Crypto market updates investor confidence in crypto business has been lost due to loss of billions

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Cryptocurrency (symbol)

Cryptocurrency (symbol)
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The collapse of one of the largest cryptocurrencies and the massive drop in the price of dozens of such currencies has shaken people’s confidence in the crypto market. On the other hand, regulatory government agencies around the world have had a chance to claim that their warnings were proven true. These agencies have repeatedly warned that investing in cryptocurrencies is risky.

The biggest setback has come to cryptocurrencies called stablecoins. These are the currencies that are said to be pegged to the dollar. As such, they were described as a bridge between the traditional financial system and the crypto trading ecosystem.

TeraUSD (also known as UST) has been one of those currencies. It was claimed that the price of one UST was equal to one US dollar. At one point, the market value of this currency reached $19 billion. But its dollar parity collapsed a week ago. Since then, the price has fallen so fast that it was worth 16 cents on Friday.

From the largest cryptocurrency bitcoin to smaller currencies, trader confidence has fallen sharply following this development. The most popular stablecoin has been Tether, which was estimated to have a market cap of $80 billion. But on Thursday, its price parity with the dollar also broke. Whereas Tether claimed to have hard currency assets. Therefore, its price does not depend on complex trading algorithms.

Genki Oda, CEO of RemixPoint, a crypto trading company in Japan, told the website NikEasia.com – ‘Algorithmic stable coins have their limits. In the future, there will be only one stable coin left, which will have significant assets.

Jun Yokoyama, a researcher at the Daiwa Institute of Research in Japan, said that according to the global trend, the Japanese government will also take appropriate steps in this matter. Notably, US Treasury Secretary Janet Yellen has called for legislation to regulate crypto trading.

According to Coin Market Cap, the organization that oversees crypto trading, the total market capitalization of cryptocurrencies as of Friday was $1.3 trillion. That was $280 billion less than a week ago. By the way, the total value of stablecoins last week remained equal to $150 billion, even after the value of UST bottomed out.

Experts have said that the sudden sharp fall in the price of cryptocurrencies has revealed the weakness of cryptocurrencies. An employee associated with the crypto company in Japan said – this time the effect has been more severe because the entire crypto ecosystem has collapsed.

UST was launched in South Korea in 2018. His goal was to bring stability to the sector by pegging the price of crypto to the dollar. But now because of this currency, the crypto business has suffered the biggest setback so far.

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The collapse of one of the largest cryptocurrencies and the massive drop in the price of dozens of such currencies has shaken people’s confidence in the crypto market. On the other hand, regulatory government agencies around the world have had a chance to claim that their warnings were proven true. These agencies have repeatedly warned that investing in cryptocurrencies is risky.

The biggest setback has come to cryptocurrencies called stablecoins. These are the currencies that are said to be pegged to the dollar. As such, they were described as a bridge between the traditional financial system and the crypto trading ecosystem.

TeraUSD (also known as UST) has been one of those currencies. It was claimed that the price of one UST was equal to one US dollar. At one point, the market value of this currency reached $19 billion. But its dollar parity collapsed a week ago. Since then, the price has fallen so fast that it was worth 16 cents on Friday.

Following this development, traders’ confidence in the largest cryptocurrency, bitcoin for such smaller currencies, has fallen sharply. The most popular stablecoin has been Tether, which was estimated to have a market cap of $80 billion. But on Thursday, its price parity with the dollar also broke. Whereas Tether claimed to have hard currency assets. Therefore, its price does not depend on complex trading algorithms.

Genki Oda, CEO of RemixPoint, a crypto trading company in Japan, told the website NikEasia.com – ‘Algorithmic stable coins have their limits. In the future, there will be only one stable coin left, which will have significant assets.

Jun Yokoyama, a researcher at the Daiwa Institute of Research in Japan, said that according to the global trend, the Japanese government will also take appropriate steps in this matter. Notably, US Treasury Secretary Janet Yellen has called for legislation to regulate crypto trading.

According to Coin Market Cap, the organization that oversees crypto trading, the total market value of cryptocurrencies as of last Friday was $1.3 trillion. That was $280 billion less than a week ago. By the way, the total value of stablecoins last week remained equal to $150 billion, even after the value of UST bottomed out.

Experts have said that the sudden sharp fall in the price of cryptocurrencies has revealed the weakness of cryptocurrencies. An employee associated with the crypto company in Japan said – this time the effect has been more severe because the entire crypto ecosystem has collapsed.

UST was launched in South Korea in 2018. His goal was to bring stability to the sector by pegging the price of crypto to the dollar. But now because of this currency, the crypto business has suffered the biggest setback so far.



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