₦airaland Forum

Why Did Luna Crash?


Some speculate that it was a personal attack since Do Kwon, 30, has a reputation on Twitter for arrogance. Charles Hoskinson, the founder of Cardano, proposed one possibility, although he later removed the tweet.

He claimed that a huge institution had borrowed 100,000 Bitcoin from the Gemini exchange on Twitter. They subsequently exchanged a big amount of BTC for UST at a discount with Do Kwon over the counter (OTC). He agreed, and the UST liquidity was reduced.

That institution allegedly dumped massive sums of BTC and UST on the market, resulting in a liquidation cascade of leveraged longs, slippage, and panic selling by investors, with many liquidating their LUNA holdings and unstaking their UST to sell it.

According to the tweet, Terra was a ponzi scheme with insufficient BTC reserves to prevent the crash. None of these accusations have been confirmed, and Gemini has denied making such a loan. Market manipulation, on the other hand, is frequent in all financial markets

Source: https://techloaded247.com/terra-luna-crypto-crash-why-is-luna-price-falling/

The concept of creating a ‘algorithmic stablecoin,’ in which LUNA is burned to’mint’ UST to keep it stable when it loses its 1:1 peg to the dollar, and vice versa, is distinct from how existing stable coins such as Tether (USDT) and USD Coin (USDC) work. If UST reaches 0.99, a little amount of LUNA is burned, and if it reaches 1.01, a small amount of UST is burned.The concept of creating a ‘algorithmic stablecoin,’ in which LUNA is burned to’mint’ UST to keep it stable when it loses its 1:1 peg to the dollar, and vice versa, is distinct from how existing stable coins such as Tether (USDT) and USD Coin (USDC) work. If UST reaches 0.99, a little amount of LUNA is burned, and if it reaches 1.01, a small amount of UST is burned.

I pray it pumps back many guys have lost all there life savings

Ekundayo7574:
The concept of creating a ‘algorithmic stablecoin,’ in which LUNA is burned to’mint’ UST to keep it stable when it loses its 1:1 peg to the dollar, and vice versa, is distinct from how existing stable coins such as Tether (USDT) and USD Coin (USDC) work. If UST reaches 0.99, a little amount of LUNA is burned, and if it reaches 1.01, a small amount of UST is burned.The concept of creating a ‘algorithmic stablecoin,’ in which LUNA is burned to’mint’ UST to keep it stable when it loses its 1:1 peg to the dollar, and vice versa, is distinct from how existing stable coins such as Tether (USDT) and USD Coin (USDC) work. If UST reaches 0.99, a little amount of LUNA is burned, and if it reaches 1.01, a small amount of UST is burned.

I pray it pumps back many guys have lost all there life savings

But why ust going up and luna going down, I dont really understand that concept. Me I think this was an orchestrated rug pull.

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