Painful to Watch - UST and LUNA

https://marrythaigirlsingapore.blogspot.com/2022/05/tough-days-for-crypto-market.html

Still find it incredible this happened in less than a week's time. I don't want to use any negative words or phrase anything negative until the Terra team and its community says it's over.

Personally I'm not invested in UST or LUNA, used to hold some LUNA but sold a few months ago.

3 days ago when I blogged about it I thought nothing serious because it's not the first time any stablecoin depegged, even the likes of rock solid stablecoins like USDC and BUSD depegged sometimes.

Boy was I wrong and things escalated too fast.

As of now, UST is trading at $0.0951 and LUNA is trading at $0.00000953. Really painful to see this, don't really want to imagine how many retail investors got wiped out.

When this happened, there were conspiracy theories about UST getting attacked by dumping UST and then shorting it and Terra had to sell Bitcoins at a huge loss to repeg UST. The latter part is definitely true but for the attack, I don't know, as long as not proven, a theory is just a theory.

I'm more inclined to think that this is a case where fear led to panic, which led to chaos, and to hopelessness.

UST depegged, people panic sold, and Bitcoin happen to fall 11.60% which made things even worse, fear on top of fear means mass panic, especially when people saw a $0.744 UST, that already set the stage for a mass exodus of liquidity, people will get out in the next pump just to be safe, especially the big money.

In short, what happened was a bank run, caused by fear and panic, and Terra didn't have the reserve to back their UST, so apparently they didn't plan for this scenario.

I really hope all stablecoins learn from this and put in place measures for the worst case scenario, people tend to only plan for the best and completely ignore the worse that can happen, that's why I always ask, "What's the worst that can happen?"


Comments

Post a Comment

Popular posts from this blog

Long-Term Visit Pass - Plus (LTVP-PLUS)

http://www.ica.gov.sg/news_details.aspx?nid=12665 Good news for those of us who cannot get PR for our beloved spouse, because the Singapore government has come up with a enhanced long-term visit pass called LTVP-PLUS or LTVP+. I'll sum up the key points in the FAQ provided by ICA so you don't have to go through one big page. Do let me know if I missed out anything or correction is required by dropping a comment. GENERAL LTVP+ will be in effect from 01 Apr 2012. LTVP+ holders will enjoy extended duration of residency, public healthcare subsidies and easier access to employment. No separate application required for LTVP+; an application for LTVP will automatically include your spouse for LTVP+, if eligible. LTVP applications submitted from 01 Feb 2012 will automatically be considered for LTVP+. The first approved LTVP+ will grant 3 years residency and subsequent renewal will be 5 years. Current holders of LTVP will be considered for LTVP+ on next renewal. If holde
Read more

How to Marry a Thai in Singapore

Image
You should refer to here -  https://www.rom.gov.sg/reg_info/rom_marriage.asp Please spend some time to go through and understand the information on that section (legal provision, other information, filing of notice, solemnization and etc), if your still not sure, feel free to drop a comment here or you can use their FAQ . The ROM website did a really good job of putting together the information that you need in a well-organized manner. I've done it once and I think the guide is very easy to follow. The only hiccup I've had with my marriage is during the  Appointment for verification & Statutory Declaration where both of us were required to read out a wall of text and my wife had difficulty getting past the first few lines and the counter guy got fed up and told my wife to stop. Definitely my oversight as I didn't arrange for an interpreter beforehand but luckily, there was a licensed interpreter at the scene and we managed to get her to do the interpretation fo
Read more

Commission Calculator for DBS Vickers SG Stocks

Made this little tool to help me calculate the costs of buying or selling a stock, just enter number of shares and price and it will show both buy and sell costs at the same time. Can even choose by cash upfront, online or phone and it will calculate using respective rates. Cash Upfront ONLINE By Phone Shares: Price: Value: Commission: Clearing Fee:
Read more