From 3b1671f8826eaf5f1c02bb185957df69dd699dff Mon Sep 17 00:00:00 2001 From: Rufus Pollock Date: Fri, 13 May 2022 22:47:41 +0200 Subject: [PATCH] [notes/terra-crash][s]: small update with the ultimate death spiral result plus some more links. --- ...examples-of-ordinary-people-speculating.md | 8 ++++ notes/terra-crash-may-2022.md | 41 ++++++++++++++++++- 2 files changed, 47 insertions(+), 2 deletions(-) diff --git a/notes/examples-of-ordinary-people-speculating.md b/notes/examples-of-ordinary-people-speculating.md index c40a172..74c46eb 100644 --- a/notes/examples-of-ordinary-people-speculating.md +++ b/notes/examples-of-ordinary-people-speculating.md @@ -1,5 +1,13 @@ # Examples of Ordinary People Speculating in Crypto +## Re [terra-crash-may-2022](terra-crash-may-2022.md) - 2022-05-11 + +https://twitter.com/joshmanmode_/status/1524884925178171392 + +![](../assets/Pasted%20image%2020220513223243.png) + +![](../assets/Pasted%20image%2020220513223252.png) + ## 2022-05-10 - panic selling in [terra-crash-may-2022](terra-crash-may-2022.md) In this thread: diff --git a/notes/terra-crash-may-2022.md b/notes/terra-crash-may-2022.md index 5fdc270..b922ed6 100644 --- a/notes/terra-crash-may-2022.md +++ b/notes/terra-crash-may-2022.md @@ -1,6 +1,16 @@ # Terra Crash - May 2022 -Terra an algorithmic stable-coin that should maintain a $1 peg is crashing and has broken its peg (first on sunday 8th May) and then more seriously on 10th May 2022. +Terra an algorithmic stable-coin that should maintain a $1 peg is crashing and has broken its peg (first on sunday 8th May) and then more seriously on 10th May 2022. Finally, on Thursday May 12th Luna collapsed to zero, trading ceased on all major exchanges and the blockchain halted. + +Terra is just the latest in a long-line of [[notes/algorithmic-stablecoins]] that have failed (no long-lived such product exists).[^1] + +[^1]: For a history of failed algorithmic stablecoins see https://twitter.com/moo9000/status/1523958008782458881 + +# History + +Work in progress. Contributions welcome! + +## Tuesday May 12th The organization is liquidating large amounts of bitcoin (over $2bn) to try and defend the beg which illustrates the potential contagion risk in the crypto ecosystem. @@ -35,4 +45,31 @@ https://twitter.com/hasufl/status/1523803732173103107 https://twitter.com/lawmaster/status/1523844709319327744 -> There is a rumor spreading about Jump, Alameda, etc. providing another $2B to “bail out” UST. Whether this rumor is true or not, it makes perfect sense for them to spread. The biggest question here is, even if they can get it to $1 by some miracle, the trust is irreversibly gone \ No newline at end of file +> There is a rumor spreading about Jump, Alameda, etc. providing another $2B to “bail out” UST. Whether this rumor is true or not, it makes perfect sense for them to spread. The biggest question here is, even if they can get it to $1 by some miracle, the trust is irreversibly gone + +## Misc + +https://coinmarketcap.com/currencies/terra-luna/ + +https://coinmarketcap.com/gravity/post/312631483 + +> $LUNA There should be some legal action against something like this. 80% drop in 1 week?? Do you think the SEC is going to look into this? + + +### Bloomberg unclear "why all of Terra's carefully-planned mechanisms failed to work" + +https://www.bloomberg.com/news/articles/2022-05-11/-everything-broke-terra-goes-from-defi-darling-to-death-spiral + +> Exactly why all of Terra’s carefully-planned mechanisms failed to do their job remains unclear, and conspiracy theories abound about shadowy actors with untold wealth to play with. But one thing’s for certain: Kwon isn’t going down without a fight. + +Ed: find this astonishing. There is an obvious reason why belief equilibria can collapse in situations like this. What's there to work out? + +# Do Kwon tweets ... + +### May 11 - final effort + +Best analysis is in https://www.bloomberg.com/opinion/articles/2022-05-11/terra-flops + +https://twitter.com/stablekwon/status/1524331171189956609 + +> 1/ Dear Terra Community: \ No newline at end of file