Luna and its stablecoin drop the entire crypto market, Coinbase reports first quarter losses and Instagram begins testing NFTs. These stories and more this week in crypto.
Stablecoins are no longer stable
TerraUSD, a high-profile stablecoin, went offline and traded as low as 12 cents, fueling deep panic throughout the crypto market. Amid the market-wide slide, Tether, the world’s largest stablecoin, reliably seen as a secure on-chain placeholder for crypto investors, also briefly broke its peg with the US dollar, trading at one time at 95 cents. The price of Bitcoin fell to $26,000, while Terra’s LUNA token fell the furthest of any altcoin, losing 100% of its value in just 24 hours.
Earth Collapse: Wall Street Denies Involvement
Following the collapse of Terra’s LUNA token after Terra’s algorithmic stablecoin lost its peg to the US dollar, rumors circulated that Blackrock, Citadel and Gemini may have had some part in the fiasco. All three companies quickly came out to deny the accusation.
Coinbase reports losses
Cryptocurrency trading platform Coinbase reported a net loss of $430 million in the first quarter as sales and active users declined. Along with Coinbase’s disappointing first quarter earnings, the exchange has revealed that if it goes bankrupt, its users could lose all the funds in their accounts.
Instagram begins NFT testing
Instagram began testing NFT on its platform with select creators in the US. Creators participating in the test can now share the NFTs they’ve made on their Instagram feed or messages. Currently, supported blockchains are Ethereum and Polygon, with support for Flow and Solana coming soon.
US accounting standard considers digital assets
The Financial Accounting Standards Board has voted unanimously to revise the accounting rules for publicly traded digital assets in the United States. While it remains unclear when exactly the FASB will revise its accounting rules or provide any new guidance, this could have significant implications for corporations seeking a regulatory pathway to better manage cryptocurrencies on their balance sheets.
KuCoin Exchange is raising funds
Seychelles-based exchange KuCoin has been valued at $10 billion in its latest funding round as it looks to expand its web3 ecosystem. The exchange has already attracted more than 18 million users in more than 200 regions, making it one of the largest crypto exchanges supporting customers worldwide.
Diamonds on Blockchain
The world’s most famous diamond producer, De Beers, has deployed a platform to keep secure records of its diamonds on the blockchain. According to De Beers, the platform, known as Tracr, provides an immutable record of a diamond’s provenance and enables jewelery retailers to have confidence in the origin of the diamonds they buy.
The Belgian Museum tokenizes the masterpiece
The Royal Museum of Fine Arts of Belgium has represented a painting for one million euros and allows fractional ownership of the masterpiece. Partial ownership of Carnaval de Binche, by Belgian artist James Ensor, is available to anyone who invests in the so-called Art Security Token, and the money raised will go towards buying the painting.
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That’s what happened this week in crypto, see you next week.
