Daily Flash | Terra UST In Violation of Investor Protection Rules, Glassnode Warns Inversion

Today’s Headline: SEC to Investigate Terra’s UST, Probe into How Terra used Mirror Protocol

According to Bloomberg, an unnamed source said that SEC’s enforcement attorneys have been looking into whether the way Terraform Labs marketed UST, its algorithmic stablecoin, was in violation of federal investor protection rules.

The federal agency was seeking documents and testimony in connection with its investigation of whether Terra used the Mirror Protocol to sell unregistered securities.

Mirror Protocol is a non-custodial trading platform that allows its users to trade Mirrored assets, or mAssets, meant to be synthetic versions of stocks like Tesla and Apple.

Yesterday, a U.S. District Court of Appeals upheld an order for Terraform Labs CEO Do Kwon to comply with an SEC subpoena by turning over documents and providing testimony about Mirror Protocol.

South Korean officials have also launched an investigation to determine whether intentional price manipulation and other issues could have been behind UST's crash last month, according to local television network JTBC.

Chart of the Day: Bitcoin hash ribbons have started to signal inversion

According to Glassnode, the Bitcoin hash ribbons have started to signal inversion.

This means that hash-rate is starting to come offline, usually as a result of stress in miner incomes impacting profitable operations.

Typically, these inversions occur in late-stage bear markets.

Influencer of the Day: Abigail Johnson, CEO of Fidelity, Pledges Crypto Commitment in Bear Market

The chairman & CEO of Fidelity, Abigail Johnson offered experienced advice to the crowd at Consensus 2022 in Austin, Texas, and said her belief in the long-term fundamentals of cryptocurrency remains strong, CoinDesk reports.

According to Johnson, “I was raised to be a contrarian thinker and so I have this knee jerk reaction: If you believe that the fundamentals of a long term case are really strong, when everybody else is dipping [out], that’s the time to double down and go extra hard into it.”

She also pointed out that the move to bring crypto to the 20 million or so retirement plans it (Fidelity 401(k) Business) oversees was met with immediate pushback from the U.S. Department of Labor as well as Sen. Elizabeth Warren (D-Mass.), citing concerns about the volatility of crypto.

Buzzes of Yesterday: #Cardano Volume Surges, #PoolTogether to hit $1.4M NFT defense funding target, #BAYC Discord $357k worth of NFT Phished

Ethiopian Central Bank Urges Residents to Stop Engaging in Crypto Transactions

Cardano Volume Surges As DeFi Development Ramps Up

DeFi community rallies behind PoolTogether to hit $1.4M NFT defense funding target