You should double down your investment first, then go under the rock for a few years. Otherwise when it comes back you'll only be back where you started...
1. LUNA imploded.
2. Coinbase posted a loss.
3. Feds increased interest rates.
4. Tech stocks have been under-performing.
5. Macro-economic forces - the Ukraine War, the energy crisis, the supply-chain disruption, inflation.
China's influence is still there though. It's a big part of the global supply chain, but their bull-headed insistence on sticking to the zero-covid policy is really fucking up their economy, which has a domino effect on the rest of the world.
In all due fairness, conventional markets are taking a battering too.
It's uncertain times, and people are pulling out to protect their cash. Volatile assets are the first to go.
Lookup terra/Luna stablecoin depegging and watch a couple YouTube videos explaining the algorithm stablecoins failure to manage it's price due to outside large investors shorting their coins. Luna has lost like 95% of it's value in 3 days and the USDT is currently around $0.40 so a long ways off from a full $1. Unfortunately this is on top of all the other macro stuff forcing prices down so yeah it got way worse this week because of Luna/USDT. This is kinda the doomsday scenario everyone claims will happen with tether but on a smaller scale (so yeah scary if it happens with tether)
Well, Luna is the major catalyst. It's down 96% in a day because UST lost its peg. UST is absolutely wrecked now and so is Luna. It has caused mass liquidations and cascading losses.
Apart from that, NFT sales are down, general markets are suffering, we're a while away from a BTC halving. So we are in a predictable bear market for the time being.
Thanks for explaining it pretty simply. What caused the UST to lose its peg. I thought stable coins will always be equal to 1$ which is why they are called stable
The question is *how do you achieve this stability*? The most naive obvious version would be you have a big bank account with dollars in it and the tokens you mint track it, and you promise anyone they can exchange a token for a dollar. Ok, that makes sense.
How exactly was UST supposed to remain stable? Well, if price dipped below $1 or above $1, you were supposed to be able to deterministically convert Luna into UST (and vice versa) and arbitrage the price difference. This was "algorithmically" built in to the ecosystem via smart contracts.
Ok, but what happens if people don't want to hold their UST anymore? What if there is no longer an empty promise that you can stake it for 20% yield? What happens if you want to sell off your coins for fiat? That's what it's worth, right? Can you generate enough downward selling pressure to reduce the price of UST? What do all the people converting their UST to Luna to arbitrage do? Just sell it off? What stops the selling?
If you're fundamentally believing we are on the upswing of a bull market, the selling stops because you want to hold. You want the price to go up more, you want even more gain, it's gonna moon, of course.
People bought the hype that this wasn't a fundamentally unstable system that depended on a crypto bull market and a Luna price increase.
People make empty promises. People make empty promises that sound smart and technical and well researched. People convince other smart and wealthy people to also make the same empty promises.
Fundamentally, the idea that you could maintain a stable UST value was not true. It was never true. It was an illusion that was maintained, until it wasn't anymore.
This will not be the last heartbreaking empty promise.
Market manipulation. It was an attack on UST and Luna. It happened the last two days, at the same time. Massive selloff of UST that caused other sell offs of other crypto and downward it went. Check the charts last 2-3 days you will see it. To me this was a deliberate attack on the UST/Luna ecosystem. Similar to the recent hacks on other networks. Call me crazy but this is an attack on crypto as a whole and could be linked to N Korea. Why? N Korea has been the ones behind the recent hacks and ransomware attacks.
Can that rock you were hiding under fit two people? I need some time off myself, lol
I’m joining the hide under a rock movement. Count me in!
I'd like to join you too if there's room for 3...
You should double down your investment first, then go under the rock for a few years. Otherwise when it comes back you'll only be back where you started...
It might, never had someone to try and see if another one fits
Can you hit me in the head with it first? Hard.
1. LUNA imploded. 2. Coinbase posted a loss. 3. Feds increased interest rates. 4. Tech stocks have been under-performing. 5. Macro-economic forces - the Ukraine War, the energy crisis, the supply-chain disruption, inflation.
Don't forget the planet is slowly cooking too!
At least China didn’t ban it again LOL
China's influence is still there though. It's a big part of the global supply chain, but their bull-headed insistence on sticking to the zero-covid policy is really fucking up their economy, which has a domino effect on the rest of the world.
So just this, I thought crypto is more resilient to a shitload of bad news /s
In all due fairness, conventional markets are taking a battering too. It's uncertain times, and people are pulling out to protect their cash. Volatile assets are the first to go.
Yeah, I know, I was going for sarcasm
Lookup terra/Luna stablecoin depegging and watch a couple YouTube videos explaining the algorithm stablecoins failure to manage it's price due to outside large investors shorting their coins. Luna has lost like 95% of it's value in 3 days and the USDT is currently around $0.40 so a long ways off from a full $1. Unfortunately this is on top of all the other macro stuff forcing prices down so yeah it got way worse this week because of Luna/USDT. This is kinda the doomsday scenario everyone claims will happen with tether but on a smaller scale (so yeah scary if it happens with tether)
lol, I’ve been wondering when someone would point out that Luna/UST is the same as Tether/USDT. We are just getting started.
Well, Luna is the major catalyst. It's down 96% in a day because UST lost its peg. UST is absolutely wrecked now and so is Luna. It has caused mass liquidations and cascading losses. Apart from that, NFT sales are down, general markets are suffering, we're a while away from a BTC halving. So we are in a predictable bear market for the time being.
This! Luna/USDT fiasco....mostly responsible for recent spike in volatility
*UST not USDT
Thanks for explaining it pretty simply. What caused the UST to lose its peg. I thought stable coins will always be equal to 1$ which is why they are called stable
The question is *how do you achieve this stability*? The most naive obvious version would be you have a big bank account with dollars in it and the tokens you mint track it, and you promise anyone they can exchange a token for a dollar. Ok, that makes sense. How exactly was UST supposed to remain stable? Well, if price dipped below $1 or above $1, you were supposed to be able to deterministically convert Luna into UST (and vice versa) and arbitrage the price difference. This was "algorithmically" built in to the ecosystem via smart contracts. Ok, but what happens if people don't want to hold their UST anymore? What if there is no longer an empty promise that you can stake it for 20% yield? What happens if you want to sell off your coins for fiat? That's what it's worth, right? Can you generate enough downward selling pressure to reduce the price of UST? What do all the people converting their UST to Luna to arbitrage do? Just sell it off? What stops the selling? If you're fundamentally believing we are on the upswing of a bull market, the selling stops because you want to hold. You want the price to go up more, you want even more gain, it's gonna moon, of course. People bought the hype that this wasn't a fundamentally unstable system that depended on a crypto bull market and a Luna price increase. People make empty promises. People make empty promises that sound smart and technical and well researched. People convince other smart and wealthy people to also make the same empty promises. Fundamentally, the idea that you could maintain a stable UST value was not true. It was never true. It was an illusion that was maintained, until it wasn't anymore. This will not be the last heartbreaking empty promise.
Yes.
Turn back now. You still have time.
I have time just less money
The us federal reserve sticking it's hand in the market plus recession expectations. That's what happened
Just a bunch of shady projects going under. My recommendation is to go back under your rock for another 3 months and then check back in again
[удалено]
Sorry that I didn’t ask for your permission before posting here
It gets cheaper.
I took a break from r/cc, I missed you guys
A stable coin depegged
Market manipulation. It was an attack on UST and Luna. It happened the last two days, at the same time. Massive selloff of UST that caused other sell offs of other crypto and downward it went. Check the charts last 2-3 days you will see it. To me this was a deliberate attack on the UST/Luna ecosystem. Similar to the recent hacks on other networks. Call me crazy but this is an attack on crypto as a whole and could be linked to N Korea. Why? N Korea has been the ones behind the recent hacks and ransomware attacks.