FALL OF LUNA EXPLAINED
It's a new week alreadyyyy….
you know it’s gon be littttttt
So the highlight of last week that we all know is the fall of $LUNA….it fell soooo badddd it went into nothingness …like damnnnnn bruhhh
Some took advantage of this and took sells (which binance took out automatically so they don't go broke lol) while some already bought luna when it was at $100 and saw their investments go into nothing … I won't lie, I was sooo pained seeing people loose so much money
it wasn't until when it got to about $10 that I heard the news about the whole crashing and possible scam that was carried out
What happened to Terra Luna?
Terra Luna (UST) ranked amongst the 10 most valuable cryptocurrencies until this week, with each token worth roughly $85 on May 5.
On May 11, it was already in a precarious position, having dropped down to $17.38 in the early hours.
Just a day later, on May 12, the coin forfeited 97.54 percent of its value, dropping down to its current value of $0.02863
the stable coin UST which is the major backbone for luna was the problem actually … UST couldn't keep to its peg as a stable coin which is valued at $1 …
So what's the problem?
The problem is that so long as the price of UST is below its peg, this creates an arbitrage opportunity for users to burn UST and mint LUNA. In simple terms people can use underhanded means to make cool cash off LUNA which devaluates or fucks the coin up more… imagine the central banks throwing money on the streets or people making fake money and can spend it easily
if you are a trader then you know arbitrage can be veryyy underhanded lol. I can make millions if I can find a loophole
Do Kwon already mentioned that they are working on a recovery plan, but there is nothing still….
WHY DID EXCHANGES REMOVE LUNA FROM THEIR PLATFORM?
Simply speaking they were loosing moneyyy…imagine coming to my store and you see chips for $1 and you bought them and sold them for higher …. that's exactly aclty what was happening…in crosses like LUNA/USDT …you're basically buying one to sell the other …so while you're making cool USDTs and BNBs exchanges like Binance is on the loosing side hence why it was delisted .
Thanks for reading if you did . please do comeby again and grab a cup of coffee or hot beverage next time . Have a wonderful week