𝗪𝗲𝗻𝗻 𝗲𝘀 𝘇𝘂 𝗴𝘂𝘁 𝗸𝗹𝗶𝗻𝗴𝘁, 𝘂𝗺 𝘄𝗮𝗵𝗿 𝘇𝘂 𝘀𝗲𝗶𝗻, 𝗱𝗮𝗻𝗻 𝗶𝘀𝘁 𝗲𝘀 𝗺𝗲𝗶𝘀𝘁 𝗮𝘂𝗰𝗵 𝗻𝗶𝗰𝗵𝘁.
A few weeks ago someone made a poll about doing a post on stablecoins. Unfortunately, UST won at the time. This is a small update post because of the current situation.
𝗞𝘂𝗿𝘇𝗲 𝗜𝗻𝗳𝗼 𝘄𝗶𝗲 𝗟𝗨𝗡𝗔/𝗨𝗦𝗧 𝗣𝗮𝗮𝗿 𝗳𝘂𝗻𝗸𝘁𝗶𝗼𝗻𝗶𝗲𝗿𝘁:
You can always trade LUNA/UST as if 1 UST = 1$. If 1 LUNA is worth 100$, you get 100 UST for it and vice versa for 100 UST you get 1 LUNA.
This is true even if 1 UST is worth less or more than 1$.
This is the system behind maintaining the UST/USD peg. Arbitrage traders can swap LUNA/UST back and forth depending on how much UST is worth.
The more UST in circulation, the less LUNA there is, as they are burned to mine UST. LUNA rises thereby in the price. But how do you get people to swap LUNA for UST or buy UST?
𝟮𝟬% 𝗔𝗣𝗬 𝗕𝗔𝗕𝗬!!!!
𝗨𝗻𝗱 𝘄𝗮𝘀 𝗶𝘀𝘁 𝗵𝗲𝘂𝘁𝗲 𝗻𝘂𝗻 𝗽𝗮𝘀𝘀𝗶𝗲𝗿𝘁?
One or more UST whales have started selling massive amounts of UST. Their exit strategy is simple, just trade UST for other coins all at once.
Whether it was a deliberate attack against the Terra Network is still a matter of debate.
𝗪𝗶𝗲? 𝗘𝘀 𝘀𝗶𝗻𝗱 𝟭𝟴 𝗠𝗶𝗹𝗹𝗶𝗮𝗿𝗱𝗲𝗻 𝗨𝗦𝗧 𝗶𝗺 𝗨𝗺𝗹𝗮𝘂𝗳, 𝗮𝗯𝗲𝗿 𝗻𝗶𝗰𝗵𝘁 𝗺𝗮𝗹 𝟯𝟬𝟬 𝗠𝗶𝗹𝗹𝗶𝗼𝗻𝗲𝗻 𝗶𝗺 𝗹𝗶𝗾𝘂𝗶𝗱𝗶𝘁𝘆 𝗽𝗼𝗼𝗹?
Okay, if that gets used up, the Bitcoin reserves will have to take a hit.
𝗗𝗮𝘀 𝗿𝗲𝗶𝗰𝗵𝘁 𝗮𝘂𝗰𝗵 𝗻𝗶𝗰𝗵𝘁?
Then we'll just sell UST at a loss.
𝗘𝗿𝗴𝗲𝗯𝗻𝗶𝘀:
Selling pressure for investors increase massively. LUNA is tanking, UST is tanking, even BTC is tanking because tens of thousands of Bitcoins need to be sold to create liquidity. Everyone wants out of UST and LUNA. 𝗘𝗶𝗻 𝗧𝗲𝘂𝗳𝗲𝗹𝘀𝗸𝗿𝗲𝗶𝘀.
𝗪𝗶𝗲 𝘀𝘁𝗼𝗽𝗽𝘁 𝗺𝗮𝗻 𝗲𝘀?
Just suspend trading, disable LUNA/UST swaps :D
Good luck to the people who are invested in it, I hope you get out of it in one piece. Best case scenario of course would be that UST manages to get back to peg. Wish you all the best.
