@OldBastard
Sifting Through The LUNA/UST Crash If you have any interest in crypto at all, you've undoubtably noticed that LUNA and UST have recently crashed horrifically, wiping out $32 billion, (or $45 billion?), or so of assets in a few days. Even if you were not invested in LUNA or UST, (mercifully I was not!), this crash will have lingering effects on your ability to make money in the crypto markets, because besides suppressing the value of all cryptos, it provides a huge opportunity for governments to step in and regulate all things crypto, in an effort to "protect us". (Ha, ha.) It's a disaster even if you didn't lose a significant chunk of your savings. So how did this disaster happen? The first theory regarding the LUNA/UST meltdown is that somehow "bad actors", (George Soros?), discovered a flaw in the system, and exploited it for their own gain, unconcerned with how their actions would affect the rest of the world. https://www.youtube.com/watch?v=zLkXJeWFWr0&t=97s https://www.youtube.com/watch?v=0CutSymg94I https://www.youtube.com/watch?v=MI6mWUMQOw8 On the other hand, other folks, (notably Coffeezilla), contend that Do Kwon knew all along that he was simply promoting a Ponzi scheme. Bitconnect 2.0? A trio of interesting Coffeezilla videos: https://www.youtube.com/watch?v=hLa6CSDIrTk , https://www.youtube.com/watch?v=LVanuXZedbs , https://www.youtube.com/watch?v=QwqSiU4ryek . https://www.youtube.com/watch?v=W4bdbEisy9g&t=5s https://www.youtube.com/watch?v=6HJ2gmwSp7M What do I think? Anchor Protocol, which was the main way money funneled into LUNA/UST, was undoubtably a Ponzi scheme, but was its inevitable collapse destined to bring down LUNA/UST with it? There are many, many more questions than answers regarding this sordid mess. The sad fallout for all of us is that confidence in the ability of crypto markets to regulate themselves has been shaken, perhaps fatally, and we should expect to see much more government interference in the future. :-(
7 comments
You wanna know what I think? I think LUNA served to prove that decentralization as a concept fails. You cannot have no one checking and balancing, monitoring and ensuring viability and so on and so forth. Some days crypto as a whole looks like an intersection without traffic signals. Just chaos. You want to ensure you drive into a brick wall? Build a car with no brakes.
Well, yes and no. BTC was designed as a permissionless, trustless way for value to be exchanged between two anonymous parties. I think it works well because it was carefully designed to function that way. Now most of these other current crypto projects are just rushed into the "real world" with a lick and a promise that they'll work as promised. Add in a little bit of greed and malfeasance, and we wind up with Bitconnect, LUNA/UST, and whatever scams jerks in the future dream up.
Regardless of what you believe in causing this crash, it gives the crypto market a bad name.
Yeah, that's what bothers me the most. Politicians around the world will use this as an excuse to stick their big noses into our business, and regulate the hell out of crypto, claiming to "protect us". In fact, all the regulations will do is benefit the banksters.
True. The son of the dictator (the new president of the imaginary 31M people here in our country) actually proposed taxing digital products and services including cryptocurrencies. He should first start by paying back the 203B estate tax his family owes the country.
As a foreigner living here I have been advised to never discuss Philippine politics, (it can be dangerous to do so!), but I can say that I feel your pain.
People who say that are either privileged enough that they are not adversely affected or just blindly fanatical.