No matter what is done, actions needs to be taken against whoever the responsible party was for facilitating the de-peg, and I’m not speaking to the flaw in the design by terra labs (although they bear a burden). I’m specifically referencing the two or three wallets that dumped heavily which caused the depeg and subsequent eradication of Luna equity. I know some hedgefunds have been mentioned, but who were the individuals responsible?
there wasn’t any attack at all !!! 20% APY was the main culprit in this whole carnage. Professional investors (Wall Street) tend to flee the market as soon as there is a concerning news about their investment. The same happened with UST…. The moment Anchor announced variable interest rate instead of fixed 20%, big money started to leave (dumping UST slowly) Change in the interest rate was perceived as a weakness in UST. You can check the UST chart from April last week, it was bleeding daily… $650m withdraw was just the final nail in the coffin that de-pegged the UST from $1
This was the start of the meltdown but the nail in the coffin was when they printed UST to buy BTC leaving lots of UST floating in the open market looking to exit… As soon as BTC price fell, the depeg was on.
So you don’t believe reports calling this a coordinated Attack? Seems like really convenient timing and people made a ton of money on the short side
No. They want you to believe it was a coordinated attack to hide flaws in their design.
The design might be flawed. I still don’t understand how the money left the system. Was it the anchor payout? Or the money in their reserves that they did nothing with? Now the damage is done is too little too late. All you got so far was a half-assed sorry.
I’m convinced it’s an attack. All these blame on Do Kwan is just people who lose their investment pointing fingers. I lived through 2 financial crashes. There’s always these guys around. Please bear with them but not waste time arguing. They are going through tough time. Emotional people aren’t rational.
I also agree that the attacker should be identified. But you know the attack is done in CEX. So, there is nothing on chain to see.
Why am I convinced it’s an attack? I see a really strong discrepancy in UST/USD price when I made my arbitrage run. Binance halted withdraw multiple times so I did not use their platform to do arbitrage but consider UST price on Binance VS the price I bought on another smaller CEX
This was my buy order. I hold a strict rule not to share my worth so I hide the amount and show the price and time it’s filled.
This is the price on Binance at that time
Note the price I bought was 0.64 - 0.66 but on Binance at that very tick it was open at 0.56 and close at 0.55. There was a roughly 14% different in price of UST then, meaning the place with lower price should have more excess UST and better for arbitrage (but Binance prevent withdraw so it interfered with the decentralized pegging system designed for UST)
That’s why I think it was an attack, because the biggest CEX and most likely the place UST is attacked on, had more excess UST (thus lower price). If it was not an attack and it’d just a scheme like people who caught a falling knife claim, we should see a sudden flatline equally all across CEXs.
UST holders also forget that UST is a decentralized stable coin. Centralized stable coin has one company responsible for the peg. It’s easy. You can point fingers and put blame. If it crashes, they can blame people. UST is decentralized meaning it’s on UST holders to maintain the peg. The mechanism relies on us UST holders to bring excess UST back to Terra. They’ll pay us in LUNA that we can sell for profit. They give us incentives, a way to maintain peg, a way to make money, and we’ve failed.
Unlike Cadia, the guards broke before the planet.
Note that I’m not sure if the attack is malicious or unintentional. I mean, if the group that depegged UST legit trust UST peg so much they didn’t think it’d depeg, then It’d just add one more tragedy on a pile of tragedy right now. Imagine you exchange 9 billion USD for some other currency and you crash USD. That’s unthinkable, right? It’d be like you loading a car on Titanic. It’d never sink right? Oh…nyo… It can also be malicious. I don’t really like judging people so malicious or not is to be investigated after we know who did it.
There was absolutely a social media / marketing / public relations campaign with multiple stages throughout this process. The sheer volume was not organic, and the narrative turned on a dime to generate maximum pain for Luna. It followed a similar playbook to how the media takes down any public figure.
“Depeg” FUD before the depeg was even significant. Fractions of a cent.
Cory from Swan bitcoin was tweeting like it was his full time job, as were the influencers he sponsors. These are busy people not kids in their basement. He did an appearance on CoinDesk also focused on “depeg” … again before a significant depeg.
Galois capital victory lap, posted here. The founder there also did an interview on CoinDesk. Really creepy in my opinion, given that so many people had just been financially broken. Perhaps just ego, but it is not “normal” to dance on graves like that. See Emin from AVAX twitter post for an example of how a sensible honest person would respond in my view.
Yellen commentary the morning after depeg. Amazing how government moves at a snail’s pace, except during a PR event when they all move to a camera with the speed of an olympian.
Twitter bots more aggressive than I have ever witnessed, and thats saying alot. The narrative strongly pivoted a few times, but it always felt a little mis-timed and off, as if following a pre-planned schedule. “Depeg” “Ponzee” (lol this forum had to ban the real word proving my point somewhat) “Its over, give up” “This is why we need regulation” “Investors learned a hard lesson now we must move on”
The “move on” narrative was the most suspicious to me. Discouraging any investigation into malicious action.
Complete speculation, but I would follow the breadcrumbs of BTC mafia who were very upset by Terra purchase of bitcoin. They are trying to cozy up to regulators.
In reality there were many groups who stood to benefit here. BTC/ETH whales, regulators, other stable coins, along with traditional Luna bears.
I really hope we get to the bottom of this, not for my own pocketbook but to understand what snakes slither among us.
Forgot a massive one:
- Reddit posts of very dark nature (readers know what I am referring to). Everyone saw these and it truly pains me and I pray for anyone who took a dark path.
Reddit is ground zero for narrative control via manipulation. How the game works is to make a lot of fake posts on reddit “manufactured consensus”, and then a more reputable outlet can simply report on the reddit posts, this solidifying the narrative. Very sneaky.
One thing that struck me as suspicious was Cory from Swan (again) actually changed gears from FUD and interjected on twitter to point out that those reports were fake. As if he had a temporary conscience about a campaign that took things too far.
IF the attack went on as people describe, it shouldn’t be too hard to identify the attacker because according to the hypothesis the attackers sold on Binance to cause BTC downward spiral.
I do think that someone attacked Terra/Luna too. The timing was truly incredible though.
CEX with such volume is likely KYC’d. They can be ID’d, if you have the grounds to do so.
that’s right, the money has not come out of the system !, and will be used to bring the house of cards back up, make short money and you can go long money
I encourage anyone here in good faith to choose their thoughts and words carefully to easily differentiate them from dishonest actors.
This is a forum for serious investors of Terra to work through our problems and try to find a resolution. The mood is somber, thoughtful, questioning. Emotions are high for those that lost everything.
I do not believe anyone that comes here to post a “hot take” is sincere.
For example, in this thread, “KingLeo” and “Leo_nardo” just want to tell us this was a house of cards, doomed to fail. Does this seem natural? Do people just walk into funerals, disparage the deceased, and walk out?
Unhelpful at best, malicious at worst. The best we can do is be sincere and thoughtful. Much love to Terra community, still the strongest around.
So many TradFi pawns on these boards - no matter how much evidence is presented, they will pretend it was never presented and do their best to pin the blame on Terra while providing cover for their TradFi overlords. It was 100% an attack.