The crypto bubble might have just burst, a top 10 stable coin jumped off a cliff and now all crypto is crashing hard

[Master Disaster]

This is an incredibly long and complicated topic, I'm only gonna cover the basics here since I don't have time and I couldn't do it justice anyway. For more info see KiraTV, Upper Echelon Gaming and/or Coffeezilla on YouTube, these guys cover this stuff and unlike me actually understand the ins and outs of blockchain.

 

To begin lets establish a few things, the entire project is called Terra and it contains 2 different coins/tokens, TerraUSD(UST) is the stable coin, Luna was the algorithmic coin. Its important to understand they are 2 parts of the same thing.

 

OK so back in Oct 2021 the Terra project founder got into a twitter dispute over a possible attack method to destroy his project, not gonna go into too much detail but am mentioning it because its possible this was the start of the downfall. Essentially he responded to a random who posted a theoretical way of destroying the coin by calling them poor and then goading billionaires into trying it out to "see what happened".

 

Fast forward to last week, the market noticed a billionaire making some big trades, the Terra founder reached out on twitter and was told "maybe I have big plans for Luna?"

 

Then this happened...

 

Quote

The chaos has been fueled by a steep slide that has seen $200 billion in value wiped out in a single day. Bitcoin alone fell to below $25,000 on the morning of May 12th, a price not seen since December 2020 and less than half of its peak in November 2021. Other cryptocurrencies have faced a similarly punishing few days, with Ethereum having lost around 20 percent of its value in just 24 hours.

 

Terra’s problems started on May 9th when the price of the UST stablecoin began to slide dramatically. Because of the way that algorithmic stablecoins operate, this caused a huge increase in the supply of the corresponding Luna cryptocurrency token, which is traded against UST in order to balance the price.

 

Now to be super clear, we don't actually know why this happened yet, I'm sure the reddit sherlocks are trawling the ledger RN to find out however this caused what can only be described as a full market meltdown, pretty much all crypto is down, stable coins have been hit really hard but even the old faithful names like BTC and Ether have taken hits.

 

Its gets even worse, turns out the Terra founder happens to be one of the top 5 BTC holders on Earth and now everyone is panicking that he's gonna liquidate all his BTC and crash that market as well.

 

Source - https://www.theverge.com/2022/5/12/23069232/terra-luna-collapse-stablecoins-crypto-crash-bitcoin

 

My thoughts

 

I thought I would be jumping for joy and shouting "I told you so" from my megaphone on the rooftops, then I remember that a fuck load of normal, not very wealthy people just lost a combined sum of $200 Billion, many are left with literally nothing and have zero recourse about what just happened.

 

This is not a happy day.

[Lightwreather]

I uhh, sorry, I uhh did this before.

Clubbed it with another topic not realising it's impact.

Literally every other crpyto fell with the exception of a couple stable coins

[Master Disaster]

1 minute ago, J-from-Nucleon said:

I uhh, sorry, I uhh did this before.

Clubbed it with another topic not realising it's impact.

Literally every other crpyto fell with the exception of a couple stable coins

well I'll let the mods decide whether to leave, merge or lock

[maartendc]

Good riddance if you ask me.

 

Maybe GPU prices will continue to fall.

 

I only feel bad for the poor saps that invested their life savings in cryptocurrencies. But then again, everyone knew or should have known it was akin to putting it all on black at the roulette table.

[Master Disaster]

2 minutes ago, maartendc said:

Good riddance if you ask me.

 

Maybe GPU prices will continue to fall.

 

I only feel bad for the poor saps that invested their life savings in cryptocurrencies. But then again, everyone knew or should have known it was akin to putting it all on black at the roulette table.

Its much easier to fool someone than to convince someone they are being fooled

Mark Twain

[Lurick]

Quick, call the Coinbase HELP number now!!!

[xAcid9]

[RejZoR]

OOOOH NO! Anyway...

[Origami Cactus]

Looks like a normal friday to me.

You can call it a "bubble burst" when BTC is worth less than 1k, and ETH is less than 100$.

[Master Disaster]

15 minutes ago, Origami Cactus said:

Looks like a normal friday to me.

You can call it a "bubble burst" when BTC is worth less than 1k, and ETH is less than 100$.

You keep telling yourself that if it makes you happy, meanwhile everyone else be like..

[strajk-]

>top 5 BTC holders on Earth

Not even close by a massive margin.

 

USDT and UST aren't comparable either.

The current marketwide crash has nothing to do with LUNA or UST.

 

[Master Disaster]

1 minute ago, strajk- said:

>5 BTC holders on Earth

Not even close by a massive margin.

 

USDT and UST aren't comparable either.

The current marketwide crash has nothing to do with LUNA or UST.

 

Wanna clarify and provide sources? As I said, I'm not a crypto bro, I'm only following the shitshow after the NFT crash from a few days ago.

 

Not sure I even mentioned USDT at all, did I?

 

Well the 4 or 5 videos I've watched all disagree, the current crash happened when Binance delisted Luna.

 

If you can show sources to where I was wrong I'll happily update the OP

[Mark Kaine]

1 hour ago, Master Disaster said:

many are left with literally nothing and have zero recourse about what just happened.

 

this is why ponzi schemes are typically illegal... it works until it doesn't with nothing to back it up.

 

 

i also disagree that its "incredibly difficult" it really isnt.

 

and im also not sure i shall feel bad about people,  because i cant imagine no one told them about the obvious risks.

 

 

who is really to blame however is lawmakers.  the internet and computers arent a new thing, and things like what is basically  a digital "snowball scheme" which are illegal "in the real world" should also be illegal "in the digital world" (" because i think thats how these people think, personally i dont really make this distinction,  a computer is just as real as any other real world object) 

 

51 minutes ago, Origami Cactus said:

Looks like a normal friday to me.

You can call it a "bubble burst" when BTC is worth less than 1k, and ETH is less than 100$.

that's the other thing... isnt it likely to recover soon, i mean el salvador (?) is already "dipping the dips"?

 

But maybe their dude is just too much on reddit... 

1 hour ago, Master Disaster said:

Its much easier to fool someone than to convince someone they are being fooled

Mark Twain

A very wise man,  this man.

 

 

1 hour ago, J-from-Nucleon said:

I uhh, sorry, I uhh did this before.

Clubbed it with another topic not realising it's impact.

Literally every other crpyto fell with the exception of a couple stable coins

 

yeah, you did, but with this el salvador angle, which is only a small'ish part of the whole story.

[strajk-]

4 minutes ago, Master Disaster said:

Wanna clarify and provide sources? As I said, I'm not a crypto bro, I'm only following the shitshow after the NFT crash from a few days ago.

 

Not sure I even mentioned USDT at all, did I?

 

Well the 4 or 5 videos I've watched all disagree, the current crash happened when Binance delisted Luna.

 

If you can show sources to where I was wrong I'll happily update the OP

You're the one claiming he is a top 5, you're the one that has to back it up, not me, the blockchain is not mythical, you can look up the explorer whenever you want to see who is the wealthiest...and he is not one of them...

 

USDT was mentioned for falling to 0.95 so I don't see the relevancy to UST, tether dropping is not a new occurrence, it happens quite often but quickly corrects back to $1...

 

The market was already crashing way before the LUNA debacle, it has been on a continuous downtrend since 22.03.30 and has been even before that, so how is LUNA responsible again?

[Master Disaster]

2 minutes ago, strajk- said:

You're the one claiming he is a top 5, you're the one that has to back it up, not me, the blockchain is not mythical, you can look up the explorer whenever you want to see who is the wealthiest...and he is not one of them...

 

USDT was mentioned for falling to 0.95 so I don't see the relevancy to UST, tether dropping is not a new occurrence, it happens quite often but quickly corrects back to $1...

 

The market was already crashing way before the LUNA debacle, it has been on a continuous downtrend since 22.03.30 and has been even before that, so how is LUNA responsible again?

I'm guessing you are invested....

 

Again, I don't do crypto and honestly DGAF who holds what, I thought I had read he was top 5, turns out I read he was on track to be top 5 before the crash. My bad.

 

Where was USDT or Tether mentioned at all?

 

Well the people who really cover this stuff, including actual market analysts are all saying the same thing, this CURRENT crash is because of what happened with UST/Luna. If you disagree then whatever, again I'm not invested and DGAF either way.

 

Fun fact though: The market being on downtrend before Luna crashing and Luna crashing causing the market to implode are not mutually exclusive...

[Needfuldoer]

Wild price fluctuations on the back of one billionaire making vague statements is the hallmark of a truly stable economy.

 

 

/s

[strajk-]

11 minutes ago, Master Disaster said:

I'm guessing you are invested....

 

Again, I don't do crypto and honestly DGAF who holds what, I thought I had read he was top 5, turns out I read he was on track to be top 5 before the crash. My bad.

 

Where was USDT or Tether mentioned at all?

 

Well the people who really cover this stuff, including actual market analysts are all saying the same thing, this CURRENT crash is because of what happened with UST/Luna. If you disagree then whatever, again I'm not invested and DGAF either way.

 

Fun fact though: The market being on downtrend before Luna crashing and Luna crashing causing the market to implode are not mutually exclusive...

I am not invested, what if I was?

Your source literally starts talking about the market and USDT in general even though it has no relevancy to the event at all...yes I bother with reading the linked articles, reading only the post in LTT is akin to only reading a headline.

[Master Disaster]

3 minutes ago, strajk- said:

I am not invested, what if I was?

Your source literally starts talking about the market and USDT in general even though it has no relevancy to the event at all...yes I bother with reading the linked articles, reading only the post in LTT is akin to only reading a headline.

Right, so you built a strawman then, gotcha.

 

You're right, it has no relevancy to this discussion because nobody here mentioned it at all until you did....

[strajk-]

4 minutes ago, Master Disaster said:

Right, so you built a strawman then, gotcha.

 

You're right, it has no relevancy to this discussion because nobody here mentioned it at all until you did....

A strawman would imply that I said that you said something, I brought up points about both the post and the article, never did I say that you talked about USDT...the only thing I asked sources for was the top 5 claim...

 

Nice strawman btw

[Error 52]

If you're wondering how things are going on the Luna subreddit

[Heliian]

Welcome to the future!  Don't be left behind!  Fortune favours the brave!  

 

 

[SansVarnic]

-= Topic moved to Folding@home, Boinc, and Coin Mining =-

Topic doesn't fall under Tech News. 

[Master Disaster]

8 minutes ago, strajk- said:

A strawman would imply that I said that you said something, I brought up points about both the post and the article, never did I say that you talked about USDT...the only thing I asked sources for was the top 5 claim...

 

Nice strawman btw

Nope...

Quote

This fallacy occurs when, in attempting to refute another person's argument, you address only a weak or distorted version of it

 

[strajk-]

Just now, Master Disaster said:

Nope...

 

Which is exactly what you did by calling it a strawman, I never claimed you talked about USDT, when talking about the news am I supposed only engage with what you post here? Then why link sources at all?

 

It's clear cut in my reply when I actually engage with your post, that's on the Top 5 claim...

[Origami Cactus]

2 hours ago, Master Disaster said:

You keep telling yourself that if it makes you happy, meanwhile everyone else be like..

And you keep telling yourself that, try to keep off of reddit next time. I don't have any money in crypto, but i am just annoyed at the boys who keep calling the wolf. Like BTC falls 10% and redditors are out here clapping their hands hahaha told you so crypto is worthless, and when it goes back up they are nowhere to be seen.

I want crypto to fall as much as the next guy here, but just annoyed at people like you who don't really learn from history and keep annoying me. When I read "cryptobubble has bursted" I want blood on the street, BTC at 0$, not this BS. So please don't do another reddit moment, thanks. In the biggest crash BTC value fell by over 90%, right now it is down by like 50% and we have a mister reddit expert declaring it dead, lol.

You can say that the bubble is popped when every single crypto is down 99% ATH, otherwise it is just a Friday.