Crypto World Reacts
Free Pavel DAO by Justin Sun
TRON founder Justin Sun has made a bold gesture: launching the FreePavel DAO and committing $1 million in support of recently apprehended Telegram CEO Pavel Durov. This project is an attempt to mobilize the crypto community in support of Durov by appealing to DeFi principles using decentralized finance (DeFi) mechanics.
The Free Pavel DAO is an exemplar in the nascent paradigm for how decentralized organizations can impact real-world outcomes, pairing blockchain technology ethos with activism. Su’s actions have already been noticed, with many important people, like the co-founder of Ethereum Vitalik Buterin, worried about what Durov’s arrest might mean for software and communication freedoms in Europe as a whole.
Massive Liquidations for Ethereum Traders
Ethereum traders lost a whopping $17 million amid the general market rebound from over-leveraged long positions. The new wave of liquidations reiterates the continuous volatility in the crypto market. Forced liquidations were triggered as traders who failed to meet margin requirements following a drawn-out and choppy correction late Tuesday into Wednesday from local highs in leading altcoin Ethereum
which had been showing signs of recovery until then animated more than $50m trading activity at the lowest prices within seconds. The incident hammers home the risks that come with trading cryptocurrency, where fortunes or not can swiftly turn against you during even just a faint glimmer of hope in prices. The cautious sentiment among traders highlights the caution we should all have as more volatility returns.
Toncoin’s Market Volatility Following Durov’s Arrest
Open interest on the toncoin, created by Telegram, grew 32% after Pavel Durov was detained. As the founder grapples with potential legal troubles, this reflects an increase in trading activity overall, particularly on short positions. News of the arrest has hit Toncoin hard, leading many investors to speculate on more losses. But some market analysts say Durov’s rumored release could send the value of Toncoin skyrocketing, making for an even more unstable trading environment. The latter case is an excellent illustration of the extent to which external events and market dynamics can collide, with a great deal at stake for both short term movements contingents upon Durov.
Moscow Stock Exchange Disputes It Is Launching Crypto Trading
But despite all this, the Saint Petersburg Currency Exchange in Russia has refuted reports that it is preparing to launch a public cryptocurrency exchange. This denial comes shortly after Russia is tackling new laws that will permit industrial crypto mining and global-scale payments. While the official denial of a national crypto exchange is likely to put an end to this speculation, it has nonetheless generated additional discussion over Russia’s place in global crypto markets moving forward.
The argument is emblematic of the broader challenge of combining digital currencies with national financial systems, complicated in a country like Russia where market decisions are heavily influenced by regulation and politics. This is still very much a developing situation, combining with the drive for crypto infrastructure in other regions {the likes of which are less interested}, leading one to believe that this conversation has ultimately just got under way.
