No matter how rough your day is, think about Wednesday for LUNA investors. Terraform Labs CEO Do Kwon and 18th in Cointelegraph’s top 100, Billions of dollars have been lost for their investors.
Do Kwon’s token collapsed as creative Terra (LUNA) fell more than 97% from its highs, while stablecoin TerraUSD (UST) fell 75% from the expected dollar parity. At one point, LUNA prices were lower than UST.
The failure of the coin has real consequences.On the TerraLuna Reddit page, the suicide hotline has fixed; The subreddit is truly disturbing as the LUNA crisis unfolds.
Those of you who waited for the earth to become unstable—
I’m afraid you’ll wait until the man’s age expires
The city has turned to dust
The ocean has dried up
The continent map has been redrawn
Dinosaurs roam the earth again
— Do Kwon (@stablekwon) May 8, 2022
So how does it happen? How a Bragging Personality Contributed to One of Crypto’s Biggest Debacles?
what was Considered a FUD attack on Luna Has evolved into something more conspiratorial and insidious. One of the most popular theories is an “attack” on the Terra ecosystem, allegedly inspired by George Soros, in which buyers made more than $800 million.
How to earn over $800 million in cryptocurrency by attacking what was once the third largest stablecoin Soros style:
— On-Chain Wizard (@OnChainWizard) May 10, 2022
Ransu Salovaara, CEO of Likvidi, echoed this theory, explaining to Cointelegraph that “some parties chose the UST’s algorithmic peg as a target for market manipulation and borrowed large amounts of Bitcoin (bitcoin) to execute this, some call it “Soros style”, attacking the UST. “
“It is estimated that the short-seller ‘attackers’ made around $800 million in this campaign.”
Twitter user 4484 provided a succinct summary of the attack:
— 4484 (@4484) May 10, 2022
The “attack” has drawn mainstream attention, with U.S. Treasury Secretary Janet Yellen raising algorithmic stablecoins on Tuesday, highlighting the “risks” they pose during the Senate Banking Committee. Economist Francis Coppola Agree that the collapse of UST was an attack.
Ran NeuNer, host of CNBC Crypto Trader, and a “good friend” of Do Kwon, who suggested that US market maker Citadel may be behind the “attack,” sending the rumor mill into hyperdrive. IOHK CEO Charles Hoskinson also said The “word on the street” is that it could be Citadel.
Although billionaire Citadel Securities founder Ken Griffin bluntly dislikes the cryptocurrency industry——Comparing the trillion-dollar market to abstract art– The claim that the Citadel will attack the UST is still speculation. Inevitably, Crypto Twitter accused Neuner of trying to protect his important but rapidly evaporating LUNA pack.
speculative attack $UST It is Citadel’s coordinated attack. This seems very reasonable given their stance against Bitcoin. Also, when @stablekwon/LFG disclosed that they will protect the hook to some extent, it’s an invitation to attack. Wall Street is an expert on this.
— Ran NeuNer (@cryptomanran) May 10, 2022
Meanwhile, cryptocurrency researcher Larry Cermack says more than $1 billion in inflows support Rise up against the wildfires of the Luna Foundation Guard. According to Cermack, venture capital will be provided by Celsius, Jump and Alameda, among others.
Theory aside, for many cryptocurrency watchers, researchers and believers, the UST crash was a) predictable and b) one of the greatest cryptocurrency deaths in history.
For Alpha Tree, White Hat Hackers A crisis-level flaw was found in the Coinbase API, Luna’s demise Yes “So far, the largest Ponzi death spiral in crypto history collapsed 16 times.” Nic Carter of Castle Ventures did the same call; this is “the most significant crash in the history of the crypto space”.
Tree of Alpha compares LUNA to confirmed Ponzi scheme Bitconnect; $2.4 billion fraud involved gorgeous latino frontman This has come down in cryptocurrency’s notoriety.
Cory Klippsten, CEO of Swan Bitcoin, who has been beating the drum of Bitcoin’s minimalism (ie, Avoid shitcoins at all costs) Since the establishment of UST, “BitKwonnect” was born quickly.
Bitkwonneeeeeeeeeect! ! ! pic.twitter.com/17fIp02jrx
– Cory Klippsten (@coryklippsten) May 11, 2022
Lynn Alden 100th in Cointelegraph Top 100, has also previously warned of potential problems with UST. In an investor letter, Alden described the accompanying “selling pressure” on Bitcoin, with tens of thousands of BTC flooding the market if the UST peg collapsed.She was right: all the incidents she mentioned Happened within the past 48 hours.
Terra’s multi-billion-dollar algorithmic stablecoin UST exploded today.
besides destroying the value $ Lunathey use their bitcoin reserves to try to defend the peg, a bit like a shaky emerging market uses its gold reserves to defend its foreign exchange. https://t.co/uCfF4hmDtP
— Lynn Alden (@LynAldenContact) May 10, 2022
Maybe the ultimate slam dunk “I did warn you!” from Synonym CEO John Carvalho, who thinks UST feels like “a giant trap.” He rebuked followers for opposing UST in March 2022:
— John Carvalho (@BitcoinErrorLog) May 11, 2022