What is Ada cooking?

Good morning! Welcome to The Daily Moon. The Chimpers Twitter account was hacked and tweeted multiple links (which stayed live for over 24 hours). The hackers even held a Twitter space nudging users to mint new NFTs using these malicious links. It was not just Twitter, the website was hacked too. We hope you didn’t click on any links.

Markets showed mixed trends. Bitcoin was up at $17,914 and Ethereum was at $1,300 levels. Nasdaq fell in early trade. Back home, Sensex and Nifty fell, dragged by banks, financials and tech stocks.

Shiba Inu Is Noisy

At some point on Monday, Shiba Inu (SHIB) was the most popular cryptocurrency. Ahead of Bitcoin and Polygon. The trend didn’t last into Tuesday, but it was still making the top five. Ahead at least of Solana. And believe us when we tell you, this isn’t even the most interesting thing about this movement.

What’s going on?

There are a bunch of factors. Twitter user ShibaInuHodler tweeted saying SHIB will burn trillions of coins when Shibarium is launched. Shibarium is the layer-2 solution for Shiba Inu that will fix its slow transaction speed. It is expected to be out very soon and more burn means less supply. That can sometimes mean increased demand and price. Considering half a billion SHIB were burnt last week alone, the rise is not surprising.

Interesting, interesting

There are interesting things going on too. A single wallet burned 14 million SHIB tokens on Monday. Daily burn volumes are in millions, but usually not so high from a single wallet. There are different opinions on SHIB’s performance, but it is dropping some serious stuff too. Like this upcoming partnership with branded bags group Bugatti. We’ll keep you posted on how things pan out.

ADA Can See The Moon

It spent a majority of the last quarter being pummelled but ADA seems to be in recovery mode just like other cryptos. The question is that is Cardano recovery linked to market momentum or is there something cooking?

Let’s talk about the positives

The market cap for crypto is up to ~$890 billion and holding firm. The market, however, is down over 50% compared to the glory times of 2022. But the positive here is that the trading volume is increasing across tokens. ADA, particularly, has seen a 25% rise in value in ~24 hours and over 30% since the start of the year.

We’re not going to get technical and talk about Relative Strength Index and Money Flow Index. They’re both used to indicate which side the investors are leaning towards. In the case of ADA, they’re leaning towards the bull.

Real talk?

The surge in price hasn’t wiped away the losses yet. According to Santiment, the token is still undervalued. The new use cases via the Djed stablecoin, which will launch this month, will help things scale some more in the future. Though algo stablecoins usually give us Terra-flavoured PTSD.

Another Stablecoin Depeg

It was May 9, 2022 when Luna started to crumble. That led to the devastation of several companies. And now USDD has depegged, though USDD doesn’t believe it is a depeg. It’s a bit of a mess. Let’s break it down.

The USDD saga

What attracts investors to a stablecoin is that it is pegged to a currency, in this case the US dollar. It is by far considered one of the most stable currencies in the world. So, irrespective of the price of the dollar $1=1 token. Now, USDD is trading at ~$0.98. It doesn’t equal one dollar, as is plainly visible. In fact, social media posts suggest that the company that runs USDD is recording more withdrawals than deposits. The optimists suggest that the superstar advisor, Justin Sun, is withdrawing capital to help run the company but we’ve seen this story before.

A non-depeg

But Huboi, which runs USDD, doesn’t believe there’s a depeg. Long explanation here.

Now, DYOR and figure where this is heading.

The Weird British Digital Pound

CBDCs are a sticky subject. They’ve been called surveillance instruments, they’ve also been called tools for faster remittances. The UK’s position on digital currency is, erm, weird. A part of its government opposes it, another part wishes to regulate it and make the UK a global hub for crypto and metaverse projects. Now, the digital pound has been discussed multiple times and a minister in the UK government insists that this instrument won’t track retail transactions. He assured people that the bank will issue a wallet to customers and the government will not monitor any movement of capital. But it does want to use the digital pound for payment settlements, which it will track. When they make their mind up, we’ll give you a head’s up.

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