Topic: UST Stable coin depegs from dollar USD may Crash BTC,cause crypto death spiral - page 3. (Read 878 times)

The market sooner or later gets rid of all the sketchy "too good to be true" projects/companies.Terra is just one of the big ones.Maybe Tether will follow.
I'm sure that there will be panic selling and a bloodbath on the crypto markets,but calling this a "death spiral" seems like exaggeration and spreading FUD to me.Bitcoin Core isn't going to be destroyed,just because some sketchy stablecoin project exploded and a the risk seeking investors lost some money.The Bitcoin Core blockchain is alright,the BTC price will be low for a while(probably one year or more),but this is fine,because:
1.Cheap Bitcoins for us to buy and wait for another bull run.
2.BTC getting cheaper would actually make the FUDsters leave the BTC market for a while.
If the BTC price was 60K right now,the FUD drama  would have been crazy.

Do you guys think Luna could come out of this?

At the moment, it is priced at $0.3045USD on CoinMarketCap. Thats a 97% drop in the last 24hrs.

If someone sells, it does not put the whole crypto economy into a death spiral rather it would create instability for a while considering the situation but we can also buy more, hold. The reason they might be doing could be tbe new rates of FED  interest but at the end there are many others who might try and get into the market, besides Luna went 35% down which is shocking while BTC is still holding on and we are not seeing extreme drastic changes. It's always a balance and I do believe all we need at the moment is 'patience' and if you sell your coins in a hurry you might miss a lot.

one thing that is common with most of the altcoins is that their volatility is very high in terms of rising and falling, they are unpredictable when it comes to the price moving upwards, they can be very fast to appreciate and as well within the shortest time dropped and loose value, in the case of Luna here, it has the worst record of loses as it's ranked the highest  and top loosing coin (highest looser) while bitcoin only maintain a drop in price in a steady and gradual process unlike the massive fall of the altcoins.


Bitcoin is exceptional in this regards, why the panic on bitcoin since it's the major determinant of other cryptocurrencies moves and fate, despite the fall in the crypto market, bitcoin remain the most valuable coin and can not fall the rate others are, and for the investor on bitcoin, i think this is the best time for them to hold while the intending investors should take this opportunity to invest in bitcoin as this time is the opening for a launch on bitcoin investment and not shitcoins.

What happened to $ust and $LUNA shows that no matter the level of trust we have in any coin we should not go all in and always learn to take profit, the Fud and dumping really affected the whole crypto market entirely. Currently $ust is now at$0.63 from $0.21 I believe that ust will be back to it previous position, but luna going back to all time high will be a long journey awaiting to occur

Or, if we go full tinfoil hat..
Were those coins actually bought by them with real money and they were owned by them in the first place?
Or were those coins borrowed for this purpose alone, that would have been paid with money from future sales?

The other interesting part is, will there be any consequences for all the money lost, any investigations, or, the whole crypto world is just an add-on of the old system where you can run banks and companies into the ground, lose billions of people's money and not face any consequences? Cause for me it's starting to overlap dangerously close.


You can't protect anything and there is no way to protect something like this.

Some don't understand the fact that all those money that was used to buy Luna or Terra or whatever the shitcoin was called it's not invested there, it's in the pockets of the ones who sold it, so in order to recoup losses, you will need more money for some new investors.

Imagine you buy a house and the market crashes, the house is still there, you have paid 100k for it but now nobody is willing to give you're than 50k. The 100k you have paid has been already spent by the previous owner on hookers and drugs in the Bahamas so you will need a fairy to give you 100k, otherwise, it's 50k. Same for Luna, they need now somebody to pay 60 or 100$ per coin, fresh money from outside to recoup it, where is this money going to come from and why would anyone do it?



 

That's certainly one of the possibilities, that Do Kwon played the long con and that this is nothing but a rug pull disguised as an attack. It certainly wouldn't be the first time we see something like that. Speaking of Do Kwon, just saw an interesting article about his (alleged) previous involvement in another failed algorithmic stablecoin, Basis Cash.

Or, it was all just a scam from the start and in the end it really was nothing but another scamcoin P&D just executed with a bit more finesse.
We only know what we can see, we don't know what we don't know. So this could have easily all been a setup from the early days just waiting for everything to fall into place.

-Dave

Saw that speculation as well, not sure what to think of it while the most plausible one I found so far is this one. Either way, it was definitely a market manipulation and someone made a lot of money off it.


Its a pure gamble right now and I personally don't wanna touch that shitcoin at all, even though chances are decent that it will eventually make some pullback or at least dead cat bounce before it goes below $1 once again. Terra priority right now is their stablecoin and to do that they have to screw LUNA.

I'm not sure if the rumors are true but I saw a thread about this which they are saying this as pure market manipulation.
The link is from I'm going to quote it because reading the text from there is very much hard, it will be easier if I separate the paragraphs.


Anyway, do you think its a good buy for Luna as it now dips below $3? Unbelievable dip really so I'm doubtful whether they could recover.

I am also curious if they didn't buy any BTC this will happen.
But it seems like other people already noticed that there is a hole in this algorithmic-based Stablecoins Terra USD. And I also saw that some people telling it was first started at WAVES and then they did it next to UST stable coin.
But it seems even UST didn't suffer, the recent dump is still expected, it just happened.

I'm not sure if you just woke up but it's already been says since UST lost the peg, and I totally understand that it's a huge problem Luna since it's probably gonna die, but dragging down BTC, that's a totally different story. BTC is not gonna die because of UST/Luna.

We know stable coins can be minted from thin air. Even USDT, we don't know how they actually back all their USDT with USD and other assets. In the past, there was drama about USDT too. You can verify it on the USDT price chart. There were times that stable coin has its value down to around $0.9.

UST probably used wrong algorithm and they are centralized pegged with LUNA. Bitcoin and Ethereum can not save them. I hope LUNA and UST will recover but who knows.

PSA: Most Stablecoins Can Be Frozen, Even in Your Own Wallets

@mk4 yeah I spent now about 10 minutes trying to understand Terra -- so it's actually a shitcoin and a stableshitcoin backed not even by shit. And this is just Bitcoin losing <30%. Imagine if it's broken and chased sub 30s. Fantastic how people can't see this coming.


Yeah, all them people trying to convince me to look at some marvellous algorithmic coin gone quiet, making me feel better and better about my failure to capitalise on them shitcoins a year ago. 22 cents now I'm seeing on Twitter for their "stablecoin" oo-ee.

I don't see what happened except that it is price manipulation, TERRA tried to make a quick profit by creating a stable currency, buying several thousand bitcoins and thinking that things will go well, there will be enough liquidity and then they will not need to be tied at a 1:1 ratio to keep the currency growing (exactly As happened with USDT), but things did not go well.

With the days, more details will become clear whether this is as manipulation or a breakdown in their stability algorithm.

Overall, I chose to take the risk and bought 250 UST for $100 .

What is happening with LUNA is a big check of reality for the whole cryptocurrency industry. One thing for sure is that when a stablecoin turns out to be otherwise then it would be good to fully scrutinize the things backing the stablecoin, in the first place. This shows that a stablecoin pegged on top fiat money can be the way to go for the time being. Sadly, this development is affecting Bitcoin and is the major reason for its price spiral...all because BTC is utilized as a back-up value for UST.

Another day, another shitcoin collapses. Just happens to be a more popular one this time. Isn't the first and definitely won't be the last.

Bitcoin doesn't care. Yeah, there will be some short term implications on the price, but another shitcoin collapsing makes absolutely no difference whatsoever to how bitcoin continues to run, continues to have 100% uptime, continues to be decentralized, continues to be developed, and continues to grow. It obviously isn't going to cause a "death spiral", and in fact the more shitcoins which collapse then the better long-term for both bitcoin and the crypto space as a whole.

No. It is a sign that you are not a moron chasing impossible promises with worthless shitcoins.

Nada. LUNA holders took a risk on a project that's highly highly likely to implode (it just did), and now they face the consequences. TerraForm Labs would have to raise a HUGE amount of money to be able to bring back the peg, and I don't think VCs would risk their capital on a project that's highly likely to be dead.


If you want to know what happened:

Is it a sign of just how completely out of touch I am in this field that I never once heard about Terra, or UST, or any of the supposed implications on Bitcoin until yesterday? And that's only because of work -- someone sent me something to look at about Terra, and I had to look it up.

I've seen a lot in my time but 20% APY? That should have raised a lot of red flags. But well, this is crypto, isn't it?

This is very important question to ask and something we should know at the moment on what the Luna foundation guard (LFG) is actually doing at the moment with there Bitcoin reserves. Because most investors with bags of Luna are currently stucked with confusion at what alternative option or steps to take in order to protect their Funds at this very critical point in time.