• The U.S. Securities and Exchange Commission (SEC) declared Terra’s assorted tokens to be securities, causing them to drop an average of 5%.
• Binance’s BUSD stablecoin experienced a 15% drop in market cap following news that issuance will cease.
• Do Kwon allegedly cashed out 100M worth of BTC via Swiss Bank.
Terra Tokens Declared Securities
The U.S. Securities and Exchange Commission (SEC) declared Terra’s assorted tokens to be securities, causing them to drop an average of 5%. According to the SEC’s Feb. 16 complaint, Terraform Labs had breached securities law with the Mirror Protocol (MIR) launch as it allowed users to create mAssets, constituting a security-based swap. Furthermore, the wrapped version of Luna was also deemed a security as it is a receipt for a security.
BUSD Market Cap Down 15%
Following news that issuance will cease, Binance’s BUSD stablecoin saw its market cap decline by 15%. In response, CEO Changpeng Zhao (CZ) commented on the shifting landscape concerning stablecoin movements triggered by rising yields in the DeFi ecosystem. He further suggested that some projects may choose to mint their own assets or move away from existing stablecoins altogether in search for higher yields elsewhere in the DeFi space.
Do Kwon Cashes Out $100 Million Via Swiss Bank
The SEC alleged that Do Kwon and Terraform Labs transferred over 10,000 BTC into a cold wallet and then converted some of these assets into cash via a Swiss bank account for up to $100 million USD in total proceeds. Furthermore, this activity was done without registering with the appropriate authorities as required by US securities laws according to the commission’s complaint filed on Feb 16th 2021 .
Implications for Crypto Market
These recent developments have caused significant implications within the cryptocurrency markets. This includes increased scrutiny from regulatory bodies towards crypto projects which could lead to further regulations being implemented within this space moving forward in order keep investors safe from fraudulent activities and scams like those conducted by Do Kwon & Terraform Labs detailed above.. Additionally, it has caused many investors/traders alike to become more cautious when trading/investing or participating any crypto related project moving forward due precautionary measures taken against such activities make sure they are compliant with all applicable regulations before proceeding with their investment decisions going forward .
In conclusion , these recent developments show us just how important it is for investors/traders alike remain vigilant when engaging in any kind cryptocurrency related activities . It also serves as reminder for cryptocurrency projects ensure compliance with all applicable laws & regulations so that can avoid any issues down line like those encountered by Do Kwon & Terraform labs detailed above .