Crypto Flipsider News – Bitcoin Crash, USDD Depegged, BlockFi Lays Off Staff, Investors Sue Binance, Cardano Launches EVM By DailyCoin
Read in the Digest:
- Crashes to 18-Month Low, Liquidating $1.25 billion; Binance Pauses Withdrawals
- USDD Suffers De-Pegging Fears, Declines, Says Celsius Withdrawal Restriction Doesn’t Affect USDT
- BlockFi Lays Off 20% of Its Staff Amidst Cryptocurrency Market Downturn
- Investors File Lawsuit Against Binance for Advertising Terra UST as ‘Safe’
- Launches New Permissionless EVM Sidechain on Testnet
Bitcoin Crashes to 18-Month Low, Liquidating $1.25 Billion; Binance Pauses Withdrawals
Bitcoin was hit with its third hardest sell-off of the decade after the U.S. announced that the inflation rate had risen to a four-decade high of 8.6%. Since the announcement was made last Friday, the price of Bitcoin has fallen by more than 30%.
The 7D price chart of Bitcoin (BTC). Source: CoinMarkketCap
On Monday, June 13, the price of Bitcoin fell by as much as 15% to hit a low of $20,950, its lowest value since December 2020. Marginal gains over the last 24 hours have pushed the price of Bitcoin back up to $22,300.
The 1D price chart of Bitcoin (BTC). Source: CoinMarketCap
Over the last 24 hours, $1.24 billion in positions have been liquidated due to the sharp downswing. Bitcoin contributed over $600 million to the liquidation. An XBTUSD perpetual contract on BitMex of $4.4 million was the largest single liquidation in that period.
At the peak of the sell-off, Binance announced that it had temporarily suspended withdrawals on the Bitcoin (BTC) network on June 13 at 11:43:43 (UTC). The news caused the price of Bitcoin to fall even harder.
- Binance has now resumed withdrawals of BTC on the Bitcoin network after processing all pending transactions.
USDD Suffers De-Pegging Fears, Terra Declines, Says Celsius Withdrawal Restriction Doesn’t Affect USDT
With the crypto industry still recovering from the infamous implosion of the algorithmic TerraUSD (UST) stablecoin, investors were hit with another major scare as Tron’s decentralized USD (USDD) stablecoin was briefly de-pegged.
On Monday, June 13, Tron’s USDD price dipped to $0.97, mirroring the days before UST’s collapse. Data tracker showed that the brief de-pegging of UDDD was the result of attacks from hedge funds.
The 24-hour price chart of Decentralized USD (USDD). Source: CoinMarketCap
Nansen reported that one of the funds that capitalized on the UST depeg started actively transferring large amounts of USDD (between $200,000 and $12,000,000) and other stablecoins. Tron DAO reacted quickly, injecting 700 million USDC to restore the USDD pegged to the dollar.
The world’s biggest stablecoin, Tether’s USDT, has again lost its dollar peg owing to the freeze of all withdrawals on Celsius’s lending platform. USDT now trades at $0.9989 after dropping as low as $0.9975.
The 7D price chart of (USDT). Source: CoinMarketCap
- Amidst the panic, Tether has issued a statement, clarifying that Celsius has “always been overcollateralized” and the withdrawal pause “has no impact” on the reserves of USDT.
Why You Should Care
The ongoing inflation scare puts crypto in a fragile position, and the de-pegging of any major stablecoin could be catastrophic for the nascent industry.
BlockFi Lays Off 20% of Its Staff Amidst Cryptocurrency Market Downturn
The Zac Prince-led BlockFi has become the latest prominent name to cut down its staff size due to the continuous fall in the value of the cryptocurrency market.
BlockFi, a crypto lending platform, announced Monday that it would reduce its workforce by about 20%, while digital currency exchange, Crypto.com, reported a 5% reduction on Friday.
BlockFi explained that the “dramatic shift in macroeconomic conditions worldwide” has negatively affected the firm’s growth. As a result, Block will be laying off approximately 850 employees or 20% of its workforce.
- Zac Prince, CEO of BlockFi, announced via a tweet on Monday that the company is dedicated to sticking around for the long haul.
Why You Should Care
The prolonged downturn in cryptocurrency prices has affected the profit of crypto firms, leading to the increasing layoffs of staff.
Investors File Lawsuit Against Binance for Advertising Terra UST as ‘Safe’
The ripple of the Terra ecosystem collapse continues to cause turbulence in the crypto industry, with investors in California now filing a class-action lawsuit against Binance US for false advertising of TerraUSD (USD).
The case was filed by the law firm Roche Freedman LLP and accused Binance US of misleading investors and selling unregistered securities to roughly 2,000 plaintiffs. The filing claims that Binance sold the “algorithmic stablecoin” TerraUSD (UST) as “safe.”
The lawsuit points to the adverts Binance ran on its platform, marketing the UST stablecoin as safe. The latest of these adverts was run in April, but the UST lost its dollar peg in May, ultimately leading to the collapse of the Terra ecosystem.
In addition, Binance US is being accused of not being committed to its customers by not complying with U.S. federal and state securities laws when it listed the now-defunct TerraUSD (UST).
- Although the lawsuit names LUNA and UST, neither Binance nor the cryptos are registered with the U.S. SEC.
Why You Should Care
The lawsuit adds more pressure on Binance, which is already being probed by the SEC over the 2017 launch of its native token, .
Cardano Launches New Permissionless EVM Sidechain on Testnet
IOG, formerly called Input Output Hong Kong, the software company behind the Cardano ecosystem, has announced the launch of its permissionless Virtual Machine (EVM) sidechain alpha on the testnet.
The permissionless sidechain will enable developers to write solidity-based applications on the Cardano network and create EVM-compatible DApps and ERC20-compatible tokens while enjoying many of Cardano’s benefits.
The EVM sidechain will be fully compatible with Ethereum upgrades, tools, and wallets while inheriting security from Cardano’s mainnet. IOG did not specify if the EVM compatibility would be directly deployed to its mainnet one day.
The Senior Content Editor of Input-Output Global (IOG), Eric Czuleger, said the community believes in “an interoperable future” that will permit several blockchains to communicate.
- The launch has set Cardano’s ADA on a rally opposing the bearish trend. Over the last 24 hours, ADA has gained 13%, spiking to $0.51.
The 24-hour price chart of Cardano (ADA). Source: CoinMarketCap
Why You Should Care
This means that dApps developed on Ethereum could be seamlessly transferred to Cardano.
PrivaCrip to Power a Blockchain Network That Could Follow Cardano & XRP
When the first decentralised blockchain was popularised in 2008 by Satoshi Nakamoto, the door was open for people across the globe to transact more securely and seamlessly. Many blockchain networks have been built and powered by native crypto tokens, including PrivaCrip (PRCR).
Native tokens exist for several reasons. Aside from acting as digital currencies, they perform various functions. Helping blockchains improve data traceability, security, transparency, and trustworthiness shared throughout the network. They also assist in reducing costs through their ever-evolving efficient methods.
Cardano (ADA) and Ripple (XRP) are among the best blockchain-based cryptos that this article will discuss. We will also look at how PrivaCrip (PRCR) will power a blockchain network set to launch into the crypto space.
Top Tier Crypto Makes its Mark – Cardano (ADA)
Cardano (ADA) has been around in the crypto space since 2017. The Proof-of-Stake (PoS), Ouroborous Cardano (ADA), was established using a research-based methodology.
Research is the backbone of Cardano (ADA) and is integral to its success in the cryptocurrency market. Cardano (ADA) uses an evidence-driven mechanism and peer-reviewed research to run its ecosystem to drive its evolution.
Among many things, Cardano (ADA) helps establish DeFi products and provides a suite of financial solutions. Crypto enthusiasts can stake Cardano (ADA) for a chance to earn rewards for their holdings.
With 2022 providing challenges in cryptocurrencies across the globe, Cardano (ADA) is one of the few cryptos to see a surge in on-chain trading volume this year. CoinMarketCap lists Cardano (ADA) as the 7th largest crypto by market capitalization at the time of writing.
Making Waves – Ripple (XRP)
Launched in 2012, Ripple (XRP) is a leading provider of crypto solutions for businesses. Ripple (XRP) provides developers with a solid open-source foundation for executing demanding projects. It is fast, energy-efficient, cost-effective, and reliable.
The solutions provided by Ripple (XRP) enable developers to solve inefficiencies, including asset tokenization and remittance. Therefore, individuals and businesses may apply Ripple (XRP) for DeFi, payments, tokenization, and more.
Crypto enthusiasts with a long-term focus may find Ripple (XRP) a valuable investing tool. Token holders can use Ripple (XRP) for staking its mainnet platform for a chance to grow their earnings and maximise profit.
At the time of writing, it ranks number 6 on CoinMarketCap, making it a cryptocurrency to buy now.
The New Face Of Privacy – PrivaCrip (PRCR)
The soon-to-launch PrivaCrip (PRCR) is a cryptocurrency built for Web3 data privacy. It will allow users to develop and use permissionless and privacy-preserving applications. This unique feature of PrivaCrip (PRCR) secures apps, protects users, and fosters the creation of many new Web3 uses.
PrivaCrip (PRCR) will drive a blockchain that creates a more empowering and inclusive internet. It will enable developers to build secure dApps using private contracts based on original privacy research (OPR) to revolutionise Web3.
PrivaCrip (PRCR) will begin pre-sale soon and has an initial token price of 0.10 USD. According to the whitepaper, there will be a total supply of 190 million tokens, of which 40% of the total supply will go to the pre-sale.
Crypto enthusiasts who purchase PrivaCrip (PRCR) during the pre-sale will receive the most significant long-term rewards and bonuses. Those who buy with Bitcoin (BTC) will receive a 10% bonus. Also, those using Ethereum (ETH) to purchase will receive 15% of the total PrivaCrip (PRCR) they purchase as a bonus.
10% of PrivaCrip’s (PRCR) total supply is up for distribution as staking rewards, meaning that token holders who stake will receive rewards for their contribution to the crypto’s advancement.
Blockchain networks are continuously evolving, and so are the crypto tokens that power them. Cardano (ADA) and Ripple (XRP) have contributed tremendously to the success of their blockchain networks, gathering mass appeal.
PrivaCrip (PRCR), for its part, will drive a security-enabled blockchain and scalability in private DeFi, empower data tokenization, and bring together a fast-growing community. Acting on its promise, it has the potential to become the next big mover in cryptocurrency.
For more on PrivaCrip (PRCR), check below:
Cardano (ADA) Withdrawal Fees Waved by Bitrue Exchange
Singapore-based cryptocurrency exchange made Cardano one of its base trading pairs earlier this year
Singapore-based cryptocurrency exchange Bitrue announced that it had temporarily waived withdrawal fees for the Cardano (ADA) cryptocurrency.
The trading platform says that the move is meant to celebrate the support it received from the community behind the cryptocurrency.
Users will be able to withdraw ADA without paying any fees until mid-September.
Bitrue has stressed that it wants users to have “as much choice as possible” when it comes to custody options. Those who want to hold their ADA tokens will not be able to do so without paying an additional commission.
At the same time, Bitrue has touted its “Power Piggy” yield-farm investment program for those who want to earn passive income with ADA.
As reported by U.Today, Bitrue introduced the token as its base currency back in February.
In June 2021, it also became the first cryptocurrency trading platform to add support for Cardano-based native tokens.
Last month, Bitrue also announced a staking initiative with the ADA cryptocurrency. It decided to contribute a million tokens to some of the top Cardano staking pools in an effort to boost the level of decentralization.
Earlier this year, SundaeSwap (SUNDAE), the native token of the SundaeSwap exchange, also became available on Bitrue.
WingRiders Losses 59% Of Its Total Value Locked, Plunges Cardano TVL Below $100M
Popular Cardano-based decentralized exchange WingRiders has lost its position as the most valuable DEX on Cardano.
WingRiders slumped from the first position to third after losing more than 59% of the total value locked (TVL) on the platform in the past 30 days.
At the time of writing this line, WingRiders is now the third-largest DEX by total value locked, with a TVL of $19.66 million. It is noteworthy that WingRiders maintained the top spot for more than two months, claiming 42% of TVL On Cardano. However, the DEX has fallen from glory ever since.
Minswap Is Now Cardano’s Most Valuable DEX
The development also affected the total value locked on Cardano. The total value locked on Cardano has fallen below $100 million in the last 30 days after the WingRiders TVL slumped.
Interestingly, Minswap has taken the lead to become the most valuable decentralized exchange on Cardano after the massive decline of WingRiders’ TVL.
At press time, Minswap is leading, with a $49.09 million total value locked on the platform. The DEX hit the milestone after recording a massive growth of 30.9% in its TVL in the past 30 days. Minswap accounts for 51.82% of the total value locked on Cardano.
SundaeSwap, the first decentralized exchange on Cardano, is now the second most valuable DEX in the ecosystem. SundaeSwap is second in the ranking, with $19.72 million in TVL.
Like WingRiders, SundaeSwap has also lost a significant amount of its TVL over the past 30 days. In the past month, SundaeSwap has lost nearly 10% of the funds locked on the platform.
Commenting on the development, Cardano Daily, a platform that shares new developments about Cardano, said:
“After the major decline of @wingriderscom, the TVL scenario of the Cardano ecosystem has stabilized back to normal as we have seen in the past few weeks. @MinswapDEX still led the ecosystem with $51M TVL, contributing 50% of the ecosystem.”
CARDANO TVL STATUS
After the major decline of @wingriderscom, the TVL scenario of the @Cardano ecosystem has stabilized back to normal as we have seen in the past few weeks. @MinswapDEX still led the ecosystem with $51M TVL, contributing 50% of the ecosystem#tvl #cardano $ADA pic.twitter.com/xjZ6cHo8jX
— Cardano Daily (@cardano_daily) August 9, 2022
– Advertisement –