Its market cap last week was 18 billion, and it'll probably reach 0 in a day or two
Its complementary coin, TerraLuna, which can usually be exchanged for Terra, is down 97%
:brrrrrrrrrrrr: :stonks-down:
I finally figure out how basic cryptos like bitcoin are "supposed to" work, and then we had NFTs which took me even longer to understand, and now they're making "ecosystems" with multiple types of tulip bulbs that all interact with each other in some arcane fashion?
I hate this new internet.
Seems like there was a system where you "burn" Terra in exchange for Luna, which is basically an IOU for Terra that you could cash when the price recovered. If there is no faith that the price will recover, the IOUs are worthless
Lemme see if I’ve got this right:
- 1 Terra can be transformed into 1USD worth of Luna.
- 1USD worth of Luna can be transformed into 1 Terra.
- The incentive to hold Terra is to use as a currency.
- The incentive to hold Luna is to get fees from when Terra is used as currency.
- Therefore, if Terra is in high demand and is worth more than 1USD, Luna holders can make money by transforming 1USD of Luna into more than 1USD of Terra, increasing the supply of Terra and stabilising the price of Terra at 1USD.
- Conversely, if Terra is worth less than 1USD, Terra holders can make money by converting into 1USD worth of Luna, increasing the supply of Luna, reducing the supply of Terra, and stabilising the price of Terra at 1USD.
- If the price of Terra remains less than 1USD, people will continue to convert to 1USD worth of Luna, massively increasing the supply of Luna and devaluing the currency.
- Faced with an exodus of Terra holders, Luna holders have no prospects of fee payments, and see their currency devaluing due to supply, so they sell for USD.
- Seeing the dumpster fire that is Terra and Luna, no USD holder wants to buy either, placing further downward pressure on Terra, encouraging more Luna to be created, further diluting the Luna currency.
Is that right?
i hate crypto as much as the next guy but i cant help but feel bad for a lot of the victims of the scam. being tricked by con artists isnt a moral failing.
the finance bros pushing it can go to hell though,
If you're in deep enough to know what the fuck a terracoin is, you deserve this 100% and there is no saving you, lmao.
Eh, Terra involved a lot more "normal" people than you think. This isn't straight PvP like a normal rug pull, or something like Bored Apes where it costs 100 grand to enter so only rich assholes are involved. The "Anchor" protocol on Terra sucked a lot of people in with promises of 10-20% "stable" returns. That's very different from something like the Wonderland/Time ponzi, where it was run literally on "magic internet money" and for "frog nation", i.e. people in on the joke. This UST/Luna shit will sink a lot of ordinary people, and probably some hedge funds too which could cause contagion.
I'm too internet poisoned (been following/laughing at this shit for like a decade, it keeps on giving), but point is there's a lot of people who thought they were getting a savings account, not just crypto bros.
The latest ep of Citations Needed had a good analysis of crypto that describes it similar to gambling, as a regressive tax on the poor
Citations Needed also has a great episode on gambling being a regressive tax on the poor.
Its market cap last week was 18 billion, and it’ll probably reach 0 in a day or two
mashallah
hopefully this is the big crypto crash, or at least stops everyone from jumping on board with it :inshallah:
Stock market downturn is taking its toll on crypto, like when the 2008 crash revealed Bernie Madoff's Ponzi
Money printing machine is taking a break so people are selling their fake money for real money, which is bad for the price of fake money
Why didn't they just use more than one slurp juice on a each ape?
Fed is raising interest rates, meaning loans cost more, hence the era of cheap money is coming to an end. All sorts of assets will depreciate in value in the coming months - stocks, crypto, even housing. All these assets are fueled by cheap debt.
UST - the "stable coin" in the OP -bought a shitton of Bitcoin at around $45,000 about 7 weeks ago as a way to "back up" the currency. The price of Bitcoin fell a lot in the past week, which causes a run on the coin.
What if instead of stable coin it was sable coin and we all got to hold these little guys?
Its complementary coin, TerraLuna, which can usually be exchanged for Terra, is down 97%
TerraUSD has a built-in delay, it will also collapse after Terra.
Reminds me of all the anti-flood compartments on the Titanic, only managing to keep the ship afloat for a few more moments
It is a completely meaningless "safety regulation" that is just one in a series of bullshit "built-in safety features" designed only to attract more buyers.
Tether is slipping a little bit in reaction. Going from $1.000 to $0.998 doesn't seem that bad but it goes to show that lost confidence can lead to an insane crash
