It broke the peg. The algorithm obviously failed. Loss of confidence equals no bueno. It may recover but...it's never going to have the same level of market cap again. Scary. That's supposed to be "safe" money.
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It sure failed the trust test. And indeed such slippage in stablecoin is terrible.
It's hard to understand what's going on, we'll have to wait and see.
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Yeah. I think that if this thing recovers they are gonna need to revamp the algorithm to keep trust.
Of special interest should be setting automated parameters and amounts for using the backstop BTC. I am not sure how helpful using it in panic mode is helpful as it incites more fear. Better if it were programmatically deployed in an expected and verifiable fashion.
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Honestly, I would never trust again. Terra has failed and they are currently selling large amounts of BTC to fix the issues.
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Me neither. I am already slightly skeptical of algorithmic stablecoins and UST seemed to fail the test. Of course we have know way to know if it really failed since they cut the test short randomly. They should put intervention into the algorithm and stick with that if they want to rescue.
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As far as I can see, they are selling Bitcoin to save TerraUSD. I think this will cause bigger problems in the future. Terra's algorithm is worse than I expected.
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It is a shame. They just bought it :-0
Yes it is not good.
I wonder if there is some foul play there. People who don't like terra may be helping push it down. Still the algorithm should be better than that on a coin worth billions.
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In a few days everything will become clearer. And I wonder what's going on. I hope they have a good explanation.
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Things are slowly getting clearer.
Not sure they have a good explanation for why exactly what people warned would happen happened.
:-0
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We have to remember that LUNA itself is a victim, not the perpetrator. The problem was its associated stablecoin, TerraUSD (UST). Any cryptocurrency which has an associated stablecoin could suffer the same fate if protections and safeguards aren't included in their algorithms. We have more protections than most; our problem was just a lousy peg which seems to have been rectified.
Could what happened with LUNA/UST also happen with, oh, ETH/DAI or BNB/BUSD?
I don't think it is that simple. Why did the Luna foundation choose to sell when the markets were crashing? Did they reveal the truth?
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Time to move your stake to HBD and be "safe" not just on papers. But in reality. 😂
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Yea, I grabbed some this morning and I plan to get some more in the next few days
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It debates all that is attached to being a stablecoin.
We'll expect nothing less when the market recovers.
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