I wanted to share with you some absolutely incredible things that have happened with cryptocurrency that are not necessarily good, but I wanted to share some silver lining here with you in case you’re wondering what is happening with Terra Luna as well as UST. UST is their stable coin that was offering 20% on the Anchor protocol and the Terra Luna cryptocurrency is a whole other thing in itself, but they kind of work together and I really want to share with you what’s happened with the price. The price of a LUNA token went from over a hundred dollars to people were just incredibly profitable. Then what happened? It literally went down more than 96% under a dollar. I cannot make this up. It is not looking good at this time. Trading is right around $2.60, but everything in my gut is telling me that there could potentially still be some life in this cryptocurrency.

But sometimes it is still difficult to understand how the crypto market works. The one of the supportive services is Jet-Bot, an official broker of the Binance exchange. You don’t need to deposit fund to the platform and can connect your Binance account via API keys. Register now, and try to become the millionaire in the world of crypto.

Oh, let’s just dive into the news right now and see exactly what Charles has tweeted. This is absolute madness. Now again, this is just speculation. This is just what he said. So take this for what it’s worth. Nobody knows for sure if this is true or not, but it looks like it could be true because we have on-chain data showing all the different transactions and what has happened. But let’s get into the story. Charles said:

Now this was absolutely massive to understand because we know that Terra, the UST stablecoin, was looking to be backed by Bitcoin, so this was really sneaky in many different ways. But basically, Citadel and Blackrock were like, “Oh well, you need bitcoin. We’ll get a loan. We’ll give you some bitcoin. We’ll give it to you on the cheap too. We want some UST in return. We don’t want to move the market.’

Well, if you don’t want anybody to know about this, well here are the ramifications of what happened:

‘Do Kwan quad took the bait. He gave them a huge chunk of UST, thus lowering the UST liquidity significantly. At that point, Blackrock and the Citadel dumped all of their BTC and UST, causing massive slippage and triggering a cascade of force selling in both assets.’

 So again, this is why we saw Bitcoin go from like $35,000 all the way down to under $30 000 right around $29,000. The real problem was Blackrock/Citadel knew about the Anchor, which held a lot of LUNA. They also thought it was a Ponzi scheme, offering over 20% APY back just for holding the tokens. If they did crash, it would trigger more withdrawals until the Anchor could repay.

‘These forced withdrawals and selling would trigger a massive selloff of Luna, thus further breaking the $1 peg and wrecking the market even further.’’

 I’m not going to go into all the details about LUNA and UST. But basically, what’s happening is that there was way too much cell pressure for anyone to do anything and for drop out and Luna to actually recover the billions of dollars that have come into UST and payback. Well, this is what’s happening right now. You have a massive dependent and a cryptocurrency going and losing 96% of its value.

‘After this massive triggering sell-off, BlackRock and the Citadel could now buy their bitcoin back cheaper. This would allow them to replay their loans and pocket the difference. Meanwhile, billions of longs and Bitcoin VaR were wiped out.’

This was pure market manipulation. So what can we learn from today’s story? I have no idea. Number one, I really cannot say if Luna does survive these two dollars, right now could be the absolute fire of a lifetime. I’m not advising this at all; it’s a financial device. I myself am looking at it personally, but I don’t know, this could just be the house of cards finally collapsing and it never goes back up to where it was and all trust is lost. The peg is now completely packed, and there’s not a whole lot of good news in sight for this cryptocurrency project.

What I want to share in the learning lesson is that anything can happen in crypto. This is something that I’ve shared many times. You should never risk more than you can afford to lose. You know, I really can’t afford to lose. I’m not smiling about this because I do think that regulators are going to have a field day with these top 10 cryptocurrencies. Billions of dollars are lost. I don’t think this is good for crypto in general.

As we saw, whenever there is massive panic, fear, and capitulation, I do think that it does present a short-term opportunity. Maybe Luna goes back up to ten dollars, maybe it goes to five dollars, and then it completely collapses and goes to zero. I really don’t know what will happen; nobody does, but if I’m looking at the charts right now, seeing LUNA at $2.50 and seeing UST at under 50 cents is showing me that we’ve had a massive massive capitulation and it could be the end of a project.

I wanted to just briefly come on today to share this news and information with you. I want to share this because Terra UST and LUNA, this could happen to any crypto. This could happen if everyone decides to sell their bitcoins tomorrow. It would do the exact same thing if everyone decided to sell their Ethereum, or Cardano. Any of these other projects. This could happen. Is it likely? I mean, it’s probably not likely that everybody sells their bitcoin and it goes to zero. It’s a lot less likely, but it could happen, and so I’m not here to promote fun. It’s like fun things are good. Like you know, this is a completely different project. This is a black swan event for sure. I do think that cryptocurrency is going to make it in the long run. This is just going to be another one of those events that happens, but truthfully, am I a buyer right now of these cryptos? I mean, even if it does go up in the short term, what’s your risk reward here? You know, it’s not looking good. It’s really not looking good. I would not tell anyone right now, and I never do tell anyone either way, I never tell you to buy anything because well, this is what can happen, but I wanted to come on here and just address this and share the story because that’s quite a story today.

 [This article is a transcription of a video made by Joe Parys]

Original video: ]