INSANE ---- PLEASE READ
Assuming the new Terra launches with a $1 billion market cap (a generous estimate given the failure…) that means $200 million of new Terra will be distributed to UST, and $100 million of new Terra will be distributed to Luna Classic. Based on this distribution - UST will be worth less than 20% of its current price (an 80% reduction) @ 0.01773049645 before becoming practically worthless after the Genesis event…
Luna Classic will be worth 0.0000153065 before becoming practically worthless after the Genesis…
Compensation funds paid will not impact the valuations as they are paid to owners pre-crisis…
Please let me know if everyone agrees or I missed something?
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People like me are doomed who bought during 8 to 12 th may.
Price was still high and supply was relatively low. So could not buy much and managed to get less token.
Do kwon tweeted there was a recovery plan and told to stay strong.
Now I can see we are getting out of 6.5T supply.
So that means probably 2 or 3 tokens!
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The limited circulating supply makes a $5B+ valuation possible/likely. Maybe much higher during vesting period. But at any rate… big lunaC holders can work on making lunaC, UST, value/longevity. The lower Luna2 value is, the more chance lunaC has of becomming “dominant” chain.
Pretty much, the goal is to extract whatever value remains in the current TerraLuna system, use a fork to create new chain and distribute that value among holders pre-event. This is not a plan to save luna or UST, they are just saying that because they want to get as many people to buy the current tokens as possible, thus increasing the amount of value that can be distributed to the new token holders. This WILL destroy the platform, because it is literally a pyramid scheme. So once new tokens are distributed it will just be a race to the exits to see who can sell before the new tokens go to 0 (if they are even listed anywhere). This means that small holders from before the event are going to get destroyed twice, only the majority holders will extract any value at all.
Worse this is a perfect example of what the critics of blockchain have been saying all along “Crypto markets are just pyramid schemes”, and is almost guaranteed to bring regulators into the crypto space.
Its a shame that the folks making the decisions are behaving so selfishly and really small minded, ignoring the larger issues at play here.
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