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SHIB Army Burns 405 Million SHIB, Bitcoin Collapse Explained, Terra Drops 14%: Crypto News Digest by U.Today

Mon, 05/09/2022 - 16:15
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Valeria Blokhina
What news has the weekend brought? Read U.Today’s crypto news digest to find out!
SHIB Army Burns 405 Million SHIB, Bitcoin Collapse Explained, Terra Drops 14%: Crypto News Digest by U.Today
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Let’s take a look at what happened in the crypto industry over the weekend with U.Today’s top four news stories.

SHIB Army removes 405 million Shiba Inu

According to etherscan data shared by Shibburn crypto tracking service, on Saturday, the SHIB community sent a total of 405,282,493 meme tokens of the circulating supply to a few “inferno” wallets. Thus, enterprises and individual burners are trying to make the meme coin slightly more scarce with the potential of a price increase in the long term. The single biggest transfer was 112,462,000 SHIB.

Bitcoin collapse over past two days explained by this report

In his Saturday tweet, Chinese crypto journalist Colin Wu shared an explanation as to why Bitcoin, the world’s largest cryptocurrency, demonstrated a massive price fall last week. Wu attached a CryptoQuant chart that shows that on May 5 and 6, short-term holders moved a total of 11,760 Bitcoins to multiple crypto exchanges. This crypto had been held for less than three months prior to that. Another likely reason for the BTC fall is the Fed’s decision to raise the interest rate by half a percentage point.

Bitcoin Long-Term Holders Are Capitulating and It Shouldn't Worry You

Terra plunges 14% as UST briefly loses its peg

On Sunday, the price of Terra’s native asset, LUNA, saw a 14% drop, becoming the worst-performing cryptocurrency among the major altcoins. Earlier this weekend, Terra briefly lost its peg after someone dumped $300 million worth of UST tokens on Curve and Binance. According to DeFi expert Route 2 Fi, the peg will be restored since there’s “enough money” in the system to back it up. However, some LUNA holders suggest that it was a “coordinated attack” organized by a single player to cause damage to the popular blockchain project.

Terra's UST Stablecoin Now Interacts with Bitcoin "Natively": Here's How

Crypto CEO indicted in $62 million fraud scheme

The U.S. Department of Justice has charged Mining Capital Coin CEO Luiz Capuci Jr. with orchestrating a massive cryptocurrency fraud scheme. Capuci, together with co-conspirators, defrauded investors of $62 million, U.S. authorities allege. He assured investors that the company operated an expansive network of mining facilities that would be able to generate sustainable returns. In reality, Mining Capital Coin operated as a typical pyramid scheme. For wire fraud, money laundering, and securities fraud, Capuci faces a maximum prison sentence of 45 years.

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About the author

Valeria is the community manager at U.Today. She is a crypto enthusiast and believes that cryptocurrency is the future of finance. Currently, Valeria covers the latest news in the world of crypto and blockchain.