It was a momentary dip, followed by a quick, and almost complete recovery.
Looks 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.
Topic: Is TERRA/Luna kickstarting a new Bitcoin Standard? - page 6. (Read 1413 times)
TerraUSD per mechanism is working or not?
A Tweet this morning alarmed me:
If TerraUSD per were breaking then all that algorithmic mechanism, together with Bitcoin reserves, would have failed to prove a working concept. This would have been a worry, or at least a signal, for the need of finding some more sophisticated and robust link for future coins.
But as I usually do, I tried to verify the graph myself, and this is what I found:
It was a momentary dip, followed by a quick, and almost complete recovery.
Let's see what happened with tether in the last month (of course Terra and Tether capitalization and liquidity are not comparable:
Well, it seems that Tether has wider, yet quicker, oscillations!
I think: keep an eye on this, but case dismissed.
A Tweet this morning alarmed me:
If TerraUSD per were breaking then all that algorithmic mechanism, together with Bitcoin reserves, would have failed to prove a working concept. This would have been a worry, or at least a signal, for the need of finding some more sophisticated and robust link for future coins.
But as I usually do, I tried to verify the graph myself, and this is what I found:
It was a momentary dip, followed by a quick, and almost complete recovery.
Let's see what happened with tether in the last month (of course Terra and Tether capitalization and liquidity are not comparable:
Well, it seems that Tether has wider, yet quicker, oscillations!
I think: keep an eye on this, but case dismissed.
Were they just lucky or were they waiting for the right moment for a new investment? However, the article says that they are now in seventh place of the largest BTC holders, and they have only achieved a third of what they planned. However, according to the information in the article, they are not exclusively focused on buying BTC, but they are also investing in some tokens that will also be used for stablecoins reserves.
When you think about someone buying almost 38 000 BTC and the price drops by 7-8%, one really wonders how much the world has changed in the past 2-3 years.
When you think about someone buying almost 38 000 BTC and the price drops by 7-8%, one really wonders how much the world has changed in the past 2-3 years.
After a few week's hiatus LFG bought some more coins:
Luna Foundation Guard buys additional $1.5 billion in bitcoin backing for UST
This buy is so new it still has to be reflected on every possible known public address:
We will keep an eye on it.
Luna Foundation Guard buys additional $1.5 billion in bitcoin backing for UST
Quote
Quick Take
- The Luna Foundation Guard (LFG) now holds $3.5 billion worth of bitcoin.
- LFG’s bitcoin stash is to prop up the collateral reserves of Terra’s stablecoin.
This buy is so new it still has to be reflected on every possible known public address:
We will keep an eye on it.
You can tell by many of these replies, that nobody actually read the first post and are doing nothing but posting non sense.
I didn't want to talk about Terra, I wanted to talk, how you can start a Bitcoin Standard bottstapping a new economic ecosystem using bitcoin as a reserve asset.
Insetad I have to read nonsense like this:
There is no doubt that Terra deserves to be the next bitcoin
<...>
<...>
Are you kidding me?
You can tell by many of these replies, that nobody actually read the first post and are doing nothing but posting non sense.
This thread is mostly about the stablecoin they released and how it gained traction last month when they bought over $1B worth of Bitcoin for its stable coin.
Since then other projects such as Justin TRX Tron also announced they would do something similar with a 30% APY with theirs.
This thread is mostly about the stablecoin they released and how it gained traction last month when they bought over $1B worth of Bitcoin for its stable coin.
Since then other projects such as Justin TRX Tron also announced they would do something similar with a 30% APY with theirs.
There is no doubt that Terra deserves to be the next bitcoin, Terra currently has many things and looks better than bitcoin, of course the community that will determine Terra's future and seeing the trends in the market I'm optimistic that this year Terra can enter the top 3 rankings.
Thanks you very for this analytical information. TERRA being a blockchain protocol. It is also like other decentralized stablecoin which is also known as TrraUSD and UST. It is synonymously with LUNA. And yes I believe they are Kick-starting new crypto blockchain in the Crypto ecosystem. (Bitcoin). The price of TERRA/LUNA is also high but it is not as high as bitcoin.
The following chart is the latest presentation of the stablecoin price.
For more information
https://coinmarketcap.com/currencies/terra-luna/
Although I have not used Terra/Luna but the coin gaining weight and ground more than others except bitcoin. Most people I know use the stablecoin.
As of today, 24/04/2022. Bitcoin price is also rising and falling. It is about $39,670.77 or $40,670.77
https://www.coingecko.com/en/coins/bitcoin
The following chart is the latest presentation of the stablecoin price.
For more information
https://coinmarketcap.com/currencies/terra-luna/
Although I have not used Terra/Luna but the coin gaining weight and ground more than others except bitcoin. Most people I know use the stablecoin.
As of today, 24/04/2022. Bitcoin price is also rising and falling. It is about $39,670.77 or $40,670.77
https://www.coingecko.com/en/coins/bitcoin
Terra looks very convincing, transactions with Terra are very fast and fees are very cheap, the same beginning I send bitcoin in 2014, when users were still not as big as now, even many platforms at that time could be used free of charge when sending bitcoins, if Terra users rose 10x from now I'm sure the cost will also be high.
USDT idea is getting traction, as other algorithmic stablecoins launches, proposing a similar mechanism, bitcoin reserves included.
Justin Sun to launch algorithmic stablecoin USDD on Tron, will use $10 billion of crypto as collateral
Bitcoin is not explicitly mentioned, but there is little doubt:
Justin Sun to launch algorithmic stablecoin USDD on Tron, will use $10 billion of crypto as collateral
Quote
- Tron is launching a decentralized algorithmic stablecoin called USDD.
- Tron’s native coin TRX will be used to help the USDD stablecoin stay pegged to the dollar — along with $10 billion of crypto as collateral.
Bitcoin is not explicitly mentioned, but there is little doubt:
Quote
Sun did not state which assets would serve as collateral but said they would be "highly liquid assets raised from initiators of the blockchain industry."
Barrons covers the Terra/Luna ecosystem with some insight and a reasonable criticism:
Bitcoin Faces a New Threat: Algorithmic Stablecoins -- Barrons.com
The author worries about the potential destabilising effect of a sell off in LUNA potentially impacting BTC price
As the article is paywalled a copy for your convenience:
Bitcoin Faces a New Threat: Algorithmic Stablecoins -- Barrons.com
By Joe Light
(Dow Jones) -- Stablecoins are supposed to be the boring tokens of crypto--designed to maintain a fixed $1 value. But one of the fastest growing stablecoins--TerraUSD--may be creating new risks for Bitcoin and the broader crypto market.
Stablecoins act like digital dollars in crypto markets--many traders use them as a kind of parking spot for cash between trades. The largest ones are USD Coin and Tether, making up a combined 70% of the $186 billion stablecoin market.
Right behind them, however, is an "algorithmic" coin called TerraUSD. In the past year, its market cap has soared nearly 870% to $17.9 billion, making it the third largest stablecoin.
Like its more traditional peers, TerraUSD aims to maintain a fixed $1 price. But unlike its larger siblings--which maintain dollar-based reserves equal to their circulation--TerraUSD holds its peg by giving traders an arbitrage opportunity every time its price deviates from $1.
Terra's protocol allows traders to "burn" TerraUSD in exchange for a dollar's worth of another cryptocurrency called Luna. The trade makes a profit when TerraUSD's price falls below a dollar. It also works in reverse--preventing TerraUSD from rising above a dollar.
With a few exceptions, the system has largely worked to keep TerraUSD at a stable $1 price.
Yet Terra's backers appear to be going a step further to try and prevent TerraUSD from "breaking the buck." Terraform Labs founder Do Kwon recently pledged to stockpile a gigantic amount of crypto, including at least $10 billion in Bitcoin, to help backstop TerraUSD.
That is raising concerns that TerraUSD may not be as algorithmically stable as it would appear. And $10 billion isn't a trivial amount of Bitcoin to hold as a reserve asset tied to TerraUSD; if Terraform had to sell some of its Bitcoin to meet redemption requests for TerraUSD, it could destabilize the broader crypto market.
"The efforts to stabilize one crypto asset might create more instability in other crypto assets," said University of Calgary law professor Ryan Clements, who has researched stablecoins including TerraUSD. "If they have to redeem Bitcoin to support the peg, could that put downward pressure on Bitcoin? It would seem that would be the case, just logically."
Terra's algorithmic process has faltered. As the crypto market crashed in May 2021, TerraUSD temporarily broke its peg, moving to as low as 94.5 cents on the dollar, though it recovered within a week. Other algorithmic stablecoins, like one developed by Iron Finance, have completely collapsed.
One other concern is that much of the demand for TerraUSD comes from yield-seeking investors using a crypto savings product called Anchor Protocol. Anchor, which is built on the Terra blockchain network, currently offers a yield of more than 19.5%.
If investors lose confidence in Anchor and try to take their money out, it could lead to a cascading loss of demand for TerraUSD, potentially endangering its dollar-peg. That's where Bitcoin may come in.
To help prevent a run, Kwon and others formed the "Luna Foundation Guard, " a Singapore-based nonprofit that, among other tasks, would build a giant crypto reserve to support TerraUSD. With $10 billion worth of Bitcoin, it could soon become one of the largest holders in the world.
The problem, according to Clements and others, is that it's unclear whether the Bitcoin market has enough liquidity to absorb rapid selling from a Bitcoin holder that large. Just $32 billion worth of Bitcoin traded in the last 24 hours, according to CoinMarketCap, amounting to less than 4% of the coin's market cap of $811 billion.
"If you liquidate $50 billion in Treasuries, that's not going to tank the U.S. economy," said Clements. Bitcoin may be far more vulnerable to a wave of selling by the Luna Foundation, which could be the token's new "whale."
Terraform Labs and the Luna Foundation Guard did not respond to requests for comment.
Write to Joe Light at [email protected]
(END) Dow Jones Newswires
Bitcoin Faces a New Threat: Algorithmic Stablecoins -- Barrons.com
The author worries about the potential destabilising effect of a sell off in LUNA potentially impacting BTC price
As the article is paywalled a copy for your convenience:
Quote
Bitcoin Faces a New Threat: Algorithmic Stablecoins -- Barrons.com
By Joe Light
(Dow Jones) -- Stablecoins are supposed to be the boring tokens of crypto--designed to maintain a fixed $1 value. But one of the fastest growing stablecoins--TerraUSD--may be creating new risks for Bitcoin and the broader crypto market.
Stablecoins act like digital dollars in crypto markets--many traders use them as a kind of parking spot for cash between trades. The largest ones are USD Coin and Tether, making up a combined 70% of the $186 billion stablecoin market.
Right behind them, however, is an "algorithmic" coin called TerraUSD. In the past year, its market cap has soared nearly 870% to $17.9 billion, making it the third largest stablecoin.
Like its more traditional peers, TerraUSD aims to maintain a fixed $1 price. But unlike its larger siblings--which maintain dollar-based reserves equal to their circulation--TerraUSD holds its peg by giving traders an arbitrage opportunity every time its price deviates from $1.
Terra's protocol allows traders to "burn" TerraUSD in exchange for a dollar's worth of another cryptocurrency called Luna. The trade makes a profit when TerraUSD's price falls below a dollar. It also works in reverse--preventing TerraUSD from rising above a dollar.
With a few exceptions, the system has largely worked to keep TerraUSD at a stable $1 price.
Yet Terra's backers appear to be going a step further to try and prevent TerraUSD from "breaking the buck." Terraform Labs founder Do Kwon recently pledged to stockpile a gigantic amount of crypto, including at least $10 billion in Bitcoin, to help backstop TerraUSD.
That is raising concerns that TerraUSD may not be as algorithmically stable as it would appear. And $10 billion isn't a trivial amount of Bitcoin to hold as a reserve asset tied to TerraUSD; if Terraform had to sell some of its Bitcoin to meet redemption requests for TerraUSD, it could destabilize the broader crypto market.
"The efforts to stabilize one crypto asset might create more instability in other crypto assets," said University of Calgary law professor Ryan Clements, who has researched stablecoins including TerraUSD. "If they have to redeem Bitcoin to support the peg, could that put downward pressure on Bitcoin? It would seem that would be the case, just logically."
Terra's algorithmic process has faltered. As the crypto market crashed in May 2021, TerraUSD temporarily broke its peg, moving to as low as 94.5 cents on the dollar, though it recovered within a week. Other algorithmic stablecoins, like one developed by Iron Finance, have completely collapsed.
One other concern is that much of the demand for TerraUSD comes from yield-seeking investors using a crypto savings product called Anchor Protocol. Anchor, which is built on the Terra blockchain network, currently offers a yield of more than 19.5%.
If investors lose confidence in Anchor and try to take their money out, it could lead to a cascading loss of demand for TerraUSD, potentially endangering its dollar-peg. That's where Bitcoin may come in.
To help prevent a run, Kwon and others formed the "Luna Foundation Guard, " a Singapore-based nonprofit that, among other tasks, would build a giant crypto reserve to support TerraUSD. With $10 billion worth of Bitcoin, it could soon become one of the largest holders in the world.
The problem, according to Clements and others, is that it's unclear whether the Bitcoin market has enough liquidity to absorb rapid selling from a Bitcoin holder that large. Just $32 billion worth of Bitcoin traded in the last 24 hours, according to CoinMarketCap, amounting to less than 4% of the coin's market cap of $811 billion.
"If you liquidate $50 billion in Treasuries, that's not going to tank the U.S. economy," said Clements. Bitcoin may be far more vulnerable to a wave of selling by the Luna Foundation, which could be the token's new "whale."
Terraform Labs and the Luna Foundation Guard did not respond to requests for comment.
Write to Joe Light at [email protected]
(END) Dow Jones Newswires
Call me a Bitcoin maximalist, but I view all these algorithmic stablecoins as just a new and more elaborate method for scamming investors and traders - we've seen quite enough rugpulls, hacks (that could be just inside jobs), premine dumps, pump and dump schemes. So the fact that some shitcoin project owns a lot of BTC to support the price of their token doesn't mean anything - in the long run they will have to liquidate more and more BTC to support the price. I don't see any reason why would the masses want to adopt this token, and that's the thing that most people ignore - it doesn't matter if a token has web3, NFT, smart contracts, zero fees and all the other stuff that is there to attract investors; without real users such product is doomed.
- both terra and avalanche are going down faster than BTC, good luck with their whatever stable coin
Even if I predicted a zero value for basically every shitcoin in my third post (and first ever merited post)here on the forum, shadenfreunde is not something I am familiar with. Bitcoin is the king, and can rule even if they don't go to zero, eventually (spoiler alert: they will).
Ethereum, Polkadot, Cosmos are the most promising blockchains.
https://twitter.com/MoonriverNW/status/1478851453016068096
TERRA/Luna, Avalanche, Nier also continue to develop.
The Future is NEAR.
https://captainkole.substack.com/p/the-future-is-near?s=r
https://twitter.com/WuBlockchain/status/1512280760023015425?cxt=HHwWgoCj3dfV2fwpAAAA
"Zoran Kole revealed in "The Future is NEAR" that Near will announce the launch of the stablecoin USN on April 20, which will provide an annual interest rate of about 20%, modeled on UST. Additionally, Near will be listed on Coinbase in the coming months. "
The more clone control regulators will have on top blockchains, the more people will go to other blockchains. Thanks to the regulators, I learned the TERRA/Luna ecosystem
https://twitter.com/MoonriverNW/status/1478851453016068096
TERRA/Luna, Avalanche, Nier also continue to develop.
The Future is NEAR.
https://captainkole.substack.com/p/the-future-is-near?s=r
https://twitter.com/WuBlockchain/status/1512280760023015425?cxt=HHwWgoCj3dfV2fwpAAAA
"Zoran Kole revealed in "The Future is NEAR" that Near will announce the launch of the stablecoin USN on April 20, which will provide an annual interest rate of about 20%, modeled on UST. Additionally, Near will be listed on Coinbase in the coming months. "
The more clone control regulators will have on top blockchains, the more people will go to other blockchains. Thanks to the regulators, I learned the TERRA/Luna ecosystem
Well, this is disappointing.
One thing is to decide to hold “reserves” in Bitcoin, and one other is to hold in a DeFi shitcoin.
One thing is to decide to hold “reserves” in Bitcoin, and one other is to hold in a DeFi shitcoin.
Now you understand why I'm always going koala panda polar bear after page two or three is those discussions?
Every single time there must be some unseen fuckery happening behind all those shiny letters and when you go deep you see there is no BTC , there is no real backing, it's a shitcoin backed by the promises of a shitcoin. I'm deliberately going full bear mode, at least this way when I'm disappointed I'm no going angry anymore, if it turns out to be true I'll be a happy bear but I least I don't end up as a depressed cyberbull with the important parts missing
But let's still look a bit at the bright side
- they tried to bring in BTC because they know that's what matters to the masses
- they are using shitcoins because only with shitcoins they can get away with everything
- if this fails it shows you need only to hold bitcoin and that every altcoin IOU soup there is completely flawed from the start
- both terra and avalanche are going down faster than BTC, good luck with their whatever stable coin
TERRA collaboration with Avalanche
https://twitter.com/terra_money/status/1512111691395473409?s=20&t=UmB0Ecs0QpZZNFUPiYDY5w
"6/ In particular, Avalanche’s subnets are a powerful method for building the next generation of scalable Web3 applications within niche use cases.
As a result, Terra and Avalanche will be collaborating on a new gaming subnet – with details to be released at a later time."
https://twitter.com/terra_money/status/1512111691395473409?s=20&t=UmB0Ecs0QpZZNFUPiYDY5w
"6/ In particular, Avalanche’s subnets are a powerful method for building the next generation of scalable Web3 applications within niche use cases.
As a result, Terra and Avalanche will be collaborating on a new gaming subnet – with details to be released at a later time."
Well, this is disappointing.
One thing is to decide to hold “reserves” in Bitcoin, and one other is to hold in a DeFi shitcoin.
You cannot bootstrap a new monetary system holding your reserve in AVA, or at least a monetary system Fillippone wants to be part of.
Again, I am. It here to shill LUNA or their tokens: I am here to think: “is it possible to build a decentralised, trust less bitcoin standard?
All I understood here is that the altcoin developers and instead of trying to buy bitcoin indirectly they are buying bitcoin directly with promises to investors that they will get paid in return for giving developers more money for free.Perhaps the thing that made them more tempted is that people continue to believe in 1 USDT as USDT == 1 USD EVEN there is no reserve equal to 10% of the assets sufficient for all coins that have been printed. Therefore, as soon as the fees are low, and you gain trust, the free money will flow to you.
In short, they will buy more until people start to trust the project and then the money will flow.
TERRA collaboration with Avalanche
https://twitter.com/terra_money/status/1512111691395473409?s=20&t=UmB0Ecs0QpZZNFUPiYDY5w
"6/ In particular, Avalanche’s subnets are a powerful method for building the next generation of scalable Web3 applications within niche use cases.
As a result, Terra and Avalanche will be collaborating on a new gaming subnet – with details to be released at a later time."
https://twitter.com/terra_money/status/1512111691395473409?s=20&t=UmB0Ecs0QpZZNFUPiYDY5w
"6/ In particular, Avalanche’s subnets are a powerful method for building the next generation of scalable Web3 applications within niche use cases.
As a result, Terra and Avalanche will be collaborating on a new gaming subnet – with details to be released at a later time."
any specific long-form article on how will LFG operate and how will the BTC reserves will used.
The best article I found is the Twitter thread I unrolled in the OP, together with the video, you find as the last tweet in the thread.
any specific long-form article on how will LFG operate and how will the BTC reserves will used.
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