- The top crypto news from this past week largely focused on the darker side of the industry
- Investors reminded themselves once again of the fragility of a crypto investment in the wake of Terra’s (LUNA-USD) rapid collapse
- Other big news stories put crypto policy, major exchanges and DeFi in the spotlight
In the aftermath of the costly Terra (LUNA-USD) collapse, just about everybody is vocalizing their opinion on the event and the shape of the crypto industry at large. This has led to a handful of other news stories cropping up around policy. Regulators are looking to implement some infrastructure around cryptocurrency. Meanwhile, crypto platforms themselves are looking to help shape these policies. Might the Terra news expedite crypto legislation? Might it also lead to harsher policies on the industry? These are the questions institutions and individual investors alike are hoping to have answered soon.
That isn’t to say that the industry is on pause. Rather, it seems more projects are beginning to roll out new projects. A couple of these projects are certainly eye-catching, including one from Robinhood (NASDAQ:HOOD), which sees the company take a deeper dive into the DeFi industry. Without further ado, here are the top crypto stories from the past week.
Top Crypto News of the Week
The aftermath of Terra’s collapse brings comment from across the industry
Terra’s collapse is old news at this point. The TerraUSD (UST-USD) stablecoin’s de-pegging occurred almost two weeks ago now. Yet, the event is still having ripple effects across the industry. Many crypto influencers are speaking now on the state of the industry, while others are holding Terra founder Do Kwon under intense scrutiny. Dogecoin (DOGE-USD) founder Billy Markus told Kwon to leave the blockchain industry to prevent “more victims.” Binance (BNB-USD) is courting Terra developers to its BNB chain in the aftermath. Perhaps most negatively affected by the news was Galaxy Digital’s Mike Novogratz, who is letting his LUNA tattoo serve as a reminder to invest with humility.
Terra founder Do Kwon gets mixed up in legal trouble amid network revival attempt
Terra founder Do Kwon dug himself an even deeper hole this week. In the midst of his somewhat controversial Terra revival plan’s community vote, there are lots of behind the scenes happenings dragging down progress. For one, the legal team at Terra Labs has abandoned the project. Meanwhile, South Korean watchdogs are levying a hefty fine at the project for tax evasion. Worst of all, though, is the revelation that Kwon dissolved the South Korean branch ahead of the network’s collapse, suggesting that he knew something was awry.
Gary Gensler uses crypto regulations as central talking point for SEC budget
The U.S. Securities and Exchange Commission (SEC) is trying to secure a $2.1 billion budget for the 2023 fiscal year. Chairman Gary Gensler is pushing for this hefty budget in recent Congressional meetings by leveraging a need for regulation in the crypto industry. Gensler’s SEC recently relaunched its Crypto Assets and Cyber Unit, a body that has brought 80 enforcement actions on crypto projects in its first years. With this budget, Gensler says the SEC will be able to hire 50 new employees to supplement the reinvigorated unit. In arguing how important crypto regulation and enforcement is, Gensler indirectly mentioned the collapse of the LUNA crypto.
Robinhood announces its new Web 3.0 wallet in continued crypto push
Robinhood is not spooked by crypto doomsayers and market volatility. The e-trading platform is continuing its massive push into the digital currency industry with promise of a new Web 3.0 wallet. This new wallet will allow users to pool assets from across a number of different blockchains. They can then easily move them to the Robinhood platform. The news comes just months after the company rolled out its first crypto wallet. It has also recently added four new cryptocurrencies to its in-house trading platform. These new additions are the first for Robinhood since 2018.
DeFi network Aave launches a decentralized social media platform
Twitter (NYSE:TWTR) has been a major talking point recently. The digital town hall became a point of debate after controversial billionaire Elon Musk sought to buy it and bring massive changes to the platform. It also has spawned chatter among Aave (AAVE-USD) users after the network’s founder made a joke on Twitter that got him banned. Since then, the development team has been hard at work crafting its own social media platform, called Lens Protocol. Today, that platform launches on the Polygon (MATIC-USD) network. Speaking on the reasoning behind the new platform, Aave’s founder says that “Web 3.0 social ensures that users are in control of their content.”
Coinbase launches a crypto think tank to influence policy
Coinbase (NASDAQ:COIN) is taking note of the recent regulation talk. From the looks of it, it wants to take this conversation into its own hands. The centralized exchange is launching its own Coinbase Institute to help influence crypto policy. The think tank is being led by former SEC risk analyst Hermine Wong. Kicking things off for the Institute is the “Coinbase Primer,” a report detailing key issues facing the crypto industry today. This news comes after the company has established its own crypto political action committee (PAC) ahead of the November midterm elections.
On the date of publication, Brenden Rearick did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.