Crypto News Recap - Crypto Markets Crash Along With Terra’s Disaster - May 6, 2022 - May 13, 2022

Transcript

[Music] thanks for tuning in to this week's news recap bitcoin below 26k after inflation report in addition to the luna chaos crypto was also hit by an unexpectedly high inflation number causing prices to stumble on wednesday the bureau of labor statistics reported that the consumer price index was up 8.3 percent in the 12 months ending in april in the days after the cpi numbers came out bitcoin and eth hit a low of 25 200 and 1 748 respectively though it is not certain that the inflation report caused

the dip in addition to bitcoin and eth struggling in the wake of high inflation and the terra bank run tether or usdt the 150 billion dollar stablecoin was briefly knocked off its peg on thursday and fell to 98 cents bitcoin eth and usdt were certainly not the only crypto assets to be affected by the terra and cpi numbers in total over 440 billion dollars in value was wiped out in terms of market capitalization from the crypto industry data from coin market cap shows furthermore nearly four billion dollars in short and long positions were liquidated this week reports coin glass nft prices went down heavily as well the floor price of board

api club has gone down 25 over this week and crypto punk's floor price suffered a drawdown of 15 considering that these nfts are priced in eth and the eth price plummeted in relation to usd the loss is much higher than 25 percent and 15 ral pal ceo of global macro investor says a recession is coming and that crypto is in full panic mode however he compared the fear people are feeling now with the sentiment of march 2020 which led to a major bull run he pointed out that tough times like these are a time to buy on the other hand peter schiff the famously anti-crypto economist unsurprisingly recommends that people sell their bitcoin selling now is not panicking

it's smart to cut and run he said on twitter instagram introduces nfts this week instagram launched its nft pilot in which selectus creators and collectors will be able to share nfts that they have created or bought disclosure i write a bulletin newsletter for its parent company meta according to instagram head adam moseri enabling nfts offers new ways for creators to earn money from their content through nfts artists musicians and creators will be able to tokenize their work and verify ownership of it i want to acknowledge upfront that nfts and blockchain technologies are all about distributing trust and distributing power merceri said in his announcement but instagram is fundamentally a centralized platform so

there's the tension there instagram nfts will first support ethereum and polygon executives hinted that flow and solano will be coming soon ryan watts ceo of polygon studios said on twitter that facebook chose polygon due to polygon's carbon neutral footprint its scalability and the developer ecosystem meta ceo mark zuckerberg commented meta plans to bring nfts to apps in our family similar functionality is coming to facebook soon along with augmented realities nfts on instagram stories via spark ar so you can place digital art into physical spaces microstrategy's bitcoin-backed loans won't be margin called anytime soon michael saylor founder and ceo of microstrategy the publicly traded

software firm known for its large amount of bitcoin holdings shed light on the company's obligations concerning its bitcoin-backed loans he tweeted microstrategy has a 205 million dollar term loan and needs to maintain 410 million dollars as collateral meaning that the liquidation price of the company's bitcoin loans is 3562 however even if btc reaches that price sailor assured the space that he is ready to put up other collateral such as company stock or assets so that he doesn't have to sell btc microstrategy holds 129 128 bitcoin which at current prices is valued at more than 3 billion the firm's average buy price for its bitcoin holdings is

seven hundred dollars even though it is clear that it doesn't plan to sell considering bitcoin's current price the firm has an unrealized loss of roughly 330 million dollars on its investment treasury secretary janet yellen asked for new stablecoin legislation by the end of this year on the same day tara usd or usdt started depending she even referred to the ust stumble in her speech i think that ust simply illustrates that this is a rapidly growing product and that there are risks to financial stability ms yellen said at a hearing on tuesday before the senate banking committee she also added we need a coherent federal framework when asked by pennsylvania senator pat toomey if the goal was to get the legislation done during 2022 mazzaglian

responded that she thinks it would be highly appropriate in addition in her written testimony yellen said that she has been working on identifying the risks that digital assets impose on financial stability however after being questioned by representative jim hymes in a hearing before the house financial services committee yellen recognized that the stable coin market has not yet reached a size big enough to impose a major risk on the financial system el salvador bought the dip on monday el salvador's president naive buchelli tweeted that his country just bought the dip according to bukheli the country purchased 500 coins at an average usd price of 30 744 dollars bloomberg reports the government has

purchased 2 301 bitcoins since september with monday's acquisition being the largest since it started buying the cost of all these purchases combined is approximately 103 million dollars at the current price the bitcoin held by el salvador is now worth 70 million dollars which translates to a 32 percent unrealized loss so far mckelly has earned himself a lot of attention since he decided to adopt bitcoin as legal tender in his country last september plenty of skeptics think his decision was not wise for example the international monetary fund has been at buchelli's back to reverse his decision in january an imf report urged authorities to remove bitcoin status as legal money

imf directors stressed that there are large risks associated with the use of bitcoin on financial stability financial integrity and consumer protection as well as the associated fiscal contingent liabilities coinbase's earnings report reveals a new risk disclosure coinbase the largest cryptocurrency exchange in the united states by trading volume revealed that user crypto assets might remain as the company's property in the event the exchange files for bankruptcy this disclosure was included in its first quarter earnings report as one of the risk factors of using the platform because custodially held crypto assets may be considered to be the property of a bankruptcy estate in the event of a bankruptcy the crypto assets we hold in

custody on behalf of our customers could be subject to bankruptcy proceedings and such customers could be treated as our general unsecured creditors the exchange road however according to ceo brian armstrong user funds are not at risk at this very moment the funds are safe at coinbase just as they've always been he tweeted and he added we believe our prime and custody customers have strong legal protections in their terms of service that protects their assets even in a black swan event like this at the end of his statement he reminded people about coinbase wallet the usage of which would not run that risk we offer a self-custodial wallet solution for those who prefer to store their own crypto as for the rest of coinbase's earnings

report it appeared to be a tough q1 coinbase reported a loss of 430 million dollars and a 90 drop in monthly users that had a very negative effect on the company's stock coin by thursday it was trading at around fifty six dollars a fifty percent drawdown in less than a week google is going web3 according to cnbc google is putting together a web3 team to build services for developers running blockchain applications it appears that google intends to not fall behind on the web3 curve and will try to capitalize on the searching popularity of cryptocurrencies and blockchain projects last friday google cloud vice president ahmet zavery told employees in an email

while the world is still in its early embrace of web3 it is a market that is already demonstrating tremendous potential with many customers asking us to increase our support for web3 and crypto related technologies instead of building projects of their own it seems that google's strategy to enter the crypto space is to support developers by offering them tools to build their own applications and projects james tromans a former citigroup executive who arrived at google in 2019 will lead the product and engineering group and report to xavery google joins meta twitter nike and other corporations in an attempt to capitalize on the web3 opportunity time for fun bits madonna launches nft collection with

beeple madonna in collaboration with digital artist people announced the release of her first nft collection the three video nft features a cgi madonna giving birth which is the reason they called it mother of creation she is giving birth to nfts we set out to create something that is absolutely and utterly connected to the idea of creation said madonna in an up in a video uploaded on twitter i am doing what women have been doing since the beginning of time she added the auction for the mother of creation triptych went live on wednesday and will end on friday the proceeds will go to three organizations national bailout v-day and voices of children the collection has three videos which are called mother of technology mother

of evolution and mother of nature as of thursday they are priced at fourteen eighth or around twenty six thousand dollars eth or 19 000 15 eth or 29 000 respectively thanks so much for joining us today to learn more about john and the terror debacle check out the show notes for this episode don't forget if you're interested in hearing more about what happened with tara this week and where things can go from here tune in to unchained podcast on youtube at 11 30 a.m eastern time on friday to hear a live stream of my interview with nick carter eric wall and eric voorhees on ust unchained is produced by me laura shin with help from anthony yoon daniel ness

mark murdock shashank and clk transcription thanks for listening you