Topic: Does all the money from luna have to go somewhere? - page 2. (Read 326 times)

It’s like the stock market regarding market caps. Some stocks have market caps in the trillions like Apple however that just means if everyone sold at the last traded price which obviously is impossible unless an equal amount of bids were at that price.

When in reliability all it takes is a small percentage of that market cap in sell pressure to reduce the market cap by like half or so.

Same with Luna. Most bought it when it was cheap and never sold. And some bought it a few months back when they were buying BTC to fund the stable coin. And that money is gone now.

I'd imagine if that happened then any salvaged luna that was sold - it wasn't too low when the peg first fell, I think it dropped by about a third in the first 12 hours - was probably converted to coins like eth to have a stake in the ecosystem with a lot less of the risk too then.

You might want to check their website's quick explanation video on how luna works to understand this better or see if it clicks while you watch it but essentially:
The protocol is based on the idea that a UST was always equal to a dollar of luna and a dollar of luna always equalled a UST (the luna and UST could both be minted via an interaction with their smart contracts on chain). When UST finally fell and lost its peg, each UST could still be burnt for a dollar's worth of luna causing that to crash too as the price of UST wasn't sustained - essentially, you could buy a dollar of luna for 95 cents for a while (and then 60 cents). The smallest losers in this scenario were the UST holders.

Terra Luna's redit made for an interesting read for me when this initially broke and more things have come to light since - apparently SK law enforcement have made attempts to freeze the assets of anyone involved with luna (afaik - there was a tweet about stopping any reserve funds from being moved out of their accounts).

It's speculated Do Kwon did a large OTC transfer just before that to trade newly minted UST for BTC (or something).


This has probably done even worse for his repuation and the price of original Luna (since even its creator has abandoned the coin).

This was something I've been thinking would be quite interesting, I might try to get a script going if I can find ethereum blockchain data for the past few weeks as exchanges like uniswap will definitely show up there.

what i am wondering here is that the team is claiming that they haven't benefited from this crash? then who? those large holders? but how did they know that it was time to cash out and buy another stablecoin or alt? i have the feeling that there's inside job in this situation. a large amount of money got liquidated for few days and nobody knows anything? that's bs! and now, do kwon is trying to save his face by introducing their luna 2.0? i hope people are not dumb enough to fall for another crap.

Marketcaps are not a good methods to measure how much money actually got moved. It should be possible to pull the data on all the transactions and their value to know exactly how much money was moved out of Luna, especially if it happened on-chain and not centralized exchanges, because the latter probably don't keep their logs publicly available for many days.

Before the crash, UST had a marketcap of around $18.5b, and in just around 6 days it's down to around $1.4b. All that sold UST was mostly sold for Curve-supported stablecoins like DAI/USDT/USDC as they had the most on-chain liquidity.

I'm wondering if the money that might've been used to dca or diversify into luna from some crypto investors have already noticeably been put into other coins and had an impact on them.

Considering $10-20bn in liquid assets might've had to be reassigned quickly and a lot of people who understood the fundamentals of luna probably converted their ust and sold each for a dollar (and dumped their luna too) - but I'm not sure if this actually happened much or how much ust there were before the crash.