Crypto Flipsider News – Vasil Testnet Launch; Novi Shutdown; Terra’s Collapse Unraveled; BTC-USD Reverse Correlation
2022.07.05 03:21
Crypto Flipsider News – Vasil Testnet Launch; Novi Shutdown; Terra’s Collapse Unraveled; BTC-USD Reverse Correlation
Read in the Digest:
- IOG Finally launches Vasil hard fork on the Cardano testnet.
- Meta announces the shut down of its digital wallet, Novi, on September 1st.
- Two traders caused the Terra ecosystem collapse: Chainalysis.
- Ripple launches Colombian National Land Registry on the XRP ledger.
- BTC-USD reverse correlation hits 17-month high – NFT sales drop to 12-month low.
IOG Finally Launches Vasil Hard Fork on the Cardano Testnet
Just a week after becoming the most actively developed project in the crypto industry, Cardano announced that the long-awaited ‘Vasil’ hard fork has been launched on its testnet, preparing the network for the mainnet deployment.
On July 3rd, at 20:20 UTC, Input-Output Global (IOG) announced that the Vasil hard fork (epoch 215) upgrade was launched on the Cardano testnet. IOG has also advised developers, exchanges, and stake pool operators to launch their projects on the testnet.
IOG cautioned that exchanges and Stake Pool (NASDAQ:POOL) Operators (SPO) would require at least four weeks to test the Vasil deployment on the testnet. This means that the earliest date for Vasil deployment on the mainnet is the last week of July.
The Vasil hard fork is one of the primary features of Cardano’s ‘Basho’ phase, promising to bring faster block creation and greater scalability to the Cardano blockchain.
Flipsider:
- Taking its usual conservative approach, IOG announced that no proposal for the mainnet’s deployment would go forward until the ecosystem’s partners were comfortable and ready.
Why You Should Care
The Vasil mainnet launch primes the Cardano network for a significant performance boost, and a possible breakout for the ADA.
Meta Announces the Shut Down of Its Digital Wallet, Novi, on September 1st
After a rough path to its launch, Meta has announced that it will be shutting down Novi, its money-transfer service that uses the company’s cryptocurrency digital wallet, on September 1st, 2022
Meta has advised users to remove their information and remaining crypto balance from the site before September 1st, at which time both the Novi app and Novi on WhatsApp will be made unavailable.
From July 21st, users will be unable to add money to their accounts. However, in the event that an individual fails to withdraw their remaining balance, Meta will attempt to transfer their funds to the bank account or debit card linked to the service.
Meta first announced its push into crypto in 2019 with the ‘Libra’ project, which was eventually rebranded ‘Diem’ after regulatory backlash. Meta then launched the ‘Novi’ pilot in October 2021 as a safe platform for people to send and receive crypto.
Flipsider:
- Meta has already started testing NFTs on Instagram and has rolled out support for NFTs on Facebook (NASDAQ:META) for select creators based in the U.S.
Why You Should Care
While pulling the plug on Novi may seem as a step away from crypto, Meta is reportedly working on “Zuck Bucks,” a digital currency not based on blockchain.
Two Traders Caused the Terra Ecosystem Collapse: Chainalysis
New on-chain data has revealed that the collapse of the Terra (LUNA) ecosystem, which resulted in losses to investors of tens of billions of dollars, was brought about by two traders in a planned operation.
According to blockchain data tracker Chainalysis, the first manipulations against TerraUSD (UST) began on the night of May 7th. The identified address withdrew $150 million from the 3pool liquidity pool, based on Curve.
Analysts from Chainalysis report that the huge withdrawal increased the volatility of 3pool’s curve-based liquidity pool, and in the following hours, two traders swapped 150 million UST for USDC, thereby increasing the volatility.
To “balance” the pool, Terra withdrew another 100 million UST from 3pool. On May 8th and 9th, three unknown UST holders converted $480 million worth of USDT, into UST in an attempt to save the project and balance 3pool.
Flipsider:
- Although the Luna Foundation converted billions of dollars worth of BTC to UST, it was not enough to save the stablecoin from de-pegging and ultimately collapsing.
Why You Should Care
The Founder of Terra Do Kwon, and the rest of the Terra team are being investigated for potential price manipulation leading to the ecosystem’s collapse.
Ripple Launches Colombian National Land Registry on the XRP Ledger
The Columbian government recently announced that payment platform Ripple has partnered with Peersyst Technology to launch the ‘Colombian National Land Registry’ on the XRP Ledger (XRPL).
By integrating the XRP Ledger, Colombia will use XRP Stamp to verify and certify digital files and records on XRP Ledger (XRPL). The National Land Agency will thus be able to store information on the blockchain, and use QR codes to ensure its authenticity.
The integration of Ripple’s trustless blockchain solution aims to solve Colombia’s land issues and the resulting low confidence held towards authorities. According to Ripple, the system is capable of registering more than 100,000 contracts in the near future.
The Colombian government’s ‘Digital Government’ initiative has been working to distribute land titles on the blockchain with the Barcelona-based firm for over a year.
Flipsider:
- Ripple has stated it could relocate from the United States if it loses its ongoing legal battle with the Securities and Exchange Commission (SEC).
Why You Should Care
The adoption of the XRPL could potentially benefit 50 million Colombians, further solidifying Ripple as a crypto project built to solve real-world problems.
BTC-USD Reverse Correlation Hits 17-Month High – NFT Sales Drop to 12-Month Low
Since the start of 2022, there has been a reverse correlation between Bitcoin and USD—i.e, when the U.S. dollar rallies, Bitcoin tends to retrace. The weekly correlation coefficient between BTC and USD has become 0.77, a 17-month high.
Among the reasons for the reverse correlation is the increasing strength of the USD, which makes investors choose it over more volatile assets, like BTC. Bitcoin has lost over 60% of its value so far in 2022, while the USD continues to strengthen against other currencies.
The year-to-date price chart for Bitcoin. Source: CoinMarketCap
The ailing price of Bitcoin has affected the broader crypto market, including non-fungible tokens (NFTs). In addition to creating a drop in the floor prices of NFT collections, NFT sales have themselves sunk to a 12-month low.
Chainalysis reports that NFT sales in June ammounted to approximately $1 billion, a monthly sales level last recorded in July 2021. In January, digital arts hit a peak monthly sales volume of $12.6 billion, but have seen a notable decline in interest since then.
Flipsider:
- Despite the significant drop in NFT sales, megacorporations including eBay (NASDAQ:EBAY), Shopify (NYSE:SHOP), and Coca-Cola (NYSE:KO) have acknowledged NFTs as the future of digital art.
Why You Should Care
The interest rate hikes by the Fed have helped strengthen the USD, resulting in investors moving their funds into currencies with less volatility than crypto.
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