What happened in the crypto market while everyone was asleep — overview from May 12

CryptoQuant believes that tightening regulation of crypto may lead to a rise in demand for “shadow” stablecoins, Lido DAO is trying to replace the compromised arakul, and Ledger has managed to fend off scammers on Discord — these and other cryptocurrency news from the morning of May 12 in our review.

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Behavior of cryptocurrencies — capitalization leaders

Bitcoin BTCUSD, according to TradingView, started Monday with a surge in the rise, followed by a correction to previous levels. As of 06:44 (MSK), the cryptocurrency is trading at $103,800 ( per token in rubles — RUB 8,577,989). The minimum bitcoin price in 24 hours is $103,364, the maximum is $105,039.

The second largest cryptocurrency by market capitalization, Ethereum, started the day with sideways movement. At the time of writing this review, the coin is trading at $2,513 ( per token in rubles — RUB 207,550).

In the top 10 most capitalized cryptocurrencies, the best result over the past day is by TRON (+0.27%), while over the week, Ethereum leads with (+39.83%). The largest losses in the past 24 hours are for Dogecoin (-1.56%). Over the past seven days, all coins, except stablecoins, have risen.

In the top-100 most capitalized cryptocurrencies, the best result for the day is (+34.54%) and for the week (+114.15%) — for PI. During the last 24 hours, the biggest price drop was for Optimism (-6.32%). The largest losses for the week were recorded for UNUS SED LEO (-7.59%).

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Main Cryptocurrency News for the Morning of May 12

Against the backdrop of tightening regulations on stablecoins, investors may pay attention to “shadow” analogs of “stable coins.” According to Ki Young Ju, head of CryptoQuant, regulators may require automatic tax collection through smart contracts and organize the blocking of the crypto wallets of violators.

The expert shared this opinion against the backdrop of the preparation of a law in the USA regarding the use of “stablecoins” for payments. The regulatory rules may reflect the complex requirements of MiCA that were introduced in the EU.

Ki En Zhu noted that “shadow” stablecoins are resistant to censorship and operate on algorithmic mechanisms. Examples of technologies for such coins already exist: Zcash, Monero, Zephyr Protocol and PARScoin.

The Lido DAO team initiated an emergency vote to replace the compromised oracle. The compromised oracle Chorus One lost its entire associated balance of Ether.

Voting will close in a few days. The issue only affects this oracle and is not systemic.

Most likely, the hack occurred due to a leak of the private key of the hot wallet. Chorus One will install a new model to enhance security.

Ledger has secured its Discord after a bot hacker attempted to steal seed phrases. It is known that a moderator’s account was compromised. Through it, the bot posted phishing links to steal seed phrases.

Ledger removed the compromised account and the malicious bot. The phishing site has been blocked and reported to the relevant authorities. All access rights have been reviewed and strengthened. It is unclear whether users have been affected.

Recall that earlier the BeInCrypto editorial team gathered in one overview the main cryptocurrency news for the week of May 5-11.