So far, this has been the fail of the year, and it won't be easy to top it.
We are in May only, plenty of time to nominate something for the Fail of the Year award in Community Award for 2022.
Topic: Is TERRA/Luna kickstarting a new Bitcoin Standard? - page 5. (Read 1409 times)
We are in May only, plenty of time to nominate something for the Fail of the Year award in Community Award for 2022.
According to this post, someone earned hundreds of millions of dollars from shorting by manipulating UST and it's "backing". I don't know if it's true.
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.I can't think of any logical way for this to work.
UPDATE, I just converted my $100 USDT to $250 UST, and it's my first time buying a "stable coin" because of the fluctuation.
Let's hope this will be a lesson for those trying to make a quick profit by adopting a "stable currency" and beginning to develop a better model.
Now if it goes back to $1 levels, this is a $150 profit.
I hope that happens quickly.
Good luck with this. Couple of my friends decided to gamble with LUNA and UST earlier today and they are getting rekt.Let's hope this will be a lesson for those trying to make a quick profit by adopting a "stable currency" and beginning to develop a better model.
Now if it goes back to $1 levels, this is a $150 profit.
I hope that happens quickly.So far this has been the fail of the year and it won't be easy to top it.
can we consider what happened to be price manipulation?
According to this post, someone earned hundreds of millions of dollars from shorting by manipulating UST and it's "backing". I don't know if it's true.Who thought this was a good idea?
I honestly did. We have many reserves to “scare” attackers trying to depeg the stable coin.But I underestimated human greed: if there is a profit easy to be made, someone will inevitably try to yield that.
So, this mechanism was challenged and failed miserably.
Say you have $10, and you buy Bitcoin to guarantee your made-up stable coin keeps it's value. If Bitcoin goes to $100, you have $90 to spare (and potential profit), but the moment Bitcoin drops, you're short on money. You could improve this by buying $20 in Bitcoin to guarantee the stability of $10 in your stable coin, but if Bitcoin drops more than 50%, you're short on money again. You could go further and keep $100 in Bitcoin to guarantee $10 worth of stable coins, so that you can handle a 90% drop in price, but that would mean you'll be forced to sell 90% of your Bitcoin just to keep $10 worth of stable coins alive.
I can't think of any logical way for this to work.
Now if it goes back to $1 levels, this is a $150 profit. I hope that happens quickly.
This actually makes me consider shorting it: there's an upper limit to the risk, but it's quite likely to drop to nothing, which would give a decent profit. I hope that happens quickly.
UPDATE, I just converted my $100 USDT to $250 UST, and it's my first time buying a "stable coin" because of the fluctuation.
Let's hope this will be a lesson for those trying to make a quick profit by adopting a "stable currency" and beginning to develop a better model.
Now if it goes back to $1 levels, this is a $150 profit. I hope that happens quickly.
Let's hope this will be a lesson for those trying to make a quick profit by adopting a "stable currency" and beginning to develop a better model.
Now if it goes back to $1 levels, this is a $150 profit.
I hope that happens quickly. Who thought this was a good idea?
I honestly did. We have many reserves to “scare” attackers trying to depeg the stable coin.
But I underestimated human greed: if there is a profit easy to be made, someone will inevitably try to yield that.
So, this mechanism was challenged and failed miserably.
Someone made a good profit, and someone lost a lot of money; this was inevitable and of no interest to me.
What I want is: lessons learned.
I think we need some kind of scaling solution. Probably one distant day it will be possible to have a stablecoin in LN using Taro. But in the meantime, we have to work with what we have available.
Anyway, the amount of research is amassing on my “desk” and I am lagging.
In the coming days we will hear more in-depth analyzes, especially since I see it as a trend on twitter, but we can't in any way view it as a failure of the "new Bitcoin Standard" backed by Bitcoin? The question that is on my mind now
can we consider what happened to be price manipulation? Or at least TERRA/Luna cheated?
I mean the last sale:
Which was sold less than a week later at a price of 30k.
The good side of the story is the ease with which Bitcoin can liquidate even in the event of a price crash, which is a good thing in the long run.
can we consider what happened to be price manipulation? Or at least TERRA/Luna cheated?
I mean the last sale:
Quote
Terra #LUNA has purchased an additional 37,863 #Bitcoin ($1.5 billion) for its reserve.
Which was sold less than a week later at a price of 30k.
The good side of the story is the ease with which Bitcoin can liquidate even in the event of a price crash, which is a good thing in the long run.
Wait a minute:
https://bitinfocharts.com/bitcoin/address/bc1q9d4ywgfnd8h43da5tpcxcn6ajv590cg6d3tg6axemvljvt2k76zs50tv4q
Did they empty the whole address? Do they have zero coins left?
I'll admit I didn't care enough to follow this closely, and it feels like adding insult to injury, but did they really have 42,530 Bitcoin to "back" their "stable" "coin"? It just dropped under $0.30!https://bitinfocharts.com/bitcoin/address/bc1q9d4ywgfnd8h43da5tpcxcn6ajv590cg6d3tg6axemvljvt2k76zs50tv4q
Did they empty the whole address? Do they have zero coins left?
Quote
Profit from price change: -489,356,486.9 USD
Wtf!!!!!!So let me get this straight again: they had 42,530 Bitcoin to "back" their made-up "stablecoin", and to keep it stable, they have to sell Bitcoin when Bitcoin drops. Selling tens of thousands of Bitcoin means Bitcoin drops further, which means the more they sell, the lower their "stablecoin" gets! That's as dumb as it gets!
Who thought this was a good idea?
It is Do Kwon's fault if the Fed, and other government entities, step in and start another round of bans, regulations, and government FUD, causing Bitcoin to crash under the 200-weekly SMA line currently $21,843.85 right now. FACT.
Plus which of those other shitcoin protocols are "HODLing" UST/LUNA in their reserves/treasuries? They will DIE.
Plus which of those other shitcoin protocols are "HODLing" UST/LUNA in their reserves/treasuries? They will DIE.
Early on I was browsing the Twitter feed from luna and god, there is such an unload of denial and copium there, every fleeced or near to be fleeced "investor" screaming how somebody destroyed this because it was threatening them...
It's much easier to swallow up the loss if you think that there is some big conspiracy targeted at you just because you are so good instead accepting the simple fact that someone exploited their flawed mechanism in order to make shit load of money. Like we haven't these things happen before..Meanwhile, Luna:
Hah, $13 was a good price, now it's below $8 with plenty of room to go down even more. Couple of my buddies decided to gamble and started buying at sub $10, hoping for a dead cat bounce, will see how that plays out.
I was surprised by the price of LUNA which dropped more than 50%, when it was often trending on social media it made me interested in buying LUNA early this month, unfortunately the red and LUNA markets became coins that dropped significantly, even that surprised me the stability of LUNA coins too drop 10% and haven't recovered until now.
The green slice represents the portion of LFG stash that is currently invested in BTC: correct, you can't see one.
I will later post a couple of post mortem analyses of what has just happened.
I will later post a couple of post mortem analyses of what has just happened.
You little rascal
I'm laughing so hard, on that one, I wasn't even looking at the graph as I doubt at 1 am I can grasp what would those numbers mean but when I read, yeah don't look it ain't there I laughed for 5 mins Early on I was browsing the Twitter feed from luna and god, there is such an unload of denial and copium there, every fleeced or near to be fleeced "investor" screaming how somebody destroyed this because it was threatening them...How in world does that even work? You've got destroyed by the ones that you threatened with your financial mumbo jumbo?
Meanwhile, Luna:
They are looking for full stability I guess, nothing is more stable than zero after all, no matter how you spin it or how you look at it is still zero!
Btw, I guess that by now the answer to the title is no, right?
LE
Wait a minute:
https://bitinfocharts.com/bitcoin/address/bc1q9d4ywgfnd8h43da5tpcxcn6ajv590cg6d3tg6axemvljvt2k76zs50tv4q
Did they empty the whole address? Do they have zero coins left?
Quote
Profit from price change: -489,356,486.9 USD
Wtf!!!!!!
Wow.
That was fast. I honestly didn't expect this drama to unravel so fast. Yet we are here discussing algorithmic stablecoins that needed, multiple interventions to stabilise their price.
Just look at this:
The green slice represents the portion of LFG stash that is currently invested in BTC: correct, you can't see one.
I will later post a couple of post mortem analyses of what has just happened.
That was fast. I honestly didn't expect this drama to unravel so fast. Yet we are here discussing algorithmic stablecoins that needed, multiple interventions to stabilise their price.
Just look at this:
The green slice represents the portion of LFG stash that is currently invested in BTC: correct, you can't see one.
I will later post a couple of post mortem analyses of what has just happened.
I've heard about it before, and I still don't get it: what's the point of using Bitcoin for a stable coin?
In my no doubt limited understanding it works like this: if Bitcoin goes up, the company makes a profit. If Bitcoin goes down, they're short on money. Who would invest in this if they'll only take the risk but not the profit?
I called it. It didn't take long to actually happen.In my no doubt limited understanding it works like this: if Bitcoin goes up, the company makes a profit. If Bitcoin goes down, they're short on money. Who would invest in this if they'll only take the risk but not the profit?
Stable coins are not in the interest of Bitcoin users.
I admit I haven't been following this topic very closely, but the more I dig into this topic, the less interesting I think the obvious consequences are
So you were saying? Not interesting?
This is one of those glorious shitshows you can rarely enjoy, and seeing it unfolding live it's even more entertaining.
The moment you can short a stable coin against the currency it's supposed to be pegged at with a backing of 10 billion to keep the course is a once-in-a-lifetime opportunity! The next level is when you will be able to short Luna vs Luna, as one Luna will be 0.66 Luna.
I should ask the obvious question, why do we need their shitcoins in the first place, but now it's clear, that some guys need to scam others and get rich while "investors" can't believe their eyes, they turn back they read the whitepaper, they read the protocol, they look at the wallet and this can't understand why they've lost all their money! And just yesterday I had a debate with somebody who was telling me that altcoins are useful, I still can't find any other utility with them other than scamming.
Today was a nasty day for the peg. It’s down to 0.60 and no signs of recovering. The dev already started to move the BTC into the exchanges and people are panic selling Bitcoin because they fear of the $1.5B sell order he can make. This was so massive that Bitcoin went below $30k even.
Wait till they are out of BTC to sell...
How do you call a coin that is backed by thin air, not even by one if not nine nuclear carrier fighter groups but by some guy on Twitter?
I can imagine the chaos and panic if tether did the same...
That’s why I say that stablecoins are a true Trojan horse that can do huge damage to Bitcoin at any time. Most stablecoins can be frozen remotely no matter where they are stored, and it’s no secret that you can’t check if they’re really backed up with something or as we had a chance to find out a couple of years ago that 70% of USDT wasn’t backed up with $. One government, one stablecoin and nothing more is needed to tear the crypto market to pieces.
If it happened once, the only question is when it will happen again.
You have to be either naive or insane to keep hodling this after it (hopefully) reaches $1 again.You can hardly lose money in a more bizarre way if we are talking here about something that should be stablecoins - although one such move is quite obviously completely wrong and is the result of panic. As far as I can see the price has returned above $0.90, which once again shows that panic and inexperience are not a good combination when it comes to investing in cryptocurrencies.
Yep, it sounds completely crazy to loose $30k+ dollars by panic selling stablecoin and if didn't know guy that told me the story IRL I would have thought he was full of bs. What's even worse is that guy isn't newbie at all but he panicked at the sight of stablecoin dropping like 30% in a few hours and managed to sell basically at the bottom. I can imagine the chaos and panic if tether did the same...
I didn't like this project from the beginning and unfortunately, it didn't turn out to be good for Bitcoin when some geniuses tried to use it to promote their personal projects in the form of some tokens and stablecoins. They can now claim that it is only temporary, but to me, this seems like a complete fiasco. If it happened once, the only question is when it will happen again.
You can hardly lose money in a more bizarre way if we are talking here about something that should be stablecoins - although one such move is quite obviously completely wrong and is the result of panic. As far as I can see the price has returned above $0.90, which once again shows that panic and inexperience are not a good combination when it comes to investing in cryptocurrencies.
Speaking of that, friend told me this morning that one of his buddies panic sold at $0.7, and he had six figure amount of TerraUST. Somehow I doubt that guy will touch stables ever again.
You can hardly lose money in a more bizarre way if we are talking here about something that should be stablecoins - although one such move is quite obviously completely wrong and is the result of panic. As far as I can see the price has returned above $0.90, which once again shows that panic and inexperience are not a good combination when it comes to investing in cryptocurrencies.
Today was a nasty day for the peg. It’s down to 0.60 and no signs of recovering.
From what I can see on Coingecko, the lowest it went was 0.66. Its still wasn't good at all of course, but its not a negligent difference since we are talking about bitcoin. Its back to $0.9 now by the way.Wonder if the peg will go back to $1.
It probably will eventually, but its a good warning to all those that are holding large amount in stablecoins. Speaking of that, friend told me this morning that one of his buddies panic sold at $0.7, and he had six figure amount of TerraUST. Somehow I doubt that guy will touch stables ever again.
Today was a nasty day for the peg. It’s down to 0.60 and no signs of recovering. The dev already started to move the BTC into the exchanges and people are panic selling Bitcoin because they fear of the $1.5B sell order he can make. This was so massive that Bitcoin went below $30k even.
Wonder if the peg will go back to $1. Makes me feel uneasy holding any type of stablecoins honestly. Feel bad for the people who held their savings in the UST stable coin. Only to wake up and have half of it disappear.
Wonder if the peg will go back to $1. Makes me feel uneasy holding any type of stablecoins honestly. Feel bad for the people who held their savings in the UST stable coin. Only to wake up and have half of it disappear.
It was a momentary dip, followed by a quick, and almost complete recovery.
Seems like yet another TerraUSD dip happened tonight, and this time it was way more serious as it went all the way down to 0.93 but this time it didn't recover, at least not yet.I have read 3 or 4 different articles on TERRA/LUNA today.
UST stablecoin falls to record low amid continued market tumult
Quote
The price of algorithmic stablecoin UST fell to a new low on Monday amid continued volatility in the broader cryptocurrency market.
According to market data from Binance, which hosts the most voluminous market pair for UST against USDT, the stablecoin hit a low of $0.9202.
According to market data from Binance, which hosts the most voluminous market pair for UST against USDT, the stablecoin hit a low of $0.9202.
Terra’s Luna Foundation Guard Dumps $750M Worth of Bitcoin
Quote
- The LFG attempted to downplay this dumping by calling it a “loan” to OTC trading firms.
- Terra’s founder stated that the sold assets would eventually be repurchased.
- LUNA, affected by the broader market bearish cues, has declined by 12% in 24 hours.
And many more others, but I failed to find a "reasonable explanation" for what just happened in the market.
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