Crypto is now ready for a Coinbase bomb after Bitcoin and Ethereum price collapse

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Lower 👇

Cryptocurrency prices fell sharply over the weekend and fell to lows not seen since last summer. Microsoft

MSFT
Billionaire Bill Gates warned yesterday that rising interest rates were likely to lead to a global economic recession CNN a combination of interest rate hikes and sky-high commodity prices means that “the bears on this one have a pretty strong case that worries me a lot”.

that bitcoins the price dropped this morning to below $ 33,000, a drop of more than 20% in the last 30 days. Eat

ETH
uh
and other major cryptocurrencies are doing even worse, with ether falling 7% since this time yesterday and its biggest rivals BNB

BNB
, solana, gimbal and avalanche all fall between 8% and 12%.

of Terra moon is in trouble despite the Luna’s movements

LUNA
Guard Foundation and Terra Labs to support the coin, even designed to support the algorithmic stackcoin TerraUSD

UST
(UST). See below for details.

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Terraforming 🏗️

On guard: After Terra’s algorithmic stablecoin TerraUSD (UST) briefly lost its dollar affiliation over the weekend, the Luna Foundation Guard (LFG) announced this morning that it would lend hundreds of millions of dollars worth of bitcoin and stablecoin UST to maintain it. The Singapore-based LFG said it would lend $ 750 million in bitcoins to trading companies as well as $ 750 million in UST to accumulate bitcoins in an effort to stabilize the market.

What happened: UST is believed to have struggled to maintain its dollar bond due to the withdrawal of large amounts of UST from liquidity pools on the decentralized currency basket, while UST for $ 192 million was dumped. In a now deleted tweet, Do Kwon, the founder of project developer Terra Labs, seemed to suggest that the sale may have been an orchestrated attempt to knock out UST. Kwon then tried to reassure the community that the Twitter posting of the loans should not be seen as an attempt by LFG to leave its bitcoin position, but rather as an increase in liquidity around the UST affiliation. “As the markets recover, we expect to have [UST] loans repaid to us in bitcoin, which increased the size of our total reserves, “said Kwon.

Men men men… Some are not crazy about the plan, and bitcoin podcaster Peter McCormack says it “smells like the Fed is buying US bonds in a crypto country.”

Fools: Terra’s luna price, designed to help UST maintain that dollar bond, has plummeted over the past week, collapsing 25% and plunging the total value of luna coins to just $ 20 billion, just $ 1.4 billion dollars more than UST’s market value.

Why this is important: UST relies on luna to maintain its one-dollar price through a set of coin and chain firing mechanics. UST and Luna have both entered the CoinMarketCaps top 10 cryptocurrencies over the last few months, and UST is one of the largest algorithmic stack coins.

Background: LFG is a nonprofit group formed in January to support the Terra ecosystem as well as the “sustainability and stability of Terra’s algorithmic stack coins” and plans to accumulate a $ 10 billion bitcoin-based reserve. intended to serve as a support mechanism for UST stick. So far, he has bought bitcoins for about $ 3 billion. LFG’s Board of Directors includes some of the biggest names in decentralized finance (DeFi), such as Jump Crypto Chairman Kanav Kariya.

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💔 Resolution: Coinbase

📑 Coinbase, arguably the largest cryptocurrency exchange and platform, will announce its Q1 results tomorrow and expectations are low (despite bullish forecasts from Coinbase CEO Brian Armstrong). The Coinbase stock has crashed with the bitcoin and crypto market over the last few months and has now fallen by 70% since their market debut.

📉 Desktop and mobile web traffic fell 26% in the first quarter from a year earlier, according to data collected by analytics firm Similarweb. Mobile app installations in March fell 67% from April 2021, the month the company went public.

🏷️ Meanwhile, the reaction to Coinbase’s new non-fungible token (NFT) market has generally been negative. Nick Tomaino of the crypto-investment firm 1confirmation, who is also a former Coinbase employee, launched a scathing attack on the company via Twitter, claiming that Coinbase’s current NFT platform “is not this one.” and promised to sell all of its Coinbase shares “if the company does not.” not to take a big leap forward in NFTs in the next year. “

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The week ahead 📆

👀 Keep an eye on these cryptocurrency and crypto-related events this week.

🤳 Today, Facebook’s parent company, Meta, will open its first Meta Store, a “physical retail store” on its campus in Burlingame, California. In the weekend, Coindesk reported that Metas Instagram will support Ethereum, Polygon, Solana and Stream NFTs.

– Metaverse is here, and Zuckerberg claims leadership with the opening of the Meta Store

🪙 Tomorrow, leading US crypto exchange Coinbase will announce its first quarter results amid a severe market downturn.

🎈 Wednesday brings the latest US inflation data in the form of the Consumer Price Index (CPI). The data predicts that inflation peaked last month at 8.5%.

– The “peak” of US inflation signals a turning point in the bond market

👨‍💻 Also Wednesday, Google

GOOG
the annual I / O Developer Conference begins.

– Everything we expect to see on Google I / O 2022

🛡️ On Thursday, the Microsoft Security Summit starts with technical demos and discussions about the modern cyber threat landscape.

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