Altcoins

Everything you need to know about Terra Luna’s latest predicament

The cryptocurrency market is facing one of the worst runs since 2020, where all major cryptocurrencies and stablecoins or meme coins are tumbling down. However, one of the most shocking falls that the crypto industry has ever witnessed is the downfall of Terra Luna. According to the recent stats, as per CoinMarketCap data, LUNA has crashed over 85 percent and is currently selling at $0.0002136 after reaching $99.24 earlier this month. Before we understand the reasons behind this crash, let’s first understand LUNA. 

What is LUNA?

Terra is a blockchain protocol that utilizes fiat-pegged stablecoins to power price-stable global payments systems. LUNA is the native token of Terra Lua and is used to stabilize the price of the protocol’s stablecoins. LUNA holders gain voting rights making the token a governance token. 

While LUNA is the native token of the Terra Luna blockchain network, its most famous stablecoin, UST, is highly dependent on the governance token. To create UST, the user must burn LUNA tokens. So, for instance, earlier, you could trade one LUNA token for 85 UST when LUNA was worth $85. However, the entire dynamics of the tokens changed as now UST is worth around 44 cents due to several reasons which caused LUNA’s price overall drop. 

Reason Behind this Drop 

Earlier this weekend, over $2 billion worth of UST tokens were unstaked, and hundreds of millions of them were immediately sold. Such a huge sell pushed the price of the stablecoin down to 91 cents, and traders trying to take advantage of arbitrage exchanged 90 cents worth of UST for $1 worth of LUNA. However, there was a speed bump as only $100 million worth of UST can be burned in a single day. 

These mechanics caused a significant shift in the UST and LUNA’s price, further fueled by the low market conditions. Stablecoins are expected to remain stable and not fluctuate too far from their pegged price. This major change is now raising questions about the stability of stablecoins. 

Meta starts Testing Digital Collectibles on Instagram with Polygon

Last year Facebook rebranded to Meta to introduce a metaverse approach to the largest social media platform. Over the past few months, Meta has been making gradual progress, and recently Mark Zuckerberg, the CEO of Meta, has announced that Meta will start testing NFTs and digital collectibles on a small number of users on Instagram this week. 

According to this development, a small group of creators and collectors of Instagram in the US will be able to use NFTs as profile pictures, following a similar approach as Twitter. Users in the test group will also be able to post NFTs at zero cost by linking to third-party digital wallets in-app, according to the company. The profile pictures with NFTs will get a special shimmer around the photo. 

What to expect?

Initially, Meta will support Ethereum and Polygon and will expand its services to Flow wand Solana soon. The third-party wallets that are compatible with Meta are rainbow, MetaMask, and Trust Wallet, along with Coinbase, Dapper, and Phantom. 

“Soon, we will roll out digital collectibles on Facebook, and will also soon allow people to display and share their digital collectibles as AR stickers in Instagram Stories, bringing the benefits of this technology to even more creators and collectors,” said a rep from Meta. 

Zuckerberg or the company has not yet confirmed the same feature rollout on Facebook for now. However, on Instagram, the creators will also be able to use augmented reality NFTs on stories using Spark AR, a free studio that allows users and businesses to create their filters. This move will help creators place their digital art into physical rooms and spaces. 

In other news, Meta has also officially opened the doors to its first physical store to sell hardware for virtual and augmented reality.

“In the Meta Store, you’ll be able to get hands-on experience with all our hardware products,” said a statement from the company. “We want you to interact with everything. We want you to pick stuff up. We want you to feel it.”

SBI, a Japanese e-Commerce site, adopts BTC and XRP

Cryptocurrencies are going mainstream, which is evident by the fact that several centralized marketplaces are now offering users the ability to make purchases using digital assets. Recently, one such development has taken place where SBI Motor Japan, a subsidiary of SBI Africa Co. Ltd., will allow the customers to make purchases for used cars using Bitcoin and Ripple

According to the announcement by SBI, this development will initiate the first incident ever where XRP digital currency will be used on a cross-border Japanese e-commerce site. Both BTX and XRP transactions will be settled on SBI VC Trade Co. Ltd, a cryptocurrency exchange owned by the SBI Group. According to the report, the cryptocurrency exchange will use various security methods to avoid money laundering and terrorist financing through crypto transactions. 

Moreover, SBI has also revealed that it is currently monitoring and scrutinizing its business partners to thoroughly verify and check if they have Anti-Money Laundering and corporate regulations in place. The announcement also mentioned that apart from BTC and XRP, the company will also support other projects that serve the growing demand of its clients. 

According to the statement, this move from SBI is to cater to the growing demand for digital currencies in developing nations such as Africa, where people do not have access to traditional financial services. 

Ripple’s Big Win

This announcement is a big achievement for Ripple, as it has been struggling with a lawsuit filed in 2020. The lawsuit that accused Ripple of selling unregistered securities led to the currency’s downfall. Ripple CEO Brad Garlinghouse expressed that he is positive about the long-ongoing lawsuit and hopes for a favorable outcome. 

According to a developer relations engineer at Ignite, Aliasgar Merchant, the adoption of XRP outside the US is a good indicator that a lawsuit in the United States “shall not deter a technology from adoption.”

He went on to add that global governments are seizing any possible moment to embrace digital currencies, and

“if they can implement security and technology together, that’s like a marriage in heaven.” Merchant also added that “a revolution in financial technology is much needed, especially in developing countries. This initiative will make sure developing and underdeveloped countries get good financial opportunities.”

Gucci to start accepting $BTC, $SHIB, $DOGE & More!

The fact that renowned international clothing and fashion brands are now accepting digital currencies as payment mode and participating in blockchain technology, NFTs, and Metaverse is proof enough of the massive growth of digital currencies. 

Gucci, the international fashion brand, recently announced its plan in Web 3.0 to accept crypto payments in selected US stores by the end of this month. The high-end luxury fashion brand will also extend this service to its other stores in North America by this summer. 

What to expect?

According to the sources, in-store payment will be accepted as crypto, starting with Bitcoin, Shib, Dogecoin and more, using a link that will be sent to customers using email. The customer must scan the QR code using their digital wallets to make the purchase. 

As per the news, the first Gucci stores to accept crypto payments are Wooster Street in New York, Rodeo Drive in Los Angeles, Miami Design District, Phipps Plaza in Atlanta, and The Shops at Crystals in Las Vegas.

Vogue, the American fashion and lifestyle magazine, also mentioned, 

“Gucci will accept payments in more than 10 currencies, including Bitcoin, Bitcoin Cash, Ethereum, Wrapped Bitcoin, Litecoin, Shiba Inu, and five stablecoins pegged to the US dollar. It will also accept Dogecoin, a “meme” cryptocurrency originally created as a joke.“

Marco Bizzari, the President and CEO of Gucci, also released a statement, 

“Gucci is always looking to embrace new technologies when they can provide an enhanced experience for our customers. Now that we are able to integrate cryptocurrencies within our payment system, it is a natural evolution for those customers who would like to have this option available to them.”

Gucci is one of the early adopters of crypto and Web 3.0 to target Gen Z. The brand has been interacting with the metaverse for the last year and also recently collaborated with Superplastic to release a collection of 500 NFTs to take its crypto approach a notch further. 

VARA, Dubai’s Virtual Assets Regulatory Authority, to open MetaHQ in The Sandbox

Dubai’s crypto regulator has announced its plan to launch a metaverse headquarters in The Sandbox as a part of Dubai’s attempt to turn itself into the virtual asset hub for the world. The announcement was made on Tuesday when the Crown Prince of Dubai and Chairman of the Dubai Executive Council, Sheikh Hamdan bin Rashid Al Maktoum said, 

“Our presence in the metaverse… marks the beginning of a new phase in the Dubai government’s march for the future; one that will have a positive impact in the long run,”

The authority has not unveiled the details about the MetaHQ or Meta headquarters and what the purpose of this development is. However, the authority, in a brief statement, mentioned that the MetaHQ will:

“serve as its primary channel to engage [Virtual Asset Service Providers] across the globe to initiate applications, enable younger licensees [to] enter the metaverse, openly share knowledge and experiences with consumers and peer regulators to raise awareness, enable safe adoption, and drive global interoperability.”

About the MetaHQ

Details about the MetaHQ are still hazy, and the location of the headquarters in The Sandbox has not been revealed yet. VARA, Dubai’s Virtual Assets Regulatory Authority, was established at the beginning of March to develop an advanced legal framework and regulatory system for the operations of virtual assets in Dubai and the rest of the UAE. 

All the crypto firms that wish to operate in UAE must obtain a crypto license from VARA along with establishing a business presence in-country. Moreover, VARA also regulates the activities of custodians and asset managers in the crypto space. 

This MetaHQ seems to be part of the Dubai government’s attempt to turn the city into a global hub for the digital economy and virtual assets. However, what regulations VARA will impose is still to be seen.