Posted 2 weeks ago | by Catoshi Nakamoto
The internet enters conspiracy mode as LUNA goes into freefall below a CPI puts up a 40-year all-time high and the SEC’s chair, and dirty Gary Gensler accuses crypto exchanges of trading against their users. My name is Ben. This is your crypto nightly news wrap-up. Let’s get it!
As a result of UST losing its peg to the dollar, Luna’s founder Do Kwon has been taking emergency measures and promises his project to “return to form”, but so far, it’s not going to plan, not even a little bit. The Luna foundation was forced to sell their entire Bitcoin holdings, which consisted of well over 70,000 Bitcoin. The price of LUNA itself hovered around $80 dollars just a few days ago, unfortunately, earlier this morning, the price went into to a free fall and crashed down below a dollar to about $.74 cents. Despite suffering the most gut wrenching dump of the ages, Terra states that they’re not going anywhere and that they’re here to stay…yet I beg the question. What is behind this brutal breakdown? Rumors are circulating the internet stating that Janet Yellen hired Citadel to break the peg, some even are even saying Blackrock is involved too. Regardless of who the culprit truly is, one thing is clear…the fed just released a report that shows interest in creating a US CBDC, and this example of UST losing its footing is their ground to stand on. Like Bitcoin analyst, Dennis Porter states, “Mark my words. The UST failure will be used as evidence by policy makers to regulate stablecoins to death and champion CBDCs. This is not good.” Not looking good at all. Is there anything good about the market today? Let’s ask our guy Frankie Candles for a market watch.
The Consumer Price Index numbers from April were released this morning, and it’s clear the fed still has a long road ahead of them. Higher than expected, The CPI marked an 8.3% gain from April last year, just shy of its all-time high from 40 years ago. Since March saw an 8.5% rise, April’s 8.3% rise is what they’re calling the first “cooling” in months. Although energy prices declined 2.7%, with gas dropping 6.1%, Charles Schwab strategist Kathy Jones stated, “We’re starting to see energy pull back a bit, but it’s not enough. The markets were hoping for a better number and it’s not good enough to rule out more Fed tightening.” The fed still has 5 meetings left this year, and the next one begins on June 14th. We already know they plan on hiking the interest rates at every meeting here on out, but with on-going supply chain issues, -little reassurance with inflation, -and with the house passing a $40 billion dollar bill to aid Ukraine, it’s hard to think the hawkish approach won’t continue moving forward.
Dirty Gary Gensler is at it again. The guy has no chill. If you’re new to the channel, he’s the bald guy who runs the SEC, and he wants to make your life trading crypto a living hell. First of all, he’s doing anything and everything he can do delay his inevitable loss in the XRP case. That’s a whole story in itself; but instead of taking the L and staying in his place…he doubles down and continues to be the voice of government overreach. He recently told Bloomberg, (behind pricewall so the source is Finbold) that “all entities trading crypto fall under the regulator’s scope and, therefore, need to register with it.” Not only is he saying that crypto exchanges are evading rules, he’s literally accusing crypto exchanges of trading against their users. His exact quote is, “In fact, they’re trading against their customers often because they’re market-marking against their customers.” If you’re going to make a claim like that, you need real evidence to back it up. With this, of course, he took another shot at the big three stable coins, USDT, USC and BUSD, criticizing, “Each one of the three big ones were founded by the trading platforms to facilitate trading on those platforms and potentially avoid AML and KYC.” You know they’re coming after stablecoins and they’re going to use what happened to Luna’s UST to do it. It’s completely unfair to site what happen with UST as an example, because none of the big three are algorithmic stablecoins.
That’s all I got, Be blessed. BitBoy out.