Luna Nosedives Under $2, Loses 98% Of Its Value As TerraUSD Struggles To Regain Its Dollar Peg (forbes.com) 68
Following a day in which teetering stablecoin TerraUST (UST) bounced around $.90, it resumed its free-fall overnight to approach $0.30 before recovering partly to $.43 this morning. From a report: However, this performance could be considered downright bullish when compared to LUNA, the token designed to maintain its $1 peg, which has now fallen below $2. LUNA is down a staggering 98% in the past five days, which has seen its market capitalization lose $25 billion this week. Today attention will focus on whether the Luna Foundation Guard, led by founder Do Kwon, will be about to recover from this downward spiral. The Block reported yesterday that the team was in talks to obtain $1 billion in additional collateral from unnamed hedge funds and market makers. However, that has not come to fruition.
Good (Score:5, Interesting)
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Would you like to invest in a bridge to nowhere?
Once the bridge is built there will be tolls and you will get a cut of the tolls! The bridge won't go anywhere or otherwise be useful. Early movers have made ton reselling their share already, you could be the next winner! No risk, no reward, am I right?
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I invested 15K in Cardano, currently valued 4.5K. Don't cry for me, I'm not. I knew the risks and invested "the maximum I wouldn't cry over if things went tits up". Well, things went tits up. I'd like to say, I really touched the edge of that goal :)
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Gee, if only they were smart enough to follow some basic "investing" rules:
1. Don't put all your eggs in one basket
2. Only invest what you can afford to lose
3. Crypto is speculative, NOT an investment. ALWAYS have a Plan B when it goes tits up.
4. Do you own research
5. DCA (Dollar Cost Averaging)
It is hard to have sympathy for greedy people who were too dumb to have some basic financial sense.
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3. Crypto is speculative, NOT an investment.
All too often people try to tie the two together as a speculative investment which really means a total game of chance.
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Ha! I wish I could mod you up. That is very true.
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Shouldn't it be called an unstablecoin then?
Naa, that works on the principle of the "Big Lie": If it is bad at xyz, call it "Great at xyz!". There are lots of stupid people that cannot do fact-checking and will fall for this. Noticed this a while ago with some brand of toilet paper I used to buy. It came with a big "Now even sturdier!" on a redesigned package and what did I notice? It was a lot less sturdy and the quality had dropped. Apparently claiming the exact converse of what changed on the package can somewhat compensate for that. Capcoins of a
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I was wondering whether I should add a second line to my post advertising my about-to-issue StableAssetBacked-GuaranteedSafeTrulyAnonymousAndSecureCoin.
Well. It sounds overdone but with all the concentrated stupid we see in crapcoins people may fall for it.
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Indeed. Maybe this stupidity can now come to an end. I have zero compassion for morons that, despite ample warnings, gamble with money they cannot afford to lose.
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Pegged Wrong (Score:2)
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Maybe I don't understand the concept, but it seems like LUNA is supposed to be pegged to $100, not $1.
Yes otherwise "supposed to be pegged to $1 but is now under $2" would seem to indicate a gain... :-)
It seems like it's just pegged, period.
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I assumed they mistyped 2 cents as 2 dollars. Looking it up though, you are the correct one, it must be $100.
To me this indicates that people should buy, it is a risk now, but it is less of a risk than yesterday. If it goes up however, you stand to gain $98 on a $2 investment if it rebounds properly.
Of course, there is still the risk it will fall to $0, in which case you lose the investment, but still less risk than those who are cashing out after losing so much.
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Luna is not pegged to any value. Luna goes up when people use UST and down when people do not use it or trust it. UST, which is pegged to a dollar, briefly lost its peg- obviously, if a stable coin loses its peg, confidence in it will go down. Since that gets reflected in the price of Luna, everything that happened is what you would expect following the demonstration that the price of UST is not really good at a dollar.
Here's Terra's own website on this:
https://docs.terra.money/docs/... [docs.terra.money]
The idea is expla
Seems good to me (Score:2)
LUNA, the token designed to maintain its $1 peg, which has now fallen below $2
As designed then?
Typo (Score:2)
The LUNA is actually pegged at $100, not $1, so falling below $2 is indeed a 98% drop. To be fair to the Slashdot summary author, the typo also appears in the original Forbes article (sloppy).
Re:Typo (Score:4, Informative)
No it's not a typo. TerraLuna (Luna) and TerraUSD (UST) are two separate coins. UST is the one that is supposed to be the stable coin. Luna is designed to fluctuate in order to help UST maintain it's peg. At one time Luna was over $100 but has crashed spectacularly.
Here is more info on the two coins
https://coinmarketcap.com/curr... [coinmarketcap.com]
https://coinmarketcap.com/curr... [coinmarketcap.com]
Stablecoin (Score:2)
It does not mean what everybody thinks it means.
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You mean I can't use it to buy a horse? Can I at least get the stable cleaned out?
Not quite right, the stablecoin turns out to be what you find at the bottom a stable.
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That actually has value. Quite a lot to mushroom growers. Unlike the coin.
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That actually has value. Quite a lot to mushroom growers. Unlike the coin.
Great point, especially with where the price of fertilizer is going.
Re:Stablecoin (Score:4, Insightful)
Yeah... you know that something is very wrong when crypto Twitter is screaming "buy the dip!" on a Stablecoin. They're not supposed to dip, that's the whole point!
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crypto Twitter is screaming "buy the dip!" on a Stablecoin
I believe this, I am somewhat astonished that anyone gets investing advice from screamers on twitter. That is two red flags right there.
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I believe this, I am somewhat astonished that anyone gets investing advice from screamers on twitter.
Well it works for Elon Musk
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Elon Musk doesn't get advice from Twitter, he gets girls from Twitter.
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You just gave me a flashback to Family Guy. Something about . . . waffles? Yummy, tasty, waffles?
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Once again we're back to the "Fail to learn from history...." quote. There are tons of examples of trying to peg on currency to another currency...or gold, that end up failing when the underlying principle no longer makes real-world, rational sense. The countries who try this, tend to defend their currency until it becomes too expensive to do so and then said currency is un-pegged devalued, and the markets proceed. As far as I can tell this entire Luna/UST thing was used to prop up a process where a firm
Most stablecoins will collapse epically (Score:4, Insightful)
The weasel-wording in their paperwork is their reliance on "cash equivalents" as a huge amount of their collateral. Dog crap grade commercial bonds that are 24 hours away from expiring technically fit that description, and fun fact hedge funds got caught by the big fish like the DTCC doing precisely that last year to prove they had collateral to avoid margin calls which is why the regulators tightened up collateral rules there (but not NEARLY enough).
So yeah, TUSD is screwed hard. I can't imagine them recovering from this, but don't laugh too hard those of you who like to posture like you were "too smart to fall for this" because we are in an "everything bubble" now. There is literally no safe asset category in the market anymore. None. The carnage is going to blow up your house and 401k's value about as hard as the crypto bulls will be hit.
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Maybe - but when the crash comes, they aren't sitting in the front seat, they're strapped to the front bumper. Guess who gets squished first?
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Folks overestimate what that "value" means (Score:1)
And many of those companies are also up to their eyeballs in debt which has seniority over you as a shareholder in the event of liquidation.
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"And many of those companies are also up to their eyeballs in debt which has seniority over you as a shareholder in the event of liquidation."
True. And yet even the most debt-ridden, poorly run companies on OTC are backed by more than crypto-anything.
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There is literally no safe asset category in the market anymore. None.
That is like 1929, when investors were panicking, moving their money from junk bonds to stocks to other bonds, desperately trying to find a place for their money. Eventually a lot of them settled on gold, and then gold was confiscated.
The good news this time is that the economy is doing ok, even if the asset markets are not.
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Fuck are we really reporting on minor altcoins? (Score:2, Insightful)
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Stop using your company provided 401k. Open a brokerage account and manage your own. Oh, sure; you'll have to pay the administrative costs, but instead of buying the money market fund that'll profit your 401k administrators the most, you can pick investments that make sense to you. Stick to the blue chips, you'll almost certainly outperform your company provided 401k. A decade ago, I did both at the same time and compared results. I could barely understand the financial instruments the company 401k off
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That's because they offer funds of funds of funds so that they can layer fees. You have to dig through several layers to find out what you are actually buying.
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Look at the market across the long term (say, fifty years?). Google will draw you the chart pretty easily. Layer inflation on top of the Dow Jones Industrial Average (that may require a bit more effort, shouldn't exceed the average /. user's abilities).
Unless you expect to die before the next recession/depression ends, I very strongly recommend you do the same as I; hunker down and weather the storm. I'm taking a bath this month, but I expect to make it to the other side in one piece. It may be two yea
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Re:Fuck are we really reporting on minor altcoins? (Score:4, Informative)
As explained better elsewhere, LUNA is part of a coin duo that is supposed to facilitate other crypto trades. The failure of this duo under pressure should indicate that the entire cryptocurrency market is unsound--that is the story (though you wouldn't know it from the summary).
Get ready to get pegged... (Score:2)
...by the angry mob that invested in you.
Huh (Score:4, Informative)
And here I thought stablecoins were supposed to be, you know, stable.
Apparently that's a misnomer.
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> And here I thought stablecoins were supposed to be, you know, stable.
> Apparently that's a misnomer.
If anything in the crypto space is a scam, it's stablecoins. From Tether onwards, there's always been a problem. Possibly Coinbase's is large enough, but the problem is inherently near intractable.
Stablecoins, however, are responsible for major crypto pumps, so they have their backers. Somewhere out there is a paper showing mathematically how Bitcoin's stratospheric rise was pumped by Tether, and o
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And here I thought stablecoins were supposed to be, you know, stable.
Apparently that's a misnomer.
I'm sure someone had a pretty stable revenue stream off of this. It just wasn't any of us.
Dollars and Cents (Score:2)
Jesus christ, don't tell that now even Forbes can't tell the difference between dollars and cents.
However, this performance could be considered downright bullish when compared to LUNA, the token designed to maintain its $1 peg, which has now fallen below $2. LUNA is down a staggering 98% in the past five days...
Can't Trust Anybody (Score:2)
Word to the wise: don't tell anybody if you're operating pseudonymously.
Betcha he faces lawsuits now for the failed stablecoin. I wonder who he pissed off.
Ho hum (Score:2)
I'm trying to care but I can't.
Yes, I see (Score:2)
"The Block reported yesterday that the team was in talks to obtain $1 billion in additional collateral from unnamed hedge funds and market makers. However, that has not come to fruition."
Got it- they have to borrow a billion dollars to make sure their reliable stablecoin doesn't implode back into the nothingness from whence it came.
In other news... (Score:1)