Topic: Is TERRA/Luna kickstarting a new Bitcoin Standard? - page 4. (Read 1415 times)

In general, it is difficult for the price to return to $1, so unless something unique happens

I think that the price of both TERRA and UST will go to zero.

At the current depreciation levels, it will theoretically take luna only 4 days to reach the levels of inflation the Papermark has managed to do in two years in the Weimar republic.

The thing is that Tera has not stopped minting its coin during the last 24 hours.

Justin recently launched his USDD stablecoin.

I don't think Luna will make it to live again because it has gone as far below 0.04 as at this morning

I do not understand why Terra is almost dead

Cobie
Sir...?
May 08, 2022
justin sun
I am buying #UST. 👀

Do Kwon
Your Excellency what u up to 😳

https://twitter.com/cobie/status/1524042286404759552?t=NR2BfWOHGMjbGqkPJ6opXA&s=19

May 09, 2022
I am seeding a #UST/ #USDD pool on @Uniswap! Come and Trade! 👀

https://twitter.com/justinsuntron/status/1523562576944140288?t=o7xF9UVjqpn_2QMnW-nojQ&s=19

May 10, 2022.
To safeguard the overall blockchain industry and crypto market, TRON DAO Reserve have bought 500 #BTC with average price 31031.35 for $15,515,675. #bitcoin

https://twitter.com/trondaoreserve/status/1523919860107202560?t=73d1GquLgL-AsPznxeEQHA&s=19

UPDATE, I just converted my $100 USDT to $250 UST, and it's my first time buying a "stable coin" because of the fluctuation.

No it was deliberate destruction of a ponzi scheme.

20% interest yeah how that work out. I would like to think it is a true story and luna/ust has been killed.

True, plenty of time left but it will have to be spectacular to be bigger fail than this. Then again, knowing how unpredictable crypto market is, nothing is impossible.


Because there is constant influx of new people, while older ones that went through 2017 ICO boom and are still buying shitcoins like LUNA are nothing but degenerate gamblers.

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Theories on what really happened today are popping all over the internet, this is another one I stumbled upon in one Discord group. Dunno if it really makes sense but here it is:

The thing is that Tera has not stopped minting its coin during the last 24 hours.

A leveraged hand used insider knowledge to short UST and triggered a bank run. The reason the user had insider knowledge is because they had a detailed understanding of the Terra Ecosystem. Anyone with enough money, knowledge, and motivation could perform this attack, but the number of people capable of doing this is pretty small. Crypto barron or possibly a state actor, but that is speculation.

I do not understand why Terra is [...]

A leveraged hand used insider knowledge to short UST and triggered a bank run. The reason the user had insider knowledge is because they had a detailed understanding of the Terra Ecosystem. Anyone with enough money, knowledge, and motivation could perform this attack, but the number of people capable of doing this is pretty small. Crypto barron or possibly a state actor, but that is speculation.

Long version

The attack was initiated by a liquidity provider who knew ahead of time that (via front-running/public chain observation via bots or other mechanisms) a major transaction (from LFG) moving through the system by paying a generous gas fee (around 34K, I’ll try to find the sources), dumped their UST onto exchanges, and destabilized the liquidity pool. The deviation of peg initiated a bank run, and panic selling at a loss caused the peg to spiral.

Part of the reason that the attacker was able to know about the the transaction ahead of time was because the speed of transactions moving through the system was set quite slow. the passed Agora Proposal has temporarily increased the minting speed which should help with front-running.

Front-running is a core issue here and it is a pervasive problem in many crypto projects. It will need to be addressed in the future, it is perhaps the primary issue that initiated the problem as the sophisticated and leveraged user had “insider information” not widely available to less sophisticated users.

The other problem is that there is no deposit guarantee (think FDIC) in this space. Secondary insurance is available to protect digital assets, but the utility of this is not broadly appreciated by the majority of crypto investors. The reasons bank runs do not occur in the US is not because the reserve backing of USD (because it doesn’t have one), but because the majority of people’s savings are backed by FDIC so even in times of crisis there is no reason to withdraw your money from banks.

It will take some time, but when the UST peg is restored, I suggest a mechanism for ensuring/gauranteeing deposits be explored. It is possible that [Proposal] Terra x Citadel DAO - Accelerating the growth of BTC/4pool is related to this, but unclear at the time. This is theoretically what the LFG was for, but clearly the mechanism is not strong enough and provides no real gaurantee to individuals on the ecosystem.

While Bitcoin took two short dips (one a bit more substantial) under 30K due to the Terra/Luna fiasco, it was hit much less than I expected, taking into account that >50.000 BTC seem to have been sold by LFG alone (correct me if I'm wrong). But now Bitcoin's again at the same price level than before the issue.

So Bitcoin, even in some very adverse situations, seems to be more stable than even a big stablecoin. It's likely that once the final TUSD/Luna crash became apparent, a lot of money could have been moved into Bitcoin because it seemed the "less worse" of all coins (excluding exchanges which offer "true" fiat money and not only stablecoins).

I'm pretty convinced that if Bitcoin doesn't take again a very deep crash in the next days, it will come out strengthened by this episode. People may be looking more critical at centralized stablecoins and will instead, if they're gambling with altcoins, be more lenient to convert their profits into BTC, like it was popular before stablecoins became ubiquitous, and Bitcoin becoming again the "standard" of the crypto world

Basically you are claiming that Blackrock and Citadel sold BTC and UST at a huge loss hoping that they could turn it into a gain by buying it back at a lower price.

Theories on what really happened today are popping all over the internet, this is another one I stumbled upon in one Discord group. Dunno if it really makes sense but here it is:

Theories on what really happened today are popping all over the internet, this is another one I stumbled upon in one Discord group. Dunno if it really makes sense but here it is:

I just stumbled again upon this thread and was thinking ... well, maybe Terra is about to kickstart a new Bitcoin standard, but in a different way?

The article that is shared in that post is based on this tweet and even that guy said at the end that there is a lot of speculation and assumptions in his scenario how all this played out. But yeah, point of all this was obviously for someone to exploit their faulty mechanism and make money no matter the details how it exactly happened.

We are in May only, plenty of time to nominate something for the Fail of the Year award in Community Award for 2022.

We are in May only, plenty of time to nominate something for the Fail of the Year award in Community Award four 2022.

How come so many people are still so gullible/greedy after all those years of ICO scams and premined shitcoins?

Blackrock and Citadel borrowed 100K BTC from Gemini (it appears in their loan book). They swapped 25K of that BTC into UST; this was all done quietly in anticipation of the attack. When the time was right, they called up Do Kwon at Terra Foundation and said they wanted to sell a lot of BTC for UST. As it was a large trade they told him they didn't want to move the market and asked if he would like to buy their large block of BTC at a discount for UST. Do Kwan took the bait. He gave them a huge chunk of UST, thus lowering the UST liquidity significantly.

At that point, Blackrock/Citadel dumped all of the BTC and UST causing massive slippage and triggering a cascade of forced selling in both assets. The real problem was Blackrock/Citadel knew that Anchor, which holds a lot of LUNA, was a Ponzi scheme (they offer 20% staking APY for Christsake) and this crash would trigger more withdrawals than Anchor can repay. These forced withdrawals and selling would trigger a massive selloff in Luna, thus further breaking the $1 peg and wrecking the market further. Blackrock and Citadel can now buy the BTC back cheaply to repay the loan and pocket the difference. Meanwhile, billions of longs and Bitcoin VaR were wiped out.

This was pure market manipulation.

While Bitcoin took two short dips (one a bit more substantial) under 30K due to the Terra/Luna fiasco, it was hit much less than I expected, taking into account that >50.000 BTC seem to have been sold by LFG alone (correct me if I'm wrong). But now Bitcoin's again at the same price level than before the issue.