Crypto Digest: All Significant Events [June 2022]
The crypto sphere is one of the young but promising areas that has already achieved some success and managed to interest millions of investors and ordinary users around the world.
Therefore, our team decided to create news digests not only on the topic of cyber technologies and security but also about news from the crypto sphere.
In today’s article, we have compiled a digest of significant events from the crypto world.
Read our previous news digest here.
Significant crypto events for June 2022
1. The launch of Luna 2
Everybody knows this fakap of Luna! Let’s recall that the rate of the popular Luna cryptocurrency in April was about $95 per unit (at its peak — $119.18), but in May an uncontrolled decline began.
Then the rate dropped to $0 altogether, there are still many who believe in the coming growth and the possibility of a “comeback.”
In June, it became known that the Terra blockchain launched a new cryptocurrency — Luna 2, which became the successor of the collapsed Luna. Despite the bad example, the new cryptocurrency turned out to be in demand: its exchange rate is about $8.6 per unit, the market capitalization, taking into account the circulating volume, exceeds $1.8 billion, according to CoinMarketCap data.
Luna, which is trading at about $0.003, is now called Luna Classic (LUNC). By the way, in the wake of the popularity of Luna 2, the course of the original Luna also grew by about two thousand percent a day, which was not difficult considering the previous collapse.
However, things are not so obvious with Luna 2: at the time of launch, it was trading on ByBit for almost $30 per unit, CoinDesk writes, then a sharp drop followed, after which it partially gained it back.
2. Coinbase lays off more than 1,100 employees
The Coinbase crypto exchange will lay off 18% of the company’s employees — this is about 1,100 people. According to Brian Armstrong, the cuts are due to excessive optimism earlier, the unfolding recession, and the possible collapse of the crypto market.
The top manager recalled that over the past year and a half, Coinbase has grown fourfold, and in the current situation of economic uncertainty, it is difficult to maintain such a number of employees.
According to some reports, Coinbase, had planned another campaign to hire new employees. Now, “in the foreseeable future,” such steps will not be taken. The dismissed employees will receive severance pay, medical insurance for 4 months, and assistance in finding a new job.
Armstrong also assured investors that there is no need to be afraid of bankruptcy: the current situation is not forever and soon everything will turn around.
Several other big crypto exchanges have also announced future layoffs, such as Black, Gemini, and Crypto.com.
3. Crypto investor demands $258 billion from Elon Musk because of Dogecoin
An ordinary American citizen, Keith Johnson, has filed a lawsuit for $258 billion against Elon Musk, SpaceX, and Tesla, accusing them of illegally promoting the Dogecoin cryptocurrency. According to Johnson, Dogecoin is a fraud tool, and Musk and his companies inflated its value.
In addition, the American is sure that Dogecoin has no value, while the defendants in the lawsuit call it a legal and effective investment tool.
Johnson’s goal is to achieve a class action lawsuit, which would involve Americans like him who saw a way to make money on Dogecoin. In addition to compensation of more than a quarter of a trillion dollars, Johnson demands that activities with this cryptocurrency be classified as gambling and that Elon Musk (as well as his companies) be prohibited from promoting it.
At the moment, the Dogecoin rate is $0.05 per unit, the peak value of this cryptocurrency fell in May 2021: at the time it exceeded 70 cents per unit.
Did you hear about Musk’s planned purchase of Twitter? Read about the most significant Twitter data leaks here.
4. In June, Bitcoin fell by several tens of thousands of dollars
The Bitcoin exchange rate has collapsed to the level of 2020.
June became a black month for those who believe in the power of cryptocurrency. In just a day, the exchange rate of the most popular coins collapsed by 14-20% and continues to decline actively. At first, the price just exceeded $28,000; then it was $23,500 for one Bitcoin, and after that, it fell below $19,000.
The second quarter of 2022 was the worst in the history of Bitcoin. In three months, the exchange rate of the coin has collapsed by 58%. The situation is about the same with Ethereum, the second most popular crypto coin.
No one knows what will happen next. Nevertheless, analysts reported by Bloomberg speak of signs of an approaching bottom. They say that the crypt is about to reach the minimum rate, and then it will rush upwards, as has happened more than once.
How to buy Bitcoin anonymously. Learn more here.
5. Miners massively sell Bitcoins mined in May: mining has become unprofitable
A sharp decline in the profitability of mining led industrial miners to sell off all the Bitcoins mined in May.
Previously, 20-40% of coins were sold. The situation in the market, which led to a sharp decline in the Bitcoin exchange rate, is forcing them to get rid of Bitcoins.
As a result of the fall in the exchange rate, the profitability of mining has significantly decreased. The payback period of ASIC miners has increased significantly over the past month, and some models now work at a loss. Experts believe that soon, miners will sell previously accumulated Bitcoins, which can further weaken the cryptocurrency exchange rate.
In addition to Bitcoin, the rate of other cryptocurrencies is falling, the extraction of which is still possible on video cards. Due to this, the cost of video cards has halved compared to peak values in March.
6. One of the largest cryptocurrency investment funds, Three Arrows Capital, has gone bankrupt
The crypto market continues to be in a fever. Although it’s summer outside, experts now like to talk about “crypto-winter.” Its latest victim was one of the world’s largest hedge funds, Three Arrows Capital. Its management declared bankruptcy to protect its remaining assets from creditors.
Back in March, Three Arrows Capital managed cryptocurrency assets worth more than $10 billion. In June, this figure dropped to $3 billion. Last week, the fund was unable to repay a loan of $670 million.
7. It was forbidden to sell cryptocurrency through WeChat
The owner of WeChat, the largest messenger in China and one of the largest in the world, Tencent Holding has banned the sale and promotion of any cryptocurrencies on the site, as well as transactions with non-fungible tokens (NFTs).
They promise to apply sanctions to account owners who violate the established rules, up to blocking and deleting accounts. To begin with, the administration of the messenger will offer users the opportunity to “adjust the account.”
In 2021, the People’s Bank of China (the Central Bank) banned any transactions with cryptocurrencies, as well as their mining, explaining that this was necessary due to the increased volatility and riskiness of investments in this type of asset.
WeChat is the most popular messenger among Chinese residents with an audience of over a billion people. The application also allows you to make payments and transfers, execute some documents, and make purchases.
The list of the best NFT marketplaces is here.