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Scam LUNA 2.0 Tokens are Already Running Wild

PeckShield – blockchain security and data analytics company – has identified scammers sending so-called “Wrapped LUNA 2.0” tokens to high profile Ethereum addresses. The ploy is meant to imitate the actual LUNA re-launch airdrop taking place on Friday.

  • According to an alert from PeckShield, popular recipients of these new tokens include Vitalik Buterin, Andreesen Horowitz, Three Arrows Capital, and Justin Sun.
  • The tokens were initially sent to Terra Deployer from an anonymous address on Thursday and then sent to the relevant individuals, in order to imitate Terra’s official airdrop.
  • However, as Do Kwon made clear in his Terra ecosystem revival plan, UST and LUNA holders with assets bridged off of Terra are likely not to be eligible for the airdrop. In other words, so-called “airdrops” taking place on Ethereum and other chains are fraudulent.
  • Terra’s plan involves forking the Terra blockchain and issuing an all-new LUNA token. The old LUNA – which was debased to nothing after UST de-pegged from the dollar earlier this month – will be renamed “LUNC”.
  • The new LUNA will be distributed to holders of LUNC and UST based on their positions during certain snapshots of the blockchain. Users with holdings stored at exchange addresses – like Binance or Huobi – will also be compensated.
  • Terra 2.0 will not include an algorithmic stablecoin like the last chain and will be completely community-owned. Neither Terraform Labs nor the LUNA Foundation Guard is included in the airdrop whitelist.
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Cathie Wood’s ARK Invest Files for Another Bitcoin Spot ETF

ARK Investment Management, the firm led by prominent fund manager Cathie Wood, has filed for another spot Bitcoin (BTC) exchange-traded fund – ARK 21Shares Bitcoin ETF. The SEC has until January 24, 2023, to decide whether to approve or reject it.

  • As per the filing with the Securities and Exchange Commission, ARK Invest has included a proposed rule change from the Chicago Board Options Exchange (CBOE) BZX Exchange in its latest application.
  • The main objective of the spot ETF – ARK 21Shares Bitcoin ETF – is to track the performance of Bitcoin as measured by the S&P Bitcoin Index. The applications stated,

“In seeking to achieve its investment objective, the Trust will hold bitcoin and will value the Shares daily based on the Index. The Trust will process all creations and redemptions in-kind in transactions with authorized participants. The Trust is not actively managed.”

  • Despite several physical Bitcoin ETF filings, the SEC is yet to approve even a single one that gives exposure to the price of the cryptocurrency in the spot markets.
  • The latest filing is ARK’s second for a physical Bitcoin ETF. It comes a month after the Commission rejected the investment company’s first attempt.
  • Following the rebuff, Wood asserted that the firm would apply again while adding,

“I find it fascinating they have approved the Bitcoin futures and not the underlying. It just doesn’t make sense to me, especially considering the fees associated with that kind of ETF.”

  • Several other companies, including leading asset manager, Grayscale, have been pressing for a spot bitcoin ETF to be approved, but they are yet to succeed.
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Over $370M Liquidated in a Day as Bitcoin Price Slumps to $28K

The number of liquidated traders has neared 100,000 on a daily scale as the total value of liquidations skyrocketed to over $350 million in the same timeframe. This comes as BTC and the rest of the market have plunged once again.

  • As CryptoPotato reported, the past week or so was quite calm in terms of trading for bitcoin and the altcoins. The primary cryptocurrency stood around the $30,000 mark with a few attempts to overcome that level but to no avail.
  • Each rejection was met with a minor retracement that ultimately drove the asset back down to just under $30,000.
  • However, the situation worsened in the past 24 hours. BTC started dumping hard and just a few hours ago went all the way down to $28,000. This became its lowest price point since the previous massive crash on May 13.
  • The altcoins are suffering even more. Ethereum is 10% down on the day and struggles below $1,800 after touching $2,100 two days ago. Binance Coin is down to $300, while Solana, Polkadot, Avalanche, NEAR Protocol, Chainlink, and quite a few others have declined by double digits.
Cryptocurrency Market Overview. Source: Quantify Crypto
Cryptocurrency Market Overview. Source: Quantify Crypto
  • Somewhat expectedly, this enhanced volatility has caused pain for over-leveraged traders, according to data from Coinglass.
  • The overall liquidations are up to $370 million as of writing these lines on a 24-hour scale. The number of liquidated trades is just shy of 100,000. The most substantial individual loss came on OKX (worth $3 million), and it involved the trading pair – ETH/USDT.
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Twitter Shares Soared as Musk Increased his Personal Stake in the Deal

The CEO of Tesla and SpaceX – Elon Musk – increased his personal financial commitment to the Twitter acquisition to $33.5 billion. The initiative moved the entrepreneur closer to purchasing the social media platform and its shares jumped by over 6% after hours.

Getting Closer to a Deal

Last month, one of the most influential people of our time – Elon Musk – purchased over 70,000,000 Twitter shares (9.2% of the company’s stake). Shortly after, he revealed intentions to buy the social media giant and transform it into a private company. The billionaire argued that Twitter has “extraordinary potential,” and he can help “unlock it.”

At the end of April, the firm accepted Musk’s $44 billion offer to privatize it. However, earlier this month, Tesla’s CEO put the deal on hold due to certain issues that need to be solved before officially shaking hands. He insisted that Twitter removes all fake accounts and does its best against scams that sometimes occur on the platform.

And while both ends have been relatively quiet on the matter in the past few weeks, a new filing disclosed that the deal might be getting closer to a conclusion. Musk increased his personal financial commitment for the acquisition to $33.5 billion while also securing an additional $6.25 billion in equity financing.

Twitter’s stocks reacted positively to the news, spiking by over 6% after hours. Later on, it declined slightly and is currently nearly 4% up from the day before.

It is worth noting that the previous news about Musk-Twitter’s saga affected Dogecoin’s price, too, since the billionaire has often displayed his sympathy towards the memecoin. DOGE soared by more than 25% on the rumors that the agreement has been finalized last month.

However, this was not the case with the most recent update. DOGE is even nearly 6% down compared to its yesterday’s valuation and is trading at $0.08 (at the time of this writing).

Reactions to Musk’s Intentions

Tesla CEO’s decision to purchase Twitter has garnered the attention of many prominent individuals as some of them approved his plan. One of them was Robert Kiyosaki (better known as the author of the financial book “Rich Dad, Poor Dad”).

The American, who has outlined bitcoin as a hedge against inflation, described Musk as a capitalist who can “set our freedom of speech free from the rats, rodents, and reptiles hiding in Twitter’s WOKE Corporate Culture.”

Another person who gave his two cents on the possible Twitter deal was Ethereum’s Co-Founder – Vitalik Buterin. He said he is not against the idea of Musk running the platform, but he disagrees when wealthy people or organizations take over social media firms this way.

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Tether Launches Mexican Peso-Backed Stablecoin on Ethereum, Tron, Polygon

Tether announced the launch of a new type of a stablecoin, backed by Mexico’s national currency. Initially, MXNT will be available on three main blockchains – Ethereum, Tron, and Polygon.

  • The press release dated May 26 informed that the new stablecoin will join Tether’s growing product line, which now consists of four fiat currency-pegged assets. Previously, the firm had launched USDT (pegged to the US dollar), EURT (by the euro), and off-shore CNHT (by the Chinese yuan).
  • Mexico is a growing market in terms of cryptocurrency adoption, which is why the company decided to tap the national currency for its next stablecoin.

“The multibillion-dollar flow of remittances into Mexico and the difficulties involved with money transfers have created a unique opportunity for stablecoin usage and adoption.” – reads the PR.

  • Launched on Ethereum, Tron, and Polygon, MXNT was “built by the trusted team of developers behind Tether USDT” and is pegged 1:1 to the Mexican peso.

“Introducing a peso-pegged stablecoin will provide a store of value for those in the emerging markets and, in particular, Mexico. MXNT can minimize volatility for those looking to convert their assets and investments from fiat to digital currencies. Tether customers in this entirely new market will be able to benefit from the same transparent customer experience.” – commented Tether CTO Paolo Ardoino.

  • Speaking of transparency, the company released a report earlier this month, after years of community nagging, indicating that USDT is a fully backed stablecoin.
  • Aside from the aforementioned fiat currency-pegged stablecoins, Tether also released a gold-backed asset (XAUt) on Ethereum and Tron in 2021.
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Terra 2.0: This is What LUNA Holders Need to Know

Over the past couple of weeks, the crypto world was shaken by the sudden collapse of the Terra ecosystem. After its algorithmic stablecoin (UST) lost its dollar parity, everything came crashing down, leaving many investors with nothing as LUNA quite literally went to $0.

Now, the community has voted and accepted a proposal that would essentially see the fork of a new chain but with many changes. Let’s unpack.

A Quick Roundup

On May 9th, the algorithmic stablecoin built on top of the Terra protocol and a driving force behind its entire ecosystem – UST – lost its peg. A couple of days later, it was already trading at around $0.30 – a whopping 70% below its intended value of $1.

Because of how the algorithm works, this provided for a tremendous arbitrage opportunity where traders were able to redeem 1 UST (trading below $1) for $1 worth of LUNA. This design was intended to destroy the UST and reduce its supply which, in turn, should have increased its value. The selling pressure, however, was tremendous, and UST never came close to its $1 peg.

This allowed traders to print LUNA in excess, creating a massive supply of over 6 trillion LUNA in a couple of days. Needless to say, this kind of supply expansion in this short time frame with no possible way to absorb it led to the inevitable – LUNA’s price crashed to $0.

The entire Terra ecosystem was wiped out and saw billions disappear from the market in less than a week in an event that will forever echo in the chambers of crypto history.

luna_cover (1)

Terra 2.0 is Born: No Algorithmic Stablecoins This Time

Arguing that “Terra is not just UST,” protocol founder and CEO – Do Kwon – came up with a revival plan. Without going into the details of how the plan changed over the course of a few weeks, the Terra community and validators voted and accepted the proposition, and the tone was set.

The vote for the final proposition ended on May 25th. 65.5% of those who voted approved the proposition, 20.98% abstained from voting, and 13.20% rejected it.

Called Terra Ecosystem Revival Plan 2the plan aims to see the creation of a new Terra chain that won’t have an algorithmic stablecoin. The old chain will be called Terra Classic, and its LUNA will carry the ticker LUNC. The new chain’s token will be called LUNA.

At the time of this writing, multiple exchanges have attested support for the project. These include:

  • Huobi
  • Kucoin
  • Bitrue
  • FTX
  • Bitfinex
  • GateIO
  • Bybit
  • Binance

Commenting on the matter, the leading exchange by means of trading volume – Binance – stated:

The Terra community just passed a vote to “Rebirth Terra NEtwork.” We are working closely with the Terra team on the recovery plan, aiming to provide impacted users on Binance with the best possible treatment. Stay tuned for further updates.

In a sum-up, the proposal also includes details on essential app developers of the ecosystem, as well as how LUNA will be airdropped across LUNA classic stakers, holders, UST residual holders, and app developers.

LUNA Airdrop: How Much Will You Get?

Undoubtedly, one of the hottest topics is the incoming LUNA airdrop and the way it’s distributed to LUNC token holders.

To sum it up, this is what the distribution looks like:

  • Community pool – 30%
  • Pre-attack LUNA holders: 35%
  • Pre-attack aUST holders – 10%
  • Post-attack LUNA holders – 10%
  • Post-attack UST holders – 15%.

In addition, the wallet of Terraform Labs (TFL) will be removed from the whitelist for the airdrop, which is intend to make “Terra a fully community-owned chain.”

All tokens will have an initial unlock and a vesting schedule that’s different based on a pre-determined set of criteria. It can be found here.

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Ethereum Just Plunged to Its Lowest Level Against Bitcoin Since October 2021

Altcoins continue bleeding out as the majority of the market takes another leg down in the past 24 hours. This has caused Bitcoin’s dominance to spike to highs that we haven’t seen since last year.

  • Ethereum’s price relative to that of Bitcoin has dropped to its lowest point since last year.
  • At the time of this writing, ETH trades at around 0.0629 BTC. The last time it was this low was on October 22nd, 2021.
img1_eth
Source: TradingView
  • Meanwhile, today’s pullback saw ETH’s dollar value plunge 7%, leaving some $86 million in liquidated positions.
  • As a matter of fact, over the past 24 hours, the most liquidations were of ETH contracts. The largest single liquidation order took place on OKEx, and it was an ETH-USDT swap with a face value of $2.24 million – according to Coinglass. 
  • As CryptoPotato reported earlier today, ETH’s decline comes amid a broader market pullback where altcoins are bleeding out.
img3
Source: Quantify Crypto
  • This led to a considerable increase in Bitcoin’s dominance – the metric that gauges BTC’s share relative to that of the entire market. At the time of this writing, it’s at its highest point since October last year as well.
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Sandbox (SAND) Surged 10% as Elvis Enters the Metaverse

The popular Metaverse platform Sandbox announced a collaboration with Elvis On-Chain on May 26 to bring the King of rock and roll to the virtual world.

The partnership includes Elvis Presley Enterprises, and Web3 studio Run it Wild, which spawned the project earlier this year. In addition to the Sandbox, partners include Decentraland, Dappraft, Metakey, and Voxel Architects.

To celebrate Elvis Presley’s birthday, 1,935 Elvis Genesis Key NFTs will be minted as the all-access pass to the Elvis-On-Chain Metaverse, which will launch on June 1.

All Shook Up

The Sandbox is creating Elvis avatars with partners at Voxel Architects. They will be used in the new Elvis world, a meeting place for Elvis fans across the globe. Users can become ‘The King’ in various formats in the new realm where they can interact with others and trade digital memorabilia.

According to NFT Culture, Run It Wild Director Adam De Cata said:

“These incredible partners, all leaders in the craft, help us build a one-of-a-kind meeting place for Elvis fans. The Elvis metaverse will host an array of ground-breaking experiences, generative collections, a showcase of rare concerts, fan experiences, and real events,”

Sébastien Borget, COO and co-founder of The Sandbox, added, “We want to empower his fans to express themselves and become their very own Elvis, creating an exciting way to experience his likeness across generations and keep him forever in the limelight thanks to technology.”

An Elvis Block Party will be hosted on Decentraland after the genesis NFT mint. It will also be a Guinness World Record attempt for the most Elvis impersonators in one place in the Metaverse.

Attendees will be able to put Elvis wearables, including his jumpsuit and styled wig. At the same time, holders of the elusive Elvis Genesis Key NFTs will be awarded officially licensed Elvis Decentraland wearables, the report added.

The Sandbox will announce more details at 19.00 UTC on May 26 at a Twitter Spaces event.

SAND Surges 10%

The native token for the Metaverse project surged almost 20% over the past 12 hours on the announcement but retraced slightly after that. SAND reached an intraday high of $1.52 before retreating slightly to $1.40 at the time of writing.

The Metaverse token has jumped by 23% over the past week, moving in the opposite direction to most crypto assets. It acquired Uruguayan tech firm Cualit last week, adding to the momentum. SAND is currently trading 83% down from its November all-time high of $8.48, according to CoinGecko.

Decentraland’s MANA token also got boosted 9% over the past 12 hours, reaching $1.11 before pulling back slightly. MANA is also down a similar amount from its peak price, however.

Featured Image Courtesy of Sada El Balad

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Do Kwon’s Controversial Proposal for Terra’s “Rebirth” Approved, Launch Date Revealed

Do Kwon’s proposal to revive the beleaguered Terra blockchain has been approved. The controversial Terra proposal 1,623 received a 65.5% approval rate with over 200 million votes in favor. While 20.98% abstained from voting, the “no with veto” votes comprised 13.20%.

Terra’s Rebirth

This will essentially lead to the creation of a new Terra chain without the algorithmic stablecoin UST. The second iteration will retain the original name Terra (LUNA), while the old chain will be called Terra Classic (LUNC). The new one will also focus on attracting decentralized finance applications. Kwon originally described the revival plan as a “hard fork” that would split the blockchain in two. It was later amended by Terraform Labs.

According to the official Twitter handle of the Terra ecosystem, Terra 2.0  is slated to go live on the mainnet on Friday, May 27. Subsequently, LUNA 2.0 tokens, which will be airdropped to the existing stakeholders, will be available for trading.

Currently, Kwon has been targeted by the South Korean authorities. Despite Terra’s revival plans, not everyone is convinced. And investors are furious even as the vote passed with relative ease, except for one such incident, as reported by CryptoPotato, when the outspoken exec and his team were slammed by many users for amending the proposal last week after many had already voted for the original.

Reactions

Cryptocurrency exchange Huobi has confirmed that the platform will support Terra 2.0. Binance also revealed that it will work with the Terra team on the recovery plan and notified its users:

“We are working closely with the Terra team on the recovery plan, aiming to provide impacted users on Binance with the best possible treatment. Stay tuned for further updates.”

However, the popular decentralized finance (DeFi) project Lido Finance’s DAO voted against providing support for the new chain. A wide margin of 95% of the voters rejected the new reboot.

It was also reported that Kwon had contacted five major South Korean cryptocurrency exchanges and had asked them to list Luna 2.0, a claim that he has denied. This comes after major platforms in the country, excluding Coinone, terminated transaction support for LUNA.

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Salvador Dalí Enters The Metaverse With an Immersive Art Exhibition

Possibly millions of art fans will now be able to enjoy the works of Salvador Dali without leaving the comfort of their homes, thanks to the recent incursion of the famous painter into the metaverse.

On September 20, a digital art exhibition of the Spanish plastic artist Salvador Dalí will open in Barcelona, Spain. The expo, called “DALÍ CIBERNÈTIC” or “Cyber Dali for the English speaking audience,” will use the metaverse to display more than 200 of the artist’s works.

According to the Spanish media outlet El Periodico, visitors will be able to enjoy an immersive experience using virtual reality glasses, entering a metaverse where they will be able to create their own avatars to walk freely inside the paintings.

dali expo tweet
Image: Twitter

As for the project’s lifespan, the organizers said they expect to be able to deploy it in more than 20 cities thanks to an international tour that will last approximately four years.

The project itself is an international co-production of Exhibition Hub, a company in charge of curating, producing, and distributing major exhibitions worldwide, and Layers of Reality, an audiovisual production company specializing in creating immersive content.

The Exhibition Will Focus On The Interaction With The Artist

One of the most realistic features offered by this exhibition is the digital interaction with the painter, who will use his voice to guide attendees throughout the journey. Something highly innovative in this new model of digital galleries.

Jordi Sellas, executive director of the Digital Arts Center of Barcelona IDEAL, said that from the first day they founded the Digital Arts Center, their goal was to make an exhibition that would be at the height of the “great Salvador Dali.” A dream that they will possibly achieve with a project as ambitious as this one.

“From the day we founded the center we set ourselves the goal of organizing an exhibition to live up to the great Salvador Dalí. After almost two years of work we have achieved it, giving shape to what is undoubtedly our most ambitious production so far.”

What Will The Walk Inside The Metaverse Be Like?

For art fans, this experience is unique, as they will be able to stroll through the four spaces of Dalí’s universe, comprising the sea, the sky, the void, and the desert, immersing themselves for 15 minutes into his most striking works.

Tickets for this event, which will last one month, are already available for sale. The international tour is expected to begin in London in October after the first exhibition is over.

Although, for now, it is unknown which metaverse will host this project, this is for sure the first project to give “digital life” to the works of one of the most important painters in the world. The intersection between the art and the metaverse is already among us. Perhaps now, the world’s Top-tier museums will live in the blockchain democratizing the access of world-class art to a more global audience.