Welcome to Around the Blockchain, Huobi Learn’s daily rundown of the crypto markets.
After rising to a high of $11.33 on 30 May, Terra’s new LUNA 2.0 token has declined by over 56% in value against the USD. At the same time, whistleblower Fatman continues to accuse Terraform Labs (TFL) and Do Kwon of manipulation, alleging that he “used his shadow wallet to approve *his own proposal* through governance manipulation” and “gave himself a nine-figure score”. However, Fatman also tweeted that Terra 2.0 could become community-owned but added that TFL was “hell-bent on making sure” this would not happen.
The top two tokenized gold coins risen significantly over the past 15 months, with Paxos’ PAXG and Tether’s XAUT having grown 408% to $620 billion and 248% to $458 million in market valuation respectively since 26 Feb last year. In terms of tokenized gold coins by market cap, PAXG is number one, with XAUT in second place. Still, both tokens’ combined total market valuation of $620.46 billion represents just a small fraction of gold’s overall $11.795 trillion market valuation.
Indonesian crypto exchange Pintu has raised $113 million in Series B funding through Intudo Ventures, Lightspeed Venture Partners, Pantera Capital and Northstar Group. Pintu will use this capital to build new features, like additional supported tokens and blockchains. Meanwhile, Canadian crypto trading platform VirgoCX has raised $7.95 million in Series A funding through Draper Dragon, Blockdream Ventures, Cobo Ventures, Molecular Group, Sora Ventures and How Link Investment to drive its global expansion and develop more products and services.
The US Securities and Exchange Commission (SEC) is looking into Binance’s initial coin offering (ICO) of its BNB token in 2017 to determine if it was an unregistered security offering that should have been registered with the SEC. It is also investigating market-making firms owned (fully or partially) by Binance CEO Changpeng Zhao that do business with the exchange’s US affiliate, Binance.US, to determine if it is wholly independent of Binance and if employees may be involved in insider trading. After the news broke, BNB saw a 4% decline.
The US Department of Labor (DOL) and Secretary of Labor Martin J Walsh have been sued by 401(k) plan administrator Forusall Inc. over their crypto guidance. The lawsuit alleges that the DOL breached its statutory purview by threatening “an investigative program” aimed at plan sponsors offering digital assets. It also states that the DOL’s issuance of the guidance was “arbitrary, capricious and otherwise not in accordance with law, and in excess of (the) DOL’s statutory jurisdiction, authority or limitations, and is therefore ‘unlawful and (shall be]) set aside.'”
Show me the money
Long-term BTC holders are experiencing their largest losses since the 2018-2019 bear market and Mar 2020 capitulation, with aggregated realized losses exceeding 0.006% of the market cap by 29 May. According to Glassnode, these losses may continue for some time should loss patterns seen in previous bear markets be repeated. Despite the negative outlook, however, inflows to digital asset investment products, such as BTC exchange-traded funds (ETFs), surpassed $100 million last week.
There have also been significant differences in exchange flows between BTC and ETH: BTC has seen exchange inflows of around $506 million so far this year, while ETH has seen outflows of $357 million, suggesting that market sentiment is far more positive for BTC than for ETH. BTC is down 5.73% to $29,603.45 in the last 24 hours, while ETH is down 7.1% to $1,765.83 within the same period.