In what will surely be a historic week in the crypto world, Terra’s LUNA, the crypto that backs its dollar-pegged algorithmic stablecoin UST lost over 94% of its value in a single day. Noticeably, it hasn’t been an ordinary crash —  but rather an agonizing freefall.

Bitcoin permabull Max Keiser has suggested that Cardano’s native token ADA could follow in LUNA’s footsteps and head for a catastrophic fall.

Is ADA The Next LUNA?

The Terra ecosystem is crumbling.

For the uninitiated, algorithmic stablecoins like Terra’s UST are automatically pegged to the price of another currency. In this case, users can swap 1 UST for $1 worth of LUNA at any time, thus burning the UST and removing it from circulation. This algorithmic relationship helps maintain its dollar peg.

Despite adding a multi-billion-dollar bitcoin reserve as additional backing, Terra’s UST stablecoin recently seriously drifted away from the $1 price point. UST started its tailspin on Sunday, leading to LUNA plunging by around 11%. On Tuesday, a $1.5 billion bitcoin loan from the Terra-supporting Luna Foundation Guard (LFG) failed to prop up the stablecoin, which slumped to as low as 30 cents yesterday.

As ZyCrypto reported earlier, Terraform Labs CEO Do Kwon has outlined the way forward for UST and LUNA in the wake of this week’s seemingly unprecedented collapse. His main objective currently appears to be to bring UST back to its peg.

Meanwhile, as the crypto community processes the Terra calamity, Cardano creator Charles Hoskinson has dismissed any possibility of the network’s Djed stablecoin also losing its dollar peg.

Cardano’s Hoskinson Explains Why Djed Is Unlikely To Go The UST Route

According to Hoskinson, the UST crash can be attributed to a coordinated attack that can be faced by any decentralized finance (DeFi) protocol or cryptocurrency. He highlighted that such an attack could be orchestrated by hackers and traders alike, as long as there is an exploit that can be identified and breached.

Cardano-based Djed is also a decentralized algorithmic stablecoin, just like UST. However, it uses smart contracts and the Shen reserve coin to maintain a stable price. By leveraging Shen, any fluctuations in the ADA price are negated by the reserve asset covering shortfalls and protecting the collateralization rate. 

Nonetheless, some skeptics still believe Cardano is not fully immune to the recent disaster witnessed in the Terra ecosystem. “The next LUNA?”, bitcoin maxi Max Keiser asked in a recent tweet.

In a different tweet, Hoskinson noted that Cardano employs “overcollateralization” to prevent the Djed stablecoin from veering away from its dollar peg.

Overcollateralization

— Charles Hoskinson (@IOHK_Charles) May 11, 2022

Collateralized stablecoins are those that are backed by other financial assets, including traditional assets or cryptos. Djed’s collateralization mechanism is decentralized. This means it’s normally buoyed by users who mint Shen and deposit ADA tokens in the liquidity pool.

It remains to be seen whether Cardano’s overcollateralized and decentralized Djed stablecoin will stand the test of time.

Digital magazine and gallery Artnet gave Cozomo de’ Medici the keys to the castle. The notorious NFT collector took over their very popular Twitter account to raise hell. Cozomo de’ Medici’s thesis is that “the internet killed the yellow pages. Netflix killed Blockbuster,” and NFTs will replace traditional art. A bold prediction, we know, but let’s give the pseudonymous collector the benefit of the doubt and explore his thread.

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The story starts with Artnet NFT 30. A list of the 30 most influential people in the NFT world. Of course, Cozomo de’ Medici was one of them. As a publicity stunt, Artnet gave Cozomo control of their Twitter. “And starting now, I will be taking over the ARTNET Twitter! I warned them I may be controversial ;),” de’ Medici said. And then, “Ok frens, so I dropped a bit of a bomb over on the Artnet twitter account. They had NO idea I was going to do this!”

Ok frens, so I dropped a bit of a bomb over on the @artnet twitter account.

They had NO idea I was going to do this!

Read this below and please share the ArtNet post! (not this post).

Let’s let the world know that WE are the digital revolution https://t.co/yP9wjmiTmB

— Cozomo de’ Medici (@CozomoMedici) December 15, 2021

Besides NFT recommendations and commentary, Cozomo de’ Medici made a name for himself on Twitter by making outrageous statements. One of them is, “Crypto billionaires will flip traditional billionaires. NFTs will flip traditional art.” Let’s explore that idea.

BTC price chart on Bitbay | Source: BTC/USD on TradingView.com

NFTs Will Kill Traditional Art, According To Cozomo de’ Medici

The notorious NFT collector begins by comparing the NFT revolution to the advent of Reality TV. “For almost 100 years, the studios decided which actors would be lucky or talented enough to become stars. But then in the 2000’s, everything changed. The cameras turned from focusing on actors, to every day people. With Reality TV, soon it wasn’t a trained actor who was getting famous, but your classmate, co-worker, or next door neighbor. ”

4/ Now, someone like @MrBeast could build a more sizable, much more engaged following than the biggest tv or film star@guyraz could have more daily listens than the biggest radio stations

And those who used both social & reality tv, like Rogan & the Kardashians, built empires

— Artnet (@artnet) December 15, 2021

Ok, so far so good.

Then, Cozomo turns to art. For centuries, “kings, queens, and noble folk decided which art was relevant.“ Then, the tide shifted, “in the Victorian era of the 1800s, galleries, museums, and collectors began to move markets.” The problem here was that the public had zero access to these artists. By the time they learned “about Warhol or Basqiat, their work has become expensive, the best pieces gobbled up by known collectors and market makers.”

9/ And this is not just in the major markets – London, Paris, NYC – but globally.

I was recently chatting with a man who grew up in Morocco. As he described it, in Morocco there are 5 dealers who make up the “art mafia”.

If an artist gets on the bad side of one, they are done.

— Artnet (@artnet) December 15, 2021

Enter NFTs. “No museums. No galleries, other than the marketplaces, and the galleries made by collectors themselves.” A heap of now well-known artists came out of this change of paradigm. But that’s not all, “any artist, from any where in the world, with no invitation, can mint a drop.” Also, the power shifted to the consumer. “YOU can decide which artists will define this generation.“

17/ Not by getting a museum show – but by producing great art, and cultivating a community using digital tools, like twitter and discord.

Now, you may be wondering… is there real size, and real provenance to be achieved this way?

— Artnet (@artnet) December 15, 2021

You’re In Control Of The New Art Elite

Then, Cozomo de’ Medici shouts out two artists. Who, of course, are part of Artnet NFT 30 as well.

19/ Or the previously mentioned @XCOPYART, a CryptoArt “OG” who has been minting art on chain perhaps as early as 2016…

And has had individual works sell for $3m, $4m, $6m, and $7m… all in the last 3 months. pic.twitter.com/zCdoXFXbTr

— Artnet (@artnet) December 15, 2021

Photographer Justin Aversano and Digital artist Xcopy. Who, of course, are a big part of Cozomo de’ Medici’s collection.

To finish, de’ Medici goes all in. “We are the market makers now. We create our own museums. We decide which art defines this generation. We are the digital renaissance.”

We r the digital renaissance ! @CozomoMedici https://t.co/zUz1EdkOEO

— Snoop Dogg (@SnoopDogg) December 16, 2021

The reactions have been mixed. Some people don’t buy it, some people think Cozomo de’ Medici is a genius. In what camp are you? Are you convinced or nah? Is Cozomo exaggerating for effect? Or does he or she really believe that? Is Cozomo ahead of his or her time or clinically insane? And, more importantly…

Who’s Cozomo de’ Medici?

No, he’s not Snoop Dogg. That was a publicity stunt that worked too well and even journalists still believe.

Love this. I was interviewed earlier today and asked if crypto is going mainstream. My answer was yes, and one of my supporting points was that Snoop Dogg had an anon NFT Twitter account. And now he drops one of the most insightful tweet threads on the future of NFTs. Must-read: https://t.co/ywNVaxpBN7

— Laura Shin (@laurashin) December 16, 2021

To answer the title’s question, let’s quote the publication that started this whole mess. In Artnet NFT 30, they introduce him as follows:

“Ever since the mysterious collector behind this Twitter handle emerged on the scene in August, they’ve captivated the cryptorati with a combination of gnomic utterances and sage NFT investment advice, all packaged under a playful identity claiming a parallel between the famous patronage of Renaissance Florence’s Medici family (albeit with a tweaked spelling seemingly borrowed from Seinfeld’s Kramer) and Cozomo’s own pursuits in the digital art world today.”

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And about his collection, a huge part of this story, Artnet says:

“With astonishing speed, Cozomo acquired a collection of Art Blocks and CryptoPunks alongside NFTs by Justin Aversano, Tom Sachs, and a host of other artists. He now owns hundreds of artworks, including coveted examples that the crypto community calls “holy grails,” that are together valued in the tens of millions of dollars— including what he calls a “grail of grails,” XCOPY’s Right-click and Save As guy,”

The estimation is that his whole collection is worth $17M approximately. Take that for what it’s worth.

Featured Image from Cozomo de’ Medici's Twitter page | Charts by TradingView

Jordan Peterson’s journey into bitcoin is an interesting one for all intents and purposes. After talking with Dr. Saifedean Ammous, Peterson has now dug his heels deeper into the market.

Dr. Saifedean Ammous is an author that is well-known in the crypto industry for his book titled “The Bitcoin Standard”. Following the success of this book, he had released another book titled “The Fiat Standard” as a follow-up to the first book.

Peterson has grown a large following as an author, clinical psychologist, and podcast host. He regularly talks about finance-related topics on his podcast titled the “JBP Podcast”.

Related Reading | VanEck Bitcoin Futures ETF Gets SEC Greenlight After Spot Rejection

The Canadian author had hosted four guests/experts on his podcast where they talked about bitcoin and the technology behind the digital asset. Peterson is an investor in the cryptocurrency, convinced of its importance to the future of the financial marketplace, and recently, he announced that he has added to his bitcoin holdings. Here’s why.

Learning More About Bitcoin

Jordan Peterson had Dr. Saifedean Ammous as a guest on his podcast, where the latter talked through some of the important aspects of the digital asset. The monetary system of bitcoin has always been interesting and unique in the way it worked and the author shed more light on this part of it. In addition, Ammous also talked about the tech side of things.

Peterson had his questions answered by his guest who eloquently explained the nuances of the technology in terms that the average listener could understand. One of these was the fact that bitcoin is controlled by no one. The author stressed the fact that there really was no one pushing buttons behind the scenes when it comes to the asset. “There is nobody with a master key,” said Ammous.

BTC price trading below $59K | Source: BTCUSD on TradingView.com

Bitcoin’s decentralization is one of the most attractive features of the asset. This, Ammous said, is what drives the attention being paid to bitcoin.

Fiat money is entirely controlled by governments and more can be printed/created at will. Bitcoin does not have this problem given its lack of central control. “It is a neutral money that nobody can control,” the author pointed out.

Peterson Digs In

After the podcast was completed, Peterson took to Twitter to express his satisfaction with the episode. It seems that conversing with Dr. Saifedean Ammous made a lasting impact on the clinical psychologist judging from his tweet. Peterson revealed that he had purchased some more bitcoin after talking to the author.

My pleasure. Learned a lot. Bought some more Bitcoin. Inflation be damned.

— Dr Jordan B Peterson (@jordanbpeterson) November 16, 2021

Related Reading | There Are More People Using Bitcoin Wallets Than Bank Accounts, Says El Salvador President

In Peterson’s tweet, he uses the phrase “inflation be damned”. Bitcoin, which is widely known as the “digital gold” has proven its value to investors as a hedge against inflation and it seems Peterson is hip to this use case.

Returning 200% year-over-year gains, BTC has become the asset of choice for investors who are looking to protect their portfolios from the devastating effects of inflation. Moreover, with inflation rates predicted to keep growing, demand is expected to rise for bitcoin, in turn leading to higher values.

Featured image from The Guardian, chart from TradingView.com

Shiba Inu continues to buck this week’s alt market downtrend, further suggesting meme coin investors have switched their focus away from Dogecoin.

Since the start of October, when SHIB began taking off, the Dogecoin clone has posted 280% gains. Its unreal run of form, combined with meme coin status, has led some purists, including Ran Neuner, to say now is a solid shorting opportunity.

More recently, investor and former hedge fund manager Michael Burry joined in with the criticism by calling Shiba Inu “pointless.”

However, the Shib Army remains unfazed, with one Twitter user (named $SHIB KNIGHT) remaining steadfast in his calls for a $0.01 $SHIB. To put some perspective on matters, Shiba Inu would need a 34,000% increase for that to happen.

While stranger things have happened in crypto, based on the current circulating supply, a $0.01 token value would mean a $4 trillion market cap for $SHIB – a huge ask if ever there was one.

#SHIB 0.01$#BONE 100$#LEASH 100K$

NOTED.

— $SHIB KNIGHT (@army_shiba) October 10, 2021

What did Burry say about Shiba Inu?

Coinbase added Shiba Inu in mid-September. While the announcement did not explicitly say this was due to customer demand, it implied this by referring to its listing process in the post.

“One of the most common requests we hear from customers is to be able to buy and sell more cryptocurrencies on Coinbase. We announced a process for listing assets, designed in part to accelerate the addition of more cryptocurrencies.”

$SHIB spiked 36% on the day of listing, followed by a two-week downturn until the start of October. From there, Shiba Inu spiked hard, blasting through $0.00000914 resistance on October 4.

Nonetheless, Burry rejects Shiba Inu on the grounds of its high total supply, which is set at one quadrillion (1,000,000,000,000,000) tokens. This, he suggests, makes $SHIB a poor investment choice, given the effect of abundant supply on price appreciation.

“Just saying, one quadrillion seconds is about 32 million years. One quadrillion days is 2.7 trillion years, or ALL of TIME, from the beginning of the universe, multiplied by 71,000. In other words, pointless.”

Haters gonna hate

While critics a quick to dismiss Shiba Inu, it’s worth remembering Dogecoin faced similar calls earlier this year.

At its peak in May, the Dogecoin market cap was close to $90 billion, making it more valuable than the likes of Dell, General Motors, and British American Tobacco, much to the annoyance of the purists.

They struggled to wrap their heads around how a fundamentally weak project could hit 15,000% gains over a five-month period.

Although it’s unlikely Shiba Inu will “do a Dogecoin,” who’s brave enough to say markets are always rational?

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