Was the collapse of the Terra (LUNA) crypto project expected?
The content site is one of the sites that provide the service of answering general questions and solving puzzles and crossword puzzles
Where the content site is primarily interested in answering your questions in all areas, including solving puzzles and crossword puzzles
Answer Was the collapse of the Terra (LUNA) crypto project expected?
The collapse of the Terra Crypto Project (LUNA) created the event in 2022, as it pulled the crypto market with it to collapse and fell below $1 trillion, only to then rebound and begin to gradually recover.
The collapse of the Terra Crypto Project (LUNA) was surprising but expected for some experts and developers.
Mariano Conte, an Ethereum developer who is also an investor, advisor, and former head of smart contracts at MakerDAO, referred to a discussion of Terra (LUNA) design flaws in April 2018, and his analysis and discussion with Yonsei appears to be quite insightful.
Mariano Conte predicted a death spiral for Terra (LUNA) in 2018, posting a Twitter post that includes a reporter for Cyrus Younesi, fellow MakerDAO.
On April 20, 2018, Mr. Younesi criticized the geometry of stable Terra (LUNA) and TerraUSD (UST).
In a statement cited by veteran Linda Zee, former head of products for Coinbase, Mr. Yonsei criticized the idea of supporting UST only with LUNA coins.
In 2018, the Terra design was compared to MakerDAO’s DAI design.
A criticism of these projects is that the backing of these assets is too fragile.
As investor panic will easily set off a death spiral as two cryptocurrencies — a stablecoin and its “base currency” — race towards zero.
Likewise, LUNA fell when investors panicked, then continued to fall, after which each continued to contribute to the other’s demise.Read:Shop in Venezuela: Petro cryptocurrency is a scam
The expert, “Yonsei,” also referred to the tragedy of the first stablecoin backed by the NuBits algorithm (USNBT) that collapsed in the second quarter of 2016, when “Younesi” was surprised that some technical teams are still interested in similar designs.
The collapse of Terra (LUNA) was painful for the entire industry, and Mr. Conte also attached a statement regarding Su Zhou of Three Arrows Capital, one of the largest investors decimated by the collapse of Terra (LUNA).Read:Corona virus shuts down one of the most famous bitcoin mining farms
Mr. Zhou allegedly failed to recognize the fragility of the LUNA/UST ecosystem.
Thanks to large-scale withdrawals from the Anchor Protocol (ANC) and subsequent panic selling, the TerraUSD (UST) stablecoin has lost its peg to the US dollar.
Related “Delphi Digital” company lost its entire investment in LUNA, resulting in an expected “death spiral” and driving prices for LUNA and UST to near-zero values.
Then dozens of crypto funds with open positions in LUNA were liquidated.
Coinbase now supports NFT buy and sell orders from OpenSea and Rarible…Details here
This is how Cardano plans to attract 100 million Africans to the cryptocurrency arena
And you can ask questions on the content site through the word “Ask a question” at the top of the site, where we answer your questions in a short time