The week in the crypto world: ‘Ethereum killers’ in decline, IMF eyeing LUNA, Portugal and the rejection of the bitcoin tax

Charlie Taylor

This week, bitcoin (BTC) did not suffer large drops (0.87%), unlike ether (ETH), which plummeted 9% and is priced at $1,700. Several “Ethereum killers” — or first-tier blockchains that operate autonomous contracts and defy the “majesty” of one of the world’s largest networks — were hit hardest: cardano (ADA) dropped 12% to $0.46; avalanche (AVAX) plunged 19% to $23; algorand (ALGO) is down 14% to $0.36; near (NEAR) plunged 17% to $4.87; and solana (SOL) dropped 15% to $42. Cosmos (ATOM), which is structurally different from Ethereum in that it is a network made up of many smaller blockchains, but which also offers high-functionality standalone contracts, also dropped 12% and is trading at $9.55. Other big losses among the top 40 cryptocurrencies this week include flow (FLOW), which dropped 13% to $2.39; apecoin (APE), 19% to $6.31; decentraland (MANA), 12% to $0.95; internet computer (ICP), 10% to $7.11; and elrond (EGLD), 25% to $68.88.

news of the week

On Monday, the US Federal Reserve’s annual survey on the economic well-being of Americans recorded that unbanked citizens are turning to cryptocurrencies more than ever before. Findings show that about 12% of the 11,000 Americans who took the survey had or used crypto in 2021. Approximately 13% of Americans who used crypto in the past year did not have a bank account, compared to 6% who did not have a bank account and did not use it. cryptocurrencies. About 27% of American crypto users did not have a credit card, which is a higher percentage than the national average of 17% of citizens who have neither a card nor crypto. eBay, the e-commerce giant, has announced its first non-fungible token (or NFT) initiative, featuring digital hockey collectibles inspired by player Wayne Gretzky. The NFTs are on Polygon, Ethereum’s sidechain (parallel blockchain), and were issued in partnership with Sports Illustrated magazine and NFT OneOf platform. North Carolina Representative Madison Cawthorn is under investigation by the US House Ethics Committee for alleged involvement in a “pump and dump” scheme through the brief success of the infamous “Let’s Go Brandon” coin. In a statement released Monday, the committee stated that Cawthorn “may have inappropriately promoted a cryptocurrency, in which he had an undisclosed financial interest, and engaged in an improper relationship with a person belonging to his congressional staff.” At the annual meeting of the World Economic Forum in Davos, Kristalina Georgieva, director general of the International Monetary Fund (or IMF), implored those present to “do not overlook the importance of this world. [cripto]”, adding: “It offers us all faster service, much lower costs and more inclusion, but only if we separate apples from oranges and bananas”. Georgieva highlighted Earth’s recent collapse as a hard lesson to be learned, highlighting the fact that, unlike Tether and Circle’s stablecoins, UST was not backed by any fiat assets: “When not paired with assets, but promising returns 20%, it’s a pyramid. What happens to pyramids? One hour, they collapse.” On Tuesday (24), the European Central Bank (or ECB) published a report entitled “Decrypting financial stability risks in crypto-asset markets”. . The report warns that cryptocurrencies could pose a threat to financial stability if left unregulated. The report also compared current market conditions to the subprime mortgage market responsible for bringing the global economy down in 2008: “Despite recent declines, [criptomoedas] remain of a similar size, for example, to the securitized subprime mortgage markets, which resulted in the global financial crisis between 2007 and 2008”. The rising popularity of cryptocurrencies could also be a catalyst for disaster, the report warns. If many institutions adopt them as a form of payment, this integration would “increase the potential for propagation to the wider economy”. On the same day, Sam Bankman-Fried, CEO of brokerage FTX, revealed he could donate up to $1 billion to help influence the 2024 US presidential election campaign. “I would say over $100 million,” he stated. “As for how much more of it, I don’t know. It really depends on what happens. It depends on who is running where and for what; those things are super contingent.” He stated that if former President Donald Trump runs for president again, he could be prepared to donate up to $1 billion as a “ceiling price,” which would be more than quadruple the largest single donation ($218 million). ) made by Sheldon and Miriam Adelson during the 2020 campaign. Bankman-Fried, 30, was among the top 20 donors to Joe Biden’s 2020 campaign, having contributed $5.2 million to help Biden gain an advantage over Joe Biden’s 2020 campaign. to Trump. In Europe, Portugal’s parliament voted against a proposal to levy a tax on cryptocurrencies. Left Bloc parties have urged the government to consider charging cryptocurrency earnings that exceed €5,000 (or $5,300), but the idea was rejected during Wednesday’s budget session. Portugal is regarded as a safe haven for cryptocurrencies, as crypto transactions have been tax-exempt since 2016. But this may be coming to an end, as Finance Minister Fernando Medina announced that digital assets may soon be subject to taxes on capital gain. On Thursday (26), Tether announced its arrival in the Mexican market with a digital weight. The peso-matched stablecoin will be available on the Ethereum, Tron and Polygon networks. On Friday (27), Elon Musk, CEO of Tesla and Space X, tweeted that Space X will soon accept dogecoin (DOGE) as payment for its products. The announcement caused the token to fire.

*Translated by Daniela Pereira do Nascimento with permission from Decrypt.co.

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