Crypto weekly roundup, 30th May – 5th June!

Oliver Moon at Team UMushroom

07 Jun 2022

Stablecoin is back to being stable, but tech and crypto markets are drying up.

For the first time in over two months, the overall market cap made a slight weekly gain, finishing the week up around 1%. This aligned with the general market uptrend. A sign of a sentiment turnaround? Or just a brief respite in a very bearish market?

This week was a mixed bag for the top 10 coins by market cap. Other than Cardano and Solana, no coin moved more than 2.4%, with stablecoin actually remaining stable (who would have thought).
- Solana was down almost 14%; there was a stoppage in block production for several hours, caused by the network failing to reach consensus.
- Cardano was up almost 18% by the end of the week.

With a recession looming and crypto markets struggling, a downturn in Crypto investment seems inevitable.*
- Lay-offs:
  - Crypto Exchange says it is laying off 10% of workers, Buenbit 45%.
  - Rain, a middle eastern crypto exchange, has laid-off dozens of its employees.
  - Coinbase Global reiterated it will be continuing its hiring pause.
- Morgan Stanley expects a significant slowdown in crypto venture capital.
  - Deal activity could be down as much as 50% by December.
Chipotle begins accepting crypto payments in the US.
- Customers will be able to pay with 98 different currencies.
- Chipotle will be using the Flexa platform.
Following the terraUSD collapse last month, the G7 has been drafting new stablecoin regulation.
- Japan is the first G7 country to pass anything.
  - A bill has been passed defining stablecoin and stating that henceforth stablecoin can only be issued by licensed banks, registered money transfer agents and trust companies.
  - It states that stablecoins MUST be backed by yen or another legal tender.
- The UK published consultation paper to change existing legislation on stablecoin.
  - The changes would give the right to the Bank of England to appoint administrators to oversee insolvency arrangements in events such as the Terra/Luna crash.