Crypto News on May 30: LUNA 2.0 off to a Bad Start, Dumps 75%

Bitcoin is catching the stock market rally of last week, starting Monday up 5%. This is not the case with altcoins, as LUNA is not loved by the market after its relaunch.

 

Bad Start: LUNA Dumps 75% After Re-Launch

LUNA traded after the launch of Terra’s new version. However, it did not get off to the best start and sold off 75% almost immediately after the launch, highlighting the fact that rebuilding lost trust is not an easy task. Most investors on social media and in the market seem to agree that it will take more than just forking the old Terra chain to revive the ecosystem.

 

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While LUNA Struggles, Bitcoin Starts Monday up

Bitcoin bulls are digging up their bull memes again, as BTC is up 5% to start the week over the last 24 hours. Even though BTC did not avoid yet another weekly red, it looks poised to snap its losing streak this time, as traders and analysts agree that a bear market rally may be imminent. Altcoins will look for Bitcoin to lead the way, as most alts suffered more losses in the last week.

 

What Kicked off the Death Spiral Behind the UST Depeg?

Crypto analytics firm Nansen conducted an on-chain analysis of the Terra (UST) depeg, and its findings did not disappoint. The firm identified seven wallets that kicked off the death spiral behind the depeg. After withdrawing UST from Anchor and swapping it for other stablecoins, market arbitrageurs and price inefficiencies accelerated the decline. One of the wallets was identified to belong to Celsius, which is an interesting turn of development considering the company’s recent struggles following speculation of UST exposure.

 

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Russia Would Allow Crypto as Payment for Foreign Trade

Russia continues to push ahead with its crypto regulation plans. The Ministry of Finance amended its draft bill to include an article that would allow paying with cryptocurrencies in foreign trade. How well this would work to evade sanctions is unclear, but the country is also moving ahead with its own digital currency. The Bank of Russia brought forward a pilot project to launch a digital ruble, with the new launch date being April 2023. This marks further progress toward Russia’s goal of getting itself of dollar dependence as soon as possible.

 

Crypto Regulation in Paraguay

The Paraguayan Congress passed a draft bill regulating cryptocurrency mining, trading and custody in the country, delivering the goods for South American cryptocurrency investors. The bill will return to the Senate for approval before being signed into law by the president. Despite critics’ warnings of increased energy consumption due to bitcoin mining and the alleged illegal use of cryptocurrencies, data shows that crypto approval in Paraguay is already quite high.