The graph of these crypto investments is looking a little worrying.
Is there a point where continuing to hodl is risky?
Some background for general readers:
https://www.cnbc.com/2022/05/11/terra-ust-stablecoin-dives-b…
LUNA and UST Coins
mskeggs on 12/05/2022 - 10:12
Comments
They haven't done anything illegal, you play in a small pond - be it penny stocks, Silver, or crypto, you can get played.
That's not correct.
JPMorgan was fined $920M for manipulating commodity markets.
The players that manipulated this crash if found to be US entities could be sued by CFTC and/or SEC if they used Bitcoin and/or US CEX to cause the price to damp.
People need to understand the difference between stable coins, the US Dollar and the actual tokens/coins.
USD is the United States Dollar. It is real.
USDT is the stable coin meant to be pegged to the US Dollar 1:1 called tether
BUSD is binances stable coin that is meant to be 1:1 with the US dollar
Both of the above supplies of coins, are meant to have the equivalent in US Dollars to back up the amount of USDT BUSD issued.
So if they issue 1 billion USDT, they are technically meant to have 1 billion in US Dollars in a bank account somewhere, but they don't. Google the videos/articles.
Technically they can do whatever they want with the money and put it in long term investments but the issue now is them coming up with the liquidity to pay out the conversions.God knows why they made UST, people need to do their own research.
Please correct me if I am wrong.
Don't worry.
The next algo stablecoin will be better.
Yes you are wrong on so many levels. The answer to this is quite long. I'm sure there are plenty of people here who could answer, but can't be bothered. I'm one of them.
USD is the United States Dollar. It is real.
It's not.
Both of the above supplies of coins, are meant to have the equivalent in US Dollars to back up the amount of USDT BUSD issued.
So if they issue 1 billion USDT, they are technically meant to have 1 billion in US Dollars in a bank account somewhere, but they don't. Google the videos/articles.
Technically they can do whatever they want with the money and put it in long term investments but the issue now is them coming up with the liquidity to pay out the conversions.No, they are not meant to have an equivalent is USD. The short answer is that USDT was supposed to but later changed without notice. Now incorporates other, unknown, assets.
God knows why they made UST, people need to do their own research.
There are plenty of reasons to make the UST, most have to do with centralisation, transparency and contracts. UST is not the solution to this, I'm not defending it. What I'm saying is that there are plenty of reasons to make such a project. Terra won't be the last of its kind.
Fiat currency is “backed” by a countries government - that gives it legitimacy, to pretend otherwise is foolhardy.
THIS and what so called bright crypto investors fail to listen to because they have already invested their money and they reply with "broo you don't get it" but deep down they know its fake and backed by nothing, same as the NFT shit too.. im a realist who has invested in crypto and lost money before, even when i invested i knew this isn't real and i was riding the hype wave to make a buck and leave, unfortunately it was not the case, cut my losses short in 2018 and didn't invest in crypto again, at least the USD is backed by Saudi oil and that stands for something, even that can collapse if saudi stops selling in USD and in that case my money is on GOLD being the only real value tangible currency on this earth
@striker5950: All available gold on this planet is worth 5trillions USD. That's 1/4th of US economy alone. Gold standard is simply impossible, get over it.
@striker5950: There's that novelty called Google, not sure you heard about it, but I did it for you anyway
"About 244,000 metric tons of gold has been discovered to date (187,000 metric tons historically produced plus current underground reserves of 57,000 metric tons)."
Not if we roughly halve that amount to account for technical use we end up with 93,500 tons of gold available for your gold standard, that's after you confiscate every single earring and wedding band in the whole world, no less.
Would you multiply that number by price of a ton of gold yourself or do you want me do that for you too?
Hint - yes, it's around 5 trillion USD, give or take.
@[Deactivated]: ironic that you recommend google to find facts yet you did not use it to back up your own claims that you pulled out your @ss. you said roughly there is 90 tons left, no there is 50 tons left and i used google this time. which makes gold all the more perfect currency to be used because its value is still set and appreciated, if society collapses you think we gonna trade in usd paper money? lol it all goes back to physically gold or tit for tat swaps
@striker5950: If society collapses, my @ss-obsessed friend who does not know difference between 50 and 50,000 tons, it will go back to barter trade, not to technologically advanced task of digging out remaining gold.
@striker5950: Conceptually the value of a currency is backed by the collective value of that nations exports.
Nobody buys and sells anything with bitcoin, buttcoin or any other fantasy coin. Ergo their value is zero.
Nobody buys and sells anything with bitcoin,
DM me the time you go to 🇲🇽, 🇸🇻 or Starbucks in the US. I'll be 😁 to shout you a coffee or a Big Mac paid for with Bitcoin.
You can also drop by Bitcoin Beach in 🇸🇻 and 💬 to the locals about how they use Bitcoin to transact for goods and services.
or Starbucks in the US.
Whose processing partner turns it immediately into fiat before it even gets to Starbucks.
No different than saying Starbucks in the us accepts aud$ if you go there and use an au based visa card….
@SBOB: It's using the Bitcoin payment rail.
One node at the time, one merchant at the time. They'll eventually all come over to the Bitcoin network.
$FRAX, $USDD, $MIM, and $USN will pick up the 🏀.
The USD US Dollar is a reserve currency.
Stable coins attempt to be wannabe reserve currencies but the evidence thus shown is to the contrary.
From my understanding, USDT/BUSD/UST are just mechanisms for pegging so that one day your crypto gains/losses can translate into actually buying things like cars and bread.
Unfortunately the people behind these stables coins are more shady than the governments with real backed currencies.
Decentralisation these days just seems to be like an excuse these days to rip off the poor and uninformed.
Unfortunately the people behind these stables coins are more shady than the governments with real backed currencies.
Agreed, I'm not saying the government is perfect and I'm not going to argue the 'realness' of the USD but I'd rather them than a cryptocurrency where if it takes off, the initial creator and investors become billionares overnight and where unknown 'whales' can take the system down. Yes the government printed a shit load of money, yes we are experiencing high inflation but to think this would have turned out better if we had crypto is absolute ludicrous because most people don't understand economics and act irrationally. I do not want a currency that depends on a) everyone and b) highly highly influenced by whales who could have accumulated this wealth due to sheer luck and gambling. The Euro failed Greece already.
Spoken like a true crypto investor! But you lost me when you tried to say that USD is not real… perhaps next time say that it's a currency backed by a reserve but it's value is not 100% guaranteed so it is only as real as its ability to broker a trade of stuff. You'll get more viewers!
Lmao when 1 Luna is worth about 1 Shiba Inu you know you done bad
Crypto is a scam, if you made money then well done.
wasa wasa wasa wasaaa Bitconneeeeeeecttttt
Bitkwoneeeeecctt*
The promise of 20% return on (supposedly) stable coin had Ponzi written all over it. Most so called investors understood it and were hoping to get out before music ends. Did not work out. Meh.
All crypto is ponzi-ish. You buy in low, hoping that others buy in at a higher price and contribute to the liquidity so that you can sell your bags at a higher price taking their contributions with you. It's how crypto works, there is no situation where everyone wins since the profits have to come from someone who bought in at the wrong time.
and 20% isn't that far off for liquidity farming. I sat in a USDC-USDC.e pool collecting the fees from everyone cashing out and trying to move their funds off chain, and the projected APR surged to over 35% because of the massive increase in volume of people trying to move their funds off chain to exchanges. If you pick the right stable liquidity pool between the main stables like BUSD, USDT and USDC you can catch a lot of transaction fees.
Why hodl if the whole point of a stablecoin is that it doesn't crash. To me this shows the risks of stablecoins more than anything else.
bUt ItS nOt A sCam!
I don't know what it is but just bought 12885.94851106 units of this thing LOL
Money laundering machine without regulations. What possibly could happen?
I lost 3.5k on Luna 😭
Bought at 80c and kept averaging down to 12.5c
yeh if the rug pull wasn't bad enough they made tons of money off dip buyers that wasn't aware they were printing to oblivion, meanwhile the leader is trying to restart the project instead of going to jail
wtf lol
It wasn't a rugpull though. It was two investment firms exploiting a weakness in their system, their algorithm failing and everyone else essentially bankrunning and fueling the death spiral because they didnt cap the printing. It's similar to what happened with iron finance this time last year.
if they plan to restart the project, they better have some plan to compensate investors or I dont see Do Kwon lasting long in the wild.
remember the titan and squid rug pulls last year, the charts literally look the same just straight down lol
they lost when they started buying btc and altcoins with their reserves, they purposefully subjected investor money to one of the most volatile asset class out there
the funny thing is the move coincided well with the btc chart technically, like chance of breakdown there was high and luna added fuel to the fire lol
@Homr: you're crazy sir, i bought $200 @ 1.20 because that was a technical spot, expecting a short scalp, it tanked all the way to 0.77 before pump to $8, i gave up at .90 lol, such scam
lost $60 :(
@abctoz: I'm trying to keep a positive mindset. That 3.5k I lost on Luna is probably the amount I saved from ozbargain, so I didn't lose any money if I think of it that way.
I put 1k in @ 0.8 and another 1k @ 0.5. Then after that i started putting in $500 at 0.3, 0.2 and then last at 0.12
@Homr: The reason for the massive amounts of luna printing is due to their terra protocol. 1ust would always get you 1us dollar worth of luna. So when UST depegged, people were buying discounted UST, and converting UST to Luna through the terra protocol and dumping Luna. Ie. When UST was at $0.2, $1 would get you 5UST, which through the terra protocol could be exchanged for $5 USD worth of Luna, which people would then dump for USDC, hence the death spiral and massive amounts of terra printing at the end.
This isn't something you could take advantage of through a centralised exchange. It's mentioned under the terra docs in the arbitrage section. It works fine if it was only off peg by a few cents, but the rapid decline opened up this death spiral opportunity
@abctoz: They definitely shouldn't have been backing their coins with volatile coins. Would make more sense to hold mostly stables and small proportions of volatile. Iron finance screwed up with titan printing massive amounts, squid was red flags everywhere, people should've avoided it given that people couldn't sell out
Bro you fr!
I thought you weren't into crypto.Learn the lesson, never catch a falling knife.
https://agora.terra.money/t/terra-ecosystem-revival-plan/870…
Do Kwon added a proposal. But many are right. UST in its current form is dead. But if I this read this correctly, there is a glimmer of hope for smaller HODLers to get something back.
Oh wow!! Back to life?
$1 dolla in, $130 dolla out.
Who said LUNA couldn't 🌕 again.
Is this /s or real?
I'm up 10,000% 😂
@rektrading: Pure luck, and only put a pittance into it sadly. What do you think it could go to if they don't fork?
I would have thought all the crashing in DCA would eventually cause all the crypto boyz to cycle out of their dying assets and pump BTC. Guess you just need guess when that happens
Its important to separate the Luna/UST debacle with the rest of the crypto industry. What happened with Luna/UST reflects how unstable one segment of the crypto market is, namely algorithmic stable coins. Luna/UST is not the first collpase of its kind, Iron Finance happened before, albeit it was not as big as Luna/UST. Mark Cuban lost out in Iron Finance. What happened with Luna/UST demonstrates how there isn't a solution for a stable algorithmic stablecoin.
There is also a possibility of a contagion from Luna/UST, but I think we have seen the worse of it. I think Luna/UST was responsible for pushing Bitcoin down to $24500 on some exchanges.
The crypto industry will come back bigger and stronger from this. I remember back in 2013 the Mt Gox hack was viewed as a catastrophic industry destroying event. Sooo many people declared Bitcoin "dead", and yet it refused to die, we all can see how far Bitcoin has come since that hack. I'm sure the crypto community will learn from Luna/UST and grow bigger and stronger.
Bitcoin down to $24500
Damn. Missed out.
It was flash crash, this is why you need to have orders just sitting on the order book. I learnt this from previous crashes. I always have very low orders sitting there. I had buy orders for BTC all the way down to $10k hahaha. My $26k and $25k orders got hit.
demonstrates how there isn't a solution for a stable algorithmic stablecoin.
Yet
Yes, yet. I think the issue is scaling and also the assets with which is used to back it.
What happens when confidence is lost? That's the holy grail.
The leverage in stablecoins is rediculous
Pretty hard to imagine it actually ending well
I put $1000 on Luna today. It’s now worth over $6000. It’s gone up 857% today. Wish I got in a bit earlier. Going to sell soon. Profit is profit.
Very nice, planning to keep any on there to see where it goes?
Just took out my $1000 and I’ll leave the rest to crash and burn lol.
Haha I did the same, took out $1k at 0.0005. Let the rest ride for a bit and see what happens 😂
@techlead: I don’t understand crypto. I’m just a punter. Looks like it’s dropped again 632% down from 857% a few hours ago.
I guess it will fluctuate like that. Sounds like people are working hard to bring it back to at least $1. That’s a huge increase from where it’s at. Can’t hurt having a some pocket change in the game for a bit of fun.@Wasabi Ninja: Lmao
The current circulating supply of Luna is $6.35 trilion. If Luna is $1, its market cap would be $6.35 trillion. The entire crypto market is only $1.288 trillion per coinmarketcap.
Hence, without significant burning of supply, Luna will never get to $1.
@techlead: Speculation as to what's happening with the coin. Perhaps they will burn some of the luna they made. Perhaps people see a coin that was $100+ not long ago, that they can now buy for $0.0003, and jump in, not understanding the change in supply.
Maybe just for the memes.
For it to got to $1 like people are saying, they would have to burn a lot of luna. If it went to $1 with the current supply, it would have a market cap of $6.5 trillion. Btc has a market cap of $570 billion. So it is quite obviously not going anywhere near $1.
@brendanm: Its pure speculation at the moment. Let's see what they come up with in rescuing layer 1. Despite all this, the market cap of Luna is over $1.3 Billion USD.
If the Terra foundation has any BTC or other crypto reserves left, I'm sure they will be used to restructure the chain.
This Luna/UST debacles demonstrates how allowing a stablecoin to mint the native coin in a blockchain without any limit to the supply is not as good idea. You don't see this mechanism in ETH or SOL or Avax. This mechanism was making me uneasy because of precising what has happened now.
That's why I didn't invest too heavily in the Luna ecosystem, only had Luna, then sold it before the crash, but I bought the dip too early. I did manage to snag some at close to the rock bottom so gained abit from the insane pump. I'm just going to hold it and see what happens. The chain would definitely have to be forked, or consolidated in some way, such as 100 to 1 merge or something. UST is worthless (however they may get some Luna v2 as compensation), they've disabled the peg/minting, that's what stopped Luna from freefalling.
I threw a few $$ at Luna in FTX today and swapped when it doubled. Now sititng as UDST (Hope that does not depeg lol) until May 27 or so(some weird rule of FTX).
What rule? Why do you need to wait till 27th May?
You mean USDT? Never heard of UDST.
They require some time apparently for "card payments" which can supposedly take more than a week or so. USDT yes.
Ahh I see, for the card transaction to settle, that explains it. I only do wire transfer so I don't have this delay.
Are there any fees for card payments on FTX? I've never tried.
@axlfan: You pay to a PayID, making sure that you put your ID in the description as stipulated on the FTX website, it should be something like "FTX XXXXXX" With the XXX being your account number.
Don't do it via ING though, because they have a $1000 daily limit for PayID transactions, use other banks, like CBA, Westpac, St George and Macquarie. Note CBA will hold your finds for 24 hours if its your first time transferring to that PayID.
Everything is in the red. The last few weeks have been so depressing!! :-(
I don't know why I alway buy in so high and end up selling so low.Buy now then when it's low.
Buy what exactly ?
Don't have much $ left and can't afford to lose anymore.You should always invest what you can afford to lose.
This is the strategy I used since 2013. Always buy the dip, but never go all in. You set low orders in and just let the market come to you. For example, I currently have buy BTC orders all the way down to $8000 USD. Last week some of my buys at $26k got triggered.
You can never time the market, no one knows when the peak or bottom is until it is already in. You can't monitor the markets 24/7 anyways, so I find my strategy to be pretty stress free.
@techlead: Yeah, I had the same idea after the 2008 crash.
But you need a lot of patience, specially when your money is sitting in the bank doing nothing.
But lesson learnt. MUST wait for the dip.@congo: Crypto is my bank. I put nearly all my long term savings into crypto. The only small hedge I have is I have a little on the side in an index fund.
I just went and bought $5 worth of Luna. It is up already!
Buy and hold hail mary at best, at this point.
It has been to .00047 down to .00020 etc overnight. Looking at the movements mean nothing.
Unless there is some kind of remediation (unlikely) to recoup some investor funds, it is probably dead, straight from the horses mouth. Terra commented on it yesterday.
I actually put $1100 and immediately lost $200 😅
LUNA is worth fractions of a cent right now, a lot of people have made good money buying at the low point and selling a day later.
Put in $50 or whatever you don't care to lose and see what happens… even if it slightly recovers to 1c that's a huuuuge gain. If not, worst outcome is you lose $50!
Seems like it went to shit again and fell 30 percent today.
Exchanges are delisting the coin.
It might be dead soon.might be dead soon? bro it died 2 days ago lol
Naw. You can still buy it on coinspot. Therefore not dead.
Yea, FTX still has it
That's part of the risk. They haven't done anything illegal, you play in a small pond - be it penny stocks, Silver, or crypto, you can get played.
Rule no.1 of Finance isn't to make money. It's to minimise risk. But there are so many people now 'doing their own research' who think they can outsmart the market. That their get rich quick scheme is different to all the others. They don't understand how fiat currency works, so they think it has no real value - just like their tokens!
Maybe all the tulip buyers get burnt enough that people pay attention this time and stop being so greedy.