This is one of the most crazy days I have been involved in my entire cryptocurrency career. I saw that there was a very specific tweet from the man, the myth, the legend himself, the head of UST and Luna, that we needed to break down. We’re going to go through what you need to know right now as to what’s going on with LUNA. With that said, if you do want to make money in this market, you can do it on Jet-Bot. You can buy and sell cryptos here and copy best traders and follow all their deals automatically. You can stake your crypto on crypto earn here up to 2000% APY. Get your passive income right now.
As we can see, the market is absolutely crazy right now. LUNA is down 91%, UST is down 46%. The last time I felt this uneasy about something that I held was back in 2018 when the market was crashing. That was when I had no idea what was going on. I knew nothing about anything in crypto, but this time I had a very specific game plan. I have been taking profits. I’ve been stacking stable coins. I’ve been doing all of that. I have cashed out a lot of money from crypto into the real world to buy assets there, but the money I left in crypto, the majority of it, around 60% of it, I kept in UST. Now that has played out to be a terrible idea. So far, I am still holding that UST, and we are down today, as we can see:
We do have an update that everyone has been waiting for from the man himself, the myth, the legend himself, 14 or 15 minutes ago. Let’s go through it:
First of all, if you don’t understand how Terra’s peg stabilization mechanism works, here is a good overview. But if you don’t understand, essentially, there is a burn and mint mechanism between UST and LUNA coin that works hand in hand to create a stable coin for this utility to work. You should always be able to min 1 UST for one full dollar worth of LUNA. There is a lot of rumor going around that this was a deliberate attack by different larger institutions trying to destroy this ecosystem and trying to bring down crypto as a whole. Things were looking very shaky, but we do have one kind of saving grace right now with bitcoin at $31,700. Do keep in mind that people are expecting April’s consumer price index report to show that inflation has already peaked. If this does happen, it’s very good for the market in my opinion. If it doesn’t happen, we’re going to find out very soon. If it doesn’t happen, this will be bad for the market and I think things will get worse.
Let’s head back to this tweet for a review of the current situation:
So basically, what I was saying about the 1 UST for $1 worth of LUNA is now down by around 40%. So the whole mechanism is not currently working.
‘Before anything else, the path forward will be to absorb the stable coin supply that wants to exit before UST can start to re-peg. There is no way around it. We proffer several remedies for this measure to aim in the peg mechanism to absorb the supply’
There is one option here to increase the base pull and they will be discussing more ideas on their community forum:
So, he expects this to get better. I’m still undecided about whether or not I believe things will improve for this coin, UST, and LUNA. Right now, UST are trading at around 49 cents. Things are scary right now. They’re scary and definitely a learning process for me to not keep so much of my stable coins in one project. You can spread them around and get as much money out of the cryptocurrency market as you can. Of course, I did do that. That’s what I’ve been discussing on the channel. I’ve been very much following my plan of buying an extreme fear of selling when people are euphoric and putting that money into other assets in the real world like stocks and property. I have been following that but definitely a mistake on my half by leaving too much in UST.
So let’s just check out exactly what’s going on with LUNA on CoinMarketCap. Luna is down to $3, absolutely crazy stuff. $3.5 just seven days ago trading at $87. I don’t think I’ve ever seen a coin in the top 10, top 20 drop like this before.
We also have UST sitting on CoinMarketap at just around $0.50.
So it’s scary times for the crypto Greed and Fear index. I would assume. It’s slightly higher today. We are looking at extreme fear still.
But good stuff on the news of bitcoin, we do need to wait to see what happens with the CPI data. If the CPI data is good, I think we’re going to have a nice little bounce here. That bounce will hopefully affect the overall sentiment around the market and it might help LUNA and UST sort some stuff out. I do find it very hard to believe that Luna will do any sort of bounce anytime soon, but maybe there’s still a possibility, or I’m hoping that there’s a possibility that UST can come back up. My thoughts do go out to anyone out there that has been seriously affected by LUNA.
Please remember that we are here for the long run. I do think that the market will come back from this, whether or not it takes weeks, months, or years. I do think we’ll come back from this. Just use this as a massive wake-up call. That’s what I’m doing. Don’t invest too much money in the market. Don’t invest money that you cannot afford to lose. Of course, this is the last thing that I have is money that I can afford to lose. It’s definitely painful to see because this is money I would have used to buy bitcoin with in the potential bear market that we’re going into. But my main focus now will be continuing to make more earned income so that I can invest in the overall markets if we do go into a recession or an overall bear market in the whole world, and that’s just the way that I’m going to continue going forward.
[This article is a transcription of a video made by Conor Kenny]
Original video: https://youtu.be/ltUzn2-rqDM ]