Weekly Crypto Digest by Afford.Capital

This week was hot in terms of events and news. Without further ado, let’s check them out!

Why The Merge did not solve Ethereum scaling problem – a Brief Conclusion

We can’t deny the fact that The Merge brought a number of significant advantages to the Ethereum network:

  • It made ETH an energy-efficient cryptocurrency
  • The Merge virtually eliminated inflation
  • Laid the foundation for future massive upgrades.

However, many technical solutions that are subject to follow after the Merge still remain untouched. It will take considerable time to fully scale the second-largest cryptocurrency by capitalization.

What’s more, there are a variety of risks, including regulatory ones. For instance, the head of the SEC believes that the industry needs a “cop on duty” and that PoS cryptocurrencies have the properties of securities.

It is unlikely that the path to the implementation of the developers' plans will be easy. The community needs to be patient and prepare for future ups and downs in the price of Ethereum. It is also important to remember that a bear market is usually rife with significant developments and is generally good for the industry.

Robert Kiyosaki urged to buy Bitcoin amid rising FED rates

Rich Dad Poor Dad bestselling author and entrepreneur Robert Kiyosaki called the strength of the US dollar a great opportunity to buy the first cryptocurrency (Bitcoin) and other promising crypto assets (altcoins).

Peter Schiff accuses Michael Saylor of pumping Bitcoin

Gold advocate Peter Schiff criticized former MicroStrategy CEO Michael Saylor and CNBC for advertising Bitcoin, accusing them of pumping Bitcoin.

Sailor countered by saying that Bitcoin is a commodity, not a security, and its advertising is as legal as promoting “steel, aluminum, concrete, glass or granite.”

Do Kwon to return South Korean passport

The South Korean Ministry of Foreign Affairs demanded that Terraform Labs (TFL) CEO Do Kwon has to return his national passport within 14 days. In case of refusal, the document will simply be canceled.

In case of the absence of an appearance, Do Kwon will not be able to leave South Korea if he is currently in that country. Until September 13, 2023, applications for passport renewal from the founder of the Terra ecosystem may be rejected. Just a reminder that on September 14, a South Korean court issued an arrest warrant for Do Kwon and five other people. On September 17, Do Kwon stated that he was not "on the run" and was cooperating with law enforcement. He stressed that he was not going to disclose his location to strangers.

The collapse of the Terra ecosystem had serious implications for the digital asset market. The depreciation of LUNA and the algorithmic stablecoin UST caused significant damage to Anchor Protocol users. The incident also affected the solvency of large industry players: crypto lending platform Celsius was one of the largest holders of UST, and hedge fund Three Arrows Capital invested about $200 million in LUNA as part of the February token sale.

In June 2022, investors accused Terraform Labs and Kwon personally of making false statements regarding the stability of the UST. Also, in June the company's CEO said that he did not consider himself a fraud. He also denied accusations of withdrawing $2.7bln from the Terra ecosystem before its collapse.

Earlier, the founder of Terra denied information about involvement in the $39.6 million frozen by the authorities. Prior to this, the media shed some light on the movement of 3313 BTC from the Luna Foundation Guard wallet on Binance to the KuCoin and OKX platforms starting from September 15 to September 18.