Bitcoin prices, which were hovering at 28k two days ago, once reached the 32500-point level, showing a big rise.
As a result, Altcoin also saw its price rise simultaneously. This is the first time in a long time that the cryptocurrency market is alive.
Today, I would like to introduce you to a column that analyzed the cause of the surge in virtual currency and the cause of the recent Tera crisis.
First of all, there is a report pointing to China’s easing of the COVID-19 blockade as the cause of the surge in virtual currency.
Source = news1
As China eased the COVID-19 blockade, Bitcoin surged more than 7% to surpass $32,000, and cryptocurrency is rallying all at once.
At 6:10 a.m. on the 31st, Bitcoin is recording $32,500, up 7.15%. It is the first time since May 16 that Bitcoin has surpassed the $31,000 mark again.
Bitcoin’s surge seems to be due to a surge in the Asian stock market the previous day due to China’s easing of the blockade. The Asian stock market surged the previous day due to China’s easing of the blockade. Korea’s KOSPI closed 1.2% higher and Australia’s ASX index closed 1.45%.
The Chinese stock market has also risen. The Shanghai Composite Index rose 0.6%, and Hong Kong’s Hang Seng Index rose 2.06%.
Earlier, the Chinese government announced the easing of the COVID-19 blockade. Shanghai said it would lift “unreasonable” regulations on companies from June 1, and Beijing announced it would reopen some public transportation and some multi-use facilities.
[Source = news1]
It is the movement of the United States and China to kill and revive the virtual currency market. I have already posted twice about the hegemony competition and the key currency competition between the two countries. MEXC 거래소 가입방법 This time, China seems to have revitalized the overall market as it eased the COVID-19 blockade.As Korea also eased distance, eating out increased and ticket prices more than doubled. I think you can look forward to the upward trend again after June. If the market feels that way, it’s the market that moves in that direction.
Here’s a column by Michael Casey, a senior advisor to MIT Media Lab, one of the leading experts in digital currency and blockchain, that analyzed the Terra incident.
Source = CoinDesk Korea
For the past few weeks I’ve been watching TerraUSD with hawk eyes. First, I wrote about why UST would collapse. And it fell as it was before long. It was a great tragedy, but Kwon Do-hyung and his supporters may define the incident as just a kind of speed bump for greater success.
However, a number of lawsuits have already been filed, and they suspect buying UST. As the boundary between fraud and failure gradually collapsed, people began to compare Kwon Do-hyung to Elizabeth Holmes in the Theranos case, a rare con artist.
But I want to focus on a completely different aspect today. As for the cause of the UST defegging phenomenon, one side expressed ‘attack’, ‘joint attack’, and ‘hit attack’. This framing comes from those who argue that UST is fundamentally sound. However, the warning that algorithm-based stable coins will eventually fail has already been issued for many years.
It is true that large-scale capital has been strategically deployed topple Terra Pegging, and from this point of view, the reason for the increase in UST Defegging may have been partly the result of the “attack.
However, it is somewhat different from the point targeted by groundless rumors that large hedge fund companies such as Black Rock and Citadel are behind the attack.
This is what unfounded rumors are. The collapse of the UST is not a real failure. Large banks and Wall Street hated virtual assets and fell due to their interference.”
But these arguments are absurd, not worth responding to. “There was no attack. If there is a defect in the design, the sooner it collapses, the better. What you call an attack was just a kind of stress test. Terra failed the test.”
The mayor has no mercy and no malice
The market has no morality. Scott Galloway, a professor at New York University, says. “The market has no mercy and no malice. The trader doesn’t care who you are. I just want to know what position you are in.”
An ‘attacker’ in a financial market is someone who seeks an opportunity to benefit from someone’s mistake. This does not matter at all whether the target of short selling is diamond guns produced through child exploitation in Congo or funds made for widows and orphans.
The most similar case to the Tera crash was the short selling of the pound by billionaire George Soros in 1992. George Soros attacked the British pound not because he hated Britain. I don’t know exactly what he thinks at the time, but the only reason he decided to sell short is his personal assessment of the pound’s financial status, the potential for short selling, and his chances of winning.
In Terra’s case, potential profits were large. According to an analysis, the revenue generated by the incident is estimated to be about $800 million. You don’t have to hate virtual assets or kwondo to get this money.
According to Igor, a senior researcher at Double Rock, the cost of defending UST pegs amounts to $700 million. Given the size of these expenditures, the argument that terrorism’s downfall was caused by a plot by malicious attackers is groundless. If attacking Peg was a violation of market rules, why would a market mechanism be used to defend it?
[Source = CoinDesk Korea]
When virtual assets and the liquor market meet? Liquor wins
Virtual asset technology and ecosystems are still very experimental. It is common for even well-known projects to fail.
In the first place, the vision of virtual assets was to open the capital market to those who could not contribute to traditional venture capital funds. This openness contributed to enriching early virtual asset investors.
They then funded startups and projects that further expanded the virtual asset ecosystem. This level of performance would not have been possible in the stock market with a high level of control.
The rumors about BlackRock and Citadel seem very plausible. It seems very plausible that such a large hedge fund was involved in Terra Defegging, but on the other hand, it is also a double-edged sword.
This is because it means that virtual assets are considered an ecosystem strong and reliable enough to be short-selling prey for major financial markets. The more short selling emerges, the more it will benefit the virtual asset ecosystem in the long run.
The mainstream financial market’s involvement in the incident could mark the end of the past decade when virtual assets were pure. The mainstream financial market has been happy to collect transaction fees for virtual assets and invest in startups. However, market conditions could be completely different if large-scale traders, including large capital, begin to find ways to profit by using loopholes in virtual assets.
The incident in which large hedge funds and banks on Wall Street broke Terra through short selling was just seeking profits regardless of morality. In addition, the big reason why the virtual currency market has grown like this over the past decade is that it has been an experimental ecosystem without regulations. The fact that large hedge funds or banks have already been targeted means that the virtual asset ecosystem has become stronger. In Korea, legislation is being announced as if the virtual asset regulation bill is exploding due to the Luna crisis. Virtual assets are now completely regulated by the liquor market, which is likely to strengthen much in terms of investor protection. However, as in the past decade, the opportunity for a fortune will decrease.
Today, the Asian stock market soared overall due to China’s move to lift the COVID-19 blockade, which led to a surge in cryptocurrency again
Michael Casey’s column said that this Tera incident could be a positive function for the overall development of virtual currency.