Do Kwon’s revival plan seemed to have hit a snag yesterday after the Terra 2.0 mainnet (Phoenix-1) launch was postponed to today.
Things appear to have gotten back on track, though, as the Terra founder shared a snippet of the mainnet going live today at 09:06 (UTC+3). The relaunch of the new chain is the result of a proposal involving a hard fork that was passed this week.
Notably, the new chain has no algorithmic stablecoins. Holders of $LUNA ($LUNA2) tokens can view their balances by logging into the station and refreshing the page, Do Kwon added.
Crypto exchanges signal support for the rebirth of Terra
A recent Terra announcement detailed that the Terra team had been working with cryptocurrency exchanges, including Binance and Bybit, towards the launch of Terra 2.0. The former shared its support strategy, noting that it will use pre-and post-attack snapshots for the distribution of LUNA tokens.
Since the announcement, Bitrue, Bitfinex, Bitpanda, Gate.io, KuCoin, Bitfinex and Lbanks have indicated support for the new Terra ecosystem and LUNA airdrop. Huobi, which listed LUNA last year, is also among exchanges that have pledged support for the relaunch of the Terra network.
Curiously, FTX CEO Sam Bankman-Fried appeared to support Terra 2.0 in a now-deleted tweet retweeted by Do Kwon. The deletion threw doubt on the stance of the crypto exchange on the new Terra chain.
Venture capital funding to help turn the tide and avoid an extended crypto winter, JPMorgan says
In a research note sent out on Wednesday, investment bank JPMorgan insisted on the role of continued venture capital funding to ensure that there isn’t an extended crypto winter similar to the 2018/2019 period. JPMorgan strategists, including Nikolaos Panigirtzoglou, noted that there would be a limited ripple effect from Terra’s collapse on the market into the future.
UST’s fall was wrecking, to say the least, but institutional investors are keen to continue flashing the money, and this promises a bright future. In particular, the JPMorgan analysts noted that $4 billion of the total $25 billion in funding that has come this year into crypto was seen after Terra’s collapse. JPMorgan also observed that the Terra debacle didn’t have as much a negative effect on the decentralized finance space, despite terming it a “significant blow to the crypto world.”
The CME and FTX conflict over derivatives proposal rolls out further at a CFTC panel
Bahamian crypto exchange FTX recently filed with the CFTC a new trading plan that would allow the exchange to disintermediate derivatives trading. On Wednesday, the Commodity Futures Trading Commission held a roundtable discussion on FTX’s proposal.
The FTX.US’s derivatives trading proposal saw opposition from Sean Downey, an executive director at the futures and options trading platform CME. The executive complained about several matters, particularly querying FTX’s assumption that an algorithm can replace capital. He added that it’s important to understand the difference between margin and capital, bringing Terra’s troubles into conversation.
FTX’s proposal would see the removal of future commission merchants (FCMs) as intermediaries, and thus the CME would be the most affected hence why the exchange has been severely against the proposal. In front of a congressional committee last week, CME’s CEO Terrence Duffy called out FTX’s proposal as not innovation.
OCC executive terms UST’s fallout a wake-up call
Elsewhere, Acting director of the Office of the Comptroller of the Currency (OCC) Michael Hsu said at the DC Blockchain Summit that the recent de-peg of UST is a wake-up call for the crypto industry to re-evaluate and review the problems it’s attempting to solve.
Hsu noted that there wasn’t any contagion effect in the banking system, which he said asserts the need to have safe havens outside of crypto. The lack of pressure from crypto on the banking sector has allowed the traditional banking sector to support businesses despite crypto volatility on the other side.
On yield farming, the OCC director opined that the space had become more of a Ponzi scheme than having a focus on actual innovation, placing the blame on a hype-driven economy. These economies blur productive innovation that is intended to protect users.
Social media influencer found at Do Kwon’s apartment arrested
The losses of Terra’s decline have been felt by many, and one particular victim is a streamer called ‘Chancers’ who lost as much as $2.4 million from an investment of $80,000 in LUNA. According to a report by BBC News, the individual was found in the Terra creator Do Kwon’s apartment and has since been arrested.
The desperate streamer, who was at Do Kwon’s place earlier this month following Terra’s decline, went on enquiring from the wife on the whereabouts of the TFL CEO and fleeing the scene thereafter. He says that he felt like “he was going to die” after losing such a massive fortune within a short time. Chancers was one among the many investors who got into the crypto space years ago, 2017, for him and accrued a fortune with the growth of digital assets.
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