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June 21 (Observer) – British Prime Minister Keir Starmer is expected to resign and announce his departure timetable next Monday, but a government source says Starmer remains focused on his duties. Pressure on Starmers position has been mounting for months and intensified significantly on Friday after his political rival, Andy Burnham, won a seat in Parliament, enabling him to launch a formal leadership challenge. The Observer reports that Starmer is discussing the matter with his wife at his country residence, Chequers, and has not yet made a final decision, but several senior Labour Party members expect him to make a clear statement on his future as early as Monday. However, government sources emphasize that Starmer remains focused on fulfilling his duties as Prime Minister, citing his previous statements as evidence. More than 100 Labour MPs have publicly stated their desire for Starmer to resign or set a clear departure timetable, representing about a quarter of Labour MPs in the House of Commons.According to Reuters, British government sources say that Prime Minister Starmer is focused on fulfilling his duties.June 21st - According to the British newspaper *The Observer*, British Prime Minister Keir Starmer is preparing a timetable for his departure. This comes after Andy Burnham, who suffered a major defeat to the Reform Party in the Greater Manchester by-election and is scheduled to be sworn in as a Member of Parliament next Monday. His supporters claim that if Starmer does not resign, Burnham has secured the support of over 201 Labour MPs to challenge him for leadership. This number exceeds half of the Labour Party in Parliament, meaning Starmer can no longer demonstrate his confidence in the House of Commons to the King. It is reported that after several rounds of discussions with cabinet ministers, Downing Street advisors, union leaders, and party donors, Starmer has concluded that his position in power is no longer secure. Senior Labour figures believe that Starmer may issue a "clear statement" as early as Monday. A Labour MP close to Starmer said: “He has come to terms with reality. As he said, preventing ‘chaos’ is no longer possible by staying in office, so there is only one option left. I think he has seen it as a responsible choice for the country and the party.” Another senior Labour figure said that Starmer now appears to have “accepted” the reality of his resignation.June 21 – It was learned from Iran on the 21st that the Iranian negotiating delegation has arrived in Zurich, Switzerland. The Swiss Foreign Ministry also confirmed the arrival of the Iranian delegation. The Swiss Foreign Ministry stated on social media that it welcomed the Iranian delegations arrival in Switzerland, and that the delegation is en route to Bürgenberg as part of implementing the memorandum of understanding signed between the United States and Iran.On June 21, a symposium on the 9th China International Import Expo (CIIE) was held in Oslo, Norway, with representatives from approximately 40 Norwegian companies and institutions in attendance. Norwegian participants stated that all sectors in Norway highly value economic and trade cooperation with China. The CIIE, as a high-level platform for opening up to the outside world, provides Norwegian companies with a practical and efficient path to promote high-quality products, cutting-edge technologies, and professional services, and to cultivate the Chinese market. Norway will continue to pool resources and actively mobilize various Norwegian companies to participate in the CIIE, further strengthening the mutually beneficial ties between China and Norway and improving the quality and efficiency of bilateral trade cooperation.

Crypto Volatility Knocks More Stablecoins off Their Peg

Jimmy Khan

Jun 17, 2022 15:17

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According to CoinGecko statistics, the market value of stablecoins fell to $156.8 billion on Thursday, down from roughly $181 billion at the start of May.


On Wednesday, Tether, the world's biggest stablecoin, fell to $0.993, but rapidly restored parity with the dollar.


In a letter, crypto digital asset management IDEG noted, "Stablecoin market cap goes hand in hand with sentiment and liquidity in crypto markets, and it's somewhat alarming that USDT looks to be seeing another wave of liquidations."


The digital asset markets are suffering after crypto lender Celsius suspended withdrawals and transfers between accounts on the wake of the terraUSD stablecoin's implosion last month, as well as global monetary tightening making riskier assets like cryptocurrencies less appealing.


Stablecoins are crypto tokens that are tied to the value of traditional assets like the dollar, and because of their decreased volatility, they are the preferred method of transferring money between digital tokens or into cash.


They're also a target for funds that arbitrage between exchanges and locations in the hopes of betting on stablecoins that are barely below par recovering parity.


Tether's market valuation has dropped more than $5 billion in the last 30 days due to worries about its reserves-backed Tether's exposure to Celsius, as well as continued concerns regarding its reserve assets.


"They (Tether) are likely to have some bad loans because of Celsius," Joseph Edwards, head of financial strategy at crypto business Solrise Group, stated.


"Tether's market worth is still over $70 billion," he noted, "and these things are a drop in the ocean."


Tether, for its turn, said that any loans to Celsius were overcollateralized and that "false rumors" were fueling concerns about the composition of its commercial paper reserves.

Stablecoins based on algorithms have also become popular.


A number of algorithmic stablecoins have also been impacted, including terraUSD, which uses complicated processes to restrict token issuance and keep its peg to the underlying value.


According to researcher CryptoCompare, USDD, the algorithmic stablecoin of smart contract platform Tron and the ninth-largest stablecoin by market size, lost its peg to the dollar on Monday, plummeting as low as $0.96 as short-sellers built up severe bets against the cryptocurrency.


Justin Sun, the inventor of Tron, has pledged to spend more than $2 billion to preserve the stablecoin's peg.


"I don't believe they'll endure even a day." On Monday, he tweeted, "Short squeeze is coming." Sun did not reply to a request for comment right away.


The Tron DAO, which administers the stablecoin's reserves, said on Wednesday that 2.5 billion of its tron tokens will be removed from the Binance crypto market to assist support the USD. USDD, on the other hand, has failed to reclaim its peg and is now trading at $0.976.


Other algorithmic stablecoins, such as the Frax stablecoin, which has since rebounded, and the Neutrino USD, which fell as low as $0.93 on Wednesday and is now trading below the dollar at $0.966, have also been de-pegged in recent weeks.


Even still, these stablecoins are a fraction of the size of Tether or even terraUSD at its height.


"Algorithmic stablecoins are experiencing depegs once again, but this is nothing new... "If anything awful happened to them, it wouldn't cause the ecosystem to split the way Tether did," Edwards said.


USD Coin, which is backed by cash and U.S. Treasury notes and has seen its market worth slowly rise to more over $54 billion from $52 billion over the previous month even while other stablecoins suffered, is one possible beneficiary of the present turbulence.