The crypto currency market has been in a roller coaster for quite some time. There are a variety of issues and events that have been happening, but some things remain the same. Some of the issues include the collapse of Terra Luna, the FTX meltdown, and the emergence of a new class of property that can be hidden from the public eye.
FTX meltdown
Cryptocurrency exchanges are teetering on the brink of failure. The FTX meltdown has caused ripple effects throughout the crypto sphere. This has created an opportunity for policy makers to create a formal regulatory structure for cryptos.
Several financial regulators are taking a hard look at the FTX collapse. The Securities and Exchange Commission and Commodity Futures Trading Commission are both investigating the company.
One of the major questions being asked is whether or not the crypto world’s most innovative exchange is now a thing of the past. FTX was the third largest exchange in the world, holding up to $2 billion in 24-hour trading volume. However, the company had a hiccup with its liquidity last week, leading to a massive drawdown.
FTX’s CEO also announced plans to raise a week’s worth of cash to cover user deposits. However, the company has not released any details on how they will handle the money.
Terra Luna collapse
If you’re in the crypto community, you’ve probably heard about the Terra Luna collapse. It’s a huge blow to the digital asset market. The two stablecoins were well-funded projects. But they were targeted by sophisticated traders.
There are many reasons for the Terra/LUNA crash. One is a lack of collateralization. Another is that the project lacked a unique selling proposition.
Basically, there were too few of the UST and LUNA tokens in circulation. This caused the price of both tokens to plummet. In short, the price of the UST went from 1 dollar to 0.03 dollars for the lowest price.
The Terra UST had a $18 billion market cap. It was designed to maintain a 1:1 peg to the dollar. As the price of UST fell, the price of LUNA fell, too.
Massive outflows from exchanges
Massive outflows from cryptocurrency exchanges have been a major concern this month. A number of centralized exchanges have seen massive net capital outflows.
Binance has suffered an outflow of over US$2 billion in the last 24 hours. While a Binance spokesperson did not respond to a request for comment, the CEO has been publicly reassuring users that the company is coping with the situation.
Bitfinex has also experienced massive outflows. The exchange has seen a total of $US1.7 billion in withdrawals since April 26. This was before the New York attorney general announced an investigation into the company.
According to data from CryptoQuant, users yanked a record amount of stablecoins from the platform. The firm’s data showed a staggering 57,900 stablecoin withdrawals in the last seven days.
South Carolina’s “equitable distribution” state
When it comes to divorce, South Carolina is considered to be an “equitable distribution” state. This means that the court divides assets in a fair and just manner, considering each spouse’s economic situation and needs.
Marital property is defined as everything acquired during the marriage, including real estate and personal property. However, in order to qualify for division, each party must voluntarily sign the documents. If a couple fails to voluntarily sign, the court can order them to do so. The court will also consider other factors, such as marital misconduct and non-monetary contributions.
If the couple has children, their full custody may lead to a larger percentage of certain marital property. In addition, their nonmonetary contributions to the family’s economic well-being might also make a difference.