Bitcoin price is down over 25% in seven days, hitting a low of $ 42,025 over the weekend as investors took massive profits. (After further declines, it is now trading at $ 38,163.)
Bitcoin, as well as peers like Ethereum, which also slumped by similar amounts last week, have sold after a staggering run since the beginning of the year, in which it has doubled since early 2021.
Amid a wave of profit-taking last week, much of the reason for the sell-off lies with Elon Musk, Tesla’s CEO, after posting a series of tweets about Bitcoin, its energy usage, and the company’s position in the crypto asset.
‘We are concerned about the rapidly increasing use of fossil fuels for bitcoin mining and transactions, especially coal, which has the worst emissions of any fuel.
“Cryptocurrency is a good idea on many levels and we believe it has a bright future, but it cannot result in high costs for the environment.
“Tesla will not sell Bitcoin and we intend to use it for transactions once mining moves to more sustainable energy. We also look at other cryptocurrencies that consume <1% of Bitcoin's energy / transaction. "
Even so, Musk appeared to counter many rumors on Tuesday after clarifying that Tesla hadn’t sold any of its Bitcoin recently.
Facebook launches US stable coin
The group behind Facebook’s Libra project is planning to launch a US dollar stablecoin after scaling back its global ambitions amid opposition to their plans in Switzerland.
In a statement, the Diem Association, formerly known as Facebook’s Libra Project, made up of 26 financial companies and nonprofits, said it would be moving its main activities from Switzerland to the United States.
The company will now operate a blockchain-based payment system that enables the transfer of Diem stablecoins in real time. There are plans to register as a financial services company with the US Treasury Department’s Financial Crimes Enforcement Network.
Stable coins, digital currencies pegged to a fiat currency, are increasingly used across numerous networks. California-based Silvergate Bank will issue the Diem USD stablecoin and manage the Diem USD reserve. A pilot project is expected before full implementation.
The Diem Association said:
“We are committed to a payment system that is safe for consumers and businesses, and that makes payments faster and cheaper.”
EOS doubles after raising $ 10 billion to start the exchange
The price of EOS coins doubled in one day last week after the company behind the coin raised $ 10 billion to build a next-generation cryptocurrency exchange.
Block.one, the company behind the EOSIO software, announced that it is establishing a subsidiary to create the crypto exchange. The project’s investors include billionaire supporters, including Peter Thiel.
The platform, called Bullish Global, will be a blockchain-based exchange and is slated for release this year.
Thiel was quoted and said:
“Bullish’s balance sheet is strong and vertical integration provides stability and liquidity to the cryptocurrency space. I look forward to joining Bullish as an investor and advisor when a long and fruitful journey begins. “
The price of EOS rose in response, peaking above $ 14 last week before pulling back to trade around the $ 10.50 level. It started at just $ 6 in May (and is now trading at the same level.)
eBay allows NFTs on the platform
eBay has announced that it will allow NFTs to be sold on its platform in the future, while tokenized collectibles have been raging recently.
The e-commerce company is expected to slowly build digital collectibles sales on the platform, starting with a smaller group of verified sellers.
Jordan Sweetnam, CEO of eBay, told Reuters:
“In the coming months, eBay will add new features that bring blockchain-controlled collectibles to our platform.”
eBay has already invested heavily in infrastructure for physical collectibles like trading cards, as well as items like sneakers and watches that can be verified for buyers.
The NFT market is showing little sign of slowing down. British auction house Christie’s sold nine CryptoPunk NFTs for nearly $ 17 million last week, according to a tweet posted on May 12.
Ethereum founder Vitalik donates $ 1.2 billion to the Indian relief fund
The creator of Ethereum, Vitalik Buterin, has pledged $ 1.2 billion for the Indian aid fund Covid-19.
The 27-year-old programmer, who founded Ethereum in 2013, transferred new Dogecoin copycat Shiba Inu tokens that he had given to his Etherscan public walletwith a total value of more than $ 1 billion to the India Covid Relief Fund.
Buterin donated the assets to an aid project launched by Polygon chief Sandeep Nailwal, who launched the fund last month in response to the Covid-19 crisis in India.
Buterin had already personally donated $ 600,000 to start the fund.
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