Bitcoin Crashes, Coinbase Dashes, and Binance Kicks LUNA
Everyone’s talking about bitcoin dipping below $30,000 this week. Its price has fallen 54 percent from its all-time high. The truth is, the entire market is coming down. Terra slid like a drunk sailor off a slippery dock—80 percent in 48 hours. Does the crash mean bitcoin has failed to become the one blockchain that rules them all? This is normal, folks. There is inherent volatility in cryptocurrencies. We’ve seen this before. And, frankly, I’m surprised bitcoin hasn’t fallen below $30,000 until now. But I expect it to rise again and go beyond its all-time high—yes, probably beyond $100,000. But that’s just me.
Binance suspended all withdrawals for LUNA and UST on Tuesday due to network congestion. The suspension lasted for six hours. The fact they even have the ability to do this is a problem. More of this and decentralized exchanges will rise like the tide.
Coinbase stock is falling like a hailstorm. The good news for Coinbase is that the crypto exchange is in no danger of going bankrupt. The bad news for customers is that, should the company go bankrupt, they’ll be treated like unsecured creditors. What that means on a practical level is that anyone holding crypto on Coinbase will be the last in line to receive their crypto if Coinbase does file for Chapter 11 bankruptcy. In other words, it’s risky to hold your crypto on the Coinbase platform. You should keep it in a wallet whose keys you control, if at all possible. By the way, don’t get mad at Coinbase. This is U.S. law.
Last year, Wyoming became the first state to pass legislation making decentralized autonomous organizations (DAOs) official legal entities. Now, Tennessee has amended its Limited Liability Act (LLC) to allow DAOs to organize as legal LLCs.
Everything you wanted to know about social tokens (A MUST-READ).
While the world took notice at Instagram’s intent to start NFT testing this week, hardly anyone noticed that Meta is also adding NFT support for Facebook.
A crypto-skeptical journalist attends ETHDenver and walks away as a Web3 evangelist (A FASCINATING STORY). The bridge between Web 2.0 and Web 3.0 requires “taking the best of both worlds.” If you’re building for Web3, then you should consider these three ways of reducing the climate impact of your data.
Flow is funding a $725 million fund to spur Web3 innovation.
Into the Metaverse and BEYOND!: Why the metaverse is inevitable. These 10 principles should keep your metaverse project in line. And here’s seven more things to consider if you’re planning to enter for the metaverse. Here’s a look at what your virtual office could look like. One real estate professional shares how she plans to make money on virtual real estate. Microsoft is positioning itself for the industrial metaverse.
One independent media house in Russia turned to crypto after President Vladimir Putin blocked its content. To me, what’s fascinating is that the grass roots know how to grow without permission. Citizens are accessing Meduza’s content via VPN, a virtual private network, a private browser that can mask IP addresses. The media house is requesting cryptocurrency donations from around the world. And why not? It worked for Ukraine.
Women are smarter at crypto investing than men. Who didn’t know that?
Co:Create wants to help NFT projects launch their own cryptocurrencies.
In the Democratic Republic of Congo, one company raised $30 million to build a Web3 WeChat.
Does your country—does any country—need digital cash?
Snark and commentary in italics, with the usual disclaimers.
Cryptocracy is a decentralized newsletter published 4 times a week. I curate the latest news and crypto analysis from some of the brightest minds in crypto, and sometimes offer a little insightful and snarky commentary. Always fresh, always interesting, and always crypto.
First published at Cryptocracy. Not to be construed as financial advice.
Image credit: REUTERS/WSJ
