THIS WEEK IN CRYPTO
- Terra 2.0 is coming. Terra backers vote to revive luna — but not UST. The proposal would lead to the creation of a new blockchain and its associated luna token, which is now worthless after investors fled en masse in the crypto equivalent of a run on the bank. Under the new proposal, Terra plans to distribute tokens to holders of the old luna — soon to be renamed “luna classic” — and UST tokens.
- Stripe expands Bitcoin conversions in the latest Crypto push. The payments company plans to give customers access to Bitcoin four years after suspending support for the cryptocurrency. Stripe teamed up with crypto startup OpenNode to allow its customers to accept Bitcoin payments through a new app. Using the app, Stripe customers will be able to convert incoming payments and any amount of their balance into Bitcoin.
- Bipartisan bill enshrining Bitcoin, and Ethereum as commodities due in June. The cryptocurrency industry will be laser-focused on Capitol Hill in the coming weeks after Democratic Sen. Kirsten Gillibrand of New York and Republican Sen. Cynthia Lummis said they will unveil legislation in June that will create a comprehensive “baseline” for cryptocurrency regulation in the United States. Read more here.
- Andreessen Horowitz raises a $4.5 billion crypto fund, the largest of its kind. The firm is dedicating $3 billion to venture investments and $1.5 billion to seed investments. The fund, the fourth crypto-dedicated investment vehicle for Andreessen Horowitz, brings its total digital-asset-focused efforts to $7.6 billion. The firm has doubled down on building “web3” rather than tech giants. Read more here.
- Fed’s Brainard to tell panel digital dollar could coexist with Stablecoins. In some future circumstances, CBDC [central bank digital currency] could coexist with and be complementary to stablecoins and commercial bank money by providing a safe central bank liability in the digital financial ecosystem, much like cash currently coexists with commercial bank money, according to Ms. Brainard. Read more here.
- Hotels using NFTs to create a StubHub for lodging reservations. It involves converting room nights for sale into nonfungible tokens, or NFTs, that can be bought or sold by hotel guests, similar to the StubHub market for concert and sporting event tickets. Owners say this ensures they get paid for the rooms because guests would sell their reservation in the market if they decide not to go.
- eBay is entering the NFT business. Hockey legend Wayne Gretzky is featured in the first collection from the e-commerce company. The company is launching 13 limited-edition digital collectibles in partnership with Web3 platform OneOf, each of which contains a 3-D animated rendering of Gretzky making one of his signatures move on the ice. Priced for the everyday fan starting at $10 each.
- China’s state-backed blockchain company is planning its first major international expansion. This comes as Beijing continues to make technology a key priority. Blockchain-based Service Network bills itself as a “one-stop-shop” to deploy blockchain applications in the cloud, a process that could otherwise be costly and time-consuming. Read more here.
- Crypto investing has become easier in Germany. The country’s Ministry of Finance announced that they would be changing their stricter tax laws to one of the most friendly in the world for crypto investors. Holders will not be taxed on their profits as long as they don't sell within less than a year. The 24-page report was one of the most comprehensive and up-to-date pieces of legislation that reflects the current crypto economy. Read more here.
- Ethereum sinks 10% on 7-block reorg. Ethereum's Beacon Chain effectively forked, providing investors with concerns that this form was the result of a malicious actor, network failure, or bug. Key Ethereum developers theorize that this reorg was the result of some miners using outdated versions of mining software. However, this reorg has implied to many that the previous August timeline for the merge may be delayed, once again.
