Topic: UST Stable coin depegs from dollar USD may Crash BTC,cause crypto death spiral - page 4. (Read 878 times)
May 11, 2022, 03:58:01 AM
You're pretty late as the selloff of LFG's bitcoin holdings has started since yesterday; their public BTC address is already out of BTC (moved to exchanges already). The question is just that have they already sold every single BTC holdings or not.
May 11, 2022, 03:39:50 AM
We had news this weekend , Monday and Tuesday that the stable coins UST depegs from dollar USD and has collapsed and continue to plunge in price even Luna price is currently trading around ($9 - $11) this morning as at the time of writing.
The UST stable coin is not really back by anything, so people do need to get out right away.
HOW MUCH WOULD THESE NEGATIVELY AFFECT BTC AND THE ENTIRE CRYPTO ?.
IN MY VIEW
Doing this may cause the crypto death spiral and it means that there will be a panic selling and could just collapse Bitcoin ,Ethereum, and the entire Crypto market and trillions of dollars life savings could be wiped out just in a moment and currently people are loosing money on crypto Twitter right now, companies have started selling millions of dollars of UST existing , exchanging their UST back into other pegged dollar USD coin and have lost thousands of dollars just in a single transaction conversation process and the spread wasn't just very good looking at exchange rate between UST to Dollar, they just exited that position for the fear of UST finally collapsing or having a free fall , So in a worst case scenario these companies
like.
Jump capital, Luna foundation guard (LFG),
Do kwon the founder of Terraform labs and others are going to be selling hundreds of millions of dollars worth of Ethereum to try to prop up this struggling Terra ecosystem and then they may also go into their Bitcoin reserves which some of have started doing already and may also be sold to prop up Terra.
Summary....
Therefore going further, If the UST peg cannot hold, then I think LFG will have to dump its bag of Bitcoin it loaded and this will cause more panic selling and cause Bitcoin to spiral down and further crashing down the price of Bitcoin and the entire cryptocurrency as well.
Please throw your own opinion on this as we have great panic right now.
Link for more details
https://www.coindesk.com/business/2022/05/09/ust-stablecoin-falls-below-dollar-peg-for-second-time-in-48-hours/
https://twitter.com/crypto/status/1524268467448389634?s=19
The UST stable coin is not really back by anything, so people do need to get out right away.
HOW MUCH WOULD THESE NEGATIVELY AFFECT BTC AND THE ENTIRE CRYPTO ?.
IN MY VIEW
Doing this may cause the crypto death spiral and it means that there will be a panic selling and could just collapse Bitcoin ,Ethereum, and the entire Crypto market and trillions of dollars life savings could be wiped out just in a moment and currently people are loosing money on crypto Twitter right now, companies have started selling millions of dollars of UST existing , exchanging their UST back into other pegged dollar USD coin and have lost thousands of dollars just in a single transaction conversation process and the spread wasn't just very good looking at exchange rate between UST to Dollar, they just exited that position for the fear of UST finally collapsing or having a free fall , So in a worst case scenario these companies
like.
Jump capital, Luna foundation guard (LFG),
Do kwon the founder of Terraform labs and others are going to be selling hundreds of millions of dollars worth of Ethereum to try to prop up this struggling Terra ecosystem and then they may also go into their Bitcoin reserves which some of have started doing already and may also be sold to prop up Terra.
Summary....
Therefore going further, If the UST peg cannot hold, then I think LFG will have to dump its bag of Bitcoin it loaded and this will cause more panic selling and cause Bitcoin to spiral down and further crashing down the price of Bitcoin and the entire cryptocurrency as well.
Please throw your own opinion on this as we have great panic right now.
Link for more details
https://www.coindesk.com/business/2022/05/09/ust-stablecoin-falls-below-dollar-peg-for-second-time-in-48-hours/
https://twitter.com/crypto/status/1524268467448389634?s=19
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