Luna Got Rekt, Bitcoin Reserve Comes into effect
Luna Got Rekt, Bitcoin Reserve Comes into effect
We're just starting off the week and the news is getting worse for Luna which is now at a pivotal junction and if market confidence doesn't return we could very much well see the end of what was supposed to be a new form of payment and emergence of the best algorithmic stable coin.
We have already seen UST total market crash from $20 Billion to $US14 Billion (at time of writing) with no end in sight and entering dangerous territory TerraForm Labs takes another hit having to deploy their Bitcoin reserves to maintain the UST peg. Despite TerraLabs Founder Do Kwon stating it is a move to instil market confidence Luna is already bleeding and if it continues to many more will sell putting the entire protocol at risk.
But lets be completely honest in the grand scheme of things it isn't too bad and seems to be a big case of FUD which is currently impacting everyone.
Luna and UST still maintain the top 10 and every token is crashing harder than a raver leaving a club at 7am the next morning. Although I would expect the hangover from this crypto crash to last a lot longer and its effects, a lot more harsh.
Speaking of harsh, Do Kwon has come under heavy criticism from the broader Twitter sphere that continues to challenge his position in the current conditions seeking clarification on how the Bitcoin reserve will operate.
From today's tweets it appears that LFG will be loaning out Bitcoin and UST and then providing arbitrage to maintain the UST peg which many are left scratching their heads over.
Given Luna's token price has dropped over 50% and continues to decline we could be building to a $45 price point as Luna is now trading under %US60.
I'm not too sure how this is going to pan out but it will be interesting to watch the events unfold and how Luna will react as well as the broader network.
Image sources provided supplemented by Canva Pro. This is not financial advice and readers are advised to undertake their own research or seek professional financial services
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Stable coins could be in trouble to maintain pegs...
depends if everyone dumps, looks like a lot are buying into USDC
God bless the LFG!
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its done well but ive still pulled what I had and put it into Hive lol if I go down, I go down on Hive! lol
I was shocked to see how bad it was for LUNA, a lot of people think it's a ponzi, I'm not quite familiar with it honestly
all crypto is a Ponzi, lots of FUD and trolling going on. but heavy losses through the TFL deploying Bitcoin reserves.
LOL where's the FUD the charts speak for themselves
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Let’s hope it will help Luna…
Panic selling is testing terra ecosystem
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in deed it is, lots of FUD and twitter explosions. theres still a 41% staked amount so its the bleeding of UST that is hurting the network.
A heavy blow but hoping for better days. It would be interesting to see how it all goes with the 'remedial' strategies being placed. The market is very harsh this time.
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should be fine I rekon. everything's down and broken.
Yes, the market usually recovers and this is another test to those who can hold tightly amidst the "crash"
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It's wild out there today, I'd like to say it doesn't impact me at all, but it's a bit depressing! lol
Hanging in there though.
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this dips hit everyone unfortunately.
I think using the fund in this fashion projected fear instead of assurance. No one knows of course but I think chances were decent it would have self-corrected.
Who knows, but now they have shot their wad (at least partially) and this will take longer to recover from.
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they still have plenty of Bitcoin and AVAX but this is why they should have backed their stable coin with Gold not Bitcoin.
I guess gold would have helped marginally more from a purely psychology of safety standpoint, but I believe that would still have been negated by the signaling induced by just using it. Bad look in my opinion. Should have happened at a preset and advertised point so no one was surprise and thought OMG they're scared!
I have no dog in this hunt, but as an outsider I thought "oh crap! They are really worried"
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$29 or so at the time of this comment.
Might go lower.
Now I'm at entry level and waiting the unstake period. That sucks lol
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You'll be fine.
UST is at $AUD1 I'm still good 😀
Low bar.
Thank you for your witness vote!
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BEER.Hey @enforcer48, here is a little bit of
BEERfrom @isnochys for you. Enjoy it!Learn how to earn FREE BEER each day by staking your
BEER.looks like the music is hitting the raver hard and he has to quickly switch dance moves to keep up with the rythem. Though the night be long and the music a little fast. The raver danced all night and the hangover is inevitable. What matters her is the love the raver has for the club, even after the worst hung over. He will raise and dance again when the music plays. I can't wait to see how luna will be handled because this was inevitable am sure they have a plan for it. They are not to bank on the holders but there personal strategy
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everything is down, no doubt it will bounce back just like everything else
I think this will be the downside of any algorithmic stable coin because the peg can break and fix it will be tough when the market is getting wrecked. Even HBD got smacked off the peg but I wonder how the reserves will really go. If they have to sell it off now when the market is down, then it means that the money won't go as far as people would believe.
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thats why they should have backed it with metals not another Crypto
LOL how's that Kwontitative easing working out for the ponzi coin bag holders
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If you look at the history UST has no good repo in the market, it was the least chosen USD pegged token compared to similar ones ie USDC.
Even though lending some btc might give them a short term hope, UST has a bleak future.
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What is Do (Dough) going to Do (Doo)? 🙈
It's a complete shitshow.
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I've been tracking the LUNA / UST Price live since last night, insane moves have been made. Order books were blocked, LP transactions denied, DEXs did mingle in to help stabilize, and BTC was sold to recover the Luna price.
Must have been horrific chaos at their headquarters. @urun even though they might go to zero. Somebody for sure made big bucks with arbitrage when UST spiked downwards to levels of 0.70c$-0.80c$ depending on the exchange you look at.
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LUNA is Selling heavily because alot of people are withdrawing from Luna because of heavy bear market.
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This is just a test time and I believe that if we all stay strong then better days ahead
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