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Iran says it struck Israeli radar centers and airports on Saturday.The Israeli military has confirmed that Iran launched a missile.On March 29th, the Guangdong Provincial Administration for Market Regulation, in conjunction with the Guangzhou Municipal Administration for Market Regulation, held a symposium for platform enterprises. The meeting focused on issues such as regulating fair and rational competition in the platform economy, providing administrative guidance to platform enterprises, and jointly proposing implementation measures. The meeting pointed out that Guangdong Province and Guangzhou City, leveraging their traditional industrial advantages, have a large number of operators and significant business volume on leading platforms nationwide. Platform rules are crucial for the operation and development of small and micro-sized businesses. The meeting encouraged platforms to take effective measures to strengthen compliance, improve compliance levels, and focus on innovative, standardized, and win-win development. Efforts should be made to continuously strengthen compliance in areas such as regulating competitive behavior, respecting merchants independent operating rights, implementing quality grading and control, protecting the rights and interests of small and micro-sized businesses, empowering the incubation of high-quality brands, and protecting the legitimate rights and interests of consumers. This will jointly resist "involutionary" competition, promote high-quality development of the industry, and drive out inferior players with superior ones.March 29th - With the Iraq War nearing its one-month mark, shipping through the Strait of Hormuz continues to be disrupted, disrupting the global energy supply system and causing international oil prices to soar. Wan Zhe, a professor of economics at Beijing Normal University, stated that firstly, global inflation faces a full-scale rebound, and rising oil prices will be transmitted along the entire industrial chain. Costs across all industries, including energy, food, transportation, and chemicals, will surge, with economies highly dependent on energy imports, such as Europe, Japan, and India, facing even greater pressure. The US is a net energy exporter, but inflationary stickiness may become completely entrenched, putting the Federal Reserves monetary policy in a dilemma. Currently, the average price of gasoline in the US has surged by more than 30% in three weeks, directly reversing the previous downward trend in inflation and completely altering market expectations for interest rate cuts. A prolonged high-interest-rate environment will directly suppress the US real estate market, corporate financing, and stock market valuations. Especially this year is a US midterm election year, and gasoline prices are one of the most sensitive livelihood indicators for American voters. For global economic growth, there will be a slowdown, as high oil prices directly erode disposable income, squeeze non-energy consumption, and also increase production costs for businesses.On March 29th, the Victorian government announced in an email that residents of the state would not have to pay for public transport for one month, starting March 31st. The Tasmanian government stated in a press release that it would waive bus and ferry fares from March 30th to July 1st. Australia faces a significant risk to fuel supplies, with hundreds of petrol stations reporting fuel shortages and disruptions occurring in agriculture and mining. Australian Prime Minister Albanese reassured anxious households and businesses on Friday that short-term supplies were secure.

Stablecoin Terra’s Broken Dollar Peg Hits Wider Crypto Markets

Jimmy Khan

May 11, 2022 10:30

One of the world's major stablecoins, TerraUSD, dropped a third of its value on Tuesday, causing concern among cryptocurrency investors and contributing to bitcoin's first drop below $30,000 in ten months.


Stablecoins are digital currencies that are linked to conventional assets like the US dollar. They are often used by traders to transfer cash around and speculate on other cryptocurrencies, and they are popular as safe havens in times of crypto market turbulence.


TerraUSD, often known as 'UST,' is an algorithmic stablecoin and one of the most valuable in terms of market capitalization. According to pricing tracker CoinGecko, it shattered its 1:1 peg to the dollar on Tuesday and plunged as low as 67 cents.


TerraUSD gained notoriety earlier this year when the non-profit Luna Foundation Guard, a subsidiary of Terraform Labs, the business behind it, committed to gather $10 billion in bitcoin to sustain its dollar peg.


According to CoinGecko, TerraUSD had recovered marginally to 91 cents by Tuesday afternoon and was the world's 10th biggest cryptocurrency by market value.


Unlike other stablecoins that utilize conventional assets as reserves, TerraUSD maintains its peg with a complicated algorithm that moderates supply and demand through the usage of Luna, another balance token.


Luna Foundation Guard claimed in a tweet on Monday that it will protect TerraUSD's dollar peg by lending $1.5 billion in bitcoin and TerraUSD to over-the-counter trading businesses.


Terraform Labs and Luna Foundation Guard could not be contacted for comment.


The usage of bitcoin as a reserve has produced a vicious cycle for TerraUSD, according to Justin d'Anethan institutional, sales director at Amber Group, with sell-offs in both tokens pulling the other down.


"Bitcoin is falling because it's being sold to protect an ecosystem that's suffering; the ecosystem's suffering is causing even more fear on (TerraUSD), which is leaning on the Luna token, requiring the foundation to supplement and defend the peg with additional reserves," he continued.

"It's not a pleasant scenario."


The Federal Reserve of the United States cautioned on Tuesday in its biannual Financial Stability Report that stablecoins are susceptible to investor runs because they are backed by assets that might lose value or become illiquid in times of market stress.


"Additionally, the growing usage of stablecoins to fulfill margin requirements for leveraged trading in other cryptocurrencies may magnify volatility in stablecoin demand and raise redemption risks," it warned.

JITTERS IN CRYPTO

Stablecoins have profited from market volatility in the crypto markets in general. TerraUSD is currently rated eleventh among the top ten cryptocurrencies by market capitalization.


Other prominent stablecoins, like as Tether and USDC, claim to be backed by actual assets and so immune to the issues plaguing TerraUSD.


However, the larger cryptocurrency sector has suffered as conventional financial markets have declined.


Bitcoin dipped below $30,000 for the first time since July 2021 early Tuesday, lagging behind other typical "risk off" assets like tech stocks but also pulled down by the TerraUSD sell-down.


According to Coingecko, the world's most commonly held cryptocurrency had also recovered marginally by Tuesday afternoon, reaching $31,272.


These declines, which coincide with a drop in risk appetite, contradict some crypto fans' belief that cryptocurrencies are a store of value similar to gold.


Since hitting an all-time high of $69,000 in November 2021, Bitcoin has lost more than half of its value.


While bitcoin is now holding at a crucial support level, analysts at Singapore's QCP Capital wrote in a note that "there is considerable tail risk from the (TerraUSD) de-peg together with macro worries."

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