Last Week [in] Crypto: Terra’s Trial Grips the Ecosystem, A16z Forecasts Better Days for Crypto

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In Brief
  • Terra’s de-pegging has fueled a series of tighter regulatory inquisitions around the world.

  • India wants celebrities to stop endorsing cryptocurrency projects.

  • Actor loses NFTs worth $300,000 in a phishing attack as project scrambles to beef up security.

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The crypto markets are still reeling from the effects of Terra’s implosion and while it might be a hassle to keep up with the latest happenings in the space, Be[In]Crypto has got you covered. We’ve rounded up the most important stories in one place for you from the spill-over effects of Terra’s saga, India’s changing crypto stance, the $10 million reward of bug bounty hunter, China’s latest decision on bitcoin, a venture capital firm making bold predictions for crypto and an official media partnership announcement from Be[In]Crypto.

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Terra’s debacle continues  

Terra’s tribulations continued into the new week as the project scrambled to save what was left of the ecosystem. Do Kwon, the project’s founder unveiled a plan to fork a new blockchain out of it without the algorithmic stablecoin, TerraUSD (UST). The proposal is set to be voted upon by the community but preliminary votes suggest that the bulk of the community might be against such a move.

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The ripples from the de-pegging of UST have struck a poignant chord in the hearts of regulators. Bank of France Governor Francois de Galhau and Fabio Panetta, a member of the executive board of the European Central Bank (ECB), amplified calls for stricter regulations of the stablecoin industry. In South Korea, the Financial Services Commission immediately launched “emergency” inspections to vet the transaction data of local crypto exchanges.

In the wake of Terra’s implosion, Deus Finance’s stablecoin DEI lost its peg to the dollar, sending shivers down the spines of investors. As fears heightened, Brock Pierce, Tether’s co-founder told Bloomberg that the future for algorithmic stablecoins isn’t all bleak and the “problem with this experiment (UST) is that people put too much trust in it too soon.”

Amid the chaos, Nox Bitcoin, a Brazilian exchange, has refunded holders of UST for losses suffered during the de-pegging. The firm spent over $127,000 to compensate users of the platform in a move that may set a precedent for the entire ecosystem.

India’s tough crypto stance

India has had a checkered history with cryptocurrencies and last week, things took a turn for the worst. Officials of the Reserve Bank of India (RBI) have warned that cryptocurrency usage could lead to the dollarization of the country’s economy. One official claimed that increased use of crypto would “seriously undermine” the bank’s ability to regulate monetary policy.

The Securities and Exchange Board of India has called on celebrities and other public figures to desist from endorsing cryptocurrency projects. The regulator’s stance was included as part of the recommendations to the Parliamentary Standing Committee on Finance with the Advertising Standards Council of India advocating for similar moves on grounds that cryptocurrencies are inherently risky assets.

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After a streak of negative reports, India’s government is reportedly mulling over removing a reverse charge tax on foreign cryptocurrency platforms. The removal of this charge would save investors up to 18% as it looks to make a U-turn from the draconian taxation plans for cryptocurrencies.

Hackers and projects are embroiled in a game of tug-of-war

Wormhole, a cryptocurrency bridge, has awarded $10 million to a whitehat hacker for identifying and reporting a bug on the platform. The wormhole had lost over $300 million in a fatal exploit in February and as part of attempts to secure the network, the project turned to a bug bounty program on Immunefi.

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“Wormhole is sending a clear message with this payout to the best, most talented white hats on the planet that if they responsibly disclose security vulnerabilities to Wormhole, they’ll be taken care of,” read Immunefi’s statement on the matter.

On the flipside, Seth Green, an American actor lost four non-fungible tokens (NFTs) to hackers in a phishing attack. The losses suffered by Green were in the region of over $300,000 as the hackers wasted no time in selling the assets while the actor frantically attempted to identify the buyers.

China court rules bitcoin has ‘economic value’

The Shanghai High People’s Court in China has stated that bitcoin has economic value and is a protected case in the latest ruling. The court also conferred the status of “virtual property” on bitcoin and is believed to set a precedent for other courts to follow.

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Meanwhile, in the U.S., the Department of Justice (DOJ) has instituted the first-ever criminal case of sanction evasion using cryptocurrencies. The DOJ is prosecuting an unnamed American for the offense of sending $10 million in cryptocurrencies to sanctioned countries including Iran, Cuba, North Korea, Russia, and Syria.

Light at the end of the tunnel for cryptocurrency investors

Andreesen Horowitz (A16z), a leading crypto venture capital firm, has released a report on the happenings in the cryptocurrency markets. The report said that while the cryptocurrency is going through a bad patch at the moment, Web3 could be a leading force in the future.

a16z Venture Capitalist (VC)

The report also referred to Ethereum as the “clear leader” with 4,000 active developers and over $15 million paid in transaction fees by the users. It goes on to argue that NFTs are the best way for creators to monetize their content with their fans as 22,000 digital artists have earned almost $4 billion in the last 12 months.

Be[In]Crypto strikes groundbreaking partnership 

Be[In]Crypto has entered into a partnership with Kleks Academy, a film and storytelling project around cryptocurrencies. The project is an adventure film that will be told through the lens of Web3 technologies with magic being the central theme of the project.

Kleks Academy features an incorporated augmented reality and a metaverse platform to provide viewers with a truly immersive experience. A multi-D NFT will offer users admission into Kleks academy and has a wide range of utilities. As an official partner of the project, Be[In]Crypto will have access to the premier and other exclusive events that Kleks Academy provides.

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Wahid loves to write, especially about Crypto and Blockchain. He started his blogging journey in 2017 and turned to crypto in 2019. Wahid is interested in tech, chess and DeFi. He aims to promote decentralization to everyone on the planet.

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