Hodler’s Digest, March 31 – April 6

Highlighted Stories of the Week

Table of Contents

Fraud Conviction: Terraform Labs and Do Kwon

A jury has concluded that Terraform Labs and its co-founder Do Kwon were involved in deceptive activities, defrauding investors as determined in their civil case with the United States Securities and Exchange Commission. The trial, initiated on March 25, proceeded without the physical presence of Kwon, who is currently located in Montenegro, awaiting a decision on his potential extradition. The verdict held Kwon and Terraform accountable for six offenses and highlighted the platform’s “reckless” behavior in making false or misleading claims related to the issuance and promotion of TerraUSD, Luna, and wLUNA.

Remarkable Trading Success: $13K to $2M Transformation in an Hour

An impressive feat was achieved by a cryptocurrency trader who managed to turn $13,000 into a staggering $2 million, marking a notable gain of 15,700%, on April 3. This significant wealth accumulation was a result of investing in the newly introduced memecoin named Donotfomoew (MOEW) developed on the Base blockchain. The MOEW meme token, themed around cats, gained substantial traction shortly after its introduction on decentralized exchanges, attaining a market capitalization of $31 million. Over 8,000 addresses have already benefitted from MOEW tokens distributed during the ongoing giveaway, which is open to individuals holding sufficient BWB points.

Bitcoin’s Flash Crash and Subsequent Liquidations

The sudden 5% decline in Bitcoin’s price on April 2 resulted in traders holding leveraged positions on Bitcoin and various other cryptocurrencies facing cumulative losses exceeding $165 million within just two hours. Bitcoin witnessed a rapid 5% drop, plummeting from $69,450 to a low of $65,970 in under half an hour, based on TradingView data. Coinglass statistics reveal that this sharp downward trend in Bitcoin’s price led to more than $165 million in liquidated leveraged positions. The majority of these losses were incurred by Bitcoin long positions, totaling over $50 million, alongside Ether (ETH) longs accounting for a sum in excess of $40 million. Notably, around $6 million worth of long positions linked to Dogecoin, as well as $4 million tied to Solana’s SOL, also faced liquidation. These figures trailed behind the affected BTC and ETH positions.