[Daily] Djed security for Cardano

Good morning! Welcome to The Daily Moon. The SEC has struck again. This time it’s charged Akon, Lindsay Lohan, and Jake Paul for promoting crypto without proper disclosures. The celebrities will have to cough up the money they were paid plus $400,000 in fines. Their response: “We didn’t know”. 🙄

As of Thursday, 7PM IST

The markets were shaky after the 0.25% rate hike by the US Fed. Bitcoin fell on inflation concerns. Ethereum was bearish on a decline in network transactions. S&P 500 and Nasdaq rose in early trade on brisk buying in technology stocks. Back home, Sensex and Nifty ended lower on a sell-off in banking stocks. 

Djed Holds ADA

Cardano is on a high. The token’s up ~13% in the past week and is trending upwards. But there is no trigger for the rally. Sure, it could just be the increasing distrust in the banking system but is there more?

The Djed factorTurns out that it was Djed’s work after all. The stablecoin from the Cardano stable has backed its elder sibling ADA. 

1. When Silicon Valley Bank collapsed, Circle’s USDC lost its peg against the US dollar. 

2. Djed did not lose its peg because it had enough reserves. 

3. ADA investors were impressed by Djed’s track record and pumped money. 

Just to refresh your memory, Djed is different from USDC. It’s a stablecoin that is linked to Cardano’s ADA token and has nearly 6X in reserves. To simplify, each Djed is backed by six times its value in ADA tokens. It has a reserve coin, Shen, that acts as an incentive to maintain the peg. 

Since its launch in February, Djed has attracted whales to Cardano. 

HODLers on the riseLong-term HODLers, those who have held ADA for more than a year, have grown. Now that Djed has planned to migrate to Ethereum and other blockchains, there’s another windfall coming. 

Developers convergeTbf, Cardano has also done its bit to boost ADA. It took the second spot as far as Github development activity is concerned. 

The peer-to-peer network launch is another positive sign because it’ll increase transaction speeds and plug glitches.  

Will ETH Follow The Lead?

Bitcoin saw a stellar rally since SVB’s crash. It’s up ~35% in the past 10 days alone. Ethereum, however, has been a tad slower than BTC. ETH rose ~18% too but there’s been a selloff since the Shapella upgrade.  

What’s dragging ETH?People are bored of NFTs and it seems to have reflected on ETH. When NFT activity slowed, the network suffered and, well, investors just turned away. 

Any green shoots?Shanghai is coming soon, and the ability to unstake ETH post the upgrade sounds attractive. Just ahead of this transition, Open Interest in ETH futures has surged. It’s a signal that there is a demand for ETH among traders. 

Meanwhile, wallets holding more than 0.01 ETH have hit an eight-month high. The second-largest crypto has more believers, at least for now.

Swipe Right, Swipe Left

It’s a dating app concept. An NFT trading app to be precise. Hear us out. 

NFT Futures meet TinderThe app is called NFTures. And it uses the swipe as the main feature. Want to go long on an NFT? Swipe right. Want to go short? Swipe left. Leverage is three times, whichever way you swipe. Traders are able to spot a date-able, uh, we mean investment-worthy NFT faster than mere enthusiasts. 

Strings attachedThe app has 14,000 sign ups so far, and some of them are active users. Users won’t long or short full fledged NFTs. For now, it is just floor price CryptoPunks through SushiSwap.

Justin’s Sun Sets?

His Eminence Justin Sun is catching some flak. The tokens associated with him are all tumbling after he made a very serious offer to buy Credit Suisse.

Rubbing SEC the wrong wayThe Securities and Exchange Commission has charged Sun and his three companies. The charges: fraud and market manipulation. Backers of his Tronix and BitTorrent crypto assets were also charged. 

Price reactionsThe tokens associated with these entities fell right after the news. TRX, associated with the Tron network, dropped around 12%. The token associated with BitTorrent, BTT, fell by more than 1%. He can’t be charged or arrested because he’s Permanent Representative of Grenada to the World Trade Organization and has diplomatic immunity.

Kwon's time up too?Speaking of regulators and charges, Terra founder Do Kwon has been charged with fraud by the federal authorities in New York. This was just hours after he was apparently arrested in Montenegro. We are waiting for an official confirmation of his identity. 

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