We are in May only, plenty of time to nominate something for the Fail of the Year award in Community Award four 2022.
True, plenty of time left but it will have to be spectacular to be bigger fail than this. Then again, knowing how unpredictable crypto market is, nothing is impossible.
How come so many people are still so gullible/greedy after all those years of ICO scams and premined shitcoins?
Because there is constant influx of new people, while older ones that went through 2017 ICO boom and are still buying shitcoins like LUNA are nothing but degenerate gamblers.
Theories on what really happened today are popping all over the internet, this is another one I stumbled upon in one Discord group. Dunno if it really makes sense but here it is:
Blackrock and Citadel borrowed 100K BTC from Gemini (it appears in their loan book). They swapped 25K of that BTC into UST; this was all done quietly in anticipation of the attack. When the time was right, they called up Do Kwon at Terra Foundation and said they wanted to sell a lot of BTC for UST. As it was a large trade they told him they didn't want to move the market and asked if he would like to buy their large block of BTC at a discount for UST. Do Kwan took the bait. He gave them a huge chunk of UST, thus lowering the UST liquidity significantly.
At that point, Blackrock/Citadel dumped all of the BTC and UST causing massive slippage and triggering a cascade of forced selling in both assets. The real problem was Blackrock/Citadel knew that Anchor, which holds a lot of LUNA, was a Ponzi scheme (they offer 20% staking APY for Christsake) and this crash would trigger more withdrawals than Anchor can repay. These forced withdrawals and selling would trigger a massive selloff in Luna, thus further breaking the $1 peg and wrecking the market further. Blackrock and Citadel can now buy the BTC back cheaply to repay the loan and pocket the difference. Meanwhile, billions of longs and Bitcoin VaR were wiped out.
This was pure market manipulation.
No it was deliberate destruction of a ponzi scheme.
20% interest yeah how that work out. I would like to think it is a true story and luna/ust has been killed.