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Wintermute’s CEO on why Terra’s blow up was inevitable, and what happens next

The demise of the Terra blockchain sent a ripple effect throughout the crypto ecosystem last week, as the market absorbed over 80,000 BTC deployed in a failed attempt to keep the UST “stablecoin” pegged 1:1 with the US dollar. “If you’re a market maker and you don’t make money in those kinds of days, then yeah — you’re doing something wrong,” said Evgeny Gaevoy, CEO of Wintermute — an algorithmic crypto market maker with nearly $2 trillion in cumulative volume, …

Algorithmic stablecoins need payments adoption to succeed, Goldman argues

For algorithmic stablecoins to have a long-term future they’ll need to find wider adoption for payments in the real economy, according to analysts at Goldman Sachs.  “Stablecoins have limited use as a payments medium at this time. If that real-world use case were to grow over time, it could create a more stable demand base for these assets,” the investment bank wrote in a research report dated Monday. “Hypothetically, an algorithmic stablecoin could survive in the long-run, if it were …

Do Kwon says he is ‘heartbroken’ in new statement, claims no UST or LUNA sold during crisis

Terraform Labs co-founder and CEO Do Kwon broke his social media silence early Friday evening with a trio of tweets about the collapse of Terra’s LUNA token and associated stablecoin, UST. 1/ I’ve spent the last few days on the phone calling Terra community members – builders, community members, employees, friends and family, that have been devastated by UST depegging. I am heartbroken about the pain my invention has brought on all of you. — Do Kwon 🌕 (@stablekwon) May …

Kava Network’s USDX tumbles to $0.65 as yet another stablecoin depegs

Kava Network’s native decentralized stablecoin USDX has lost its parity with the US dollar. This stablecoin has a market cap of more than $115 million, according to CoinGecko. USDX dipped to almost 0.55 on Wednesday, and is currently changing hands at $0.65 — well below its supposed dollar peg. What may have caused USDX to lose its dollar parity is not clear. Unlike algorithmic stablecoins such as those provided by Terra, Kava Network’s USDX can be minted as a loan …

Luna backer Su Zhu says UST collapse is ‘Terra’s DAO hack moment’

Three Arrows Capital co-founder Su Zhu has broken his silence on the collapse of the stablecoin TerraUSD (UST) and its related token Luna, an ecosystem he had supported. “This has been an incredibly humbling week and [it’s] difficult to find the right words,” he wrote on Twitter on Friday after UST, the algorithmic stablecoin at the center of the Terra blockchain, lost parity with the US dollar this week. Zhu acknowledged that a number of things had gone wrong. He …

Luna supply soared to 6.5 trillion coins before Terra’s latest halt

The circulating supply of Luna (LUNA) surged to more than 6.5 trillion by the time the Terra blockchain was halted for a second time in an attempt to salvage the collapsing ecosystem.  For the last few weeks — up until just three days ago — the supply of Luna was only around 340,000, according to data from Terra Analytics. That was until TerraUSD (UST) lost its peg to the dollar on Monday, kickstarting a downward spiral for Luna, a related token …

Yellen says the stablecoin market is still too small to pose systemic risk

US Treasury Secretary Janet Yellen said Thursday that the stablecoin market has not yet reached a size that would pose a systemic risk to the US financial system. In a hearing before the House Financial Services Committee, Rep. Jim Himes pressed Yellen on where the systemic risk would truly begin. At two trillion in market cap, Himes said he didn’t think the space had broken the threshold. Yellen agreed, though she pointed out that the potential for risk remains: “Although …

Billions of Luna minted as supply grows 20-fold in four days

The supply of Luna (LUNA) has increased by more than 20 times over the last few days, as the effect of TerraUSD (UST) losing its peg to the US dollar continues to take its toll. This massive supply increase has accelerated the fall in Luna’s price, which is down 99% in the last two days. And if the price of Luna continues to fall, its supply will also continue to increase.  Why is this happening? To understand what is going …

Washington’s think tanks and wonks turn to stablecoins, CBDCs

Stablecoins have come into vogue among DC’s policy thinkers. Political intellectuals are turning to stablecoin policy and the topic of central bank digital currencies (CBDCs) in the US capital. The actual regulatory apparatus has been focusing closely on stablecoins for many months, with the President’s Working Group November report https://www.theblockcrypto.com/post/145913/washingtons-think-tanks-and-wonks-turn-to-stablecoins-cbdcs?utm_source=rss&utm_medium=rss on the subject making it a top-priority legislative item. As a consequence of both that report and President Biden’s more recent executive order, many members of not just the regulators …

Hacked stablecoin Beanstalk seeks to borrow $77 million to revive itself

Quick Take The Beanstalk stablecoin hopes to raise $77 million in an over-the-counter loan from private investors. The team is aiming to recover from a flash loan exploit in April that drained millions in funds. The team behind the stablecoin Beanstalk is raising $77 million in an over-the-counter loan from private investors as it seeks to revive the project following a major hack last month. On May 7, the Beanstalk DAO — the decentralized autonomous organization that oversees the project …