Jerome Powell came out with a hawkish statement on inflation
as Elon Musk says America is already in a recession.
Do Kwon pushes his Terra revival proposal live even though 92% of the Terra community voted no.
Aave has opened its decentralized social media company Lens Protocol
on the Polygon blockchain.
Crypto regulation becomes a topic with the G7.
My name is Ben.
This is your nightly crypto news wrap-up.
Let's get it!
Jerome Powell emphasized his commitment to getting inflation as close to the 2% target as possible
saying that lowering inflation won't be easy.
After raising benchmark borrowing rates by half a percent earlier this month,
Powell told the Wall Street Journal the Fed will increase interest rates
until financial conditions are in an appropriate place.
Powell said that they would move past broadly understood levels of neutral if they have to
and they will push to lower inflation even if it means increased unemployment.
Powell believes a soft landing will be challenging.
As spending slows down too quickly,
companies could start cutting costs by laying off workers.
His language has changed from soft landing to soft-ish landing,
which he says is like a bumpy but otherwise successful airplane landing,
adding, "It's still a good landing. You don't even notice it, right?"
Is this a meme? Is this real?
Economists at the Deutsche Bank, Bank of America and other large banks
have already said they believe inflation shock will cause a recession in 2022 and an equity bear market
and that the Fed started cooling inflation when it was already too late.
But yet Jerome Powell gets to keep his job.
You can't make this stuff up, people.
During the Miami All-In Tech Conference on Monday,
Elon Musk said he believes United States is already in recession
which he sees lasting anywhere from one year to 18 months.
He says that what tends to happen in a recession is a boom that goes on too long,
misallocation of capital,
and it starts raining money on fools.
For Musk, there is one obvious cause---
the government printing more money than it had,
issuing checks for excessive revenue and causing inflation.
Thank you, Mr. Obvious.
Do Kwon's Terra recovery plan came online for voting today.
The proposal suggests forking the Terra LUNA blockchain
and airdropping new LUNA tokens to staked wallets.
The old chain would become LUNA Classic with the token LUNC.
And the new chain would be Terra with the new LUNA tokens.
An online vote was submitted to the Terra community,
with 92% voting no to LUNC.
Who would have thought?
Kwon pushed the proposal through anyway, and currently the votes for yes are in the lead.
Meanwhile, Terra LUNA's legal team has resigned,
and the reason is not clear.
I think it kind of is.
A company spokesman has said in an email
that the past week has been challenging for Terraform Labs
and a small number of team members have resigned.
The depegging of UST and other stablecoins has caught the attention of regulators
and heads of global banks.
And many believe the regulation for crypto and stablecoins
will become a topic of discussion at this week's G7 meeting.
On May 18-20,
the world's leading economies are expected to consider a regulatory framework for crypto,
with the head of the French central bank
saying that these events have been a wake-up call for the industry
and there's urgent need for global regulation.
Weeks after Aave founder Stani Kulechov was temporarily suspended from Twitter
after calling himself interim CEO of Twitter,
he announced at the Permissionless conference that Lens Protocol went live on the Polygon blockchain.
This decentralized social media platform was built by Aave Companies
and allows building of decentralized social media networks
where users can own their own data.
He believes Web3 innovation is driven by ownership
and having social media on blockchain means that users can control their content
and applications and algorithms have to compete to bring the best experience to the users.
Starting today, users can mint their profile NFT that links them, their followers and their communities.
There are already around 50 apps built on Lens.
They've launched a $250,000 grants program to provide funding for new projects.
That's all I got.
Be blessed.
BitBoy out.