Cardano Chain Splits After Dev Follows “Dumb” AI Advice, Hoskinson Calls In FBI Crypto News Australia
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Solana co-founder calls Cardano’s proposed $100M treasury move to Bitcoin ‘so dumb’ CryptoSlate
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Solana Labs co-founder Anatoly Yakovenko has opposed Cardano’s leadership’s new proposal to convert part of its treasury into Bitcoin.
In a June 16 post on X, Yakovenko suggested the idea was misguided, arguing that it reflects poor treasury management and sends the wrong message to the Cardano community.
According to him:
“Projects should keep 18-36 months of post kill list runway in short term TBills, but that’s about it.”
The controversy stems from a June 13 proposal by Cardano founder Charles Hoskinson, who suggested that the blockchain network could redirect $100 million worth of ADA from its treasury into Bitcoin and stablecoins.
According to Hoskinson, the goal is to strengthen Cardano’s DeFi capabilities and resolve ongoing issues in its stablecoin ecosystem.
However, critics argue the proposal suggests a lack of confidence in the ADA token.
Crypto trader Aaron Dishner wrote that the move could be seen as Cardano admitting that Bitcoin is more valuable than its native token.
The Solana co-founder echoed these sentiments and questioned the need for any protocol to hold Bitcoin on behalf of its users, saying:
“Why would anyone want a team to buy and hold bitcoin for them when they can do it themselves?”
Cardano community divided as Hoskinson defends strategy
Meanwhile, the proposal has triggered mixed reactions within the Cardano community, with some worrying that a $100 million ADA sell-off to buy Bitcoin could hurt the token’s price.
Hoskinson, however, dismissed those concerns, saying the ADA market is deep enough to absorb the divestment without crashing.
He also defended the plan as a bold step to improve Cardano’s DeFi positioning, especially in stablecoin integration and liquidity. The Cardano founder highlighted the network’s competitive challenges in a crowded crypto landscape.
Hoskinson noted that only $33 million in stablecoins is currently deployed on Cardano, a figure he believes undermines the network’s long-term viability. He emphasized that the proposed treasury shift is a strategic response to this shortfall, not a sign of weakness.
Despite the controversy, Hoskinson stood firm, arguing that criticism won’t fix the underlying issues.
He stated:
“We have a means to fix it. Calling me names, egotistical, a cancer, or dictatorial isn’t going to solve that Objective reality.”
Considering this, Hoskinson said a coalition would submit a proposal about the plan at Rare Evo, an annual event focused on the Cardano blockchain.
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Crypto-Loving Robinhood Is Dogecoin Champion As It Continues To Court Young Dumb Money Forbes
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The Bitcoin (BTC) price is facing significant downward pressure. As of now, BTC trades at around $64,000 remaining stagnant amid the unfavorable market conditions. Whilst, analysts are concerned about dumb money invading the territory and pushing the Bitcoin price lower.
Dumb Money Vs BTC
According to IntoTheBlock data, about 5.45 million addresses have accumulated 3.03 million BTC between the range of $64,300 and $70,800. Hence, this large concentration of Bitcoin at high prices forms a significant supply barrier. If the Bitcoin price continues to drop, these holders or dumb money traders might sell to limit their losses. This could eventually intensify the downward pressure.
For context, dumb money refers to the individual or retail investors who act emotionally and are less informed about the market trends. These traders are subject to panic selling during a downturn. Moreover, this selloff trend has already been noted for Bitcoin when the price extended below $67,000.
Meanwhile, dormant Bitcoin wallets have been notably active this week. As Bitcoin price dipped below $65,000, an on-chain analyst revealed that a single Bitcoin wallet moved 25,000 BTC in six separate transactions. In addition, this movement added to the market’s anxiety.
The Bitcoin Spend Output Age Bands data shows that this wallet’s BTC, aged between 3 to 5 years, could be gearing up for a selloff as market sentiment turns pessimistic. Furthermore, the coming week is critical for the crypto market. Bitcoin and altcoins are under heavy selling pressure.
Over the past month, Bitcoin has fallen 10%, while altcoins have dropped by 20-30%. Additionally, 104,000 BTC options, worth $6.72 billion, are set to expire on Friday, June 28, 2024. With a put-call ratio of 0.52 and a max pain point at $57,000, the Bitcoin price is expected to remain under selling pressure.
Also Read: Crypto Market: PCE Inflation & Key Events To Shape Investors Sentiment This Week
What’s Next For Bitcoin Price?
Traders are also bracing for the U.S. GDP growth rate data on Thursday and the Fed’s preferred inflation data, the PCE inflation data, on Friday. These coincide with the significant BTC options expiry. Moreover, this overlap could lead to increased volatility and potential price drops below $60,000, possibly even hitting $57,000.
Adding to the pressure are substantial Bitcoin ETF outflows, exceeding $500 million in the past week. Furthermore, the German government has been sending large amounts of BTC from its holdings to exchanges, increasing market supply.
However, despite the ongoing selloff, more than 87% of Bitcoin holders are still in profit. This indicates that there is room for further profit-booking, which could drive prices down further. Market analysts believe that Bitcoin price consolidation may continue until the end of summer 2024. Hence, a new bull run might begin around September, with major activity expected around the U.S. elections.
Another key factor to watch is the PCE price release next Friday for May. A decline in core PCE already suggests downside risks for the index. Thus, weak retail sales may also contribute to this trend, though personal income could see an improvement.
One positive sign is the reduction in Bitcoin exchange balances. In the last 30 days, over 107,000 BTC have exited crypto exchanges, which could lead to a supply crunch. The recent Bitcoin halving event also reduced block rewards to 3.125 BTC, limiting new BTC creation and helping to keep supply in check.
Earlier this month, the Federal Reserve took a hawkish stance on rate cuts despite cooling inflation data. This caused a selloff, with over $4 billion worth of Bitcoin sold by whales and miners. However, if the Fed does cut rates, some analysts believe BTC could reach $100,000 by the end of the year.
In a post on X, Rekt Capital, popular crypto analyst, wrote, “Strong rejection from this Lower High resistance yesterday to precede extra downside today. Bitcoin isn’t ready to end its June downtrend just yet. But this is still the downtrend line to watch for a break once Bitcoin is ready to reverse to the upside.” His analysis suggests further downtrend for BTC in the short term.
Also Read: Block CEO Jack Dorsey Says Bitcoin Can Replace US Dollar
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Popular crypto analyst JD, known for predicting XRP’s bottom at the $0.28 price level, has warned of a batch of ‘dumb money’ traders missing on the next XRP price surge. According to JD, this set of traders may overlook the opportunity to get on before the next price surge, drawing parallels to past XRP price action.
Analyst JD Draws Parallels To Past XRP Trends
Despite the volatile nature of the crypto market, most cryptocurrencies are known to repeat or mirror past phenomena in their price action. As a result, it is very common for crypto analysts to look at the past and assess current trends when trying to predict the future movement of cryptocurrencies.
The expert compared the present price pattern to 2017, which was the year that XRP finally broke its boring price action that lasted from 2013 to 2017. A look through this cycle shows XRP underperforming when compared to other cryptocurrencies. As a result, the ‘dumb money’ traders complained and bolted, causing them to miss the astounding gain that came after.
However, XRP would then go on a 600x price gain after breaking out of the 4-year consolidation trendline. As a result, the crypto reached as high as $3.84 in January 2018, its current all-time high.
XRP has had its ups and downs this year stemming from different updates within the Ripple ecosystem. The crypto went on a price surge in the middle of the year, reaching a yearly high of $0.82 in July. XRP has traded below this price point since then, despite most cryptocurrencies registering new yearly highs in the last quarter of the year.
JD noted that XRP’s price action is currently mimicking the point at which it broke out of the consolidation in 2017, warning of ‘dumb money’ traders who might miss out on the next potential price surge.
#XRP – I remember 2017 when “Dumb money” capitulated after 4years of “boring emotional” action while other coins
“Dumb money” complained & capitulated missing the 600x gain LOL!
Present pattern looks exactly like 2017. Need more dumb money to complain before
LOL! $XRP… pic.twitter.com/tbyckfYA8V
— JD
(@jaydee_757) December 26, 2023
Token price sitting at $0.64 Source: XRPUSD On Tradingview.com
XRP Price Target
XRP has grown massively since its 2017 days and now has a market cap of over $34 billion. When asked about a potential price target, JD noted that the repeat of a 600x in the case of a breakout would be unrealistic at this point. An 8-10x surge is more likely according to the current technicals. With XRP currently trading at $0.639, a 10x price surge would make a price target just over $6.
In another chart shared by the analyst, he noted that XRP’s price is currently forming a cup and handle formation in the 2-day timeframe. If this formation holds, a bullish breakout would see XRP reaching a $0.95 price target.
#XRP – As long as handle does not break down 50% of the size of cup, then C&H is in play!
This may be what we need for Symmetric triangle to breakout on Log Scale! Loaded up at 0.28, 0.33, 0.45, 0.52, and 0.59 during FEAR! Be ready both ways!
Retweet/like for updates!… pic.twitter.com/T67EhrHKO2
— JD
Featured image from The Bitcoin News, chart from Tradingview.com
Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.
Dogecoin DOGE/USD co-founder Billy Markus, popularly known as Shibetoshi Nakamoto said that “another day, another dumb f***ing crypto thing dies” in light of the recent bankruptcy filing of Genesis.
What Happened: Genesis’ crypto lending unit filed for bankruptcy protection late on Thursday evening.
See More: Best Crypto Day Trading Strategies
Markus took a dig at crypto lending companies calling them “stupid” and “everyone involved is a f***ing idiot”.
He also took a dig at Barry Silbert saying, that he was the one shorting Dogecoin on FTX in 2021.
Genesis reported having between $1 billion and $10 billion in assets and liabilities in its filings with a U.S. bankruptcy court.
Price Action: Dogecoin was trading at $0.080, down 0.25% in the last 24 hours, according to Benzinga Pro data.
Read Next: FTX’s New CEO Aims To Revive Defunct Cryptocurrency Exchange: What You Need To Know
In recent weeks, the breakdown of the Terra ecosystem has dominated news headlines.
Users lost billions of dollars and their lives were turned upside down when the UST stablecoin lost its $1 price peg.
Terra’s effort to revive LUNA was criticized by Dogecoin co-founder Billy Markus, who called individuals who bought into it “really foolish.”
Allegations of manipulating the market
Several reports of questionable activities have been aired by internet investigators and whistleblowers throughout the incident.
All of this points to shady dealings within and beyond the Terra hierarchy.
Allegations include major people manipulating Terra retail investors, top officials benefiting themselves through the Mirror Protocol, and Terra creator Do Kwon’s ties to the failed algorithmic stablecoin project Basis Cash.
Relaunched of LUNA
This method was originally intended for forking the existing chain into a new chain without the UST stablecoin. The announcement of a relaunch on May 16 was first revealed by Do Kwon’s tweetstorm revealing a Terra revival plan. According to the creators, LUNA 2.0 will be an entirely new chain, not a fork. The new chain’s tokens will be delivered by airdrop to “stakers, holders, residual UST holders, and essential app developers” from the previous chain.
On May 25, the community voted “overwhelmingly” to adopt Proposition 1623, opening the door for the launch of LUNA 2.0. The relaunch and token airdrop were supposed to happen on May 27, however, due to an announcement made on that day, it has been postponed until May 28 at 06:00 GMT.
Community not in support of relaunch
The risks of restarting LUNA were explored by Joshua Fernando, co-founder, and CEO of blockchain carbon credit company eCarbon.
Fernando addressed many key issues regarding the relaunch in his email, including The lack of transparency around how LUNA 2.0 will generate value, especially because it will lack a stablecoin component.
When the vesting period ends, investors will be under a lot of selling pressure as they try to recoup their losses and relocate to safer businesses.
Exchanges may have a conflict of interest in assisting the airdrop and restart because they are also attempting to recuperate losses.
The crypto consensus Similarly, there are plenty of messages criticizing the relaunch on Twitter. @Mister Ch0c, for example, compared investing in LUNA 2.0 to rekindling a romance with a cheating ex.
ALSO READ: One In Ten Family In Europe Zone Owns Crypto Assets
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Dogecoin co-founder Billy Markus slammed Terra’s attempt to relaunch LUNA, calling those who buy into it “truly dumb.”
The Terra ecosystem implosion has dominated headlines the past few weeks. Users lost billions, and lives were turned upside down as the UST stablecoin lost its $1 price peg.
During the fallout, internet detectives and whistleblowers have voiced multiple accounts of suspicious activity. All of which point to shady goings-on within the Terra hierarchy and beyond.
Examples of allegations include the manipulation of Terra retail investors by prominent entities, usage of the Mirror Protocol to enrich senior figures, and Terra founder, Do Kwon’s links to failed algorithmic stablecoin project Basis Cash.
With so many red flags emerging from the Terra autopsy, does Markus have a point?
Terraform Labs to relaunch LUNA
Word of a Terra relaunch first broke on May 16, when Do Kwon posted a tweetstorm detailing a revival plan. This plan initially entailed forking the old chain into a new chain without the UST stablecoin component.
Devs have since stated LUNA 2.0 will be a brand new chain and not a fork.
Token distribution from the new chain will take the form of airdropping to “stakers, holders, residual UST holders, and essential app developers” of the old chain.
The community voted “with overwhelming support” to pass Proposition 1623 on May 25, paving the way for LUNA 2.0 to launch.
The relaunch and token airdrop were scheduled for May 27, but an announcement on that day has delayed this to May 28 at 06:00 GMT.
It’s a thumbs down from the community
Co-founder and CEO of blockchain carbon credit firm eCarbon, Joshua Fernando, spoke of the dangers of reviving LUNA. By email, Fernando raised several salient points about the relaunch, including:
- The lack of disclosure on how LUNA 2.0 will derive value, especially as it will be missing a stablecoin component.
- Massive selling pressure once the vesting period ends, as holders look to recoup losses and flee to safer projects.
- A conflict of interest with exchanges (supporting the airdrop and relaunch), as they too may be looking to recoup losses.
The consensus on crypto Twitter is much the same, with no shortage of tweets mocking the relaunch. For example, @Mister_Ch0c likened investing in LUNA 2.0 to rekindling a relationship with an ex who cheated.
Buying Luna 2.0 is the equivalent of calling back your ex knowing she cheated on you
Have some self respect— MisterCh0c (@Mister_Ch0c) May 27, 2022
Similarly, Markus didn’t hold back when tweeting his thoughts about the intelligence of LUNA 2.0 investors, which he called “truly dumb crypto gamblers.”
luna 2.0 will show the world just how truly dumb crypto gamblers really are
— Shibetoshi Nakamoto (@BillyM2k) May 25, 2022
Dogecoin co-founder Billy Markus has ramped up his criticism of Terra (LUNA)
In a recent tweet, Dogecoin co-founder Billy Markus claims that the upcoming launch of Terra 2.0, the new iteration of the failed blockchain project, will show just how “dumb” cryptocurrency gamblers are.
The community overwhelmingly voted in favor of Proposal 1623, a revised version of founder Do Kwon’s initial plan to revive the embattled network.
A new Terra chain will be launched on May 27 with one notable difference: there will be no algorithmic stablecoin.
Earlier this month, one of the top blockchain projects went belly-up after TerraUSD (UST) stablecoin lost its peg and exerted extreme selling pressure on the LUNA governance token, pushing its value to zero.
The rollout of the new blockchain will also be accompanied by the launch of a new LUNA token. The old token will be called LUNA Classic in a nod to Ethereum Classic.
According to the distribution model presented in the proposal, 35% of the tokens will be distributed to pre-attack LUNA tokens. Ten percent of the token’s supply will be allocated to pre-crash UST holders. Post-crash LUNA and UST owners will get a 25% of the tokens. Snapshots were taken on May 7 and May 27 (before and after the project collapsed).
Kwon claimed that his main motivation was preserving the vibrant ecosystem behind the troubled project.
Nebula, Prism, and other projects have thrown their support behind Luna 2.0, but many remain skeptical.
Markus, for instance, has been highly critical of Kwon’s revival plan. Earlier this month, he said that Terra was “the stupidest thing” he had seen in his entire life.
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