Cryptocurrency mega-thread

[BACCS]

 

[The Dice Man]

Got this from somewhere else, but a bit of a simpler rundown on what is happening with Luna

- UST has a circulating supply of 12.12B

- It has a market cap of $7.4B

- To restore peg 12.12B - 7.4B = 4.72B of UST needs to be burned

- Terra validators have overwhelmingly agreed that this is what must be done, UST must be burned and peg must be restored

- To burn UST (and restore peg), you need to mint new LUNA

- To burn 1 UST you need to mint $1.00 worth of LUNA

- Let's do some simple math

- Say we can burn all the excess UST all at once right now, and restore peg

- To burn this 4.7B of UST we would need to mint $4.7B worth of LUNA

- At the current price of LUNA ($0.03), this means we would have to mint ~156B LUNA

- In this scenario, the circulating supply of LUNA would increase from 3.5B to ~160B (increase 45x)

- The price of LUNA will decrease to ~$0.0006

- Now you could in theory begin to slowly burn down that 160B circulating supply of LUNA (does this sound impossible and like a terrible investment? IT SHOULD SOUND IMPOSSIBLE AND LIKE A TERRIBLE INVESTMENT)

- The scenario described above is a made up fantasy and is not possible

- What's really going to happen is actually infinitely worse

- First problem: You can't burn all 4.7B UST at once because you can't mint 156B LUNA at once

- There is a limit on how much LUNA can be minted in one day

- Right now, they are voting to increase the limit

- This leads us to problem #2

- Second problem: As you mint LUNA, the price of LUNA goes down (LUNA is diluted), which means to burn more UST, you need to mint even more LUNA, until you descend into a vicious feedback loop of all out LUNA minting madness

- This is referred to by validators and people who understand the protocol as the "death spiral"

- Right now you can burn $1B UST by minting 33B LUNA

- The circulating supply of LUNA goes from 3.5B to 38.5B

- The price of LUNA is now 0.0027

- You then burn your next $1B UST by minting 1,000,000,000/0.0027 = 370B LUNA

- You burned your first $1B UST by minting 33B LUNA. The next $1B UST by minting 370B LUNA

- The next $1B UST would take trillions and trillions of LUNA

- I used $1B chunks just as an example

- Obviously the size of the burns would be much smaller as it depends on UST holders' bags

- The point is, LUNA can't recover unless they just decide to fundamentally change how the protocol works, which would result in Do Kwan and everybody else on the project being instantly indicted for fraud

- They aren't gonna go to prison to save your bags

- LUNA is going to $0. You were warned.

 

[mouncey2franklin]

There's fears on CT that USDT is next...

We can only hope so.

 

[The Dice Man]

 

[Pickitt]

I bought 508 luna at 1 am for 3 dollars, wake up to see it's worth 28, go back to sleep and within an hour it's down to a dollar

 

[BluesBusiness1991]

Thought i'd post this here since we are all bleeding money at the moment..

Zip Mex are doing a $50 friend referral bonus...

Sounds sketch but an easy $45 (- minus the $5 withdrawral fee) - and the money goes straight into your account once verified

#delete the app and move on

Use the code below

63KKVXznQ7

(Delete this post if not allowed but thought it's too good to be true haha)

 

[BACCS]

Got this from somewhere else, but a bit of a simpler rundown on what is happening with Luna

- UST has a circulating supply of 12.12B

- It has a market cap of $7.4B

- To restore peg 12.12B - 7.4B = 4.72B of UST needs to be burned

- Terra validators have overwhelmingly agreed that this is what must be done, UST must be burned and peg must be restored

- To burn UST (and restore peg), you need to mint new LUNA

- To burn 1 UST you need to mint $1.00 worth of LUNA

- Let's do some simple math

- Say we can burn all the excess UST all at once right now, and restore peg

- To burn this 4.7B of UST we would need to mint $4.7B worth of LUNA

- At the current price of LUNA ($0.03), this means we would have to mint ~156B LUNA

- In this scenario, the circulating supply of LUNA would increase from 3.5B to ~160B (increase 45x)

- The price of LUNA will decrease to ~$0.0006

- Now you could in theory begin to slowly burn down that 160B circulating supply of LUNA (does this sound impossible and like a terrible investment? IT SHOULD SOUND IMPOSSIBLE AND LIKE A TERRIBLE INVESTMENT)

- The scenario described above is a made up fantasy and is not possible

- What's really going to happen is actually infinitely worse

- First problem: You can't burn all 4.7B UST at once because you can't mint 156B LUNA at once

- There is a limit on how much LUNA can be minted in one day

- Right now, they are voting to increase the limit

- This leads us to problem #2

- Second problem: As you mint LUNA, the price of LUNA goes down (LUNA is diluted), which means to burn more UST, you need to mint even more LUNA, until you descend into a vicious feedback loop of all out LUNA minting madness

- This is referred to by validators and people who understand the protocol as the "death spiral"

- Right now you can burn $1B UST by minting 33B LUNA

- The circulating supply of LUNA goes from 3.5B to 38.5B

- The price of LUNA is now 0.0027

- You then burn your next $1B UST by minting 1,000,000,000/0.0027 = 370B LUNA

- You burned your first $1B UST by minting 33B LUNA. The next $1B UST by minting 370B LUNA

- The next $1B UST would take trillions and trillions of LUNA

- I used $1B chunks just as an example

- Obviously the size of the burns would be much smaller as it depends on UST holders' bags

- The point is, LUNA can't recover unless they just decide to fundamentally change how the protocol works, which would result in Do Kwan and everybody else on the project being instantly indicted for fraud

- They aren't gonna go to prison to save your bags

- LUNA is going to $0. You were warned.

Why are they so desperate to save UST (which surely no one will ever have any confidence using again) and destroy LUNA in the process?

 

[PT Bar None]

Luna growing zeros - down to 4/10ths of an Aussie cent at Swyftx as I type.

Thought about picking up 1000 to sit on "just in case" for the price of a beer - but Dice Man's excellent share has me thinking I'd be better off long term drinking that beer

 

[BACCS]

Luna growing zeros - down to 4/10ths of an Aussie cent at Swyftx as I type.

Thought about picking up 1000 to sit on "just in case" for the price of a beer - but Dice Man's excellent share has me thinking I'd be better off long term drinking that beer

Yep, stay well clear!

 

[bzparkes]

 

[Bostonian]

I love bear markets.

 

[Bostonian]

Obviously this is just the time that Cardano has been waiting for to rise up and take it's place as the king of crypto.
It is long overdue i can hear you all say, and i agree. ADA #1

I think the thing to learn from LUNA is that having a polarising out there front man can have a huge impact on the project.

 

[faible]

I love bear markets.

I know a great token that's available for a HUGE discount on it's ATH.

 

[PT Bar None]

Looks to me like Luna has been dropped from Swyftx and Coinspot exchanges now

And proof

 

[Bostonian]

I know a great token that's available for a HUGE discount on it's ATH.

Already stacking up on my Theta

 

[Bostonian]

Looks to me like Luna has been dropped from Swyftx and Coinspot exchanges now

And proof

Swyftx would only be following what Binance does as that's where it's liquidity comes from.

 

[PT Bar None]

I think the thing to learn from LUNA is that having a polarising out there front man can have a huge impact on the project.

Anyone here old enough to remember "John Romero's About To Make You His Bitch" and Ion Storm?

 

[BACCS]

 

[Pickitt]

Last time I checked my 508 luna was worth a dollar now it's 0.05. Crazy.

 

[PT Bar None]

There we have it. Dead.

If they ever retool and restart it - completely new branding would accompany I'd wager

 

[Bostonian]

Terra no Kwon Do anymore.

 

[Seeds]

Whats happened to Luna will happen to all crypto. Do not invest.

crypto was only going to work if it replaced money. but now we know it wont do that. Its not a stable store of wealth nor a flexible medium of exchange. Thus it fails at being money.

and heres the real kicker that people just dont get. If it did satisfy the rules of money then governments would ban them. Governments need a monopoly on money otherwise they cant employ fiscal policy effectively. The only reason governments havent cancelled crypto is because it hasnt been acting as money so it has never been a realistic threat.

Crypto is just a speculative asset. And like all speculative assets its ultimate value will be determined by its real value to the economy.

and its real value is almost zero.

dont be fooled by those who say newbie investors lose their nerve and money while the experts stick at it and become rich. Its propoganda to help pump up their own holdings.

we will be studying about crypto soon in the same way we study about other asset booms. And we will all be left wondering why the fools didnt see the crash coming.

this time is not different. Crypto is not the biggest bubble of all time. There is nothing special about it.

dont be one of the fools we will soon study and pity.

i post this to help you. if you dont heed the advice dont say no one ever warned you. Do your research.

 

[The Dice Man]

Terra no Kwon Do anymore.

Wonder what happens with his very public 200M bet.

Some great buying opportunities yesterday, I loaded up on some more FTM, hugely oversold, and it's already 50% up. I also think it's possible a lot of people who had money from Luna might move to FTM with it's Defi opportunities.

 

[Bostonian]

Whats happened to Luna will happen to all crypto. Do not invest.

crypto was only going to work if it replaced money. but now we know it wont do that. Its not a stable store of wealth nor a flexible medium of exchange. Thus it fails at being money.

and heres the real kicker that people just dont get. If it did satisfy the rules of money then governments would ban them. Governments need a monopoly on money otherwise they cant employ fiscal policy effectively. The only reason governments havent cancelled crypto is because it hasnt been acting as money so it has never been a realistic threat.

Crypto is just a speculative asset. And like all speculative assets its ultimate value will be determined by its real value to the economy.

and its real value is almost zero.

dont be fooled by those who say newbie investors lose their nerve and money while the experts stick at it and become rich. Its propoganda to help pump up their own holdings.

we will be studying about crypto soon in the same way we study about other asset booms. And we will all be left wondering why the fools didnt see the crash coming.

this time is not different. Crypto is not the biggest bubble of all time. There is nothing special about it.

dont be one of the fools we will soon study and pity.

i post this to help you. if you dont heed the advice dont say no one ever warned you. Do your research.

So then describe what crypto is.

Seeing as you're throwing that word around you need to say what it is.

When you say it's a speculative asset does that mean if a business that you would consider "crypto" wins a contract to produce something for a government/military then it's pure speculation?

 

[Bostonian]

People who just cry "crypto!" don't seem to have a grasp of blockchain technology.