Crypto Scoop: The Bearish Trend Continues As El Salvador Organises Bitcoin Seminar

It has been a gloomy week in the crypto space as top cryptocurrencies try to regain momentum amidst a bearish market. In this episode of the crypto scoop, we’ll be reviewing:

• Top cryptocurrencies struggle in a sea of red
• Terra struggles to regain reputation after backlash
• El Salvador organises Bitcoin seminar
• The marriage ceremony in the metaverse 

Top cryptocurrencies struggle in a sea of red. 

In the last week, the total market cap of cryptocurrencies has decreased to $1.3 trillion. Top cryptocurrencies like ETH, SOL, ADA, and DOT have struggled to keep ahead in a bearish market. Bitcoin, which has dipped lower than its ATH of $68k, has struggled to stay above $30,000. 

Meme coins DOGE and SHIB have lost over 80% of their ATH. Stablecoins have not been left out of the market swings as several algorithm stable coins lost their $1 peg. Fathom Stablecoin, DEI lost its $1 peg, dipping as low as 46 cents before recovering at 72 cents. The recent dip in crypto tokens was prompted by increasing inflation across the globe and poor macroeconomic sentiment that have prompted sell-offs.  

Microstrategy CEO Micheal Saylor, whose company holds about 129,218 BTC, noted that he sees bitcoin going to the millions despite the current bearish run. He explained, “we are in it for the long term. Our strategy is to buy bitcoin and hold the bitcoin, so there’s no price target. I expect we’ll be buying bitcoin at the local top forever.” He also noted that although LUNA and UST have undergone a meltdown, he feels this is good as it will accelerate the regulation of stablecoins and security tokens. Ultimately the crypto community will recover from this drawdown. LUNA is still trading on several exchanges now, but the 221 million LUNA, which cost LFG over $882 million, is worth $40,200 UST fell 40%, and LUNA by 22%. Do Kwon has, however, continued to call for calm, stating that his team has a long-term plan to turn things around.

Terra struggles to regain reputation after backlash

Several stablecoins suddenly lost their $1 peg, but UST took the brunt of the blow. Following the community response, CEO Kwon advocated forking Terra as a way to recover. "$UST peg failure is Terra's DAO hack moment, an opportunity to rise from the ashes," he explained. "Terra is more than UST," he said.

However, the community appears to oppose the recovery plan, with 92 per cent voting no. On the other hand, Terra seems to be moving forward with her plan to oust UST. According to the block, some of Terra's legal team has abandoned the company, and the LUNA foundation guard is being questioned about what happened to the 80,000BTC reserve.

According to the LUNA foundation guard, the reserve was utilised to try to restore UST, and the leftover funds would be distributed to investors who lost money due to the UST meltdown.

LUNA is still trading on numerous platforms, but the 221 million LUNA cost LFG $882 million is now worth $40,200. UST is down 40%, while LUNA is down 22%. On the other hand, Do Kwon has maintained his plea for calm, claiming that his team has a long-term strategy to turn things around.

El Salvador Holds Bitcoin Seminar

President Nayib Bukele of El Salvador has announced a meeting of 44 countries to discuss Bitcoin. El Salvador's president declared that he would meet with representatives from 44 countries to discuss Bitcoin, financial inclusion, the digital economy, and banking for the unbanked. El Salvador's President, Nayib Bukele, announced a comprehensive list of visitors on Twitter, including the central banks of Egypt and Nigeria, Africa's two largest economies.

El Salvador picked bitcoin to combat hyperinflation and reduce its reliance on the US dollar. Nayib Bukele is a dedicated bitcoin advocate, and hopefully, this meeting brings more adoption to cryptocurrency.

While we wait for the outcome of the bitcoin seminar, Nigeria's Securities Exchange Commission has undertaken another attempt to regulate cryptocurrencies. In September 2021, the Nigerian Securities and Exchange Commission (SEC) announced that it would establish a dedicated branch to research cryptocurrency investments.

Following this, Nigeria SEC defined an asset as "a token that represents assets such as a debt or equity claim on the issuer," placing cryptocurrencies under its jurisdiction. Following that, all crypto firms in the country must be transparent and fair with their fees and present the SEC with a list of the assets they plan to trade. The SEC will then issue a 'no-objection' letter for each asset. They'll also have to be capitalised with at least N500,000 in cash and post a fidelity bond for at least 25%. Nigeria has recognised cryptocurrencies as an asset and has taken the first clear cut steps to regulate them for its citizens.

A One-of-a-kind wedding holds in the metaverse.

After legal issues arising from their countries compelled them to marry in Georgia in 2019, a Dubai-based couple has decided to marry in the metaverse. Following the wedding, the couple stated that they would use their personal experience to assist others in the metaverse in getting married.

According to a Blockchain Group, the couple's wedding attire was purchased through Opensea, a non-fungible token (NFT) marketplace. According to the report, 20 of the couple's closest friends will join them through the metaverse. Although the exact cost of the ceremony has not been disclosed, the report believes that it will cost over $800 or DH3,000.