The Crypto collapse stabilizes, Elon Musk’s Boring Company to accept dogecoin and Mt.Gox creditors are a step closer to their Bitcoin holdings. These stories and more this week in crypto.
Bitcoin’s Best Week Since October
Bitcoin felt some relief this week as some investors hope that the worst of the crypto liquidity crisis is over. Markets turned green in a much-needed short-term relief rally coming after a major capitulation tumbled prices and strained liquidity on the market. Bitcoin rose over 10%, marking its best week since October.
The Boring Company to Accept Dogecoin
The Boring Company, one of Elon Musk’s firms, will start accepting Dogecoin payments for its Loop Rides. Customers will be able to pay with the memecoin to take a ride using Tesla vehicles on the company’s Las Vegas transit system called Loop. Rides are currently free for passengers using Loop, but charges are coming at a later date.
Mt. Gox’s Rehabilitation Plan
Failed cryptocurrency exchange Mt. Gox has provided an update on its repayment procedures under its creditor rehabilitation plan. According to the statement, the process could start as soon as next month, and the document details various choices the creditors can make when receiving their payments, including compensation directly in Bitcoin.
FED: Crypto Needs Regulation
Federal Reserve Vice Chair Lael Brainard said that cryptocurrencies need regulation now before it becomes so big that it threatens the financial system. In a speech that demonstrates that the central bank is watching the crypto crisis very closely, Brainard said the lack of regulatory guidelines has been a confusing and troublesome issue for the whole crypto industry.
Central African Republic Releases Sango Coin
After becoming the second state to make bitcoin legal tender in April, the Central African Republic’s government has released a new cryptocurrency called the Sango Coin which aims to tokenize the country’s resources, such as gold and diamonds, for worldwide investors. President Touadera said, “The alternative to cash is cryptocurrency and for us, the formal economy is no longer an option.”
Nexo To Buy Rival Vauld
Cryptocurrency lender Nexo announced its plans to buy its struggling lender rival, Vauld. Another casualty of the liquidity crisis, the Singapore-based Vauld has suspended withdrawals for its more than 800,000 customers. If successful, Nexo said it plans to restructure the company and pursue an expansion in Southeast Asia and India.
ETH’s Lowest Gas Fees for 19 Months
Ethereum transaction fees have reached a low not seen since November 2020. The average gas or network fee that is required to push a transaction on the network dropped to less than $1 per transfer. On May 1, 2022, the average network fee was almost $200 per transfer, thanks to a popular NFT sale that took place that day.
Large Merchants Adopt Crypto Payments
A BitPay and Pymnts.com report titled “Paying With Cryptocurrency,” has found that among businesses with an annual income of $1 billion, 85% are adopting crypto payments. The report noted that crypto payment fees are around 1%, which is much lower than other digital payment options which could charge up to 3.5%.
That’s what’s happened this week in crypto, see you next week.