & Insights

Here’s why LUNA ‘is pumping’ days after total collapse

LUNA is a token developed alongside the algorithmic stablecoin TerraUSD (UST) by Terraform Labs to keep its peg of $1. Between May 9 and May 14, UST lost its value by 85% dropping from $1 to $0.15.　　Luna crashed due to its link to UST which decoupled from the dollar earlier this week to collapse below one cent. The price of LUNA lost its value by 99% plunging from $62 on May 9 to less than a cent by May 14.　　By press time, LUNA was up 364% in the last 24 hours trading at $0.0004, according to Coingecko.com. At some point, the token had gained 2,000% despite the general cryptocurrency market trading in a volatile state.

2022-05-15Deep Dive

Terra Founder Do Kwon's Spouse Seeks Police Protection After the LUNA and UST Fallout

Unidentified Person Breaks Into Do Kwon‘s Apartment Building Seeking Terra Founder’s Whereabouts, Kwon‘s Spouse Seeks Help From Police　　Not too long ago, on May 1, 2022, the Terra blockchain token LUNA was the eighth-largest market cap among 13,000+ cryptocurrencies in existence. LUNA’s market cap on that day was $28.3 billion and terrausd (UST) was two spots below LUNA with an $18.5 billion market valuation. Both crypto market caps combined on May 1, 2022, were around $46.8 billion in value and today, around 91% of that value has disappeared.　　At the time of writing, UST‘s and LUNA’s market cap combined equates to $3.9 billion in value. Terra‘s fallout has caused a lot of pain among UST and LUNA investors and many have been very upset about how the situation was handled. Some investors lost their life savings and children’s college funds, and others managed to escape with a haircut in terms of losses. Social media and forums are filled with horrifying stories of people who are severely depressed over the Terra situation and losing funds.　　Now, after a few days since the initial UST de-pegging incident, reports note that an unidentified person visited Do Kwon‘s apartment building and rang the doorbell asking for the

2022-05-15Deep Dive

Explained: What Is Blockchain Technology And How It Works

Blockchain has become a buzzword these days with the rising popularity of cryptocurrencies. So how does blockchain work？　　The cryptocurrencies run on blockchain technology, a type of database or a digital ledger that records all transactions related to the crypto coins. The technology derives its name from the fact that the information is stored in a chain of blocks.　　Blockchain technology records information so that it becomes difficult or impossible to hack, alter or cheat the data stored in the systems connected to the network.　　The digital records of all the transactions are distributed across the entire network of computers on the same blockchain.　　How Does It Work？　　The record of all the digital transactions carried out on the system is duplicated and shared across all computer systems operating on the same blockchain.　　All the transaction records on the blockchain systems can be accessed from anywhere. An irreversible timestamp is created for every transaction stored in a block.　　Blockchain is a decentralised database which multiple users generally manage. This is known as Distributed Ledger Technology.　　How secure is blockchain technology？　　Blockchain technology provides higher data security and transparency. All the users on the blockchain network can access the information related to all transactions.　　Blockchain technology is decentralised, which means a

2022-05-15Deep Dive

Op-Ed: Crypto is under attack

The markets are rocked. Many of you will check your portfolios and ask why you have lost over 50% of your net worth？ The answer is, for once, not FUD coming out of China, Europe, or the SEC.　　The fear, uncertainty, and doubt among retail and institutional investors have been triggered by a direct attack on what we stand for.We are under attack　　Today, we are under a concerted attack on the crypto industry at large from traditional businesses and organizations. I believe this is because crypto has established itself as a realized existential threat to the conventional financial system.　　Gone are the days of people hypothesizing that crypto could take over. The path to a new world order based on blockchain now has millions of people walking on it, and someone is not happy about it.　　Many people are waking up to see significant losses in their portfolios. Bitcoin is down 60% from its all-time high, Ethereum is down 30% in a week, LUNA is down 99.9%, and UST is way off its dollar peg at $0.16.　　Further, the worlds biggest stablecoin, Tether USD, has shown signs of vulnerability by also losing its peg on centralized exchanges. This, of course, is due to people

2022-05-15Deep Dive

Binance CEO does not think LUNA recovery plan will work

Binance CEO, CZ, has revealed that he does not believe that Do Kwons plan to save LUNA will work. Do Kwon announced a proposal to fork LUNA to a new version in order to save the ecosystem on May 13. CZ announced,　　“This won‘t work. – forking does not give the new fork any value. That’s wishful thinking. – one cannot void all transactions after an old snapshot, both on-chain and off-chain (exchanges).”　　He goes on to ask where the LFG held BTC went after it was loaned to market makers. Do Kown has stated that a full report is incoming regarding this and LFG is documenting the use. He asks for “patience” as the team is “juggling multiple tasks at the same time.” CZ also compares the strategy to trying to fork Bitcoin at the ATH and expecting the value to be retained.　　CZ also notes that he has never held UST and doesnt “know it too well,” claiming he is “usually busy with other things, but now dragged into this.” His disdain for Do Kwon and the Terra chain is evident in his recent tweets.　　He even posted a link to a dead cat bounce explanation thread on Binance Academy in reference

2022-05-15Deep Dive

DOGE attempts to push back above $0.08 on another seller dominated day

DOGE coin price analysis confirms a bearish reading for today, continuing on a larger decline in the cryptocurrency market. Dogecoin shipped more than 5 percent over the last 24 hours, with price moving to a 13-month low of $0.70. DOGE trading volume rose more than 30 percent over the days trade, confirming seller dominance in the market. Price did offer some respite during the end of day, moving back up above $0.81 resistance. If buyers continue to come into the market for DOGE, a daily close above $0.90 would be possible and instigate an uptrend.　　market continued to show a widely bearish outlook across the board, as major cryptocurrencies led by Bitcoin extended the market crash. Bitcoin receded down to $26,500, its lowest price in more than a year.Ethereum fell below the $2,000 mark with an 8 percent decline, while major Altcoins also showed significant dips. Ripple fell 6 percent to $0.38, Cardano 8 percent to $0.48 and Tron 6 percent to $0.069. Solana dropped 7 percent to move as low as $44.79, while Near Protocol posted the only positive reading with a minor uptrend to move to $6.62.　　On the 24 - hour chart for DOGE COIN analysis, price can be

2022-05-14Deep Dive

Customers sue Coinbase for promoting and trading the GYEN token

Coinbase customers have sued the exchange over the promotion and trading of GYEN, a stablecoin that crashed. A report unveiled this news earlier today, noting that the lawsuit targets both Coinbase and the issuer of the GYEN stablecoin, which turned out to be anything but stable.　　According to the report, Coinbase‘s customers filed a class-action lawsuit yesterday in a federal court in northern California. The lawsuit alleges that Coinbase and Tokyo-based GMO-Z.com, GYEN’s issuer, misled investors about the tokens stability. As a result, investors incurred losses worth millions of dollars.　　The complaint pointed out that GMO-Z.com issued GYEN with a 1:1 peg to the Japanese yen. However, GYENs value slipped below that of the Japanese yen in November last year after Coinbase listed and started trading it.　　The complaint further noted that,　　“Investors placed orders believing the coin‘s value was, as advertised, equal to the yen, but the tokens they were purchasing were worth up to seven times more than the yen. Just as suddenly, the GYEN’s value plunged back to the peg — falling 80 percent in one day.”Coinbase prevented customers from trading GYEN after the crash　　Following the 80% crash, Coinbase halted GYENs trading. The complaint alleges that the exchange exacerbated the harm

2022-05-14Deep Dive

Tesla CEO Elon Musk Reaffirms Dogecoin 'Has Potential as a Currency' as Twitter Deal Is Put on Hold

Elon Musk Says Dogecoin Has Potential as a Currency　　Tesla CEO Elon Musk has made another bullish statement about the meme cryptocurrency dogecoin (DOGE) despite massive sell-offs across the crypto market.　　Musk affirmed that dogecoin “has potential as a currency.” His tweet was in response to a comment by dogecoin co-creator Billy Markus, who said that the reason he likes the meme cryptocurrency is because “it knows it is stupid.”　　The Tesla CEO‘s tweet reiterated his earlier statement that DOGE is the best crypto for transactions. In contrast, he said bitcoin is better suited as a store of value. Musk, who is known in the crypto community as the Dogefather, also said that dogecoin is “the people’s crypto.”　　A longtime supporter of DOGE, Musk tweeted in April 2019: “Dogecoin might be my fav cryptocurrency. Its pretty cool.” The Tesla boss also revealed that he personally owns dogecoin in addition to bitcoin and ether.Musks Twitter Deal Is on Hold　　The Tesla boss has offered to buy Twitter for about $44 billion, which the social media company accepted. Since then, he has been discussing various ways to improve the platform.　　However, Musk announced Friday that his Twitter buyout deal has now been put on hold, tweeting:　　Twitter deal temporarily

2022-05-14Deep Dive

Bitcoin price sees ‘hell of a reversal candle’ as 168,000 BTC leaves exchanges

Bitcoin (BTC) came back with a vengeance on May 13 as bulls stepped in to take the market to near $31,000.Bitcoin RSI stays firmly oversold　　Data from Cointelegraph Markets Pro and TradingView confirmed 24-hour gains of 30% for BTC/USD in the aftermath of the Terra debacle.　　After “kissing” its realized price at $24,000, Bitcoin showed no taste for fresh bearishness as record on-chain volume combined with coins leaving exchanges en masse.　　On May 11 and May 12 alone, exchange balances declined by over 24,335 BTC, according to data from on-chain analytics platform CryptoQuant, covering 21 major platforms.　　Outflows were much higher at nearly 168,000 BTC over the same period, but inflows from those seeking to sell were equally intense as panic set in over Terra (LUNA) and TerraUSD (UST) tokens, as well as the largest stablecoin Tether (USDT).　　As LUNA went to nearly zero and its blockchain was halted, Bitcoin, nonetheless, strengthened as the immediate impact of the instability waned.　　“This is a hell of a reversal candle,” popular trader and TradingView writer CryptoBullet reacted as part of Twitter comments.　　Bitcoins relative strength index (RSI), referred to by CryptoBullet, measured 31 at the time of writing, still in oversold territory and its lowest since January.$14,000 still on

2022-05-13Deep Dive

Is Tether Next In Line For An Attack?

Following on from the attack on the UST stablecoin algorithmic dollar peg, and its more or less total destruction, could forces be brought to bear on the Tether USDT dollar peg？　　Back in the early 2000s, one of the most infamous collapses occurred on Wall Street. Enron, the darling of the 1990s went into bankruptcy after illegal accounting practices were revealed and shareholders lost $74 billion, and employees lost billions in pension benefits.　　Since then a couple more even bigger collapses have happened, including Leyman Brothers and General Motors. However, in current times, and especially for the crypto market, the depegging of UST and the subsequent fall of Luna from $87 to practically zero in only a week does bear comparison.　　For the rest of the crypto market things do not look particularly encouraging. The Federal Reserve is still on a path of hiking interest rates and tapering off its huge balance sheet.　　Yes, the stock market is declining, with the tech-heavy Nasdaq having lost around 22% in a little more than a 3 week period. However, at the same time, the combined crypto market cap has lost nearly double this amount, thanks to the catastrophic collapse of the Terra Luna ecosystem.　　So what is

2022-05-13Deep Dive

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