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Cryptocurrency Focus: Regulation, Stablecoins, Market Crash


Visual description of the Bitcoin cryptocurrency.

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Cryptocurrency companies dominated the main street at this year’s World Economic Forum in Davos, There is a notable difference between this edition and the final edition in 2020.

Premium presence in the industry even when Cryptocurrency market crash. It was sparked by the demise of the so-called algorithmic stablecoin called terraUSD or USTsaw its sister token luna drops to $0 in May.

Meanwhile, global regulators are targeting the crypto industry.

The WEF is an annual meeting of business leaders and global politicians that aims to set the agenda for the year.

Against that backdrop, this is the perfect time to catch up with some of the major players in the crypto industry. Here’s what I learned.

Thousands of Cryptocurrencies Could Crash

There are more than 19,000 cryptocurrencies and dozens of blockchain platforms in existence.

Blockchain is the technology underpinning these digital currencies and platforms including Ethereum, Solana and many more.

Many industry executives consider the current state of the market unsustainable.

Brad Garlinghouse, CEO of cross-border blockchain company Ripple, predicts there may be only “scores” left of crypto in the future. He said there are about 180 fiat currencies in the world and there is not really a need for that many.

Betrand Perez, CEO of the Web3 Foundation, likened the current state of the market to the early days of the Internet, saying there are many “scams” and many “don’t offer any value. “

Brett Harrison, CEO of crypto exchange FTX US, said there are “a few clear winners” when it comes to blockchain platforms.

Stablecoins: Talking about the town

You may have heard of stablecoins. They are a cryptocurrency that is supposed to be pegged to a real-world asset.

In effect, stablecoins like tether or USD Coin, which aim to mirror the US dollar one-to-one, are backed by real assets like currencies or bonds. They keep a reserve of these assets to maintain the dollar rate.

You may also have heard of the fall around a terraUSD or UST coin. This is a currency known as algorithmic stablecoin. Instead of maintaining a peg by having reserve assets, it aims to mimic the US dollar and maintain stability. through a complex algorithm.

But that algorithm fails and causes terraUSD lost its peg and crashed.

The crypto industry has been trying to warn users to make sure they know the difference between an algorithmic stablecoin, like terraUSD, and others backed by the asset.

Everyone wants to get more involved in crypto right now, no one is ignoring this industry anymore.

Mihailo Bjelic

Polygon’s CEO

Jeremy Allaire, CEO of Circle, one of the companies behind the USDC issuance, says that not all stablecoins are created equal.

“And it helps people distinguish between a well-managed, fully-reserved, asset-backed dollar digital currency, like USDC, and something like it (terraUSD).”

Reeve Collins, co-founder of BLOCKv and co-founder of another stablecoin, said terraUSD saga “will probably be the end” of most algorithmic stablecoins.

The industry welcomes the bear market

Believe it or not, the crypto industry welcome the recent market crashsaw major tokens like bitcoin drop more than 50% from their all-time highs.

“We’re in a bear market,” said Perez of the Web3 Foundation. That’s good. That’s good, because it will weed out people who were there for bad reasons.

This opinion is also echoed by other executives who Speak The big rally in price made people focus on speculating rather than building the product.

s[The] The market, in my personal opinion, can become a bit irrational, or it can be a bit reckless to a certain extent. And when such times come, [a] usually need editing and at the end of the day [is] healthy,” said Mihailo Bjelic, CEO of Polygon// descriptor please ///.

Regulations are being issued but the mindset has changed

Before the World Economic Forum, European Central Bank Chairperson Christine Lagarde say she thinks Cryptocurrencies “have no value.”

It seems to me that regulators and authorities are still confronting cryptocurrencies, just as they have been for the past few years at Davos.

But executives said thinking from managers has, for the most part, shifted to something a little more constructive.

“I think we’ve come a long way since three or four years ago when I just got here in the snowy version of Davos and someone said, you know, crypto is still a bad word here this.

Polygon’s Bjelic said: “I think it’s constantly changing both regulators, big businesses. Everyone wants to get more involved in crypto, no one is ignoring the industry anymore.”

In March, US President Joe Biden signed an executive order urged the government to examine the risks and benefits of cryptocurrencies. However, there is no major regulation of cryptocurrencies in the United States and other major economies.

Garlinghouse says he wants “clarity and certainty” from regulators.

BLOCKv’s Collins, meanwhile, called Lagarde’s comments “ignorant.” He emphasized that tension still exists between the crypto industry and some authorities in the traditional financial sector.

According to CNBC International on Twitter and Facebook.





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