A bunch of Luna fake accounts started following me wtf is happening @nikitabier https://t.co/pl2mWivjGr
A bunch of Luna fake accounts started following me wtf is happening @nikitabier https://t.co/pl2mWivjGr
People crying about this bear market can't even imagine back to back Luna and FTX crashes on 2022.
Terra / Luna / Anchor was always a ponzi scheme and a planned insider pump-and-dump.
The inevitable collapse wasn't a "crisis of confidence" or a "bank run."
It was just the market waking up to the fact that it was always a scam house of cards.
This post was seen by ~1M people yesterday. A few more thoughts on the topic...
A. "Steady lads, deploying more capital"
This is the infamous meme that comes from the Terra/Luna implosion. Crypto people have scar tissue from the May 2022 implosion of this algorithmic stablecoin.
Terra was designed to maintain a $1 peg by using a BTC treasury (Luna) to bid if the price went below $1, and sell if it went above $1. This works great, except in a panic.
4 years ago, panic happened. People wanted out of Terra, so the Luna treasury was automatically drawn down to protect the peg.
But this depleted the system's resources and deteriorated its capacity to keep defending the peg, which stoked more fear and exacerbated the exit pressure. Eventually the BTC treasury was depleted, the defense system was exhausted, the peg broke and Terra went to zero.
People who lived through that are wary of STRC and other Digital Credit instruments.
But, STRC is the opposite fundamental design of this.
B. Architected