RE: Crypto Academy Contest / S1W4 – Reviewing the Instability of the Crypto Market by @srrebullient
Luna Foundation Gaurd (LFG) loaned out 42.5k BTC
Im till to understand the actions of the LFG, trying to compete with BTC? What was the motives? This guys actually made funny decisions in my opinion.
I'm with the opinion that luna investors are into this because of greed, we all know that these assets are volatile. Moving from $97 droping to $50 was reasonable to run out of the market, staying in mean you are ready for the long run. Over 90% drop in a matter of days is scared to say the ecosystem will bounce back any time soon.
So we are questioning the stable coin algorithm now, i had a problem when SBD hit $15. I was like, were is the stable nature that is expected of this coin. Then I got it clear that, volatility is all round crypto assets.
Your publication is well explained, i have learned.
You have said well. I personally also blame the LFG for their poor handling of the situation thus making it look as though they are part of the plan.
Loaning out the BTC reserve was a huge mistake as the on-chain mint and burn mechanism wasn't enough to stabilize the price of UST.
For Luna investors, I actually feel for them because I know that the whole incident happened so sudden and you know it wasn't all that was aware of the sharp drop from around $90 to $55. Before some could know what was going on, they already lost over 70% of their capital thus making them to rather believe that the price will bounce back instead of selling of at loss. I can say that they trusted the Luna team in other to stabilize the price but the team failed them.
I hope we are get back on our feet soon.
Thank you for stopping by.
You are right, when I got the news I was reluctant to check. Well, maybe because I don't have luna in my portfolio. The noise became too loud that on checking it was over 90%. Come back is what we hope to those holding the asset, but might not be any time soon, given the current situation of the crypto market and the snail's bullish walk of Bitcoin.
Exactly my point.
I heard of someone that said he decided not to check his portfolio for at least 6 months but on checking, he saw that he already lost $2 million on Luna.
I don't know how true the claim is but things like that happens.
We should already keep ourselves updated on affairs that concerns us.
I hope Bitcoin speeds up its bullish movement sooner than later.