The Bitcoin price is in a bit of a free fall right now and today I want to talk about why. We’ll also go over the latest Ethereum news, Altcoin news, and much more.
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Terra Luna Purchases Additional $1.5B of Bitcoin
But we must start with over $1.5 billion worth of Bitcoin gone. The Luna Foundation Guard purchased an additional 37,853 BTC as part of their reserve strategy. The purchase, totaling roughly $1.5 billion, will be used to further backstop Terra Luna’s algorithmic stablecoin UST. So this was disclosed today and if over the last week or so they just purchased an outrageous amount of Bitcoin, then why didn’t the price move? In fact, why are we going lower?
This was purchased over the counter, so the raise, so they raised money to help with this purchase. The raise allowed LFG to acquire that much Bitcoin via over-the-counter swaps with broker genesis trading and additional purchases from Three Arrows Capital, a leading crypto venture capital firm, so they did not buy this on an exchange. It just basically went from one whale to another. LFG now holds roughly $3.5 billion worth of Bitcoin, which puts them among the top 10 holders in the world. So they’re at 3.5 billion today total. With their goal of accumulating $10 billion worth of Bitcoin, they’re not even halfway there.
Why Did Bitcoin Crash?
Next up, let’s talk about why the hell Bitcoin is dipping. Why do bad dips happen to good people? Honestly, just to throw a little bit of perspective on the situation, this dip in the grand scheme of things is not that bad. It puts us right back at the bottom part of the range. We’ve been in this accumulation range for the last 12 to 14 months, so this is nothing new. It’s par for the course if you’ve been holding crypto for a while.
What would scare me is if we take that next leg down and break the support, we’d be forced to find support somewhere lower, but that hasn’t happened yet. Maybe it won’t happen at all. Maybe it will happen tomorrow. Time will tell. Oh, and actually, one more thing I wanted to mention is that, in this range, it’s just traders playing trader games while the market is sort of just stale at the moment, so traders caused this dip today. I can prove it. Here are the latest stats as of right now for Bitcoin open interest daily change:
Because of the Fed, because of all the open interest that was added yesterday, it was almost all flushed out today. Volatility ensues. Always got to expect this when you’re invested in crypto, but moving forward, we are seeing fundamentally bullish news making news today.
Gucci to Begin Accepting Ethereum in Some Stores
Gucci just announced plans to begin accepting Bitcoin in some stores, so the iconic fashion brand will begin accepting cryptocurrency in some of its U.S. locations later this month, with plans to roll out the program to other North American stores this summer. Payment will happen through a QR code. They’re saying if you want to pay with your cryptocurrency and it’s not just Bitcoin, the stores will also accept various digital currencies like Bitcoin, Bitcoin Cash, Ethereum, Litecoin, Dogecoin, and Shiba Inu.
The first locations to accept crypto for Gucci are Wooster Street in New York, Rodeo Drive in Los Angeles, the Miami Design District, Phipps Plaza in Atlanta, and the shops at Crystals in Las Vegas, so a handful of the major cities in the United States.
In a final direct quote from the president and CEO of Gucci on why they chose to do this: ‘Gucci is always looking to embrace new technologies when they can provide an enhanced experience for our customers. We are able to integrate cryptocurrencies within our payment system. It’s a natural evolution for those customers who would like to have this option available to them.’ Gucci is trying to accumulate. I like it.
Binance to Co-Invest in Twitter w/ Elon Musk
And the next piece of news, which was just revealed through a recent SEC filing, is that Binance is committing 500 million to half a billion dollars to co-invest in Twitter with Elon Musk. Binance is among 18 co-investors in Elon Musk’s Twitter acquisition, so the Binance exchange will be a very small part owner in Twitter, with Elon Musk obviously bearing the brunt of the acquisition.
As a reminder, Elon is paying $44 billion to acquire Twitter, but $7.2 billion of that is coming from 18 other parties. On May 5th, Musk filed an amended general statement of acquisition with the Securities and Exchange Commission, announcing that Twitter had received an aggregate of about $7.2 billion dollars in new financial commitments.
According to the document, Binance is one of 18 co-investors in the acquisition, alongside major crypto industry players like Sequoia Capital Fund, Fidelity Management and Research Company. All these entities are contributing money to help Elon buy Twitter.
Having invested 500 million dollars, Binance is the fourth biggest contributor to that, following the Lawrence J. Ellison revocable trust, which invested $1 billion of their money. Sequoia Capital and VyCapital donated $800 million and $700 million, respectively.
If you like Binance, you’ll like this, and as a reminder, finance is the majority owner of Forbes Business Magazine and now they’re a very small owner of Twitter.
Ethereum Becomes Deflationary (Otherside Land Sale)!
The next very quick piece of news for Ethereum is that the Bored Ape Club’s metaverse other side metaverse NFT drop temporarily turned Ethereum into a deflationary asset. As we all know, this is due to EIP1559, which was an upgrade to the ether network last year, which made a little bit of Ethereum get burned after every single transaction.
Additionally, the minting process burned nearly 56,000 Ethereum or around 70% of all the assets burnt in the past week. Yuga Labs’s much anticipated project single-handedly turned Ethereum into a deflationary asset revealed the market tracker.
Shiba Inu (SHIB) Metaverse GROWING!
Speaking of the metaverse’s next piece of news involving SHIB. Shiba Inu has a new use case – buying land in SHIB metaverse. I don’t really know anybody that’s really hyped over the SHIB ecosystems metaverse, but it does exist and before when this was announced you could only buy land using Ethereum. Well now they switched this and it makes sense, you can mint land with SHIB. There are over 100 000 different pieces of land on offer in the SHIB metaverse.
The last detail that I did think was interesting, which involves the other tokens leash and bone in this ecosystem. The SHIB ecosystem is additionally comprised of subsidiary tokens including leash and bone, which developers say will play more of a significant role as the metaverse project is developed. At present, holders that lock in their leash are given priority access to land bids, while bone is a governance token that allows holders to vote on decisions concerning the development of the metaverse. All right, as I get more info, I will keep you updated.
Dubai Regulator Opens Offices in The Sandbox (SAND)
The next piece of adoption news for the sandbox A Dubai regulator will open offices in the sandbox metaverse. On May 3rd, the Dubai Virtual Assets Regulatory Authority (VARA) announced the purchase of a piece of land in the sandbox metaverse meant for the development of their virtual headquarters. So why does VARA, this Dubai regulator, want this? Of what benefit will this be to them?
According to an official statement, the VARA is stepping into the metaverse to reach a borderless audience while also improving social inclusion and environmental sustainability by using fewer physical resources to manage its activities. So they didn’t choose Decentraland, they didn’t choose the SHIB Metaverse, they chose Sandbox. Good for them.
Crypto.com Admits: “WE WERE WRONG”
The next piece of quick news for crypto.com: an update from a news story we brought you a few days ago. After the community further staking rewards, Crypto.com restarts their staking rewards. Cardholders will now be able to get up to 8% back on their purchases.
The company’s CEO said in a direct quote from the statement on this backtrack:
“Instead of eliminating card staking earned rates completely, we will offer a more balanced approach: 8% APY for Private Members (Obsidian, Icy White, and Frosted Rose Gold), as well as 4% APY for Royal Indigo and Jade Green card holders’.
It is still significantly less, but they brought it back. They’re given something. The rewards are still less than those offered before, with some users still expressing dismay. The CEO, however, noted that the changes were necessary to ensure the long-term sustainability of the yields offered on its card products.
[This article is a transcription of a video made by Altcoin Daily]
Original video: https://youtu.be/ROxw9TmUwJs ]