Welcome to Around the Blockchain, Huobi Learn’s daily rundown of the crypto markets.
US Commodity Futures Trading Commission (CFTC) chairman Rostin Behnam has noted that BTC and ETH are commodities. In response to US Securities and Exchange Commission (SEC) chairman Gary Gensler’s claim that most tokens are securities, Behnam said the two largest cryptocurrencies were commodities, and that cryptocurrencies in general could either be securities or commodities. He also said the CFTC and SEC were collaborating on crypto regulation, as there were “no customer protections right now in the crypto market”.
24 hours after a vote on Terraform Labs’ Terra 2.0 proposal on 21 May, the prices of several tokens in Terra’s ecosystem rose significantly. Though the official results of the vote will not be announced until Wednesday, current figures show that 62% of the votes are in favor of Terra 2.0. And though 80 validators remain undecided, LUNA has increased by 87.59% and ANC 81.81%. UST, on the other hand, saw a 20.9% rise before falling back down and remaining on a down-trend.
This month alone, Tether has paid out $10 billion in withdrawals. Public blockchain records show that $2.5 billion in USDT has been redeemed so far, with the crypto given back to Tether and destroyed as part of the withdrawal process; the total amount withdrawn is now around 12.5% of its entire reserves. CTO Paolo Ardoino highlighted Tether’s stability through “multiple black swan events and highly volatile market conditions”, saying it was “fully backed” and the composition of its reserves was “strong, conservative and liquid”.
Young Indian crypto investors have suffered major losses during the recent crypto market crash, which has wiped out around $400 billion worth of investments in the sector. Despite India’s steep 30% tax on virtual digital assets (VDAs) like crypto, over 54% of Indians in the crypto space this year were first-time investors. But while many have been affected by the crash, crypto markets are slowly recovering: after the global market cap fell from $1.42 trillion to a low of $1.19 trillion on 12 May, it has gradually climbed back up to $1.3 trillion today.
Russian authorities are investigating a crypto mining farm at Butyrka, the country’s oldest prison. A deputy warden and his unidentified accomplices allegedly stole electricity to mint digital tokens using hardware set up in the prison’s psychiatric clinic. So far, the Investigative Committee of the Russian Federation has established that the accused parties installed the mining equipment in Nov last year, eventually consuming nearly 8,400 kW of electricity at a cost of almost $1,000 — all on the government’s dime. The warden is hence accused of “actions that clearly go beyond his powers, thereby significantly violating the legally protected interests of the society or the state”.
Show me the money
As crypto markets inch their way back from the recent crash, BTC has risen 2.59% to $30,311.39 in the last 24 hours. Within the same period, ETH rose 3.31% to $2,052.83, while other major altcoins also saw increases: ADA was up 2.21%, SOL 5.08% and AVAX 4.27%. Similarly, meme tokens SHIB and DOGE saw a respective increase of 5.14% and 2.33% respectively over the past 24 hours.
After losing nearly all its value during the downturn, Terra’s LUNA is continuing its reversal in fortunes, rising 15.05% to $0.000194 in the past 24 hours. Its stablecoin UST appears to be following suit, rising 13.84% to $0.073860 in the same period.
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