Two Consecutive Months of Contraction on Tether (USDT)

Recent data shows that Tether (USDT)’s market capitalization fell by approximately 0.8% in February, declining to $183.6 billion. This follows a roughly 1% drop in January. The back-to-back decrease suggests a meaningful shift in market behavior.

In stablecoin markets, a shrinking supply often indicates that investors are redeeming their tokens with the issuer in exchange for U.S. dollars. In practical terms, this signals capital exiting the crypto ecosystem rather than entering it. While the declines are modest in percentage terms, consecutive contractions in the largest liquidity vehicle in crypto markets tend to draw heightened scrutiny.

Parallels to the 2022 LUNA Crisis

A similar pattern emerged in 2022 following the collapse of the Terra LUNA ecosystem. During that period, Bitcoin fell dramatically—from around $48,000 at the end of March to nearly $17,000 by June—marking one of the most severe downturns in its history. The reduction in stablecoin supply at that time reflected eroding investor confidence and accelerating capital outflows.

Today, market conditions once again appear fragile. Bitcoin recently dropped to $60,000 at the beginning of the month before staging a modest recovery. However, ongoing geopolitical tensions and broader macroeconomic uncertainty continue to weigh on sentiment. The Crypto Fear and Greed Index hovering near historic lows underscores the cautious mood among market participants.

Why Stablecoins Matter

Stablecoins function as the primary liquidity gateway within crypto markets. USDT, in particular, serves as the dominant base trading pair across exchanges. Any contraction in its supply can therefore signal weakening demand for digital assets and reduced risk appetite.

A sustained decline in stablecoin issuance may limit buying power in the market, potentially amplifying downside pressure if selling accelerates.

Not Just Tether

The trend is not isolated to USDT. USDC, the second-largest stablecoin, has also shown limited growth this year. After declining to around $70 billion in January, its supply recovered toward $75 billion but has not demonstrated strong expansion. It is worth recalling that in March 2023, amid U.S. banking turmoil, USDC temporarily lost its dollar peg, falling as low as $0.80.

Taken together, the lack of stablecoin growth suggests a cautious investment climate. Whether this develops into broader market stress or stabilizes in the coming months will be a key factor in determining the next major move in crypto markets.

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The post Tether (USDT) Tension in the Markets: Echoes of the LUNA appeared first on Coin Engineer.

Kwon pleaded guilty to charges of fraud and conspiracy to commit wire fraud. Engelmayer noted that when UST lost its peg in May 2021, Kwon falsely claimed that an algorithm had restored its value, while secretly arranging for a trading firm to purchase millions of dollars in UST to artificially inflate its price. The judge also criticized Kwon’s mocking behavior on social media, citing a Twitter post where he belittled investors.

Court Proceedings and Kwon’s Flight Attempts

During the trial, Engelmayer reviewed Kwon’s attempts to evade the law. Kwon traveled on false passports to Serbia and Montenegro before being caught en route to Dubai. The court described this as “despicable,” especially since he publicly encouraged retail investors to hold UST while he and close associates exited their positions.

Following the sentencing, Jay Clayton, head of the Southern District of New York for the U.S. Department of Justice, stated: “Do Kwon devised complex schemes to mislead investors and inflate the value of Terraform’s cryptocurrencies for his own benefit. Once exposed, he conducted a deceptive PR campaign, laundered proceeds from illegal schemes, and attempted to seek political protection abroad. Fraud is fraud, and our office will relentlessly pursue justice for investors, regardless of where perpetrators flee.”

In August, Kwon admitted to conspiring to commit commodities fraud, securities fraud, and wire fraud connected to Terraform Labs’ operations. In court, he acknowledged that he knowingly participated in a plan to defraud UST buyers. Kwon also expressed remorse: “I want everyone to know I have spent all my time thinking about what I could have done differently and what I can do now. It has been four years since the incident, and I haven’t seen my family in three. I want to serve my restitution in my own country.”

Investors and Legal Implications

Judge Engelmayer deemed the defense’s requested five-year sentence “utterly unreasonable.” He said even the government’s suggested 12-year term would not sufficiently deter Kwon or future fraudsters.

Factors considered in the court’s decision included:

• Total funds lost and number of victims

• Kwon’s attempts to evade the law

• Misleading and mocking conduct on social media

• Deceiving investors while protecting personal positions

The Terraform collapse is now recorded as one of the largest scandals in crypto history, and Kwon’s sentence sets a significant precedent for the digital asset industry.

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The post Do Kwon Sentenced to 15 Years for $40B Crypto Scandal appeared first on Coin Engineer.

The application layer represents the level at which developers build decentralized applications on Ethereum’s core architecture and make fundamental decisions about how those applications operate.

On April 12, Buterin responded on the social media platform Warpcast to a comment suggesting that Ethereum needs a new generation of developers committed to its core values. Buterin offered a different perspective:

“Applications are 80% purpose-driven. What kinds of applications you build depends on your ideas about what Ethereum and Ethereum-based applications should mean for the world. That’s why it’s crucial to have strong ideas on this matter,”

General-Purpose Technologies and the Influence of Ideology

Using the example of the programming language C++, Buterin explained that general-purpose tools may not be heavily affected by the ideologies of their creators.

“If C++ had been developed by a totalitarian, racist, and fascist, that wouldn’t necessarily make it a worse language,” said Buterin, emphasizing that infrastructure layers are relatively less influenced in this regard.

However, he also noted that Ethereum’s Layer 1 is not entirely neutral. He pointed out that choices such as transitioning to Proof-of-Stake (PoS) and supporting light clients were driven by philosophical decisions.“Someone who doesn’t believe in decentralization wouldn’t build light clients or advanced account abstraction. Someone who doesn’t care about energy waste wouldn’t spend years transitioning to PoS,” he said, adding that Ethereum could still be considered roughly 50% general-purpose. “Someone who doesn’t believe in decentralization wouldn’t build light clients or advanced account abstraction. Someone who doesn’t care about energy waste wouldn’t spend years transitioning to PoS,” he said, adding that Ethereum could still be considered roughly 50% general-purpose.

The Social Philosophy of Applications: Good and Bad Examples

Vitalik Buterin argues that applications should be evaluated not only for their technical structures but also for the value systems behind them. According to him, some applications are designed with user protection and social benefit in mind, while others are driven solely by profit and may lead to harmful outcomes.

He cited Railgun, Farcaster, Polymarket, and Signal as examples of applications with a strong social philosophy, stating that these are developed with the principle of “doing the right thing by default in the background.” In particular, Buterin highlighted Signal and Farcaster as platforms that uphold values like user privacy, security, and decentralization, noting that these principles align with the Ethereum ecosystem’s broader mission. While acknowledging that these applications are not without flaws, he emphasized that their core philosophies reflect a strong sense of social responsibility.

In contrast, Buterin criticized platforms like Pump.fun, Terra and its native token LUNA, and the bankrupt crypto exchange FTX. He described these as platforms developed without a solid social vision, exposing users to risk and prioritizing speculative, short-term profits. Such applications, he argued, stand in stark contrast to the values Ethereum aims to represent.

In conclusion, Buterin’s message is clear: what an application does is directly shaped by the beliefs of its developers. This suggests that Ethereum’s future will be shaped not only by technical innovations but also by philosophical and ethical stances.

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Jasmy Price Analysis:

According to the CoinGecko system, Jasmy lost more than 14 percent in value in the last week and offered nearly 50 percent profit to its investors in the last month.

Jasmy, which rose from $ 0.015 to 0.045 in just over a month, fell to 0.03 when profit sales and Bitcoin accumulation were added. The support level is currently at $0.03, which is the price range it is in, while the resistance zone is at $0.033.

Luna Price Analysis:

According to CoinGecko systems, Luna, which offers more than 3 percent profit to its investors, lost nearly 50 percent of its value in a month.

We can clearly see that the falling trend continues according to the lunar calendar. The trend started from $0.8 and reached $0.45. The support level on Luna is $0.43, while the resistance zone is located at $0.48.

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The post Jasmy and Luna Price Analysis – 20 June 2024 appeared first on Coin Engineer.

According to a report by Bitcoinist, the renowned CEO, who predicts a $1 million Bitcoin price, commented on recent statements by US presidential candidates regarding cryptocurrencies.

Related: What is zkLink? What to Expect in the 2024 Road Map?

Mow stated that he is not optimistic about politicians becoming pro-crypto, saying:

“While this may seem pleasant in light of previous anti-crypto hostile stances, it’s bad for Bitcoin in the long run.”

Mow further argued that this shift without a strong Bitcoin ethos could pave the way for the next FTX bankruptcy, Terra (LUNA) crash, or Genesis collapse. He emphasized that Bitcoin stands apart from many cryptocurrencies due to its decentralized and censorship-resistant nature.

In this context, the renowned CEO predicts that Bitcoin’s unique features that differentiate it from other cryptocurrencies could be harmed.

The post Bitcoin CEO Warns of 15x Surge Risk as Politicians Turn Bullish appeared first on Coin Engineer.

The court’s decision comes after previous reports suggested that Kwon would be extradited to South Korea rather than the United States. However, this decision was suspended by the Montenegrin court in light of recent developments.

The lenient sentence for Kwon has sparked a surge in the prices of related cryptocurrencies. LUNA and LUNC, the two main tokens associated with the Terra ecosystem, have seen increases of 15% and 11%, respectively.

Kwon’s Terra Luna and TerraUSD projects collapsed in May 2022, along with Terra’s algorithmic stablecoin UST, causing billions of dollars in losses for investors.

The fact that Kwon has not been severely punished after causing billions of dollars in losses to investors has drawn criticism from the cryptocurrency community.

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The post Terra Luna Founder Do Kwon Released to House Arrest, LUNA and LUNC Prices Surge appeared first on Coin Engineer.

Terraform Labs’ founder Do Kwon, is facing the possibility of having his extradition to the U.S. cancelled by the Montenegro court overturning its previous extradition decision.

The Montenegro Court of Appeals has, according to a statement on the court’s website, cancelled an earlier decision of a court in Podgorica, returning the case file for re-trial and decision to the court of first instance. Kwon had appealed against his extradition to the U.S. due to fraud charges related to the collapse of the Terra ecosystem.

Terra collapsed in mid-2022, leading to the disappearance of billions of dollars of investor funds. Kwon fled to Montenegro following Terra’s failure, but was charged with possessing false official documents.

The U.S. and South Korean governments demanded Kwon’s extradition because of his role in Terra’s collapse.

According to the statement, the case is being retried because there were not precise and valid reasons related to the order of the arrival of extradition requests from the U.S. and South Korea.

Goran Rodic, an attorney of Kwon who is a co-founder of Terraform Labs, previously told CoinDesk that local courts were under political pressure to expedite the extradition process.

The latest legal victory for Kwon does not mean that he cannot be extradited in any way. The case will be reviewed again by the court that initially made the decision.

Terra (LUNA) On The Rise

The price of Terra Classic (LUNC) rose from 0.000186 dollars to 0.000207 dollars, an increase of more than 11%. LUNA, the token of Terra before Terra Classic, has risen 18%, and Terra USD Classic (USTC), which was once a stablecoin, has shown a 9% increase in performance.

The Terra (LUNA) price rose by 82% to 1.4909 dollars at the time of writing this news.

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The post Luna Coin Review and Future: The Historic Victory of Do Kwon appeared first on Coin Engineer.

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The bankruptcy filing caused a sell-off in Bitcoin, which fell below $41,000. LUNC and LUNA, on the other hand, saw a surge of nearly 7%.

The company’s assets are estimated to be between $100 million and $500 million.

The bankruptcy filing was made in Delaware, a state known for its efficient and quick handling of bankruptcy cases. The company’s collapse was further exacerbated by the Terra LUNA crash in 2022.

According to official documents, the company’s debts are estimated to be between $100 million and $500 million, which is roughly equal to its assets.

Terraform Labs CEO Chris Amani said in a statement after the bankruptcy filing:

The bankruptcy filing will greatly facilitate the company’s handling of legal matters, including the SEC lawsuit and a lawsuit pending in Singapore. It will also facilitate our work on new projects that we will create with our community to develop solid infrastructure and innovation.

Do Kwon, one of the founders of Terraform Labs and the project’s most well-known figure, is currently in prison in Montenegro for fraud. Kwon is expected to be extradited to the United States soon and the SEC lawsuit to begin there in March.

Legal proceedings are also ongoing in Singapore and South Korea, and there are many lawsuits filed against Do Kwon in the United States in his name.

The Beginning of the Collapse in Terraform Labs

In May 2022, the project’s algorithmic stablecoin UST collapsed, and the subsequent sell-offs spread like a domino effect to other crypto companies. Bitcoin, which was above $30,000 at the beginning of May, fell to $17,000 in June.

Impact of the Bankruptcy Filing

The bankruptcy filing is a significant development for the cryptocurrency industry. It is the first major bankruptcy filing by a cryptocurrency company.

The filing is likely to have a negative impact on the price of Bitcoin and other cryptocurrencies. It is also likely to lead to increased scrutiny of the cryptocurrency industry by regulators.

It remains to be seen how the bankruptcy filing will ultimately impact Terraform Labs and its community.

The post Terraform Labs Files for Bankruptcy! appeared first on Coin Engineer.

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RootData Analysis: Dead Crypto Projects and Value Loss

RootData’s report provides a detailed look at the collapses that occurred in the cryptocurrency industry in 2023. Leading names were among the projects that collapsed. Prime Trust, Gomu, GRO Protocol, Stelo, and Yield Protocol were once valuable and important projects, but they are now defunct.

Project Value Loss and Projects That Collapsed

In addition to projects like Gro Protocol (GRO), which is one of the key players in the DeFi world, and meme-themed projects like SafeMoon (SAFEMOON), many projects offering NFTs, cryptocurrency wallets, and DAO solutions were also added to the trash list. A total of $940 million in value was lost.

Similar Situations and Lessons from the Past

Similar collapses have occurred in previous years. It is known that large projects such as Terra (LUNA) and FTX have also faced similar situations. The volatility and rapidly changing nature of the cryptocurrency world is a warning that similar collapses could happen again.

Key Lessons: Sustainability and Functionality for Crypto

These collapses once again highlighted the importance of functional and sustainable projects in the cryptocurrency world. The importance of a solid business model and a long-term vision was emphasized, in addition to technological innovations.

Suggestions for Successful Projects

In order to be successful in the future, projects need to prioritize their ability to adapt to user needs, their reliability, and their long-term vision. A solid business model, in addition to technological innovations, is also emerging as one of the basic elements for success.

Investment Strategies and Risks in the Crypto World

The cryptocurrency world offers potential gains for investors, but it also carries high risks. With the lessons to be learned from past collapses, investors should pay attention to the sustainability, technological infrastructure, and financial status of projects.

Conclusion:

The future of the crypto world is focused on how projects will shape it with sustainability, user focus, and technological innovations. These collapses could also be a sign of a period in which the sector will learn from its mistakes and take more solid steps.

The post Dead Crypto Projects in 2023: $940 Million in Value Lost! appeared first on Coin Engineer.

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The court issued a summary judgment in favor of the SEC on the complaint, which alleged that the defendants offered and sold LUNA and MIR tokens in violation of Sections 5(a) and (5c) of the Securities Act of 1933.

The New York court signed a summary judgment against the defendants on the allegations of unregistered securities sales. The court also rejected the defendants’ motions to strike the testimony of two SEC experts, Dr. Bruce Mizrach and Dr. Matthew Edman, as well as Dr. Terrance Hendershott.

The SEC alleges that Kwon orchestrated a plan to defraud investors in a fake cryptocurrency that lost at least $40 billion in market value in 2022.

The ruling could be a major turning point for the cryptocurrency industry. The SEC has argued that cryptocurrencies should be regulated as securities, and this ruling increases the SEC’s chances of winning that case.

The ruling is also a significant blow to Kwon and Terraform Labs. Kwon is a major figure in the cryptocurrency industry, and this ruling could damage his reputation and the future of his company.

The ruling is also a warning to cryptocurrency investors. This ruling shows that cryptocurrency investments should be carefully researched before investing.

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