CryptoAgroCash

Category: Crypto News

Do Kwon and Terra saga continues!

Posted on by cryptoagrocash

Speaking of crypto regulation it appears that Terra co-founder Do Kwan is officially being targeted by South Korean authorities.

This is because they issued an arrest warrant for him last week almost exactly four months to the day that Terra went to zero.

The TLDR is that Terra’s novel mint and burn mechanism for its UST stablecoin failed causing both UST and Terra’s Lunacoin to tank spectacularly.

As a result over 60 billion dollars was wiped from the total crypto market cap in the span of a few days.

Though some have suggested that Terra resulted in a 600 billion loss it’s important to remember that there were other macro factors weighing down the crypto market at that time.

In any case Luna and UST holders who saw their crypto portfolios fall to zero have been experiencing unbelievable pain since that time and have understandably been looking for retribution.

Many have placed the blame on Do Kuan hence why the recent arrest warrant is so significant.

It’s safe to say that Do’s behavior after Terra’s collapse has only resulted in more scrutiny from the Terra community.

From what I’ve seen Do has been quite unapologetic and unsympathetic.

The news that he had fled Singapore only added fuel to the fire and led to speculation that he was evading authorities.

Note that South Korean authorities reportedly announced they were going to nullify the passports of Do and other core Terra developers just a few days earlier.

I’ll also note that Do and co are being targeted for more or less the same reasons why the SEC is cracking down on crypto securities laws.

Not surprisingly all this news caused Terra’s new lunar coin along with its old rebranded Lunk and USTC coins to crash.

Some of you may recall that all three were pumping last week and I predicted in last week’s crypto review that these pumps wouldn’t last.

I reckon anyone could have predicted that what is surprising however is that Luna Lunk and USTC didn’t really react to the news that Do is not on the run and is cooperating with South Korean authorities.

Do explained on twitter that he and the Terra team are being targeted by authorities in multiple jurisdictions which is to be expected.

Regardless I must stress that Terra cryptocurrencies are standing on some seriously shaky ground especially Lunk and USTC.

It’s not clear whether any of these crypto projects will survive and their prices are likely to be extremely volatile as the case against Do and co continues to unfold.

Last week’s market analysis

Posted on by cryptoagrocash

Please keep in mind that what you’re about to read is educational material rather than financial advice.

Turning to the charts we can see that BTC continues to bounce against that zone of support around 20k.

The more it’s tested the more likely we are to break below it but the good news is that the bear flag that was forming on the daily failed to play out.

The bad news is that there seems to be a big bear flag on the weekly that could take BTC all the way down to 15k in the next couple of weeks.

Alternatively we could snap to the upside to test the 27 to 29k range.

Let’s hope it’s the latter scenario.

Last week’s top performing cryptocurrencies were Celsius, Lido finance, Cosmos, Cardano, and Nexo so starting with Celsius the Cell token is rallying on the news that some of Celsius’s users could soon be getting their crypto back which is certainly good news.

I’m not going to lie Cells long-term price chart looks pretty promising but I’m going to have to hold off on any speculation since Celsius is currently bankrupt and the Cell token is extremely volatile because of it.

Next up we have Lido Finance whose LDO token is pumping as the Ethereum merge approaches.

This is because Lido Finance is used to stake ETH in a liquid ie tradable manner.

Lido also partnered with Aztec network for low fee liquid staking and additional privacy on Ethereum solid stuff.

Funnily enough LDO has been even more volatile than Cell and that’s simply because of all the uncertainty and excitement around the merge.

With some luck LDO will pump by another 50 between now and then resulting in a 2x move from its price just a few days ago.

Note that I hold LDO in my portfolio.

Another crypto I hold in my portfolio is Cosmos’s ATOM coin which has been rising steadily over the last few months.

That’s because of all of Cosmos’s upcoming upgrades notably liquid staking and interchange security.

Atom is approaching oversold territory on the daily which could result in a slight pullback consistent with its recent price history.

Then there’s Cardano whose ADA coin is rallying for the reasons I mentioned earlier namely confirmation of a date for the Vassal Hard Fork.

You’ll hopefully recall I hold ADA as well.

What I’m looking for from ADA in the short term is a rally back to the 60 cent mark to get back in that medium-term uptrend and I reckon it’s more likely than not given the renewed interest in Cardano.

And finally we have Nexo whose NEXO token is rallying on the news that the crypto platform will allocate 50 million dollars to buying back the token.

As you can see Nexo’s long-term price action is fairly unpredictable and given that Nexo is not all that different from crypto platforms like Celsius I would exercise caution with this crypto especially with all the regulators running around these days.jas