Crypto News: ETH Reorg, LUNA 2.0, USDT Rotation & MORE!!

Foreign [Music] Bureau weekly crypto review here are This week’s top headlines in the crypto News [Music] Terra Revival the new Terror blockchain Begins producing blocks and the new Lunar coin lists on major cryptocurrency Exchanges Is it going anywhere Ethereum emergency shortly after Announcing a summer merge ethereum Developers discovered the beacon chain To be producing bad blocks what does This mean for eth Litecoin privacy the silver to bitcoin’s Gold gets a layer of privacy provoking Reactions from crypto exchanges in Heavily regulated jurisdictions will a Recent partnership protect LTC from D Listings FTX making bets cryptocurrency’s fastest Growing exchange teases big name buys as CEO Sam bankman freed prepares to spend Up to one billion dollars on U.S Politicians why this could be a good Thing Mad crypto money crypto VC and driesen Horowitz announces a record-breaking Crypto fund while crypto projects raise Hundreds of millions of dollars here’s Where all the money is going Tether troubles after 10 billion dollars

Of usdt is redeemed for dollars crypto’s Largest stable coin issuer continues to Cautiously expand its operations Everything you need to know And a closer look at last week’s top Performing cryptos and where they could Be headed next all this and More in just A moment [Music] Good morning afternoon or evening thank You for tuning in my name is guy and What you’re about to see is educational Content not Financial advice you can Find any topics you’re looking for using The timestamps in the video timeline and Now for today’s top stories Last week the terror Community approved A proposal by Tara co-founder do Quan to Revive the Terra blockchain and about a Day later its mainnet went live The version of Terror that collapsed has Since been renamed Terra classic with Its Luna coin having the ticker l-u-n-c And its UST stablecoin having the ticker Ustc The new version of Terra will retain the Original name and it has Luna as its Only native coin no decentralized stable Coins exist at the protocol level Given that the only reason people were Still buying lunc or ustc was to Participate in the snapshot to receive a Portion of the initial supply of new Luna both lunc and ustc have continued

To crash By contrast Luna is showing signs of Life with the price that’s holding Steady at around five dollars This gives Tara a market cap of 1.2 Billion assuming 210 million Luna are in Circulation as per coin market cap As I mentioned in my video about Terra Classics collapse many in the terror Community had no choice but to Rally Behind the new chain as it represents Their only hope of reclaiming some of Their lost funds As such Luna is likely to see a lot of Cell pressure as its Supply gradually Unlocks and it’s not currently clear Whether there will be enough demand to Keep Luna’s price from falling below its Five dollar support For now Luna has the wind at its back as It continues to list on major Cryptocurrency exchanges and it looks Like almost every single one has Signaled its support for the project in Some way Similarly many Terror projects have Begun to redeploy their dapps on terror And infrastructure service providers are Likewise calibrating their codes to Support the new chain The only problem is that terra’s Implosion has attracted the attention of Regulators around the world and any Regulatory actions against the entities

Behind Terror could take away its Initial momentum Not only that but it’s very unlikely That investors will be all that Interested in pouring large amounts of Money into Terror given its recent History The same can’t be said for terror’s Projects however put simply if terrorist Projects can create enough organic Demand for lunar Terror may have a Chance albeit a slim one The real question is whether Terror will Be able to compete with all the other Cosmos ecosystems out there especially As we enter the depths of the crypto Bear Market more about that in the Description Now even though crypto is in a bear Market there are many bullish Milestones On the horizon and one of them is Ethereum’s transition from proof of work To proof of stake in a process known as The merge The Assumption there is that eth will Become a more appealing asset Particularly to institutional investors Who are sensitive to sensationalist Headlines about the energy use of proof Of work As many of you will know ethereum’s core Developers recently announced that the Merge will take place in August so long As quote everything goes according to

Plan Well unfortunately last week it was Revealed that not everything was going According to plan and that’s because Ethereum’s Beacon chain suffered a Temporary block reorganization For context the beacon chain is Basically a copy of the ethereum Blockchain that uses proof of stake Instead of proof of work as its Consensus mechanism As for the block reorganization the Plain English explanation there is that Validators on the beacon chain briefly Began producing two conflicting copies Of the beacon chain specifically seven Blocks While this temporary Fork often occurs Because of a bug or the intentional Actions of malicious validator nodes in This case it seems to have been caused By a difference in software versions for Validator nodes Whatever the reason the potential Implications of the beacon chain reorg On the August deadline for the merge Were enough to Spook many etholders into Selling this selling caused over 150 Million dollars in liquidations which Further suppressed eth’s price action Never mind that the rest of the crypto Market was already taking a beating Because of macro factors Although eth has recovered a bit since

Its dip it remains well below the 2K Support level it had been holding for Over two weeks for what it’s worth Seventeen hundred dollars seems to be Another strong zone of support In terms of what the riog means for the Merge timeline this is still being Assessed but the fact that ethereum Developers are now discussing delaying The difficulty bomb suggests there will Be a delay If you’re wondering what else ethereum Has been up to these days you can check Out my most recent update about the Project using the link in the Description Now speaking of famous altcoins Litecoin Recently implemented a privacy protocol Called mimblewimble that makes it Possible to send private LTC Transactions if mimblewimble sounds Familiar that’s because it takes its Name from the tongue tying curse in Harry Potter which scrambles a person’s Speech so that it can’t be understood The mimblewimble Privacy protocol was Introduced by an anonymous individual in 2018 and up until recently the only Cryptocurrency that had implemented it Was the grin privacy coin If you watched my Litecoin update last Year you might recall that litecoin’s Version of mimblewimble includes another Technology called extension blocks which

Acts as a sort of side chain to the main Chain This means that Litecoin did not become A privacy coin when mimblewimble was Implemented earlier this month Rather it merely introduced the option To make LTC transactions private on its Sidechain Even so this was enough to make Cryptocurrency exchanges in South Korea Question whether they should continue to Offer LTC in light of litecoin’s recent Upgrade This is mainly because South Korea has Some of the strictest crypto regulations In the world and there are concerns that Ltc’s privacy features could undermine The kyc and AML regulations in place There Shortly after these exchanges voiced Their concerns blockchain analytics firm Elliptic announced that it had become The first to support litecoin’s Mimblewimble sidechain according to the Announcement quote elliptic Solutions do Not seek to trace or de-anonymize Confidential Litecoin transactions Instead they allow businesses to Identify whether a Litecoin transaction Or wallet includes funds that have made Use of this privacy feature Now this obviously begs the question of Whether any Litecoin wallets that Interact with the mimblewimble sidechain

Will be blacklisted meaning they won’t Be able to send LTC to cryptocurrency Exchanges if this does come to pass the First place it will be implemented will Likely be South Korea and it could Foreshadow the rollout of the same LTC Restrictions for crypto exchanges in Other countries In any case many are hailing litecoin’s Privacy upgrade as a pivotal point for The crypto project as it technically Makes LTC the most accessible crypto With privacy features As for me I’m wondering whether we could Ever see a similar privacy protocol find Its way to Bitcoin now this wouldn’t be Entirely out of the question given that Litecoin has long served as bitcoin’s de Facto testnet Then again some would argue that Bitcoin’s lightning Network already Provides some degree of privacy Protection and you can find out more About that using the link in the Description On the subject of crypto exchanges FTX Recently announced that it’s planning to Spend billions of dollars to buy other Companies that are relevant to its Operations The news comes shortly after FTX said Its exchange would be supporting stock Trading and according to decrypt FTX is In talks to outright acquire a stock

Trading platform such as Weeble This move by FTX isn’t surprising given That other cryptocurrency exchanges have Recently also announced Acquisitions of Other companies namely crypto exchanges Outside the United States Some exchanges such as binance have Started taking large stakes in companies That aren’t at all related to crypto but Could help them in other ways namely Increasing brand awareness FTX has been raising the bar in this Regard however and that’s because CEO Sam bankman freed and co-ceo Ryan Salam Have been donating tens of millions of Dollars to U.S politicians and political Entities What’s interesting is that they’ve been Sending this money to politicians from Both political parties That can only mean one thing and that’s That FTX is trying to influence crypto Policy and regulations If you watched my video about crypto Lobbying you’ll know that this is Entirely legal and it’s something that’s Being done in some way by just about Every single wealthy individual and Corporation The sad reality is that this is how most Policies and regulations are shaped These days but the Silver Lining is that The involvement of FTX and others Reduces the chances of a crypto

Crackdown Case in point Sam has testified to U.S Politicians on more than one occasion About crypto policy most recently to Defend the trading of crypto derivatives In the face of the cftc the derivatives Regulator This influence is why Sam recently noted That he’s planning on donating 100 Million dollars to various politicians When the next U.S election comes around In 2024. what’s crazy is that Sam also Noted that he’s willing to donate up to One billion dollars to whoever opposes Former U.S president Donald Trump Assuming he runs again As highlighted by cointelegraph this Would make Sam the largest individual Political donor in history breaking the Previous record by almost 4X Now many are questioning whether this Massive donation would truly be made for The sake of shaping crypto regulation However I should point out that the Former U.S president wasn’t exactly Pro-crypto Sam also specified that he’s quote Looking a lot less at political parties From that perspective and a lot more About sane governance particularly in Relation to the things that Sam is Personally passionate about My only hope is that Sam supports the Politicians who are pro-crypto and if

You’re wondering which ones they are you Can find out by watching one of my many Crypto hearing summaries they’ll be in The description Meanwhile on Wall Street institutional Investors seem to be as hungry as ever For crypto That’s because crypto VC and recent Horowitz or a16z managed to secure a Staggering 4.5 billion dollars for its Latest crypto fund despite the crypto Market downturn In the blog post announcing the aptly Titled crypto fund 4 partner Chris Dixon Explained that the VC is convinced Crypto is on the cusp of entering a Golden era which is why it wanted to Quote go big Chris specified that the massive money Pile will be plowed into quote web 3 Games defy decentralized social media Self-sovereign identity layer 1 and Layer 2 infrastructure Bridges Dows and Governance nft communities privacy Creator monetization regenerative Finance and more Nice to see that privacy made the list Speaking of a16z if you want to know how It views the crypto markets this year Then I have a video for you on it Anyways Andreessen Horowitz wasn’t the Only VC to announce a crypto fund Another crypto VC from Singapore Announced a 100 million dollar fund

Which will be directed towards crypto Projects in the metaverse niche Presumably those building on Solana and Algorand given that the firm was an Early investor in both smart contract Cryptocurrencies A team of former binance Executives also Announced a 100 million crypto fund of Their own and they specified that They’ll be allocating this Capital to Crypto projects that concern quote Markets where people are still Struggling from the underdeveloped Finance and banking system A couple of individual crypto projects Raised some mad cash too and one of them Was a new Venture called flow carbon Which raised 70 million from various Crypto VCS As the name suggests flow carbon is a Crypto project that focuses on carbon Credits with its goddess nature token Being the first carbon-backed Cryptocurrency fun fact it was founded By the former wework CEO and if you Don’t know what went down there I’ll Leave some links in the description The other crypto project to raise some Cash was starkware a layer 2 scaling Solution for ethereum which raised 100 Million dollars from various crypto VCS Because the start net layer 2 appears to Be lacking a token this massive raise Tells me that a token is a possibility

Especially since optimism recently Airdropped its own token to its layer 2 Users if you want to learn more about Airdrops and how you can find them check Out my video about them using the link In the description Anyhow when it comes to crypto billions Tether is at the top of the list Literally that’s because tether issues Usdt the largest stable coin by market Cap There are of course many questions about Where all the billions backing the usdt In circulation actually are and even More questions about the quality and Quantity of the assets backing usdt This uncertainty seems to be the reason Why close to 11 billion dollars of usdt Has been redeemed four dollars over the Last week and it all began with terror’s Collapse With Regulators itching to crack down on Sabercoins in the wake of ust’s Debegging usdt is in the spotlight and This has many usdt holders fleeing to Stable coins perceived to be safer like Usdc What’s funny is that many have Interpreted this as a sign that a run on Tether’s reserves has begun but if You’re subscribed to My Weekly Newsletter you’ll note that I take this As a sign that a historic transition is Underway

You see for a long time the crypto Industry was concerned if not convinced That if lots of people started cashing Out their usdt four dollars tether would Eventually fall short This would lead to a collapsing Confidence in cryptocurrency’s largest Stable coin which would in turn bring Death and destruction to the entire Crypto Market Instead what we’re seeing is a Slow-motion flight to safety from usdt To stable coins with more transparency Something that’s happening voluntarily Without regulatory intervention mind you In retrospect the transition away from Usdt was inevitable but that doesn’t Mean tether isn’t trying to stop it it’s Still expanding usdt to other Blockchains and continuing to introduce Alternative stable coins Whether these new initiatives will Increase the dwindling demand for usdt Remains to be seen But the amazing thing Is that tether could easily regain its Lost clientele through free market Competition improving transparency and Registering with Regulators are things That tether can and probably will do Because it’s the only way it can remain Competitive and it would be good news For everyone As stable coins like usdc and busd Continue to grow the pressure on tether

To compete will only continue to Increase and risks associated with a Crackdown on usdt will only continue to Decrease I count this as another bullish Milestone to look forward to during the Crypto bear Market but let’s just hope BlackRock doesn’t take control of usdt’s Competitors more about that in the Description Turning to the charts we can see the BTC Continues to bounce around that strong Zone of support around 29k On the weekly we can see that BTC posted Its ninth consecutive week of losses the Longest losing streak for Bitcoin ever So congratulations on being a part of History Looking forward there isn’t much to see We’re likely to continue bouncing around These levels for the short term at least Until the Federal Reserve announces its Next interest rate hike next week Last week’s top performing cryptos were Bitcoin gold ethereum classic Tron una Said Leo and Ave talk about a bear Market So starting with Bitcoin gold there Isn’t that much to say as it’s one of Many Bitcoin forks with limited exchange Support The Bitcoin gold Twitter account also Hasn’t posted since July last year which Leads me to believe that the current

Price pump is nothing more than Manipulation Next we have ethereum classic whose Etc Coin is seeing a slightly more Legitimate rally that’s presumably Rooted in the implications ethereum’s Transition to proof of stake will have On ethereum classic I say slightly more legitimate because The ethereum classic Twitter account Also hasn’t tweeted in over a month Which really makes me wonder whether the Current pump is truly due to speculation Around the merge In third place we have Tron whose TRX is Rallying on the rapid growth of the US Double D stablecoin another algorithmic Stable that was inspired by Terror and Offers yields that are even more Suspiciously High than terra’s anchor Protocol Then we have una sedlio which is the Exchange token for bitfinex Leo seems to Be pumping because of the increased Trading volume on bitfinex following the Listing of various cryptocurrencies Including terra’s new Luna you can learn More about the pros and cons of exchange Tokens using the link in the description That I digress Last but certainly not least we have Ave One of the largest D5 protocols by total Value locked as far as I can tell the Ave token is rallying because of the

Release of an exclusive nft available Only to users of the RV protocol prior To September 2020. Those were the days Unfortunately ave’s price has been in a Slow decline since May last year as have Many other defy related crypto tokens The good news is that Ave seems to have Found some support level around the 80 Mark let’s hope this support holds for The foreseeable future And that is all for today’s coin Bureau Weekly crypto review if you enjoyed it You know what to do hit that like button Subscribe button and the bell icon too Now just a heads up that there’s less Than 48 hours left to try your luck at Winning one of 10 prizes of 0.1 BTC That’s around 3 Grand a piece which is a Pretty penny additional details can be Found in the description just below me Thank you so much for watching folks and I’ll see you all in next week’s episode [Music]