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The Luna Foundation Guard’s 80k Bitcoin Sold to Save UST’s Peg Were Likely Scooped Up By BTC Whales

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The Luna Foundation Guard’s 80k Bitcoin Sold to Save UST’s Peg Were Likely Scooped Up By BTC Whales

Summary:

  • Earlier this month, the Luna Foundation Guard drained its 80k Bitcoin reserves to save UST’s peg.
  • According to Glassnode, the Bitcoin sold to save UST’s peg likely ended up being bought by small-time BTC whales owning less than 100 coins.
  • The Luna Foundation Guard now holds 313 Bitcoin, down from 80,394 BTC declared on May 7th, 2022.

According to an analysis by the team at Glassnode, the Luna Foundation Guard’s (LFG) 80k Bitcoin sold in an attempt to save UST’s peg likely ended up being bought by small BTC whales holding less than 100 coins. The Glassnode team shared their insights into the fate of the LFG’s 80k Bitcoin reserves through the following statement and accompanying chart.

During the $LUNA triggered sell-off in early May, a total of 80,081 $BTC were liquidated by the Luna Foundation Guard.

Interestingly, the volume of supply held by entities < 100 $BTC has since increased by 80,724 $BTC.

This shows a transfer from LFG, to <100 $BTC holders.

The Luna Foundation Guard's 80k Bitcoin Sold to Save UST's Peg Were Likely Scooped Up By BTC Whales 11The Luna Foundation Guard Now Left with 313 Bitcoin

As to the flow of the LFG’s Bitcoin during its attempt to save UST’s peg, a report by the team at Elliptic.com concluded that the transfers of Bitcoin started on the morning of May 9th when 22,189 BTC was sent to a new address. Later on, the LFG sent another 30k Bitcoin to the same address, and within hours, a total of 52,189 BTC had been sent to the Gemini exchange. The following day, 28,295 BTC was sent to Binance.

In a May 16th Tweet, the LFG broke down how its BTC reserves were sold to save UST’s peg. Their explanation kicked off with the declaration that it held 80,394 Bitcoin as of May 7th, 2022.

1/ As of Saturday, May 7, 2022, the Luna Foundation Guard held a reserve consisting of the following assets:

· 80,394 $BTC

· 39,914 $BNB

· 26,281,671 $USDT

· 23,555,590 $USDC

· 1,973,554 $AVAX

· 697,344 $UST

· 1,691,261 $LUNA

— LFG | Luna Foundation Guard (@LFG_org) May 16, 2022

As UST lost its peg, the LFG started selling its Bitcoin to convert it into UST. It explained:

See also

Avalanche Team: The Luna Foundation Guard and Terraform Labs are Yet to Sell AVAX Reserves Bought at $200m in April 10

…when the price of $UST began to drop substantially below one dollar, the Foundation began converting this reserve to $UST.

The Foundation did so by directly executing on-chain swaps and transferring $BTC to a counterparty to enable them to enter trades with the Foundation in large size & on short notice.

During the process, the LFG transferred the earlier mentioned ‘52,189 Bitcoin to trade with a counterparty, net of an excess of 5,313 BTC that was returned, for an aggregate 1,515,689,462 UST.’ Another 33,206 Bitcoin was sold for an aggregate of 1,164,018,521 UST.

The team at the Luna Foundation Guard concluded their report on the fate of its Bitcoin reserves by providing the following update of its holdings as of May 16th.

  • 313 Bitcoin
  • 39,914 Binance Coin
  • 1,973,554 Avalanche (AVAX)
  • 1,847,079,725 UST
  • 222,713,007 LUNA (of which 221,021,746 is currently staked with validators)

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Ethereum

Wall Street Analysts Hint MicroStrategy (MSTR) is Worth Buying Despite a 87% Pullback from Feb. 2021 Highs

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Wall Street Analysts Hint MicroStrategy (MSTR) is Worth Buying Despite a 87% Pullback from Feb. 2021 Highs

Summary:

  • MicroStrategy (MSTR) stock value has undergone an 87% correction from its February 2021 highs of $1,350.
  • However, Wall Street analysts still believe it is a buy with a potential to rise to $950 from current levels of $180.

Since Michael Saylor revealed MicroStrategy’s Bitcoin strategy, the value of MSTR stock has been tied to the hip with BTC’s price action.

As it happens, the latter is undergoing a drawdown from its all-time high of $69k set in November 2021 to a local of $17,600 set on the 19th of this month. This translates to a 74.4% pullback in the value of Bitcoin in roughly eight months.

MicroStrategy (MSTR) Value Has Undergone an 87% Pullback from February 2021 Highs.

Similarly, MicroStrategy’s (MSTR) stock value has undergone an 87% pullback from February 2021 highs of $1,350 to its current value of $181. A glance at the daily MicroStrategy chart below reveals that MSTR is still in bear territory, trading below the 50-day (white), 100-day (yellow), and 200-day (green) moving averages.

Ethereum's Vitalik Criticizes 3AC's Co-founder Alleged Yacht Purchase, Says There are More Honorable Ways to Burn $50M 17

Also, from the chart, it can be observed that the daily MACD hints at a low level of buying of MSTR. Furthermore, the neutrality of the daily MFI and RSI hint at an uncertain future for MicroStrategy stock in the traditional markets for the next few days.

Wall Street Analysts Hint MicroStrategy (MSTR) is a Buy.

However, despite the clear bearish environment facing MSTR, Wall Street analysts still believe that MicroStrategy’s stock is still a buy. According to a recent report by Bloomberg, three out of four brokerages that follow the company recommend buying its shares with an average target price of more than triple its current value.

Mark Palmer, an analyst at BTIG, explained that MicroStrategy provides investors with indirect exposure to Bitcoin, thus giving a $950 share price target for MSTR and a $95k target for Bitcoin by 2023. He said:

MicroStrategy provides equity investors in particular with not only exposure to Bitcoin, which currently they don’t have many efficient ways to access. The company also offers an operating business that generates cash with which to buy more Bitcoin.

The Bloomberg report also reiterated the earlier mentioned correlation between the price of Bitcoin and that of MicroStrategy, given the company’s dedication to holding their BTC stash. Furthermore, MSTR has been hit hard by the ongoing market drawdown, ‘slumping 69% this year’ compared to the ‘Nasdaq’s 29% decline and Bitcoin’s 55% drop.’

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Solana To Venture Into Smartphones With a Focus on Web3 Mobile Apps

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Solana To Venture Into Smartphones With a Focus on Web3 Mobile Apps

Summary:

  • Solana developers have unveiled a flagship Android smartphone dubbed Saga.
  • The phone will be available for pre-orders immediately and delivery in early 2023.
  • Saga will also feature unique Solana functionality integrated within.
  • Solana developers also debuted Solana Mobile Stack, an open-source SDK for Android enabling Web3 apps on Solana.

Solana developers are venturing into the telecoms industry by launching a flagship Android smartphone dubbed Saga. The smartphone is the first product of Solana’s new subsidiary, Solana Mobile.

According to the official Saga website, the smartphone will feature a 6.67″ OLED display, 512 GB storage, and the latest flagship Snapdragon® 8+ Gen 1 Mobile Platform. The latter’s security features will enable the Solana Mobile Stack’s seed vault and an additional Secure Element built into the device, which keeps private keys, seed phrases, and secrets ‘separated from the application layer yet still capable of interacting with apps running on the device or in a mobile browser.’

$100 for Saga Pre-orders, Applied to the Anticipated Final Cost of $1,000.

Saga will also be explicitly built for Web3 functionality such as decentralized exchanges, NFT marketplaces, and much more. The Saga smartphone will be available immediately for pre-order, with deliveries estimated to be fulfilled in early 2023.

The team at Solana has also provided a refundable $100 pre-order fee which will be applied to the final anticipated cost of $1,000. However, developers will be given priority during the delivery of the smartphone to test the Solana Mobile Stack and Saga.

Ethereum's Vitalik Criticizes 3AC's Co-founder Alleged Yacht Purchase, Says There are More Honorable Ways to Burn $50M 17
Sneak peek of the Saga smartphone. Source, Solana.com.

Smartphones are Pivotal to Web3 Adoption.

Raj Gokal, the co-founder of Solana, explained that mobile devices such as Saga were pivotal to Web3 adoption. He said:

We chose the Saga name because the story of crypto is still being written. This is the next chapter of this narrative and we believe opening up crypto to mobile will lead to greater adoption, better understanding, and more opportunities.

OSOM will carry out Saga’s design and manufacturing. It is a leading Android development company with a vast background in building computing hardware for Google, Apple, Intel, and others.

Jason Keats, co-founder, and CEO of OSOM, further reiterated the importance of mobile devices in boosting Web3 adoption. He explained:

Saga starts from first principles to create a mobile experience for individuals, developers, and ecosystem participants that opens a new era of mobility.

The world needs novel hardware to embrace the future that is web3, and building out an ecosystem that looks to the future without being burdened by past legacy ecosystems is hugely exciting for us.

Solana Also Launches Solana Mobile Stack.

Solana Labs CEO Anatoly Yakovenko made Saga’s unveiling during an event in New York City, where he also provided further details of the earlier mentioned Solana Mobile Stack: an Android framework that allows developers ‘to create rich mobile experiences for wallets and apps on Solana and create a Secure Element for private key management.’

The Solana Mobile Stack (SMS) is an open-source software development kit optimized for Web3 and easy to use. It also has a new set of libraries for wallets and apps, thus providing developers the foundations to create rich dApp experiences on Solana.

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Chairman Powell: Digital Dollar Is Something We Really Need to Explore As a Country

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Chairman Powell: Digital Dollar Is Something We Really Need to Explore As a Country

Summary:

  • Chairman Jerome Powell has stated that the US Federal Reserve plans to recommend a Central Bank Digital Currency (CBDC) to Congress.
  • According to Chairman Powell, a CBDC is a crucial financial innovation that will affect all Americans.

The US Federal Reserve Chairman, Jerome Powell, has said that the central bank is looking into recommending to Congress how to go about launching a Central Bank Digital Currency (CBDC).

Chairman Powell shared his insights into a potential CBDC in the United States during a presentation of the Semiannual Monetary Policy Report, and the State of the Economy to the House Financial Services Committee held earlier today.

In his presentation, Chairman Powell stated that a Central Bank Digital Currency was something the United States needed to explore as a country and should not be a partisan issue. He added:

It’s a very important potential financial innovation that will affect all Americans. Our plan is to work on both the policy side and the technological side in coming years and come to Congress with a recommendation at some point.

A Central Bank Digital Currency Will Help Maintain the US Dollar’s, International Standing.

Chairman Powell’s statement on the United States needing to explore a Central Bank Digital Currency as a country echoes similar remarks he made last week, whereby he emphasized the significance of the US dollar remaining the dominant global currency.

He shared his insights on the importance of a dominant US dollar during a speech at a research conference in Washington DC on  ‘International Roles of the US Dollar.’ He started by stating that the US Dollar had been at the center of the international financial and monetary system since World War II. The US Dollar has since become the world’s reserve currency and the most widely used currency for payments and investments.

In addition, Chairman Powell forecasted that a Central Bank Digital Currency would help maintain the dollar’s international standing. He said:

And in light of the tremendous growth in crypto-assets and stablecoins, the Federal Reserve is examining whether a U.S. central bank digital currency (CBDC) would improve on an already safe and efficient domestic payments system.

As the Fed’s white paper on this topic notes, a U.S. CBDC could also potentially help maintain the dollar’s international standing. As we consider feedback from the paper, we will be thinking not just about the current state of the world, but also how the global financial system might evolve over the next 5 to 10 years.

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