7 great moments from Bitcoin and the craziest week of Crypto

7 great moments from Bitcoin and the craziest week of Crypto

Where to start? In a decade of covering crypto, I’ve seen a lot of crazy things, but never a week like that. In the past, there have certainly been emergencies that upset the industry – such as the Mt. Gox in 2014 or Tesla who bought $ 1.5 billion worth of Bitcoin or Elon Musk the Dogecoin shilling on the SNL – but never a series of events like the one we just saw.

In the coming days, there will be many thoughts about what caused the madness. And there may just be some serious thought to itself as to why the encryption community tolerates people who have caused much of the current chaos from the start. But for now, let’s take a breath and take stock of what the hell happened in the craziest week of encryption. Here are seven key pointers in moving forward.

1. Terra is on fire: Until a week ago, Terra was the hottest thing in cryptocurrencies: the LUNA governance badge was the top market-based currency and the UST algorithmic fixed currency, which was linked to the dollar, was the No. 1 .4 stablecoin. And then, pop! Both went almost to zero. (LUNA is trading at a fraction of a cent, while the UST has fallen to 13 cents.) Many projects have collapsed before Terra, but never so big and never in such an impressive way. The world of cryptocurrencies will be talking about this catastrophe for years to come – and will do an autopsy because so many in the industry believed so quickly in Terra’s high-risk structure.

2. $ 200 billion worth of encryption evaporated in 24 hours: This is from a Bloomberg Thursday’s story, which followed previous reports that crypto markets had already lost more than $ 1 trillion before the rupture of Terra. To put it in perspective, $ 200 billion is more than that the whole market capitalization of 2020. If you want to put a positive turn on the slaughter, you can note that much of the collapse is due to macroeconomic forces (not just the red bleeding of cryptocurrencies this month) and that the encryption market is now large enough for to survive such a loss. But still. $ 200 billion!

3. CURRENCY COLLAPSEShares of Coinbase (COIN) hit $ 40.83 on Thursday – a 90% drop from its $ 381 debut price in April last year. This is the flagship of the encryption industry and, unlike many technology companies, it has been profitable for most of its existence. The Coinbase spiral, which continued long before this week’s market crash, mainly reflects that Wall Street still does not know how to value cryptocurrencies. (On Friday, stocks began to climb back close to $ 70).

4. Secretary Yellen says there is no systemic risk: This news was buried amid market madness, but it is a big deal that the Treasury Secretary told Congress this week that encryption poses no “systemic risk” to the wider US economy. The term “systemic” is technical and would have subjected the industry to a series of punitive new regulations.

5. Tether is wasting money: Stablecoins are supposed to be stable. This week challenged the whole idea. The Tether (USDT), by far the most stablecoin, fell briefly to 95 cents before recovering. Tether has broken its lock in the past, but in the midst of the Terra disaster, its last slip was a terrible moment — and it will increase control over Tether’s opaque accounting practices.

6. SBF gets a piece of Robinhood: FTX CEO Sam Bankman-Fried has revealed that he has taken an 8% stake in HOOD, which could herald a full takeover. If that happened then it would be a turning point for Robinhood, once considered a Silicon Valley favorite and a serious rival to Coinbase. Now its growth has slowed, reducing its workforce by 9% and its share by 70% in one year.

7. Musk says “maybe not” on Twitter: It would not be a crazy week in crypto without some of Elon’s antics. Sure, Tesla CEO started on Friday saying he may not finally buy Twitter. the stock reacted badly. He later clarified that he is “still committed” to buying Twitter, but what will happen next is everyone’s guess. Twitter is the industry’s most important communication platform and Musk is its biggest influencer, so everything matters.

These were just seven pieces of news in a week full of many more — including an impending El Salvador bankruptcy due to the mismanagement of the country’s Bitcoin president. Crypto did its craziest train ride so far, and my biggest advantage is that most in the industry will be fine. WAGMI, as they say. Unless you are a Terra’s purse.

This is Roberts in Crypto, a weekend column by Decrypt Editor-in-Chief Daniel Roberts and Executive Editor Jeff John Roberts. Subscribe to the Decrypt Debrief email newsletter to receive it in your inbox every Saturday. And read last weekend’s column: The Bitcoin bloodbath will get worse. It is OK.

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