cosmos ecology - Luna's ending / what is the impact of cosmos

status quo

More or less, everyone should have understood the biggest thing in the currency circle these days. The Korean star project terra, the largest algorithmic stable currency UST, was attacked by a well-known (Wall Street) traditional financial institution. The rumors can refer to ( 1 , 2 ), regardless of the rumors Whether it is true or not, it is certain that being sniped by the agency is a fact, and then dominoes, when the value of LUNA drops to about 30, the subsequent operation should be the second attack of traditional whales or big players. The structure can be imagined, to a few pieces. Time is already a target for everyone to short, and the ending is the current situation, currently worth $0.008.

Measures by LFG and DK

LFG's public reserve address, when the value was around $80, emptied all the BTC reserves. Nearly billions of dollars of BTC should not be sold, but most of them should be handled. Later, DK tweeted that LUNA UST chose one of the two. He chose to maintain the UST exchange rate. Many people may not understand. In addition to what OSMO Sunny said, if it were him, he would choose to abandon UST and regard LUNA as an L1. The public chain, because different people have different situations, the choices made may be different, because we currently cannot know what is behind the DK, why we made such a choice, and the results can be imagined. After choosing UST, LUNA accelerated the additional issuance, and its value plummeted, and a large number of retail investors joined the ranks of short sellers.

Impact on cosmos ecology

At present, several projects that have introduced UST are mainly DEX, OSMO, Junoswap, Creswap, and Sifchain. The ones with large losses are retail investors. The main ones in sfichain are LUNA pairs, which are not small enough to run out (unlocked in seven days). Osmo's is okay, mainly UST pair, Cre's pair can be unlocked in real time, all said that it's okay.

Action: Cre has initiated a proposal to start introducing ETH and USDC. OSMO has deployed Alex's DAI and USDC in advance, as well as GRAV's stablecoin.

Impact on the currency circle

• All projects anchored with UST will experience panic selling in the short term, leading to a downturn. The most obvious one is Rune
• It is difficult for all algorithmic stablecoin projects to survive, at least for a long time recently. Although stablecoins such as USDT have short-term de-anchoring today, USDT is regulated and has reserves. The only thing that is criticized by the market is that the reserves are not suitable for the market. public

LUNA's ending

No one can predict. After all, the Luna ecology does not exist for no reason. The market needs to digest it. The previous DK financing was unsuccessful, at least it shows the contradiction. Either the institution wants to change the mechanism of LUNA, or it is due to the supervision of the United States, or it is The asking price is too low or the lion has a big opening (selling body), there must be many reasons, no one can know.

In addition, Luna still has a good organization invested in doing things, which is not worse than most public chains. The outcome should not be ignored. It just takes time. Time is to think about countermeasures, find good investors, and wait for the market. It may be a little better if it is completely digested and the trading volume goes down, but it is definitely not the moment. - No investment advice, short-term arbitrage is no problem, because no one knows what will happen next.

Finally, the market needs regulated stablecoins USDC and BUSD. This is what the United States wants to see most, but it also needs currencies that are not anchored to the U.S. dollar. It will take time, because this is the original intention of the blockchain, and it may take a lot For a long time, there are many very complex things behind it, not only we can see the problem of the algorithmic stablecoin mechanism, but also many problems that have nothing to do with crypto, such as politics, economy, geopolitics, world pattern, etc.