Crypto News | Luna and Terra UST Crash, Scams, Music NFTs, and more
Elena Obukhova host of Supermoon Station welcomes us back to another week in crypto. Having recently spoken on a tokenized assets panel at the security token summit in New York Elena shared the successes of the event and positivity in seeing a lot of high-ranking government officials in attendance. Representatives from the DC regulations department sparked a lively discussion about the need for change, while Elena highlighted the challenges of tokenized assets and regulatory frameworks.
Many people at the summit, had a desire for more rules in the crypto spaces, despite Elenas' belief that none are required. We need to teach people how to spot frauds and how to avoid hiding behind corporations. The blockchain industry has influenced many improvements in global institutions, yet education remains stuck in the past. When even huge bankers like JP Morgan criticize the US regulatory system, you know there's a problem.
With thousands of applicants, Supermoon Camp developed its' own exclusive Mansion event sponsored by Computecoin Network, bringing together significant players in the blockchain and web3 industries. Elena, enthusiastic about the possible expansion of the crypto field in Austin, as Texas welcomes the advancements since New York is not the easiest area to start a crypto business due to hefty regulations.
Earlier this month the crash of Luna and Tera wiped out $40 billion, and advocate Mike Novogratz was finally silenced, so we asked Elena her thoughts on it, one being we’re hitting a correctional state in the market which will wipe out the people just hear for quick returns and you have to be prepared to learn from your losses.
This week, inflation in Canada reached a 31-year high, matching recent price increases in the United States and the United Kingdom. The Federal Reserve recently raised its benchmark interest rate by 0.5 percent, and it is likely to do so again in June and July. The last time rate hikes came so quickly and frequently was during the dot-com disaster, raising the issue of whether we are in the early stages of a similar situation now.
There are some market similarities to the dot-com era, with a lot of enthusiasm around the web3 space and a fast surge in projects that can be readily built. Governments are failing to learn from the 2000 disaster, instead creating complex regulatory frameworks that prevent many start-ups from participating in the Ipo. Instead of attempting to stop trading in a volatile market, governments should focus on education, inclusion, and crowdsourcing, as they did in 2000.
Interesting, with inflation always on the rise, why is the advice always to save money, why not teach people how to invest?
“Federal prosecutors arrested a 50-year-old long island man and accused him of defrauding hundreds of investors by offering large gains of 5% per week from a fictional trading platform”
Crypto and financial scams are not a new development in the industry however they are becoming more elaborate as seen in the above headline from the New Yorker. Human beings are blind to risks or scams when all they hear is profitable returns like five percent per week. This brings us back to the fact that in the crypto space you have to do your own research and self-education to avoid falling for such scams.
In recent interviews, Micheal Sailor has said that Bitcoin is similar to energy and that people should start thinking about it in that way. The Supermoon crew had a concept about how people who had millions of dollars in Fiat or dollars can accomplish a lot more with it going further. People who have a lot of Bitcoin may have more energy or do more things in the actual or digital world.
Both Instagram and Spotify began testing NFTs on their platforms this week, indicating that larger platforms are entering the NFT market and taking it more seriously. Instagram dubbed theirs a digital collectible, allowing creators to connect third-party wallets and share NFTs on Polygon and Ethereum chains to their feed, stories, and messages. While large corporations like Instagram, Twitter, and Facebook face a lot of criticism, seeing them integrate new blockchain technology on their platforms can only be good for growing the community and developing trust with non-adopters.
NFTs have taken over the art, gaming, ticketing, and music industries, with 2.3 million buyers in 2021. According to the Wall Street Journal, the number of NFTs sold daily has dropped by 92% from 225,000 in September to 19,000 presently. As previously stated, the crypto space is in the correction stage, filtering out scams and ventures with no utility or longevity, which could be the cause of the drop.
Another exciting week in the music industry as music platforms, began offering splits, where partners can have it defined in the smart contract, varying royalty percentages, and it removes any complications when making or cementing that contract. As a result of these cooperations, individuals will simply earn their income. Elena feels that these NFT use cases could help NFTs reach a far larger audience by raising awareness of the benefits that blockchain technology can provide.