🌚Terra to Burn 1.3 Billion UST - TWJ #153
Kwonzinomic continues.
In today’s issue:
The crypto market is flat with the total market cap at ~$1.2-1.3 trillion. STEPN is the worst performer in the top 100 in the past 7-d. Bill Ackman is back and argued that the Fed should lift rates aggressively — he must have loaded up again on his shorts.
In other news, Terra to burn 1.3 billion UST, Figment & Chorus one won’t support the new Terra blockchain, and Fed Vice Chair Brainard says that CBDC could coexist with stablecoins.
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- Curated by Marco Manoppo (@manoppomarco)
📰Market News
⎆Terra to Burn 1.3 Billion UST
The Terra governance has approved a proposal that will burn all TerraUSD held in the project’s community pool and the portion that was deployed for past liquidity incentives on Ethereum. This approximately come down to 1.3 billion UST or 11% of the total UST supply.
⎆Figment & Chorus One Won’t Support the New Terra Blockchain
Some of the largest staking providers, Figment and Chorus One, have announced that they won’t be supporting the new Terra blockchain. The main reason is how Terra handled its government & decision-making process. Both firms support approximately $7 billion in AUM.
We have not historically seen any successful re-organization of layer 1 blockchain. Bitcoin Cash, Bitcoin SV, Ethereum Classic, and many others have failed to sustain their ecosystem and developer community.
⎆Fed Brainard Says That CBDC Could Coexist With Stablecoins
The vice-chair of the US Federal Reserve Lael Brainard made a remark that a US CBDC can coexist alongside existing stablecoins. Circle, the issuer of USDC, has previously made a comment that a CBDC might squash private-sector tokens.
A CBDC is a double-edged sword. On one hand, it will most likely increase the market cap of crypto assets, while it also means that the government will have more power over its people. Because of this, I don’t think that a CBDC will truly squash the private sector, but the volatility in the stablecoin space will increase significantly if the US ever launches its CBDC.
👨🏻💻Decentralized Finance (DeFi)
Tether Enters Latin American Market with Mexican Peso-Backed Stablecoin
Binance, FTX To Support 'Terra 2.0' Relaunch
Polygon Aims to Attract Terra’s Projects
Stepn to Bar Gameplay in China
Metamask Partnership with Asset Reality
Kava 10 is Live
Fantom Has Lower Gas Fee
Ethereum Miner Tries to Expedite Testnet Merge By 2 Weeks
🏛Governance - Active Proposals
Compound - Risk Parameter Updates for 5 Collateral Assets
Gitcoin - S14 Funding
Indexed - Refund DAI for Lawyer Costs Through Loan
🦮NFT & Metaverse
How an Indie Author Is Using Ethereum NFTs to Engage and Inspire Readers
Gaming DAO Merit Circle and YGG Caught in DAO Governance Strife
Top Sales (Last 24-h); Source: https://dappradar.com/nft
📈Deal Flow & Capital Raise
Cantina Royale - $4.5M Seed Round
FanTiger - $5.5M Seed Round
Enhanced Digital Group - $12.5M Seed Round
JUNO - $10M Series A
Elliptic - $60M Series C
Old Fashion Research - $100M Venture Fund
Bitex - Undisclosed $ of Acquisition by Huobi
⚖️Regulatory Update
Digital Yuan; Draft Bill to Ban China’s Yuan From US App Stores
US Fed Vice Chair Says Digital Dollar Would Take 5 Years to Launch
PoolTogether Crowdfunds Legal Defense With NFT Collection
Lael Brainard Says CBDC Could Coexist With Stablecoins
📚Noteworthy Reads
Jason Levin’s Thread on How a Run on Stablecoins could Destroy The Market
Vitalik’s Read on Two Thought Experiments on Stablecoins
Data Finnovation’s Thread on A Math Problem on Decentralized Stablecoins
Feel free to reach out to manoppomarco@gmail.com — feedbacks and constructive criticisms are much appreciated.