Is Terra Luna bringing the whole market down? - page 5.

Ezravdb

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Quote from: o48o on May 09, 2022, 04:47:35 PM

Yes, UST can collapse but i doubt that it would bring everything down. It would just affect some coins. USDT has been suspected not to hold as well but as they have insanely well backed up it with real world value, it won't crash.

Although there is a little suspicion on USDT, but until now there are still very many people who use USDT
because the stablecoin is still very good and almost everyone still believes in USDT than UST you mean it.

TastyChillySauce00

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Quote from: keyscore44 on May 09, 2022, 04:39:10 PM

I think that the Luna treasury alone is not able to make the entire cryptocurrency market drop so drastically.

Imagine you are shorting 50k bitcoin to the market. that's enough to create very big pressure to the market like this time. Terra luna keeps selling their bitcoin for UST but again market will decide whether they will trust UST again or not.
A wallet with 10 millions UST already lost a lot for did nothing. this is a big shame for this foundation.

Quote from: keyscore44 on May 09, 2022, 04:39:10 PM

However, the financial security of Luna that you write about seems to me very unstable and in my opinion this may be one of the reasons why this project may be in danger of collapse.

Only stupid developers will introduce stable token in valued pegged with fiat money but it's not using fiat money as a way to make it stable or backed it. How dumb these developers are. If bitcoin will be dropping so hard and that will be the end for the foundation

lornadane

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Quote from: JeffBrad12 on May 09, 2022, 06:42:28 PM

Yeah that's why algoritmic solution will not always work to be implemented in any situation. Sometime people must have realized it. Luna is putting its platform into another disaster. It's better to back it with the dollar and keep the value of bitcoin. This time it may sell some its bitcoin like what already done by microstrategy when this company is silently selling its bitcoin reserved funds to the market. That's a bit surprised to see that but this is the reality. Luna may collapse due to a poo mechanism that used by its ust stable token.

Yes what you say is true, maybe Tera Luna is currently very heavy with the dirt of other stablecoins.
So that there is a price sentiment right now but we don't have to worry about the current price decline because we also know that using a decentralized public blockchain platform for stablecoins is algorithmic and monitors asset prices, of course they are able to maintain their right price with a set of rules or software rather than underlying assets.

JeffBrad12

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Yeah that's why algoritmic solution will not always work to be implemented in any situation. Sometime people must have realized it. Luna is putting its platform into another disaster. It's better to back it with the dollar and keep the value of bitcoin. This time it may sell some its bitcoin like what already done by microstrategy when this company is silently selling its bitcoin reserved funds to the market. That's a bit surprised to see that but this is the reality. Luna may collapse due to a poo mechanism that used by its ust stable token.

Duzter

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Quote from: GreatArkansas on May 09, 2022, 06:23:54 PM

If you will see other non-crypto markets like stock markets, they are also bleeding so for me it's normal this time and Luna is nothing to do about it.
Luna experiencing some problems now, if you take a look at their UST now that is trading below 0.9 USDT, a very huge problem, started to fail about peg to $1.
But I believe this is just temporary, the team behind Terra Luna is hard working and for sure they will fix it.

Terra Luna isn't the only issue to bring the market down. According to me it is the time in which the market is supposed to have a bear market. The increase in the interest rates to keep control of the inflation is a major reason connected with the market crash. As said this isn't happening with cryptocurrency market. Almost every market is down and the increase of interest rates weren't happening only in the USA, everywhere similar situation prevails. In my country the value against dollar have gone high in history.

GreatArkansas

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If you will see other non-crypto markets like stock markets, they are also bleeding so for me it's normal this time and Luna is nothing to do about it.
Luna experiencing some problems now, if you take a look at their UST now that is trading below 0.9 USDT, a very huge problem, started to fail about peg to $1.
But I believe this is just temporary, the team behind Terra Luna is hard working and for sure they will fix it.

keyscore44

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Quote from: Menawi12 on May 09, 2022, 05:54:08 PM

Quote from: strunberg on May 09, 2022, 05:32:49 PM

Quote from: diffract on May 09, 2022, 07:02:42 AM

We know algorithmic stablecoins are new and risky. UST is backed by Luna, and the foundation behind Luna bought so much Bitcoin I believe they're now amongst the top 10 holders.

If UST loses its peg against the dollar and Luna isn't enough to bring it back up, the foundation will have to sell some of its BTC to keep the peg, which applies sell pressure on BTC and brings it down along with the whole crypto market.

Is this what's happening now already?

looks like they start selling bitcoin to buy ust, recently UST price down to 0,83 and it is not be stable coin anymore with its value. i am agree luna foundation now breaking crypto market with their algorithm . bitcoin would not be stable and keep cracking down due it usage by luna.i heard in twitter their bitcoin move from wallet and we dont know what will happen next with this tranfer.

based on whales tracker it true there is bitcoin tranfer above 40k bitcoin to centralized exchange, if its true from luna foundation guard maybe it will dumped for buying ust which is failed to pegged $1. even ust price drop tp 0,84 recently and with this condition LFG has possibility to dumpbitcoin and back ust.

If this is true and luna is selling its security fund, then the structure of this project is not bear market immune. It looks like this project was simply poorly constructed and poorly secured. If the price of Bitcoin continues to fall, Luna may completely collapsed.

Menawi12

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Quote from: strunberg on May 09, 2022, 05:32:49 PM

Quote from: diffract on May 09, 2022, 07:02:42 AM

We know algorithmic stablecoins are new and risky. UST is backed by Luna, and the foundation behind Luna bought so much Bitcoin I believe they're now amongst the top 10 holders.

If UST loses its peg against the dollar and Luna isn't enough to bring it back up, the foundation will have to sell some of its BTC to keep the peg, which applies sell pressure on BTC and brings it down along with the whole crypto market.

Is this what's happening now already?

looks like they start selling bitcoin to buy ust, recently UST price down to 0,83 and it is not be stable coin anymore with its value. i am agree luna foundation now breaking crypto market with their algorithm . bitcoin would not be stable and keep cracking down due it usage by luna.i heard in twitter their bitcoin move from wallet and we dont know what will happen next with this tranfer.

based on whales tracker it true there is bitcoin tranfer above 40k bitcoin to centralized exchange, if its true from luna foundation guard maybe it will dumped for buying ust which is failed to pegged $1. even ust price drop tp 0,84 recently and with this condition LFG has possibility to dumpbitcoin and back ust.

strunberg

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Quote from: diffract on May 09, 2022, 07:02:42 AM

We know algorithmic stablecoins are new and risky. UST is backed by Luna, and the foundation behind Luna bought so much Bitcoin I believe they're now amongst the top 10 holders.

If UST loses its peg against the dollar and Luna isn't enough to bring it back up, the foundation will have to sell some of its BTC to keep the peg, which applies sell pressure on BTC and brings it down along with the whole crypto market.

Is this what's happening now already?

looks like they start selling bitcoin to buy ust, recently UST price down to 0,83 and it is not be stable coin anymore with its value. i am agree luna foundation now breaking crypto market with their algorithm . bitcoin would not be stable and keep cracking down due it usage by luna.i heard in twitter their bitcoin move from wallet and we dont know what will happen next with this tranfer.

o48o

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Quote from: diffract on May 09, 2022, 07:02:42 AM

We know algorithmic stablecoins are new and risky. UST is backed by Luna, and the foundation behind Luna bought so much Bitcoin I believe they're now amongst the top 10 holders.

If UST loses its peg against the dollar and Luna isn't enough to bring it back up, the foundation will have to sell some of its BTC to keep the peg, which applies sell pressure on BTC and brings it down along with the whole crypto market.

Is this what's happening now already?

Yes, UST can collapse but i doubt that it would bring everything down. It would just affect some coins. USDT has been suspected not to hold as well but as they have insanely well backed up it with real world value, it won't crash.

keyscore44

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Quote from: diffract on May 09, 2022, 07:02:42 AM

We know algorithmic stablecoins are new and risky. UST is backed by Luna, and the foundation behind Luna bought so much Bitcoin I believe they're now amongst the top 10 holders.

If UST loses its peg against the dollar and Luna isn't enough to bring it back up, the foundation will have to sell some of its BTC to keep the peg, which applies sell pressure on BTC and brings it down along with the whole crypto market.

Is this what's happening now already?

I think that the Luna treasury alone is not able to make the entire cryptocurrency market drop so drastically.
However, the financial security of Luna that you write about seems to me very unstable and in my opinion this may be one of the reasons why this project may be in danger of collapse.

diffract

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We know algorithmic stablecoins are new and risky. UST is backed by Luna, and the foundation behind Luna bought so much Bitcoin I believe they're now amongst the top 10 holders.

If UST loses its peg against the dollar and Luna isn't enough to bring it back up, the foundation will have to sell some of its BTC to keep the peg, which applies sell pressure on BTC and brings it down along with the whole crypto market.

Is this what's happening now already?

Topic: Is Terra Luna bringing the whole market down? - page 5. (Read 703 times)