I'M AN EX-"WHALE". I Have 4 Kids, I Lost It All, And These Are My Thoughts

Governance & Proposals
1

UPDATED 16.05.2022:

After the latest announcement a few hours ago that the LFG has no money left ( spent almost the entire 3B reserve) wlawyer is the best proposal so far, as it will (potentially) bring 1.5B USD from investors to compensate the UST pre-attack holders.
I support it strongly.

You are still more than welcome to read the post I have shared a few days ago before this proposal came to life.

ORIGINAL POST:

Before I start, I’ll just say that I basically agree with FatMan’s proposal as the first goal in a crisis like this should be to save as many people as possible.

I am one of these people that you call “a Whale”. A whale who lost everything. I had 1.5M UST locked in Anchor so I am probably amongst those 1000 top addressees that might not see all, or any, of their money back in case of a repayment. I also had 5500 Luna which I bought when the price was around $35 many months ago, and It’s still staked up util now.

After the attack, I sold 500k UST and got 250K USDC as the peg was $0.5. I Then swapped another 500K UST for Luna (at $40) , and I kept the last 500K in UST until today.

In total, I managed to get 250K back, but these funds will go towards my taxes, and it’s not even all the taxes I need to pay, so I’m pretty much also screwed with my taxes.

Before I share my thoughts and points, let me tell you a little about myself. I am married and have 4 kids. I’ve been in Crypto since early 2017. I closed my business 2.5 years ago and I’ve been only doing crypto since then. 16 hours a day, learning and digging like many of you. A real full-time job.
A few years ago I almost had to sell our family home but crypto saved me.
I started with 50K and decided to go all in on projects I believed in. It worked well, even though I also lost a lot along my way up.
I saw Terra Luna as a real gem in the space, and the idea of a decentralized stable coins looked like the right place to store my wealth in.
I had almost my entire capital staked with Anchor and I lived off the interest, which allowed me to continue and get involved in crypto. This was probably the biggest mistake of my life, and even that the say: “don’t put all eggs in the same basket” was known to me, I did wrong and trusted the system while the daily interest dazzled my eyes.

A few points if I may:

  1. (Edited): The first point I had was to only compensate UST holders and not Luna holders for the reason that UST was the core system and had a promised ratio of 1:1 while Luna was a token that can see ups and downs (And remember that I was a Luna holder as well).
    But after reading over 60 replies so far you have convinced me that both UST and Luna holders should be compensated. It means less for everyone, but indeed all of us, the holders who supported this ecosystem, deserve their share in case of a compensation.

  2. There should only be a snapshot prior the attack. With Do Kwon’s proposal, those 400M that he offer to split amongst the ones who “held” till the end and were there when the system restarted, only means that for example people who bought UST on Binance for $0.30, then sent it to their wallet before Terra halted, will get a 3X over their money. This is not acceptable.

  3. The holders that sold during the attack shouldn’t be punished for trying and save their life savings, no matter whether they are poor or whales. The compensation should be for all holders, that had a skin in the game before the attack. Whatever happened after that should be ignored and all speculators should take the responsibility for the risky game they played. It has nothing to do with us, the community!

  4. As you can see, even a “whale” can become poor in one day. Don’t assume all whales on Anchor have a fortune back home.

  5. Remember that most of the UST holders did sell during the attack trying to save our money. If we compensate every small account with 100% they will actually make a profit as they’ve already rescued some of their funds. For example in my case, I managed to save only 250K out of my 1.5M and the rest is dust. If I would get my 1.5M back. I made an extra 250K profit and this is not acceptable either.

I don’t have enough knowledge regarding the abilities to see who withdrew what and when, who sold the UST they’ve withdrew, and who just held it in their wallet till they’ve decided to sell however we will need to find a way to do this so we can deduct those funds accordingly. Any suggestions on this point will be appreciated.

And lastly, if you’re in a dangerous place right now and you’ve lost everything you had, just remember that money comes and money goes. There is never a real zero, even if it looks like a zero, take a closer look and you will see 0.0001. From this disaster you can only grow.
Stay Strong.
Ex whale

42 Likes
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Fatman’s revised proposal suggests that even whales get compensated.

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Yeah I’ve seen the revised proposal but this wasn’t the point of my post.

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Haha, you got me. I just read the first paragraph when I wrote what I wrote. Still reading, I think you make good points. Thanks for your post.

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Thank you for taking the time to post this, as a long term UST + Luna hodler I agree with you and Fatman.

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No problem, thanks :slight_smile:

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I agree that UST holder should be compensated more than Luna holders. I hold Luna. Yes, it loses value but that’s investment I can lose. People in UST didn’t sign up for this. It’s trust issue.

I’m not putting blame here, but UST did not failed because Luna holders sell Luna. It fell because UST holders sold UST at reduced price. Enough of them do and we have this.

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wow…
just wow…

ok, when i see people saying “only UST should be refunded” i kinda loose hope.

So, your argument is that UST was “sold” to you as a stablecoin.
Ok.

So is the argument of Luna holders, that Luna was supposed to loose value, but the peg would hold! :slight_smile:

See?
Thus the promise made to you wasn’t held, but also the promise made to the other side wasn’t held!

Because if it had, at any reasonable point (still way off peg), Luna price wouldn’t have been evaporated.

By the way, people with UST, act as if they thought UST was a FIAT currency in their bank account already.
As if they didn’t know it was an algorithmic stable and there is a certain danger of depegging.

Don’t do this.
Just don’t.

I also lost a lot of money, about $400k at the time of crash

Btw, you said you had 1.5 in anchor, that would give you around what? 25k/month?

Now, that’s a lot of $$ and should have moved something elsewhere.

I had, although i only had around 20k in Anchor and used the yield to buy other coins.

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Absolutely pathetic. You UST guy are as selfish and as greedy as the people who put everyone in this mess.

Just remember without people always buying luna to try and get the peg up the situation would have been a lot worse.

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Well if you read FatMan’s proposal you will see that the repayments are only set for UST holders, and this proposal so far has the highest support so far.
Nobody says that Luna holders will get nothing, but not from the reserve money.
A good idea would be to use Do Kwon’s idea and issue them a new token based on a snapshop of before the attack.

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So you tanked the price of UST further at a 50% loss during the panic phase, and now you tell me, a guy who bought back LUNA during its fall, that even a 3x for me is unacceptable? You are a joke.

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You’re probably frustrated for having speculated on something you don’t understand, because that was never the intended relationship between Luna and UST. One was speculative, used for governance, and intended to prop up UST as a backup. But mounting interest in UST was what burned and drove up Luna.

Also, what @NoMystakesEtAll posted is not pathetic. It takes a lot of humility and wisdom. What’s pathetic is your lack of empathy and understanding.

You have a lot to work on.

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I swapped UST for Luna as well. at $40. It cost me 500K UST to buy it, and i’m not crying to get it back, as this trading act was totally my fault, and for bad trades you should take the responsibility.
But losing on UST wasn’t a trade, this was the whole idea and trust of the ecosystem and any recovery should go to UST holders for this reason alone.

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Exactly, it is unacceptable that in @FatMan proposal most of the people who sold early to recover some of their principle are going to end up profiting, while those who put their trust in the ecosystem and held until the end might not even be made whole. I am in the 99.3% and I disagree with the idea that whales should be the last to receive or should be capped. This is not socialism. Everybody should have the same rights as who put more UST in really trusted the ecosystem making it even more attractive for others. Everyone should be treated the same. Who comes to put their money in a decentralized network doesn’t want to be ruled by politics. If one person is going to receive 80% everybody should receive 80% back. The problem with @FatMan proposal is that it opens the door for people that sold early at minimal loss to make huge profits and can potentially be refunded 100% plus whatever the person was able to recover. Its time now for people who believed they were putting their money in a decentralized savings instrument to get back their funds and restart their lives. It’s not time for profiting while some other people will end up being sacrificed as a result.

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You speculated on a technology that was clearly imperfect as we all see today, entering it at a price that far exceeds its true value - again, visible to all of us today, and further risked your fiat under it. And this entitles you to more than what I get? You guys are out of your minds. This chain will be no more if anything remotely similar to the idea passes.

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agree, for the confidence of the chain it doesn’t matter what is going on when Terra team announce UST as stable coin with 1:1 then compensation for all investor is must be 1:1 if not after the fix the issue how investor can trust this coin

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I personally don’t this that the system can exist as it was. No confidence can be built again in the same system, it will need to start over with more security measures and new tokens probably.

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To be honest, At the cost of LUNA holders (and buyers) you were able to get out your 250k. Just keep that in mind :wink:

I understand your situation. But also why it is biased towards ust holders. Yes you had luna, but like you stated, your bag of luna was nothing compared to your UST bag. Hence the bias.

Now, to be fair, as a UST holder you had way more time getting out than LUNA as luna holders got instantly screwed with hyperinflation. When UST was at -50%… LUNA was down 70%. UST holders had another chance at 90 cents… while LUNA went down another 99%. … and this repeated many times. So basically, luna holders and buyers that kept buying up the inflation helped UST to rise, which gave you the chance to get out with something.

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Your entire path in life in relation to crypto is based off succeeding from speculative risky bets, even investing in an uncollateralized algorithmic stable coin was one of the riskiest bets you took, without even realizing it (… given Iron Bank’s very public collapse last year).

And suddenly those speculators who invested in UST or LUNA post depeg and profiting is “not acceptable.”

… “Whatever happened after that should be ignored and all speculators should take the responsibility for the risky game they played” … absolute horse shit! Or equivalently, include yourself in the latter group, and take responsibility and not expect any recovery or compensation.

Dude, buy yourself some ‘self-awareness’ with whatever dollars you have left remaining.

Nonsense, self-interested garbage of a post - claiming to be community orientated!

LUNA is the PRIMARY asset. UST is the derivative. Derivatives, as per their inherent risk characteristics, can expire worthless.

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I think it’s only fair both UST and Luna holders are reimbursed. It’s a scam that affected both, we lost $500,000 it’s our life savings staking on anchor, we held as long as possible to give Do KWON a chance to repeg. Unfortunately we had to try and recoup something and sold out at 30c. Normally I would say suck it up that’s the game you signed up for, however the way it was played is theft some call it trading. This should of been prevented and more communication through the unpegging. As most of the investors were mum and dads, families not seasoned traders, hence how easy was the hack. If people aren’t reimbursed and a solid plan with new security is proposed then the trust in Do KWON, UST and Luna is done,