The EZ Side Update: May 16th, 2022

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  1. 🥛 CHAOS! The Bank Run on UST
  2. Yellen: UST Collapse Could Have Been Avoided With Rules for Stablecoin Issuers - Blockworks
Trust The Process

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“Let’s get something understood.” ~ Key Glock

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Crypto Moves 📈:
$BTC under $32k
$ETH under $2200
$ADA under $0.75
$SOL under $70
$LINK under $12
$ATOM under $15
$ALGO under $0.60
$FLOW under $4
$VET under $0.043
$ZEC under $125

Over the years I have come to realize that the human psychology is willing to bend to the master and let the thinking be done for them. I have often wondered what could potentially break this vicious cycle, but every time there is a wild swing in the market I notice that it is just all part of the game. As a free society we have the opportunity to participate in free markets, but unfortunately only the strong and the persistent are able to survive.

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I was explaining to someone during this LUNA & UST nightmare that cryptocurrency moves in “Dog Years” compared to the traditional markets. What I meant by this was the moment you think there is no way the market could ever recover, it turns around at a pace that would take years for traditional markets. I have been in this market since 2017 and I have seen some of the most brutal moves that have shaken the entire market. The good news though is every time the market has gone down it has always come back up.

I have learned over the years that when the market is up, everyone is an investing genius. When the market is down though it breaks the spirit and humbles the ignorance of the fool. Don’t be the fool that doesn’t learn from his mistakes, it is part of the PROCESS.

Crypto News 📰:
- $LUNA & $UST

We decided that it was appropriate to put all the focus on the $LUNA & $UST nightmare for this week’s update. It felt more appropriate because what happened this week was an attack on all Crypto Communities and almost felt like a message. Why do I say that? Crypto has shaken the foundation at which the corrupt traditional markets have been built upon. When it came time to make a coordinated attack on Crypto, they attacked a Top 10. Not only a Top 10 but the one project that has been backing their Algorithmic Stablecoin with Bitcoin.

Let’s start with a thread that will give you an idea of how the Terra eco-system works:

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This attack was definitely coordinated because all of this started when transaction volume was at it’s lowest and all of a sudden massive sell orders of $UST went into affect. Very similar to what happened the morning of Pearl Harbor, attacking when they least expect it.

Why does this matter? It triggers the Algorithm for the LUNA protocol to begin selling off reserves of Bitcoin to be able to keep $UST pegged to the dollar 1:1. This ended up creating a panic within the community (controlling the psychology) and people followed the trend beginning to take their funds out of the Anchor Protocol. Here is an article that breaks this all down play by play:

That is all it took. Creating a sell-off that led to a crash that became the death of what was supposed to be the Golden Goose of Crypto. As the death of $LUNA and $UST commenced, the selling of Bitcoin was happening at the same time creating more chaos across the entire market and creating a sense of weakness in the markets. During this entire sequence of events where the hell was Do Kwon?

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He puts out a thread trying to spread hope, but the damage was already done and Billions in value evaporated. Over the past week you have seen the Crypto Community turn on this man so quickly because, like the internet always does, it weeds out the garbage. The irony here is how only 8 days before all this nonsense there is a video that emerged about Do Kwon stating the 95% of Crypto projects won’t survive and that is amusing to watch companies fail.

This did not age well…

Now let’s get into the real speculation of this entire situation and that is why this all happened. Of course it all has to do with Greed and Power, but the saying holds true to where there is smoke there is fire. People are claiming that Citadel had something to do with this and if they did then it was market manipulation on $40 Billion in value. People get locked up for a lot less so I don’t understand why we aren’t getting news of people going to prison or walking the freaking plank.

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The sentiment of what I am about to say is echoed throughout the entire Crypto Market. The necessity for decentralized Stablecoins is more important now than ever. Here is why:

The World Governments DO NOT want decentralization and they have made that extremely clear this week declaring war against the Crypto Market. They have made it clear that they want to begin pushing towards more CBDCs which is what scares the entire Crypto Market. What happened this week is a perfect opportunity for the Government to begin painting decentralization and Crypto as a whole, a bad thing. With that being said whats next for the Crypto Market?

There is one trait the Crypto Market has that the Traditional Markets do not and that is utility. You can’t use a stock to walk into a store and buy a bottle of water, but with Crypto you can. Crypto is not based only on Buyers and Sellers but the people that utilize it as a form of payments.

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We have been talking about all the different businesses and countries that have begun to embrace and accept the benefits Crypto has to offer. I believe there will come a point where the price will no longer be affected by the sellers and the utility aspect of the Crypto Market will begin to go into affect. So, what’s the move? Maintain the vision, keep the faith, and trust the process. This is not where you fold and quit. This is where you go harder.

I understand this week was tough for a lot of us, but it came with lessons and lots of opportunity. This is where the growth happens. Learn your lesson and keep it movin’.

~ 2EZ