This week in the cryptocurrency industry saw significant developments across different platforms that are influential in shaping the sector.
Several important events took place, ranging from major partnerships to investment decisions and fraud accusations, providing a detailed recap of the week's crypto news.
Mantra's token, which was once highly anticipated with a billion-dollar valuation, experienced a sharp decline of 90% due to suspected insider activities and vulnerabilities in liquidity. The collapse of OM, a token linked to real-world assets, resulted in a significant loss of over $5.5 billion in its value.
Analysis indicated that concentrated trading activities in certain wallets and low liquidity pools left OM susceptible to abrupt sell-offs. A trader's massive sell-off triggered a cascade of liquidations, highlighting the risks associated with tokens that have limited circulation and high hype in an illiquid market setting.
Pi Network saw a surge in its native Pi Coin following an integration with Chainlink, positioning it closer to DeFi and smart contract ecosystems. However, concerns emerged about the transparency of Pi coin's circulating supply, wallet distribution, and central control, reminiscent of the issues faced by the collapsed OM token.
Grayscale, a prominent institutional investor in cryptocurrencies, announced a review of 40 altcoins for potential inclusion in its assets. The move reflects Grayscale's interest in emerging crypto trends beyond Bitcoin and Ethereum, aiming to cater to the growing demand for diverse digital assets.
Speculation arose regarding a partnership between Ripple's XRP and SWIFT, but deeper analysis dismissed the rumors. Despite the debunking, discussions around XRP's future as a top-10 asset and retail investors' interest in its utility-driven price appreciation continued.
The US Dollar Index's decline to a three-year low this week had a positive impact on Bitcoin, with the cryptocurrency surpassing the $84,000 mark again. The weakening dollar, coupled with rising global liquidity and uncertainty in bond markets, created a favorable environment for Bitcoin, highlighting its resilience in economic turbulence.