Luna USTC Repregging Proposal
Tobias Andersen, a blockchain engineer and senior developer at Bitcoin Suisse AG, wrote a Luna USTC repegging proposal to the Luna Community. After the article was published, the TerraClassicUSD price jumped 35%, from about $0.029 to $0.040 in less than 24 hours.
Andersen wishes to minimize the massive amount of debt accrued in May 2022 after the collapse of the Terra Classic ecosystem. He also wants to recapitalize USTC through quantitative easing and tightening measures. Furthermore, he believes that re-pegging USTC to its initial value of $1 is critical for Terra Classic’s long-term prospects.
Earlier this year, the LUNA project collapsed, wiping out $60 billion from the cryptocurrency market. Once a top 10 cryptocurrency, the Luna token crashed to $0 spectacularly. The crash was due to the depegging of UST, Terra Lab’s stablecoin, which fell to $0,05 against the US Dollar.
Cathie Wood’s Open Letter To Fed
Cathie Wood, the CEO of Ark Invest, issued an open letter to the Fed, saying they are making a mistake by raising interest rates. According to her, falling commodity prices indicate the biggest economic risk.
“The Fed seems focused on two variables that, in our view, are lagging indicators –– downstream inflation and employment ––both of which have been sending conflicting signals and should be calling into question the Fed’s unanimous call for higher interest rates,” Wood said in the letter posted on the firm’s site.
The Fed issued three consecutive interest rate increases, mostly by unanimous vote. Inflation is bad for the economy because it raises the cost of living and depresses consumer spending. Deflation is a converse risk that reflects tumbling demand and is associated with steep economic downturns. The Fed will hike rates in November hike with another 0.5 percentage.
TrueFi Issues Default Notice to Blockwater
TrueFi, a lending and borrowing protocol, issued a default letter to Blockwater for $3.4 million worth of BUSD tokens. Blockwater technologies is a South Korean venture capital firm and are the latest casualty to join the likes of Celsius during this bear market.
TrueFi is a lending and borrowing technology that allows users to take out uncollateralized loans, which is a first in the crypto industry. The majority of loans in the sector use collateral, which means that consumers must put up more than 100% of the capital they wish to borrow.
Like traditional financial institutions, the platform’s loans are available after a thorough KYC onboarding procedure and credit evaluation. Another significant company that has borrowed capital from TrueFi is Sam Bankman-trading Fried’s firm, Alameda Research.
Even though TrueFi and Blockwater executives launched an “exhaustive out-of-court exercise” to correct the default, the DeFi platform finally chose a “court-supervised” administration.