My Take On What Led To The Depeg Event

General
1

After reading through several analysis, rumours, conspiracy theories and false narratives… Here’s the truth behind the infamous depeg event…

  1. UST, the Algo based stable coin grew very rapidly… that growth was not organic but was rather due its attractive 20% interest offering… “if it sounds too good to be true then it probably is”… every investor had this in the back of their head with fingers always on ready to pull the trigger…

  2. The crypto market entered a bear market and $LUNA started dropping… this intensified doubts as UST was backed by crypto ($LUNA and BTC)… the first batch of panic withdrawals started…

  3. After the first batch of panic withdrawals, UST depegged by 2% and $LUNA dropped further. Now more investors started to panic not the forget the role of social media in spreading fear rapidly…

  4. TFL started to deploy funds to achieve the peg but it was not sufficient and fast enough.

  5. The worst decision came when they decided to increase minting of LUNA. It was clear at that point that peg could not be restored.

The very reason of UST’s growth (20% APR) was the reason for its eventual demise. Entire crypto space saw this as a S C A M or a P O N Z I scheme (20% APR) that led to low investor confidence and eventual bank run.

2

What’s happened has already been covered at length. The above is not the truth but is nothing more than establishment propaganda, the leaders in conspiracy theories if there were one.

3

Eh attack angel needs more invetigating. Some folks followed wallet, little been done since. Could also be someone swapped a ton not thinking liquidity there a littke bit ago was suddenly notnthere, then realizing that trying to capitalize on the situation. If wanna gi another conspiracy route who’s to say it wasn’t LFG or TFL or another insider? Any attack angle needs investigation, which sure worth doing