The scheme turned out to be not at all tricky, you can also dump bitcoin, there would be money.
There are many versions going around now, so one of the possible scenarios is described below:
— A set of positions of 1 billion UST in the OTC market
— A $3 billion BTC loan.
— Launching FUD about binding to UST
— Dumping BTC on the market to increase panic
After LFG (Luna Foundation Guard) withdraws liquidity from Curve, the attack begins:
— The attacker takes all the liquidity of the Curve pool ($350 million)
— Merges the accumulated 1 billion UST on Binance (there is a 1:1 decoupling to the dollar)
Since the Terra market module is configured for a bandwidth of $150 million per day to restore bindings, this would be enough, but in the Curve pool instead of $4 billion. it turned out to be only $350 million.
The situation is heating up, BTC is falling, UST is losing its binding even more, LFG is forced to sell BTC to ensure the binding, which puts even more pressure on the price of BTC.
The attacker achieves his goal, because as we remember, he shorts BTC.
Panic is forming in the market.
The Terra network is overloaded, funds withdrawal from exchanges is stopped. Funds are starting to leak out of the Anchor protocol.
It wouldn't have worked if the pool had $3 billion instead of $350 million. It wasn't an accident.
What should I do now?
For those who still hold Luna and UST, it is important to understand that most of the way has already been passed, merging or holding is your business. In such cases, it is advisable to turn off emotions and do nothing and do not merge on the market, but hope for the restoration of coins. Not financial advice.
According to Do Kwon's reports, the recovery plan is almost ready!
we are watching further !
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Guess the founder of Luna pissed some Big boss off, this big boss is at national grade !!!
Crazy times came... hard to be calm and not panic... hope it won't last too long...
it's gone a long way down, going up wont be that easy. It requires patience and hope right now
despite any recovery plan, who's gonna buy this risky rock?
The huge sales ratio caused pressure and instability in the market for Luna .
whales make profit by buying UST at discount, then converting to LUNA with dumping it by huge transactions, we should be calm and wait at this moment
What a disaster for Terra and it happened in the blink of an eye it started to fall like the whole market and then its fall was exponential. I have that currency in my hold portfolio, I placed the stop loss at 69 dollars and I got out of the market at that price, then I bought at 62 and I thought it was not going to fall more than that and I was careless. What a big mistake! when I realized it had already fallen too much. So much that it was not worth selling. Now it's down to eight cents. I have no choice but to loiter in the hope of recovering my investment.
Partial not full reserve, algo stablecoin, 20% interest, ponzi, works during bullruns but crashes in a bear market.
Exactly!
Hopefully, Those who are holding can hold on as long as it takes. It's not something I would be holding or even trade on. The big money has the power to create panic selling, or even fake pumps where everyone sees GREEN and buys, throwing more fuel to the fire. Unless u are a billionaire, most people are at the mercy of the market..
It’s prolly dead for good.
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The Hivebuzz proposal already got important support from the community. However, it lost its funding a few days ago and only needs a few more HP to get funded again.
May we ask you to support it so our team can continue its work this year?
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That's is that's
What a disaster for Terra and it happened in the blink of an eye it started to fall like the whole market and then its fall was exponential.
Agreed, but also these non backed only partial/Algorithm stable coins are garbage. If something is fully backed it couldn’t happen. More stable coins will fail soon enough I’m sure. I’m sticking to bitcoin,Hive and a few others.