Crypto News, May 12: Terra Attempts a Rescue Mission, Tether Tumbles and Altcoins Capitulate (But Good News From Germany!)

Crypto News, May 12: Terra Attempts a Rescue Mission, Tether Tumbles and Altcoins Capitulate (But Good News From Germany!)

Created 1yr ago, last updated 1yr ago

Terra announced its plan to save the UST peg — amidst a cratering of the crypto markets, especially in alt layer ones.

Crypto News, May 12: Terra Attempts a Rescue Mission, Tether Tumbles and Altcoins Capitulate (But Good News From Germany!)

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The Terra Foundation released a thread with a plan to save its tanking stablecoin and Tether had to fend off a market panic to keep its dollar peg. However, holders can cash out tax-free after a year in Germany, authorities said.

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Terra Strives to Restore UST Peg 🔧

As LUNA continues to plummet in value, the Terra Foundation passed a governance proposal to restore the TerraUSD peg. It commits to burning more than 370 million UST and staking 240 million LUNA to defend the network from governance attacks and stop the outflow of liquidity from UST. Analysts on Crypto Twitter doubt the feasibility of the plan and remain convinced that LUNA and UST will most probably fail.

Tether Briefly Loses Its Peg Amidst Market Panic💰

Another stablecoin faced a brief wobble during morning trading hours. USDT briefly traded at $0.95, a significant 5% discount on the generally reliable stablecoin. As markets continue to be unusually jumpy following the LUNA and UST collapse, traders rushed for the exits to swap their USDT for other stablecoins. USDT has recovered since its dip but continues to trade below its peg.

Altcoins Continue Capitulation, Some Down More Than 75% 😱

The altcoin sell-off continues as markets plunged further. Many altcoins are now down between 70% and 90% from their all-time highs, with some suffering losses of over 50% in the last seven days. CoinMarketCap covers some of the worst altcoin sell-offs and recaps what market analysts think about the short-term outlook for crypto.

Germany Keeps Crypto Tax-Free After 1 Year Hodl 🇩🇪

The German ministry of finance clarified the state of crypto taxation in the country and will keep crypto tax-free after one year of holding it. That goes even for crypto income derived from staking or lending and maintains Germany’s status as one of the most tax-friendly jurisdictions for cryptocurrencies. The ministry said a further statement with clarifications is already in the works.

Funds at Coinbase Are Safe Says Armstrong 🦺

Coinbase CEO Brian Armstrong addressed speculation that Coinbase may hold customers liable in case of bankruptcy. He said that Coinbase is in no danger of going bankrupt and customer funds are safe as always. Armstrong maintained a bullish sentiment, even though the Coinbase stock is down more than 75% from its all-time highs.
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