https://fortune.com/2022/ .. -crypto-crash/


As TerraUST founder Do Kwon fought to salvage the failing stablecoin, his wife reportedly sought police protection in the latest blow to a cryptocurrency some fear may trigger a “Lehman moment” for the market.

On Friday, South Korean media outlet MoneyToday wrote an unidentified person broke into her apartment building, rang the doorbell to ask if Kwon was home, before leaving the premises after she said he wasn’t.

Kwon’s wife has now been provided with security after she requested emergency protection, police in Seoul’s Seongdong-gu district told Forkast.

The developments come amid a wipeout in the value of Luna, a coin that served to prop up and maintain TerraUST’s dollar peg.

Some investors who had owned Luna posted on Reddit that people were suicidal after losing everything


Kwon, who developed a reputation for belittling and attacking critics of his project, has now been likened to Elizabeth Holmes, found guilty of fraud for her Theranos deception.

TerraUST was designed to trade at a one-to-one ratio to the greenback, but without some form of actual collateral that should underpin its value, as is the case with Tether.

Instead it employed an algorithmic process of creating and then destroying its very own supply of Luna coin, which served as a kind of shock absorber

Twitter

14/ Terra’s return to form will be a sight to behold.

We’re here to stay. And we’re gonna keep making noise.🌕

— Do Kwon 🌕 (@stablekwon) May 11, 2022

When the peg started to fail, the protocol was designed to stabilize the value through the minting of more Luna—only the sustained attack meant it was suddenly being created at an exponential rate.

Latest indications suggest the supply of Luna coins in circulation went from a few hundred million to now 6.9 trillion, with the token trading at levels virtually near zero after hitting an all-time high of $119 just last month

Twitter

Besides Do Kwon going down, is there going to be any accountability had for those who mega-shilled the greatest ponzi in crypto history?

If everyone just continues on like nothing happened then we're just going to repeat the same mistakes again.

— sassal.eth 🦇🔊ðŸ�¼ (@sassal0x) May 12, 2022

With the supply of Luna ballooning into Zimbabwe levels of hyperinflation, major global crypto exchange Binance delisted Luna on Friday in what some are now calling the “Luna Brothers moment” in a reference to the 2008 collapse of the Wall Street investment bank Lehman Brothers.

The move sparked speculation that BlackRock and Citadel could be behind it, and prompted crypto exchange Gemini to deny speculation it had played any role in an attack on the peg.

A spokesperson for Citadel later contacted Fortune to deny the allegations: "Citadel was not involved in this situation and does not trade stablecoins, including Terra UST."

Ran Neuner, a South Africa–based crypto YouTuber, told Bitcoin influencer Layah Heilpern he was dealing with the consequences of being “absolutely irresponsibly long” in Luna.

He argued the collapse of a tier 1 coin on par with an Ether or Ripple XRP—valued at $20 billion and supporting a broader $60 billion ecosystem built on top—was unprecedented and would drag out the bear market in digital a*sets for much longer.

“There has never been an event in crypto where $80 billion was wiped out of the market, never,” he told her in a webcast. “A lot of people lost a lot of money on Luna…and these are crypto believers.”

Following a plan laid out by Kwon on Wednesday, his Terraform Labs company has tried to resume normal function on the blockchain network on Thursday, only to later abort the attempt after just 4,089 new blocks were added to its chain

Twitter

The Terra blockchain has officially halted at block 7607789.

Terra Validators have halted the network to come up with a plan to reconstitute it.

More updates to come.

— Terra (UST) ðŸŒ� Powered by LUNA 🌕 (@terra_money) May 13, 2022

[spoiler - click to view]

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Bx Bitcoin millionaires gonna commit that

All these slt coins made by foreigners

Theres a reason why the dollar is the strongest its been in 20 years even with global inflation

Because people been trading real money for fake money and eveytime that fake money looks suspect the dollar looks better

But hey.. people hate regulation, well here yoi go, dont call the govt for help, this is what u want

BReNDon said Bx Bitcoin millionaires gonna commit that

A sophisticated attack is being played out against crypto right now


All of the major banks are in on it

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Ryanair are a sh*tty budget airline us common folk use to get around Europe and even their troll game is on point

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From my very limited understanding, once that Tether stablecoin eventually crumbles its pretty much a wrap. Someone with more knowledge can feel free to chime in though

[QUOTE=TheWatcher;60160069]

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I see there's ppl that don't know and that's fine bc they are saying they don't. I had somebody arguing w/ me a few months ago that eth and bitcoin were stable coins... at least you guys KNOW that you don't know. If you're interested

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It's not the first time or the last time a stable coin will fail. This isn't new to the ppl in the space. It happens as you see. Just like a peloton stock can lose 90% or the ruble can lose 90% a crypto coin can too

Corny sh*t

He said event in crypto. Man there’s pretty much never been in an event in history where 80 billion has been wiped lmao. Do Kwon should be in jail, this was way worse than Madoff

I still hold significant positions in a few coins but I don’t know what’s next.

The big banks are taking control of crypto. It took them some years to figure things out and it was good making money for a while without the elite manipulating every move but that era is over. When crypto recovers, it’ll be with the big banks and their proxies as the whales holding the big positions. That’s game over for the little guy who was in crypto to escape that.

If I’m wrong somebody correct me…

BrooklynDamien said It's not the first time or the last time a stable coin will fail. This isn't new to the ppl in the space. It happens as you see. Just like a peloton stock can lose 90% or the ruble can lose 90% a crypto coin can too

I dont think that is the issue

crypto at its essence is a series of mathematical redundancies
It exists because it checks for itself, Its the digital equivalent of the saying "I think therefore I am"


a circular math problem is the simplest analogy

When small sections of that redundancy start to fail its not too big of a deal because that circle is very large. the problem either gets corrected or you substitute a different link in the chain.

If you are constantly replacing links then the integrity and confidence of the chain wavers. That is what you need above all.


Now while Peloton can lose 90% that wont effect the price of huffy or Schwinn


Once the 1st institutional sized margin call that happens in crypto, 85% of the coins/tokens will vanish. As they should in my opinion

youngvito18 said All these slt coins made by foreigners Theres a reason why the dollar is the strongest its been in 20 years even with global inflation Because people been trading real money for fake money and eveytime that fake money looks suspect the dollar looks better But hey.. people hate regulation, well here yoi go, dont call the govt for help, this is what u want

People cap about hating regulation. When stuff hits the fan, they call for reg as always. Crypto heads completely changed tune. People were saying the space could self regulate now we have people saying reg is necessary.

This project is dead if it did hard fork only a fool would trust that idiot founder. I would move on I dumped the stable coin and been watching the show.

Haaa...I was cussed out, Called a F@gg!t, an Incel, a Bum, a Slave, Threatened, and even Reported for stating that Sh!t-Coins a Big ol Scam to trick Fools out of their money...Now Look!

Even had some F@gg!t on here tell me "Cause yuu not Edumacatted on Blockchain Technology"...Lol...Now look!

youngvito18 said All these slt coins made by foreigners Theres a reason why the dollar is the strongest its been in 20 years even with global inflation Because people been trading real money for fake money and eveytime that fake money looks suspect the dollar looks better But hey.. people hate regulation, well here yoi go, dont call the govt for help, this is what u want

That’s not it at all…

the results of fomo

BReNDon said Bx Bitcoin millionaires gonna commit that

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I was talking about this yesterday some guy told me he lost 5k at the Kentucky derby. I said you'll bounce back them Luna n*ggas is the real ones hurting

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For perspective

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shooter said I still hold significant positions in a few coins but I don’t know what’s next. The big banks are taking control of crypto. It took them some years to figure things out and it was good making money for a while without the elite manipulating every move but that era is over. When crypto recovers, it’ll be with the big banks and their proxies as the whales holding the big positions. That’s game over for the little guy who was in crypto to escape that. If I’m wrong somebody correct me…

Crypto Hedge funds are in control. Not big banks, big banks want to get involved but reg prevents a lot. Firms like alameda and galaxy dictate the market

shooter said I still hold significant positions in a few coins but I don’t know what’s next. The big banks are taking control of crypto. It took them some years to figure things out and it was good making money for a while without the elite manipulating every move but that era is over. When crypto recovers, it’ll be with the big banks and their proxies as the whales holding the big positions. That’s game over for the little guy who was in crypto to escape that. If I’m wrong somebody correct me…

Crypto is 13 years old.

This is still the start of the 1st quarter