The market bloodbath seems to be slowing down, as most assets are picking up slightly and showing tentative signs of recovery. Meanwhile, the Terra ecosystem will undergo a revival plan, as regulators call for responsible crypto innovation.
- The condition of the Terra ecosystem has not improved very much in the past week, with both LUNA and UST still on life support. The ecosystem will experience a revival plan as part of a recovery effort.
- The UK’s High Court of Justice in London has deemed NFTs as private property. The status only applies to the token itself, not the underlying content.
- U.S. Treasury Secretary Janet Yellen has called for responsible innovation in the crypto space, saying that national security interests and contribution to economic growth were important.
- Cardano is leading the market recovery market with a comparatively higher surge in price in recent days.
- Elon Musk tweeted that Dogecoin has potential as a currency, leading to a boost in the token’s price.
This Week in Crypto
LUNA and UST Suffer Fallout
The month of May has had one headline dominating the precipitous collapse of the Terra ecosystem. The fall of LUNA’s price, and especially the depegging of the UST stablecoin, has roiled the market and caught the attention of lawmakers. From the U.S. to Singapore, regulators are tightening laws around how crypto companies operate, and stablecoins are right in the middle of their crosshairs.
Stakeholders in the Terra ecosystem are looking at mitigation strategies, but it appears that at least some of the damage is permanent. The revival plan that Terraform Labs CEO Do Kwon has put forward will change the future of the network, with 1 billion new tokens being distributed. The market, on the whole, has picked up a little, with bitcoin above $30,000 at the start of the week. LUNA and UST have not experienced recoveries.
UK Court Deems NFTs As Private Property
In what could be a landmark ruling for the market in the United Kingdom, the region’s High Court of Justice in London has deemed NFTs as private property. However, the ruling also notes that the content that the NFT represents does not receive the private property status, only the NFT itself. The ruling comes as a result of a case where one individual’s NFTs were stolen.
It remains unclear what the large impact this ruling will have on the U.K. market. Copyright claims and the status of property have been hot topics in the NFT space, and this ruling does provide some clarity. It guarantees an individual’s right to a token if they own it.
Yellen Calls for Responsible Crypto Innovation
The market keeps a close eye on what U.S. Treasury Secretary Janet Yellen says and does, and her actions will be a major factor in a year when the U.S. is amping up regulation. Yellen offered some comments about crypto innovation in a speech at the American University, and those remarks should actually offer some optimism.
Yellen said that responsible innovation was important, and that was what the government should focus on, but national security interests and contribution to economic growth were also important. This is the approach she is calling for, though it only vaguely offers an idea of what might be in store in terms of actual regulation.
Cardano Leads Glimmer of Market Recovery Hope
The market is looking a little more hopeful as we head into the latter half of May, with bitcoin above $30,000 and most assets in the green. One asset that has been doing particularly well is cardano (ADA), which jumped by 40% at the end of last week. It has since settled lower, but it’s clear that investors are eager to move into ADA.
There’s no guarantee that the market will remain on its current upward trajectory. The past few weeks have been some of the most volatile yet, and it may take months for the market to recover. However, many are seeing this as an opportunity to get into the market at what they believe are discounted prices.
Elon Musk Says Dogecoin Has Potential As Currency
When Elon Musk isn’t stirring up discussions about Twitter, he’s stirring up discussions about cryptocurrencies on Twitter. Musk tweeted on May 13 that meme coin Dogecoin still had “potential as currency,” which predictably led to a surge in the token’s price. This is far from the first time that Musk has shown support for DOGE, and on all occasions, it has had a positive impact.
Musk has said in the past that “lots of people” he talked to at Tesla and SpaceX have DOGE. He calls the asset the people’s currency, though many in the market might disagree with him. In any case, should Musk’s Twitter buyout succeed, the future for DOGE might be much more lucrative.