Its market cap last week was 18 billion, and it’ll probably reach 0 in a day or two
Its complementary coin, TerraLuna, which can usually be exchanged for Terra, is down 97%
:brrrrrrrrrrrr: :stonks-down:
“rate your experience with this page”
:marx-ok: :10000-com:
I finally figure out how basic cryptos like bitcoin are “supposed to” work, and then we had NFTs which took me even longer to understand, and now they’re making “ecosystems” with multiple types of tulip bulbs that all interact with each other in some arcane fashion?
I hate this new internet.
Seems like there was a system where you “burn” Terra in exchange for Luna, which is basically an IOU for Terra that you could cash when the price recovered. If there is no faith that the price will recover, the IOUs are worthless
Lemme see if I’ve got this right:
- 1 Terra can be transformed into 1USD worth of Luna.
- 1USD worth of Luna can be transformed into 1 Terra.
- The incentive to hold Terra is to use as a currency.
- The incentive to hold Luna is to get fees from when Terra is used as currency.
- Therefore, if Terra is in high demand and is worth more than 1USD, Luna holders can make money by transforming 1USD of Luna into more than 1USD of Terra, increasing the supply of Terra and stabilising the price of Terra at 1USD.
- Conversely, if Terra is worth less than 1USD, Terra holders can make money by converting into 1USD worth of Luna, increasing the supply of Luna, reducing the supply of Terra, and stabilising the price of Terra at 1USD.
- If the price of Terra remains less than 1USD, people will continue to convert to 1USD worth of Luna, massively increasing the supply of Luna and devaluing the currency.
- Faced with an exodus of Terra holders, Luna holders have no prospects of fee payments, and see their currency devaluing due to supply, so they sell for USD.
- Seeing the dumpster fire that is Terra and Luna, no USD holder wants to buy either, placing further downward pressure on Terra, encouraging more Luna to be created, further diluting the Luna currency.
Is that right?
i hate crypto as much as the next guy but i cant help but feel bad for a lot of the victims of the scam. being tricked by con artists isnt a moral failing.
the finance bros pushing it can go to hell though,
If you’re in deep enough to know what the fuck a terracoin is, you deserve this 100% and there is no saving you, lmao.
Eh, Terra involved a lot more “normal” people than you think. This isn’t straight PvP like a normal rug pull, or something like Bored Apes where it costs 100 grand to enter so only rich assholes are involved. The “Anchor” protocol on Terra sucked a lot of people in with promises of 10-20% “stable” returns. That’s very different from something like the Wonderland/Time ponzi, where it was run literally on “magic internet money” and for “frog nation”, i.e. people in on the joke. This UST/Luna shit will sink a lot of ordinary people, and probably some hedge funds too which could cause contagion.
The latest ep of Citations Needed had a good analysis of crypto that describes it similar to gambling, as a regressive tax on the poor
Citations Needed also has a great episode on gambling being a regressive tax on the poor.
Its market cap last week was 18 billion, and it’ll probably reach 0 in a day or two
mashallah
hopefully this is the big crypto crash, or at least stops everyone from jumping on board with it :inshallah:
