This week in The Flippening, TL;DR

• One of the oldest stock exchanges getting serious about crypto

• IPO time for this Bitcoin ATM company

• Ripple may soon announce its IPO

🔊 Top Highlights of the Week

NASDAQ launches crypto custody service for institutional clients

NASDAQ figured that it couldn't stay out of the party any longer! To address the interest of institutional clients looking for access to cryptocurrencies, the newest participant in the market introduces a cryptocurrency custody service.

The new division, Nasdaq Digital Assets, will initially exclusively hold custody of Bitcoin and Ethereum. Nasdaq's chief of North American markets stated: "demand among institutional investors for engaging in digital assets has increased in recent years, and Nasdaq is well-positioned to accelerate broader adoption and drive sustainable growth."

Bitcoin Depot 

With a formal announcement published on its website, Binance discloses that it will allow the direct sale of cryptocurrency for 11 different fiat currencies. Users can sell their crypto and convert it to their fiat currencies.

Rippling through SEC, IPO exploration in sight!

Since December 2020, the SEC and Ripple have been in a courtroom battle over XRP. Its ambitious plans of coming up with an IPO can be quite challenging considering the current bearish market conditions.

 Other Highlights:

- MicroStrategy purchases 301 more Bitcoins, bringing its total holdings to around 130K BTC.

Coin of the week🤑💸

This has been a tough couple of weeks for crypto investors. With bear markets providing a good chance to find fundamentally strong projects, our coin of the week is Algorand. The ALGO community has been hard at work expanding its ecosystem. Dozens of dApps have been deployed in the past few months, and there are hundreds of millions in total value locked in its DeFi protocols, with tens of thousands of users.

Crypto simplified

The TerraUSD fiasco has put the entire stablecoin ecosystem under scrutiny, with people going as far as contemplating if stablecoins even have a future.

Earlier this month, the UST token lost its peg to the U.S dollar leading to its accompanying cryptocurrency LUNA plummeting to its lowest point ever. Followed by leading exchanges delisting them and their price pushing further down to almost nothing.

But before we arrive at whether stablecoins hold any value, we need to first understand what a stablecoin is meant to be. They are meant to maintain their peg to a fiat currency. For instance, 1 USDC = $1! It needs to always be this way!

The most tried and trusted way to achieve this is by backing stablecoins with external assets like fiat, gold etc. But UST was not backed by any external asset; instead, its value was maintained by burning or minting LUNA. And historically, all algorithmic stablecoins have had a similar fate. There may be exceptions to this, e.g. DAI, but what made things worse for UST and LUNA was their association with the Anchor Protocol, which promised returns of almost 20% to lenders.

Their focus swiftly shifted from being a stablecoin to becoming a yield generating mechanism.

On the other hand, cryptocurrencies that have cracked the code of being a stablecoin at their core have thrived.

For instance, USDC, a stablecoin created by Circle, has successfully maintained its value time and again. It is backed by U.S. dollar-denominated assets held at regulated and audited U.S. financial institutions.

So stablecoins may not be doomed till they remain one.

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Edul Patel

Co-founder, Mudrex.com