No matter how difficult your day is, think of LUNA investing on Wednesday. Do Kwon, CEO of Terraform Labs and 18th on Cointelegraph’s Top 100, has lost billions of dollars to its investors.
Do Kwon’s currency collapsed as Terra’s (LUNA) brainwashed above 97%, while TerraUSD (UST) stablecoin fell 75% below its dollar target. At one point, the LUNA price went lower than the UST.
It has real consequences for the mistakes of the coins. On the TerraLuna Reddit page, the suicide line has been attached; the subreddit is a truly disturbing read as the LUNA crisis unfolds.
You who are waiting for the earth to become unstable-
I’m afraid you’ll have to wait until men’s age expires
Cities are back in the dust
The bones have become dehydrated
Maps of continents have been redrawn
And dinosaurs roam the earth once more
– Do Kwon (@stablekwon) May 8, 2022
So how did that happen? How did arrogant personality inspire one of the biggest crashes of cryptocurrency?
What was once considered a FUD attack on Luna has developed into something much more conspiratorial and harmful. One of the most popular theories is the alleged “attack” inspired by George Soros on the Terra ecosystem, which the buyer came across with over 800 million dollars.
How to make money> $ 800 million in a cryptocurrency attack on one of the 3rd largest stablecoin, Soros style:
That’s what everyone is talking about $ UST attack now, including Janet Yellen. But no one is talking about how much money the attacker made (or how fabulous he was). Let’s dig in image.twitter.com/nGVfqjpVJb
– Onchain Wizard (@OnChainWizard) May 10, 2022
Ransu Salovaara, CEO of Likvidi, echoed the theory, explaining to Cointelegraph that “some people have chosen the UST algorithm as a target of market abuse and borrowed a lot of Bitcoin (BTC) to do this, what some call ‘Soros style’, an attack on ICT.”
“It has been estimated that the short-selling ‘attacker’ made about $ 800 million at this event.”
Twitter user 4484 gives a brief summary of the attack:
– OTC attacker raised $ 1 billion in UST
– borrowed $ 3 billion $ btc
– scatter around the magic solution and bank run
– thrown into hell out of their $ 3 billion $ btc in the market to provoke a wider panic
– 4484 (@ 4484) May 10, 2022
The “attack” drew widespread attention, with Janet Yellen, the US Treasury Secretary, presenting a stable currency algorithm on Tuesday, underlining the “risks” they pose to the Senate Banking Committee. Economist Frances Coppola agreed that the ICT problem was an attack.
Hosted by CNBC Crypto Trader, Ran NeuNer, and “good friendFrom Do Kwon, sent the rumor mill to the top with its suggestion that the US market maker Citadel could be behind the “attack”. Charles Hoskinson, CEO of IOHK, also said that “the word on the street” was that this could be a Citadel.
Although billionaire Ken Griffin, the founder of Citadel Securities, has declared his hatred of the cryptocurrency industry – comparing the trillion-dollar market to abstract art – there is still speculation that Citadel would attack UST. Crypto inevitably accused Twitter Neuner of trying to protect its important but rapidly evaporating LUNA bags.
Speculation that the attack $ UST was a coordinated attack on the Citadel. This seems very plausible given their stance on Bitcoin. Also, when @stablekwon / LFG announced that they would be protecting the tad at a certain level, it was an invitation to attack. Wall Street are experts in this.
– Ran NeuNer (@cryptomanran) May 10, 2022
Meanwhile, cryptographer Larry Cermack suggested that more than $ 1 billion was on the way to beach up and fight the forest fire Luna Foundation Guard. According to Cermack, venture capital would be provided by Celsius, Jump and Alameda, among others.
Theories aside, for many cryptographers, scientists and believers, the ICT car accident was a) predictable and b) one of the most important cryptic deaths in history.
For Tree of Alpha, the white-hatred hacker who discovered a crisis-level flaw in the Coinbase API, the failure of LUNA is “By far the biggest Ponzi spiral crash in the history of Crypto, around 16. Nic Carter of Castle Ventures did the same call; it is “the most important collapse in the history of cryptographic space.
Tree of Alpha compared LUNA to Bitconnect’s confirmed Ponzi system; A $ 2.4 billion fraud involving a Latino embellishment that fell into disguise.
Cory Klippsten, CEO of Swan Bitcoin, who had been hitting Bitcoin the maximum drum (ie avoiding shitcoins at all costs) since the inception of ICT, quickly remembered “BitKwonnect” in existence.
Bitkwonneeeeeeeeect !!! image.twitter.com/17fIp02jrx
– Cory Klippsten (@coryklippsten) May 11, 2022
Lyn Alden, number 100 on the top 100 Cointelegraph, had also previously warned of the hidden problems of ICT. In an investor letter, Alden described the accompanying Bitcoin “selling pressure” that would flood the market with tens of thousands of coins if the UST pin crumbled. She was right: All the events she mentions took place in the last 48 hours.
Terra’s multi-billion dollar algorithm stablecoin UST exploded today.
In addition to destroying value $ LUNA, they used their bitcoin reserve to try to defend the connection, like a flailing emerging market that uses its gold reserves to defend FX. https://t.co/uCfF4hmDtP
– Lyn Alden (@LynAldenContact) May 10, 2022
Maybe the ultimate slam dunk “I warned you!” was from John Carvalho, CEO of Synonym, who indicated that ICT felt “a big trap.” He shouted supporters against ICT in March 2022:
– John Carvalho (@BitcoinErrorLog) May 11, 2022
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