The Luna Foundation Guard, the custodian of Terra’s Bitcoin reserves, has deployed 28,205 BTC to defend the peg of the protocol’s UST stablecoin, which saw its value plunge to a $0.61 low amid ongoing market turmoil.

The U.S. Federal Reserve has published a new report on financial stability in which it emphasized stablecoins alongside certain money market funds and bonds as areas of risk in the current financial system.

El Salvadorian President Nayib Bukele has announced via social media the country “bought the dip” and acquired 500 BTC at an average price of $30,744.

Sponsored: In 2017, Invictus set out to fundamentally change the asset management industry. Invictus' officially regulated funds are now institutional grade products with industry leading fees and very accessible minimum requirements.

Top stories in the Crypto Roundup today:

• Luna Foundation Guard Deploys 28,205 Bitcoin to Defend UST Peg
• Stablecoins are ‘Prone to Runs’, Says Federal Reserve
• El Salvador Announces 500 BTC Purchase
• Chart of the Week: Ethereum Blocks Burnt vs Rewards
• Sponsored: Invictus Capital spearheads the world's first regulated and tokenised mutual fund

Luna Foundation Guard Deploys 28,205 Bitcoin to Defend UST Peg

The Luna Foundation Guard, the custodian of Terra’s Bitcoin reserves, has deployed 28,205 BTC to defend the peg of the protocol’s UST stablecoin, which saw its value plunge to a $0.61 low amid ongoing market turmoil.

The funds are set to provide liquidity on exchanges and led to a modest recovery in UST’s price, which surged from its $0.61 low to $0.94 before falling again. At the time of writing, the stablecoin is trading at $0.888.

The price of the flagship cryptocurrency tanked around 10% on Monday alone as UST’s believers and detractors alike pondered how much the Luna Foundation Guard’s deployment exacerbated the ongoing bitcoin sell-off.

The stablecoin lost its peg after more than $500 million was sold by large investors on Terra’s leading savings protocol Anchor, which offers rates near to 20% for those depositing UST. 75% of circulating UST was deposited to Anchor last week, but deposits on the platform have now plunged from $14 billion to around $7 billion.

The price of LUNA, a token used to maintain UST’s peg by allowing traders to swap $1 worth of UST for $1 of LUNA, plunged by around 40% and is now trading at $30. The cryptocurrency hit an all-time high near $120 in early April.

Stablecoins are ‘Prone to Runs’, Says Federal Reserve

The U.S. Federal Reserve has published a new report on financial stability in which it emphasized stablecoins alongside certain money market funds and bonds as areas of risk in the current financial system.

The Federal Reserve’s report reads that some money market funds and stablecoins “remain prone to runs,” and adds:

"Funding risks at domestic banks are low, but structural vulnerabilities persist at some money market funds, bond funds, and stablecoins."

Researchers at the Federal Reserve published work n stablecoin risks and benefits back in January as the topic grows in prominence in the policymaking world.

El Salvador Announces 500 BTC Purchase

El Salvadorian President Nayib Bukele has announced via social media the country “bought the dip” and acquired 500 BTC at an average price of $30,744.

The South American nation adopted BTC as legal tender last year and has since accumulated the flagship cryptocurrency through a series of announced purchases. Based on past announcements, the country is expected to hold over 2,000 BTC.

Echoing El Salvador’s move, the TRON DAO reserve acquired 500 BTC at an average price of $31,031.35 to “safeguard the overall blockchain industry and crypto market.”

Chart of the Week: Ethereum Blocks Burnt vs Rewards

In this week’s Chart of the Week we’re looking into Ethereum blocks burnt vs rewards on the blockchain. On May 1, an all-time high record of 71,718 ETH were burnt following the highly anticipated launch of the Otherdeeds non-fungible tokens (NFTs). These tokens represent tokenized land plots in Yuga Labs’ upcoming metaverse project Otherside.

The previous high was nearly 3 times lower, when 19,425 ETH were burned on January 10. May 1 was the first day the Ethereum network turned deflationary since February 1.

Invictus Capital spearheads the world's first regulated and tokenised mutual fund

Invictus Capital has become the world’s first fully regulated, tokenised, and administered mutual fund in the world.

In 2017, Invictus set out to fundamentally change the asset management industry. Invictus' officially regulated funds are now institutional grade products with industry leading fees and very accessible minimum requirements.

Invictus fund tokens now represent legal ownership of the underlying fund shares and a wide range of benefits are now available:

• In the new fund structure, tokens represent shares of the mutual funds, providing investors with security and peace of mind.

• An independent board of directors has been appointed, ensuring a strong corporate governance system.

• Fund assets and the financial health of the funds are verified regularly by independent external auditors.

• Fully compliant with global AML and KYC regulations.

Disclaimer:

Cryptocurrency trading involves high risk, and is not suitable for all investors. Before deciding to trade cryptocurrencies, tokens or any other digital asset you should carefully consider your investment objectives, level of experience, and risk appetite.

Its content does not constitute financial advice. Please remember that the value of investments, and any income from them, can fall as well as rise so you could get back less than you invest. If you are unsure of the suitability of your investment please seek advice.

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