The crypto is in a bearish rut right now. This week’s top crypto news highlights this point: companies are laying off employees, lawmakers are scrutinizing the industry, and tech pundits are trying to dissuade Congress from accepting crypto investments. And to top it off, phishing scams are back in full force, targeting anyone who uses any of the Microsoft (NASDAQ:MSFT) the most popular products.
These stories all reflect a general market collapse. After briefly crossing the $30,000 mark, Bitcoin (BTC-USD) prices are pulled down again. Moreover, investors are forced to continue to wait while lawmakers decide on policy. That conversation has been pretty quiet since President Joe Biden’s crypto executive order in March.
Without further ado, here are the top crypto stories from the past week.
Top Crypto News of the Week
Terraform Labs launches Terra 2.0 in an attempt to keep the ecosystem alive
The collapse of the Classic Earth (LUNC-USD) Last month, the network was the biggest crypto story in a while. Now, Terraform Labs is looking to get its project back on track. Last Friday, she launched the Earth 2.0 (LUNA USD) network, a completely new blockchain distinct from the old one. Holders who remained after the collapse were able to claim new LUNA coins to help support the new ecosystem. Numerous exchanges also participated, listing the coin for spot trading. However, the network has a lot to overcome, especially as controversy looms over founder Do Kwon and Terraform Labs’ business practices.
Optimism’s crypto OP airdrop gets off to a flying start
The Optimism (OP-USD) network is expanding its offerings to include a governance model. With this new addition to the Layer 2 ecosystem, the developers airdropped OP governance tokens to eligible recipients earlier this week. The airdrop was marred by controversy. Many investors immediately turned around and sold their tokens for profit. Meanwhile, many struggled to get tokens as the network was unable to handle the traffic. The developers have spent hours working to increase throughput. The event has led to a bit of a split among community members over who should be able to participate in future airdrops.
Newly Discovered Microsoft Office Bug Puts Crypto Holders’ Assets at Risk
The United States Cybersecurity & Infrastructure Security Agency (CISA) has discovered a vulnerability in Microsoft Office products. CISA calls this vulnerability the Follina bug. By tricking victims into opening Office files that contain malicious code, hackers can take control of entire computer systems. This allows the hacker to create, modify and delete files at will. blockchain security company CertiK reports that the bug particularly affects crypto holders, especially those without hardware wallets. By infiltrating a system using Follina, a hacker could easily gain access to non-custodial wallets like Metamask and steal the assets inside. With Microsoft Office enjoying over 258 million users, many assets are at risk from this exploit.
New York puts in place a moratorium on crypto-mining
New York State is cracking down on crypto mining by passing a two-year moratorium on carbon-based crypto mining. Existing crypto-mining operations are allowed to continue; new mining operations can spring up, as long as they use renewable energy to power their operation. The moratorium will allow the state to conduct its own studies on the negative effects of crypto mining on the environment. It comes after scrutiny from environmentalists, including those upstate who have complained about pollution from Generation Greenidge (NASDAQ:GRE) natural gas plant at the foot of Seneca Lake.
Tech Experts Send Warning Letter to Lawmakers Over Dangers of Crypto Investing
Crypto legislation is growing all over the world. But in the United States, it’s a slow move towards digital currency infrastructure. As Congress continues to weigh its options on digital currency policy, tech leaders across the country are advising great skepticism and caution about its final decision. A letter signed by 26 technology experts from a number of institutions and companies says crypto advocates are overstating the safety and security of the asset class. The statement comes at a time when crypto lobbying is at an all-time high.
Blockchain companies continue to downsize in the face of bear market
The downturn in the crypto market is hurting investors’ wallets, but it’s also hurting the bottom line of many blockchain companies. Now crypto companies are starting to cut costs wherever they can. Unfortunately, the first place these companies do this is in the size of their workforces. Indeed, several blockchain companies are drastically reducing the size of their workforces, citing the bear market as the reason. Crypto Exchanges Coinbase (NASDAQ:PIECE OF MONEY) and Gemini are two of the biggest companies doing this. Both are reducing their job pools by 10%, with the former also canceling all active job openings.
As of the date of publication, Brenden Rearick had no position (directly or indirectly) in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com publishing guidelines.