Luna’s collapse will live on infamy, May 5-11, 2022

Terra’s crash forced crypto investors to ask a question they never thought was possible: Will TerraUSD (UST) or Terra (LUNA) reach $1.00 first? The size of this question provides a sobering reminder of how quickly things can change in cryptography. While Terraform Labs co-founder Do Kwon remains defiant, many people in the industry are starting to distance themselves from a protocol that they believed offered real benefit to stablecoins and Bitcoin (BTC).

The threat of contagion from Terra’s apparent collapse could take months or even years to fully appreciate, but the crypto winter’s cries seem to be getting louder. Fortunately, blockchain projects are filled with tens of billions of dollars. They will keep building. Can you wait a little longer to fulfill your digital asset investment thesis?

Celsius Network executive denies rumors of big losses amid market volatility

The fallout from the UST/LUNA fiasco has shed a negative light on Celsius Network, a crypto-focused wealth management platform that has allegedly been “wiped out” due to the events of the past 72 hours. Celsius’ leadership team confirmed on Wednesday, however, nothing could be further from the truth. “We are not in any way exposed to market volatility,” Rod Bolger, the company’s chief financial officer, told Cointelegraph, including the crypto crash triggered by LUNA. CEO Alex Mashinsky also tried to set the record straight.

FCA regulated Vasanara Capital raised $350 million for a crypto and venture capital fund

If you’ve been able to read anything other than this week’s Terra news, you’ll know that a prominent UK investment firm has raised $350 million to create a new venture capital fund for fintech and crypto. Fasanara Capital, which manages $3.5 billion in assets, has identified Web3 and crypto as a major investment opportunity — so much so that it plans to make larger commitments of capital to startups than traditional venture firms. Investment project companies are not interested in cryptocurrency market cycles. They just want to accumulate as much stock in this sector as possible.

Latin America’s Largest Digital Bank Will Allocate 1% To BTC, Offer Crypto Investment Services

A digital bank in Brazil with more than 50 million customers invests 1% of its net assets in BTC and makes it easier for people to buy, sell and store digital assets. Nubank, Latin America’s largest new bank, announced this week that it has partnered with Paxos to make its crypto ambitions a reality. Cointelegraph has reported for years that Latin America is an emerging crypto hub. If you’re feeling nervous about the market, check out what the executive team at Nubank has to say about the crypto potential in the region.

Michael Saylor Calms Investors After Market Recession Hurts MSTR and BTC

With Bitcoin dropping below $30,000 — and the average cost of BTC for MicroStrategy — CEO Michael Saylor reassured investors that his crypto business intelligence company was not in danger of a margin call. Saylor said that it will take bitcoin’s price to collapse below $3,600 before the company has to post other collateral. Crypto Twitter has already accused Saylor of selling a portion of his BTC cache. This is neither true nor the rumor that MicroStrategy is going bankrupt due to its Bitcoin reserves.

Can you analyze more LUNA? watch this video

The Market Report Committee met outside of normal business hours this week as I joined fellow analysts Jordan Fenisth, Marcel Bichmann and Benton Yuan to talk about Terra Luna. We talked about exactly what went wrong with the Terra ecosystem, how terrestrial reservoirs lost their currency peg and what this could mean for your wallet over the next 12 months. You can watch the full replay below.

Crypto Biz is your weekly pulse of the business behind blockchain and crypto delivered straight to your inbox every Thursday.