Do Kwon’s revival plan appeared to hit a snag yesterday after the launch of the Terra 2.0 mainnet (Phoenix-1) was pushed back to today.
However, things seem to have gotten back on track as the Terra founder shared a snippet of mainnet going live today at 09:06 (UTC+3). The relaunch of the new chain comes as a result of a hard fork proposal passed this week.
Notably, the new chain has no algorithmic stablecoins. $LUNA ($LUNA2) token holders can view their balances by logging into the station and refreshing the page, Do Kwon added.
Crypto exchanges signal support for Terra rebirth
A recent Terra announcement detailed that the Terra team has been working with cryptocurrency exchanges, including Binance and Bybit, to launch Terra 2.0. The former shared its support strategy, noting that it will use pre-attack and post-attack snapshots for LUNA token distribution.
Since the announcement, Bitrue, Bitfinex, Bitpanda, Gate.io, KuCoin, Bitfinex, and Lbanks have signaled their support for the new Terra ecosystem and LUNA Airdrop. Huobi, which listed LUNA last year, is also among the exchanges that have pledged support for the Terra Network relaunch.
Curiously, FTX CEO Sam Bankman-Fried appeared to support Terra 2.0 in a now-deleted tweet retweeted by Do Kwon. The deletion cast doubt on the crypto exchange’s stance on the new Terra chain.
Venture capital funding to turn the tide and avoid a prolonged crypto winter, says JPMorgan
In a research note sent out on Wednesday, investment bank JPMorgan insisted on the role of continued venture capital funding to ensure there is no prolonged crypto winter similar to the 2018/2019 period. JPMorgan strategists, including Nikolaos Panigirtzoglou, noted that Terra’s collapse in the market would have a limited impact going forward.
The fall of UST was disastrous to say the least, but institutional investors are eager to keep donating money and this bodes well for a bright future. Notably, analysts at JPMorgan noted that $4 billion of the total $25 billion in funding poured into crypto this year was seen following Terra’s collapse. JPMorgan also noted that the Terra debacle didn’t have such a negative impact on the decentralized finance space, despite calling it a “significant blow to the crypto world.”
The CME and FTX conflict over the derivatives proposal will be further debated in a CFTC panel
Bahamian crypto exchange FTX recently filed a new trading plan with the CFTC that would allow the exchange to disintermediate derivatives trading. On Wednesday, the Commodity Futures Trading Commission held a roundtable discussion on FTX’s proposal.
FTX.US’ derivatives trading proposal drew opposition from Sean Downey, an executive at futures and options trading platform CME. The executive complained about several matters, notably questioning FTX’s assumption that an algorithm could replace capital. He added that it’s important to understand the difference between margin and capital, and brought up Terra’s problems.
FTX’s proposal would see the removal of future commission traders (FCMs) as intermediaries and therefore the CME would be most affected, which is why the exchange is strongly opposed to the proposal. Speaking to a congressional committee last week, CME CEO Terrence Duffy called FTX’s proposal a non-innovation.
OCC executive calls UST fallout a wake-up call
Elsewhere, acting director of the Office of the Comptroller of the Currency (OCC) Michael Hsu said at the DC Blockchain Summit that the recent de-pegging of UST is a wake-up call for the crypto industry to reevaluate the issues and review it tries to solve.
Hsu noted that there was no contagion effect in the banking system, which he believes reinforces the need for safe havens outside of crypto. The lack of pressure from crypto on the banking sector has allowed the traditional banking sector to support businesses despite crypto volatility on the other side.
Regarding yield farming, the OCC director opined that the space had become more of a Ponzi scheme than focusing on actual innovation, blaming the hype-driven economy. These economies blur productive innovations meant to protect users.
Social media influencer arrested at Do Kwon’s home
The losses of Terra’s demise have been felt by many, and one particular victim is a streamer named “Chancers,” who lost as much as $2.4 million through an $80,000 investment in LUNA. According to a ` News report, the person was found at the home of Terra creator Do Kwon and has since been arrested.
The distraught streamer, who was with Do Kwon earlier this month following Terra’s demise, continued to inquire with the woman about the whereabouts of the TFL CEO and then fled the scene. He says he felt like “he was going to die” after losing such a huge fortune in a short period of time. Chancers was one of many investors who jumped into the crypto space for him years ago, in 2017, and amassed fortunes with the growth of digital assets.
Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers
Comments are closed.