The week that was — May 9-14

You’ve probably already got the memo that digital coins have been bleeding for a while. This week, fresh market mayhem triggered fears that a crypto winter is here as the so-called ‘stablecoins’ belied their name.

The collapse of TerraUSD (UST), a stablecoin whose 1:1 peg to the US dollar broke on Tuesday, and its sister token Luna sent ripples through the market, bringing down more high-profile digital assets such as bitcoin. The US Federal Reserve has flagged stablecoins — digital tokens pegged to the value of traditional assets — as a potential threat to financial stability.

Around $800 billion was shaved off from the market value of crypto assets in the past month as risk assets have lost their charm given that the era of easy monetary policy seems near.

Bitcoin fell below $30,000 levels this week from its Nov. 10 record high of $69,000.

Ominously, the fall comes after blockchain funding had touched a record $9.2 billion in Q1 2022, compared with $3.6 billion a year ago, and $800 million in Q1 2020, showed data from CB Insights.

And the funding continues. This week, Dragonfly Capital, a crypto-focused investment firm, made the final close for its third venture fund and a feeder vehicle with capital commitments of $650 million.

Cryptocurrency exchange KuCoin raised $150 million in a Series B round led by Jump Crypto, giving it a valuation of $10 billion. Meanwhile, Nomura said it has begun offering bitcoin over-the-counter derivatives to clients.

Whether investors will continue to keep their faith amid the ongoing market spasm, remains to be seen.

Moving on to other news of the week.

Top headlines

Indonesian digital identity network VIDA raised at least $47.67 million in a Series A round, according to regulatory filings. London-based venture capital firm Hedosophia led the round, while Jakarta-based Alpha JWC Ventures put in $10 million.

Our monitoring of ACRA data also showed that Southeast Asian e-commerce site Lazada has issued new shares worth…


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