Read in the Digest:
- Luna Foundation buys $100 million in AVAX for stablecoin reserve.
- Strike launches support for Shopify (NYSE:SHOP), while Bolt acquires Wyre for $1.5 billion.
- Yellen: crypto regulation should reduce risks and support innovation.
- Near Protocol (NEAR) gains 27% in a day, closes in on all-time high.
Luna Foundation Buys $100 Million in AVAX for Stablecoin Reserve
Since announcing its desire to back its UST stablecoin with $10 billion worth of Bitcoin, the Luna Foundation Guard has snapped up 35,767 BTC. Now, the LFG is moving to diversify its portfolio by adding Altcoins.
The Luna Foundation Guard has announced its proposed $100 million Avalanche (AVAX) purchase. The LFG claimed that the purchase “marks the start of a diverse pool of layer one crypto assets helping support the UST peg.”
AVAX becomes the first Altcoin to be used by the LFG in backing the UST stablecoin. According to Avalanche, the LFG chose to add AVAX to its reserve ahead of other Altcoins because of its “rapid growth and vast fan base.”
Flipsider:
- The news helped AVAX to break free from the market’s bearish trend, sending the coin up 6% in the last 24 hours.
The 24 hour price chart for Avalanche (AVAX). Source: Tradingview
Why You Should Care
By backing its UST stablecoin with other assets, the Luna Foundation Guard hopes to defend the Terra ecosystem against volatility and sharp contractions in UST demand.
Strike Launches Support for Shopify, While Bolt Acquires Wyre for $1.5 Billion
Strike, the world’s leading digital payments platform, built on Bitcoin’s Lightning Network, has integrated with global e-commerce giant Shopify. Announcing the integration at the Bitcoin 2022 conference, Strike CEO Jack Mallers says it was designed for easy usage.
The integration means that Shopify’s two million merchants can now accept payment in bitcoin. Mallers claims that these merchants can now receive near-instant payments via the lightning network, a significant boon compared to the 2-15 days settlement periods common in electronic payments.
In a press release, global payment provider Bolt Financial announced that it had reached an agreement with Wyre to purchase the crypto startup. Insiders familiar with the deal confirmed that the acquisition was worth $1.5 billion.
Bolt said it expects to fully integrate Wyre before the end of the year, granting its retailers access to crypto. As per the PR statement, the merger will work to “decentralize commerce” and “simplify digital shopping.”
Flipsider:
- According to Mallers, McDonald’s, Walmart (NYSE:WMT), Home Depot (NYSE:HD), and Best Buy are among the global retailers in line to accept Bitcoin via the Lightning Network.
Why You Should Care
Firms are now providing users with more exposure and means of spending their crypto as the industry inches closer to mainstream adoption.
Yellen: Crypto Regulation Should Reduce Risks and Support Innovation
U.S. Treasury Secretary Janet Yellen, who became infamous for her anti-bitcoin statements, has made her first speech about crypto. Speaking at an event at the American University, Yellen underlined crypto regulations should reduce risks.
Yellen explained that, “as banks and other traditional financial firms become more involved in digital asset markets, regulatory frameworks will need to appropriately reflect the risks of these new activities.”
She believes that the government should regulate the industry with a view to protect consumers, investors, and businesses from fraud and misleading statements. She also emphasized that the government should “support” and “ensure responsible innovation.”
Yellen expressed her desire for the crypto economy to be used in improving the U.S. payments system, which a Treasury official has remarked to be “too slow, costly and not sufficiently inclusive.”
Flipsider:
- Yellen also warned that cryptocurrencies invite risks that could “disrupt the financial system and our economy.”
Why You Should Care
If properly adopted, experts predict that crypto regulation will reduce speculation and increase the adoption of crypto assets.
Near Protocol (NEAR) Gains 27% in a Day, Closes in on All-Time High
At a time when much of the crypto market has been trading sideways, Near Protocol (NEAR), a high-speed Layer 1 network, has advanced by leaps and bounds, gaining 27% over the last 24 hours.
The 24 hour price chart for Near Protocol (NEAR). Source: Tradingview
Over the last seven days, NEAR has gained 45% – the largest gains of any crypto ranked in the top 10. Near Protocol is now trading at $19.2184 at the time of writing, just 5% of its all-time high of $20.45 recorded on January 10th.
The seven day price chart for Near Protocol (NEAR). Source: Tradingview
Near Protocol, which trades at $19.2184, holds a market cap of $12.6, making it the 16th largest crypto in the market. Near Protocol’s massive gains followed speculation around the possible launch of a Near Protocol native stablecoin.
In related news, Near Protocol has seemingly become a favored Altcoin among institutional investors. Since January, Near Protocol has received $500 million in funding rounds, backed by FTX Ventures, A16Z, Three Arrows, Blockchange, and Dragonfly Capital.
Flipsider:
- Stablecoins have come under increased regulatory pressure as they are perceived as direct competitors to central bank-issued CBDCs.
Why You Should Care
As a smart contract platform, Near Protocol competes with Ethereum, as well as Solana and Avalanche, as a fast, low-cost Layer 1 solution.