Cryptoworld: How stable are stable coins: Terra USD/ Luna

in hive-185836 •  3 years ago 

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“Past and future: Da Vinci and Bitcoin” by @stef1

 

Hello dear Steemians,

 
If you saw my post yesterday I mentioned that the cryptomarkets and, of course, the general trend of Cryptocurrencies on the way down. We all know that the value of Cryptocurrencies may vary, go up till some point, then people who invested into Crypto would like to get profit and sell which is normal. If you or me the small holders will sell our stuff it probably will do nothing. But if some "whales" decide to through large amount of, for example, Bitcoin then it definitely will cause the drop in price. But this is our live, the cryptoworld and currencies are the same like any other valuables, we gather, wait and earlier or later sell.

 
These days many factors influenced the fluctuation of Prices for Cryptocurrencies:

  • War in Ukraine
  • high Prices for Oil, Gas and Inflation
  • but also the increase of Interest Rate in different countries like USA and UK

 
The only thing that made me a bit puzzled why all Cryptos became so volatile and what was behind. @myskye understands better than me all the stuff that happening in Cryptoworld and he usually find some interesting stories. This morning he told me the story about Stable coin Terra USD/LUNA and the drama that happened over last couple of days that might have impacted the whole cryptoworld too. Have you heard about Terra/Luna?


 

Stable Coins

 


First of all in order to understand the whole story lets clarify what is stable coin. Stable coin is cryptocurrency that is pegged to or considered to be of a value of fiat currency, usually of USD, one good example is Tether, that we use as pair of Tether/Steem.

The other sort of decentralized stable coins they are trying to avoid governance and maintain their pegs using algorithm like TerraUSD, that is using the network of arbitrageurs who buy and sell cryptocurrency LUNA. The algorithm based on two main tokes Terra (UST) and Luna (LUNA), in order to mint one you have to burn the other one on Terra Station portal.

Until very recent everything was good. The chart for TerraUST was looking quite stable at $1.00US:

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on 09/05 the Price started to drop slightly which is not unusual but then when yesterday it fallen low to $0,70 and over last 24 hours it is down to $0,38

The same time it made Terra go down from Rank 10 to Rank 22 in Cryptochart

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While TerraUST was struggling to gain its peg, the markets were inundated with LUNA which price plunged even deeper, due to sell off. If the price was $85.38 peak a week ago.

 
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If the price for Terra LUNA was $85.38 peak a week ago.

 

Then it is now it is only:

 
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You can imagine how many people lost their investments within last 48 hours, it was even no time to react and no chance to survive that disaster.

The case with Terra/LUNA also given its impact on the whole Cryptocurrency market, therefore, do not wonder what happens to our Steem, at least it is not really so low like LUNA

But also, another positive thing is that TRX remained on Rank 14 in chart and had the least loss among all other Cryptos. Do you what is behind?

 

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CURATION TRAIL @worldofxpilar


 

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Have been digging your paintings lately, you have been on fire. This was so cool and enjoyed reading your sight on the market too 👍

I also really love Leonardo's work, they are so impressive and always try to combine something like Old master works and Crypto when possible :)

👍

Danke für den Artikel. Bin dadurch erst auf den Kursverfall von LUNA aufmerksam geworden. Da ist echt einiges was aktuell in der Kryptowelt abgeht.

Wir haben das auch nur durch Zufall mitbekommen, aber es scheint einer der Hauptgründe für den starken und neuerlichen Kursverfall zu sein. Glücklicherweise, erholen sich die meisten Crypto´s langsam aber sicher wieder……...ich hoffe doch :-)

Bin echt gespannt ob ein paar Würfel neu gerollt werden - kann eine gute Chance sein.

Gibt es eigentlich eine Team500SP? Hatte das Glück bei Team250 aufgenommen zu werden - die hab ich nun erreicht. War zum Ende leider recht inaktiv weil ich einen neuen Job begonnen hab was viel Zeit in anspruch genommen hat. Das pendelt sich jetzt aber wieder ein 😅

I can't fathom why the sudden sell-off to make the market of Luna crash which I would assume is an attack but I am just speculating.

Many people really believed in that project so I feel the losses that these people who holds Luna token are really devastated.

I do think that in some way it will stabilize @stef1 which is why I bought some and pray that I will not get rekt, after all it is just a house money but have a possibility to go big after the Luna devs make a way to mend this instance of super volatile event that had heart so many people.

So I am giving the benefit of the doubt to the developers concerned that they have a heart and not criminals otherwise they will not sleep soundly. 👍

It is so unpredictable to know what the future holds. But of course everything depends on the people who are behind the projects. For example nowadays no matter what Elon Musk will start everyone know that it likely to be success, knowing his strive to goal. Having more such people behind the projects is reassuring, because like you say after fall should be a rise :)

Your post was upvoted and resteemed on @crypto.defrag

Upvoted! Thank you for supporting witness @jswit.
Please check my new project, STEEM.NFT. Thank you!
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USDT is still stable the last time I checked...dunno all these coins.

What you are mentioning is also stable coin but it is called Tether:

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What I am talking about is Terra USD or also called Terra UST, that was One Dollar but now only 0,15 Cent.

You can fine plenty of articles, I am attaching one:

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https://www.theverge.com/2022/5/12/23069232/terra-luna-collapse-stablecoins-crypto-crash-bitcoin

Yeah.

Nice step bro

Thank you :)

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Hopefully the price of steem goes up again And we hope that Luna's currency gets better

So long we have people behind the project who care the price should recover :)

SBD is at 2.50?? That seems good?? :-D

SBD was always going up or down. Last year it was highest $11USD, can you imagine? But it is like a game, like my hubby says better not to look at it :)

It was $11??? wow, I didn't notice that somehow. I was under the impression that SBD was pegged to the $.

When Steem and Steem Dollar were created it supposed to be pegged but was never so. That is why it is fluctuating depending on market. There are good days like $11 and bad day like $2