Algorithmic Stablecoins always failed in the past but the novel mechanism of Terra/Luna seemed to be a new success recipe to overpower over collateralized stable coins like #DAI. @stablekwon was pretty sure that this new idea will win:

https://twitter.com/stablekwon/status/1506494471873081352

On May 9th #TerraUSD started to lose its Dollar-Peg and a cascade of events was triggered. The resulting Narrative (Terra/Luna Collapse) triggered an even bigger panic. Here is a good summary thread:

https://twitter.com/0x_armin/status/1524270117739110400

As a result #TerraUSD could not restore the peg to 1 USD and instead #Luna went down from around 60USD to .... 1USD. Yeah, pun intended. Because everything is on-chain people started to investigate if this was an active attack or not. Reading the thread below, it seems that Blackrock and Citadel targeted the Terra Ecosystem actively. This is speculation at this point:

https://twitter.com/OnChainWizard/status/1524123935570382851

After all this happened with the Terra Ecosystem, on May 12th (today) another Stablecoin started to get shaky for a moment: #Tether. With an 82bn Market Cap, it is about 8x bigger than TerraUSD and a de-peg would be very bad for the Crypto industry.

There are rumors that Blackrock and Citadel coordinated the transactions via a 100k BTC loan from Gemini. However, this was not the case according to Gemini.

https://twitter.com/Gemini/status/1524428615844339718

At the moment, we don't know who the “attacker” was, but given that governments are not in favor of unregulated stablecoins and the plans to introduce CBDC soon, this could be only the beginning of a stable coin war.

And there we are: Once a blockchain stops, it is not more than a database. After a capital collapse of almost 50bn USD (comparison: The bitconnet ponzi was around 3.5bn USD) it's game over for #LUNA

https://twitter.com/Blockworks_/status/1524786808596332545

There will be a LUNA 2.0… Fool me once, shame on you. Fool me twice, shame on me… I would not recommend touching this in any way..

Algorithmic Stablecoins always failed in the past but the novel mechanism of Terra/Luna seemed to be a new success recipe to overpower over collateralized stable coins like #DAI. @stablekwon was pretty sure that this new idea will win:

https://twitter.com/stablekwon/status/1506494471873081352

On May 9th #TerraUSD started to lose its Dollar-Peg and a cascade of events was triggered. The resulting Narrative (Terra/Luna Collapse) triggered an even bigger panic. Here is a good summary thread:

https://twitter.com/0x_armin/status/1524270117739110400

As a result #TerraUSD could not restore the peg to 1 USD and instead #Luna went down from around 60USD to .... 1USD. Yeah, pun intended. Because everything is on-chain people started to investigate if this was an active attack or not. Reading the thread below, it seems that Blackrock and Citadel targeted the Terra Ecosystem actively. This is speculation at this point:

https://twitter.com/OnChainWizard/status/1524123935570382851

After all this happened with the Terra Ecosystem, on May 12th (today) another Stablecoin started to get shaky for a moment: #Tether. With an 82bn Market Cap, it is about 8x bigger than TerraUSD and a de-peg would be very bad for the Crypto industry.

There are rumors that Blackrock and Citadel coordinated the transactions via a 100k BTC loan from Gemini. However, this was not the case according to Gemini.

https://twitter.com/Gemini/status/1524428615844339718

At the moment, we don't know who the “attacker” was, but given that governments are not in favor of unregulated stablecoins and the plans to introduce CBDC soon, this could be only the beginning of a stable coin war.

And there we are: Once a blockchain stops, it is not more than a database. After a capital collapse of almost 50bn USD (comparison: The bitconnet ponzi was around 3.5bn USD) it's game over for #LUNA

https://twitter.com/Blockworks_/status/1524786808596332545

There will be a LUNA 2.0… Fool me once, shame on you. Fool me twice, shame on me… I would not recommend touching this in any way..