Nathan Worden's avatar
$310.5m follower assets
Luna down 95% in the last day
More $LUNA is being minted in order to stabilize the stablecoin $UST, which lost its peg to $1 over the last couple of days and has fallen to $0.44. Traders are selling (and probably shorting) $LUNA.X in anticipation of more $LUNA.X being minted in order to try to stabilize $UST.X

image
Nathan Worden's avatar
I’m the last hour $LUNA.X has fallen all the way to $0.05
image

Nathan Worden's avatar
image

Jon Bond's avatar
@nathanworden holy shit
Nathan Worden's avatar
@007 historic moment in the crypto space. And a setback for stablecoins in general.
Jon Bond's avatar
@nathanworden hearing a couple funds forced the peg to fail - guess this is the outcome....
Conor Mac's avatar
Good
Eric Messenger's avatar
Maker is up 18% because their DAI stable coin looks stronger in light of another algorithmic crypto stable coin failing. The ones that actually back there crypto with a one to one US dollar ratio or equivalent, seem to be doing OK while all the ones that are algorithmically stabilized are failing slowly but surely.

Only stable coins I have are USDC, DAI, and Gemini dollar. I don’t trust the algo coins. I have one account that generates yield in UST, with literally a few dollars in it. And maybe $20 in $LUNA staked (gotta go check, surprised Kraken and Gemini haven’t emailed me yet). This is exactly why I keep crypto to a very small portion of my portfolio and diversify the hell out of my investments. While I feel like a wizard in the stock market I feel like a 1st grader with cryptocurrency, even though I’ve been studying for a 8 months. So, I allocate accordingly😉

Nathan Worden's avatar
@wall_street_deebo It's good to remember that even if we have a lot of conviction, there's probably always something we're missing, especially in a new and very technical space like crypto.
Eric Messenger's avatar
@nathanworden yup, I don’t have more than $100 of any single crypto asset. Probably own 65-70 coins (Makara baskets hold 50 on their own) between all the exchanges and wallets. So for me personally, it’s more of an industry bet and some thing I do just to try to keep up with it more so than investing large amounts of my capital and trying to build wealth through it. My wealth building is happening in the stock market, I just want to be involved enough with Crypto that if it does reach the inflection point, I have a leg up. It’s more me studying the markets the same way I did with stocks the first five years I invested. Virtual trading apps with play money and trading $5-$20 amounts. Studying & learning with a little skin in the game keeps it interesting.
Nathan Worden's avatar
@wall_street_deebo I love that approach— having a little skin in the game keeps things interesting. Staying aware and learning about it gives you insight to when it might be time to build a larger position.
Eric Messenger's avatar
I shared an article yesterday where they said that the treasury fund that Luna established to back their stable coin out of bitcoin. Most people who were worried about their stable coin were worried about it because of bitcoins volatility. Now, bitcoin has dropped from 60K to 30K, and they liquidated a $1.3B position in Bitcoin, everything spun into free fall. I don’t understand the computer programming side of it, but selling $1.3 billion in bitcoin was called a crypto margin call in the article🤷‍♂️
Nathan Worden's avatar
@wall_street_deebo Lots of interconnectedness — illustrates the systemic risk one must account for
Jensen Butler's avatar
Finally, a bag I wasn't holding!!

In all seriousness, feel bad for those that lost that much overnight...
Joshua Simka's avatar
@jensen Had you considered buying $LUNA.X at some point? There is a certain satisfaction/confirmation in observing the decline of a stock or asset you looked at and decided to pass on. (Not meaning to come off as unempathetic to those who have lost a lot.)
Jensen Butler's avatar
@tomato no I never even sniffed it, I was immediately skeptical. Same goes for $SOL.X which built a cult real quick….I strictly stay with $BTC.X and $ETH.X. Have tiny $AVAX.X
Nathan Worden's avatar
image

Eric Messenger's avatar
image
And now it’s at Shiba Inu prices and has been delisted from Crypto.com and I’m sure most reputable exchanges.

Author

Related