Home Markets Envelopment of the crypto market; Celsius Coin Keeps Falling, Acala Burns

Envelopment of the crypto market; Celsius Coin Keeps Falling, Acala Burns

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Envelopment of the crypto market;  Celsius Coin Keeps Falling, Acala Burns
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The Celsius coin continued to fall on Tuesday as the crypto market continued to roll with the punches. – Photo: Shutterstock

The Celsius coin continued to fall on Tuesday and the Acala network burned its extra tokens as the cryptocurrency market continued to roll with the punches.

CEL was down 16% around the time conventional markets closed in North America. (All numbers are based on data from CoinMarketCap.) The decline followed a 23% drop on Monday. But, overall, prices have shown resilience in the face of the crypto winter.

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CEL to USD

Coin is experiencing volatility

CEL has gotten to know volatility well, seeing big ups and downs since the The Celsius network collapsedand another crypto lender digital travel and hedge fund operator Capital of the Three Arrows collapsed.

The three companies have filed for bankruptcy protection after being hammered by the collapses of the original luna coin and the associated terraUSD stablecoin.

But CEL’s decline on Tuesday was an outlier compared to the rest of the market, which rose slightly.

ZCH to USD

Investors still eager for Chiliz

Dogecoin (DOGE), a popular meme token, was the top gainer as it rose a relatively modest 10%.

Chiliz (ZCH) continued to appeal to investors, rising 8% after gaining 13% on Monday. But no other winners stood out, while the losses were minimal.

AAFC to USD

Confirmed burn

The Acala Network confirmed on Twitter that they burned around 1.3 billion ACAs after receiving approval from their community.

Acala (AAFC) was down slightly following a weekend hack. ACA’s value disintegrated as the stablecoin lost its peg. The hackers capitalized on a flawed liquidity pool and minted an additional 1.3 billion tokens, which the Acala Network, the coin’s backer, managed to keep in the Polkadot (POINT) blockchain. (The network runs on Polkadot.)

Analyst doubts Acala can recover

A leading analyst doubts that ACA can recover its lost value.

“Once again, this shows that the algorithmic stablecoin, in this case Acala, which is a stablecoin collateralized against other currencies and not pegged to the US dollar, is vulnerable to an attack with smart contracts,” Chris said. Terry, vice president of enterprise solutions at SmartFi, a US-based open lender.

“Once a stablecoin is stripped like this, the chances of it coming back are very slim.”

He said attach (USDT) and USDCboth indexed on a one-to-one basis with the US dollar, are the safest stablecoins to invest in.

“Algorithmic stablecoins and multi-collateralized stablecoins pegged to other cryptocurrency assets continue to pose a much higher risk than most people realize,” Terry said. “When it comes to stablecoins, there’s no reason to really use anything other than tether and USDC.”

Hodlnaut seeks protection from creditors

Struggling Singapore-based crypto lender Hodlnaut announcement On Tuesday he filed for protection from creditors. The company applied to the High Court of Singapore to be placed in receivership.

Hodlnaut said the app is the best fit under the circumstances, as it tries to avoid having to liquidate its clients’ crypto assets. The indebted lender froze transfers and exchanges earlier this week due to what it described as difficult market conditions.

Bitcoin and Ether lose ground

Bitcoin Market Leaders (BTC) and ether (ETH), the main coin of the Ethereum blockchain, lost ground after posting recent gains.

Bitcoin fell slightly below $24,000 and Ether fell below $1,900 after rising above $2,000 over the weekend.

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