Cryptos Unusually Bullish - Taking Advantage of Luna Disaster
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| Cryptos Unusually Bullish |
Recently, the crypto market has appeared many digital money projects "following" the LUNA (Terra) disaster. In particular, these memecoins had large price fluctuations after being listed on the decentralized exchange.
According to the description, F**kLuna was released to oppose the project's development team and the entire Terra ecosystem. “We could have 'smoothed' with the market. Until he encountered Do Kwon, everything became messy. LUNA has to pay the savings back to us”, the F**kLuna project team mentioned on the homepage.
Currently, the official Twitter of this project has about 2,677 followers. Groups on Telegram attract more than 4,000 members.
Compared with the criteria to evaluate a cryptocurrency project, F**kLuna has many unusual signs. First, the development team is completely anonymous. According to the assessment from ScamAdviser, the website of this project only reached 40/100 points. The data shows that the person behind the f**kluna.io page has hidden his identity.
Besides, F**kLuna is being listed on the PancakeSwapV2 platform, an exchange where anyone can list tokens. At the same time, tokens on decentralized exchanges often have large price fluctuations, which are easy to manipulate.
According to information from PooCoin, the price of F**kLuna coin increased more than 11 times after being listed on the decentralized exchange. However, the price of this digital currency also quickly dropped 8 times after a large sell-off and no buying force.
In addition to F**kLuna, the cryptocurrency market also has a project called BabyLuna. Currently, this project only has a smart contract code (smart contract) and has been listed on the exchange.
Related information channels such as Twitter, Telegram, website or BabyLuna development team are still a mystery. On the criteria for evaluating cryptocurrency projects, this is considered a huge minus point when everything is still unclear.
After being listed on the decentralized exchange, the price of Baby Luna coin has grown by more than 300%, from $0.00000031/dong to $0.00000012/dong late on April 15.
After the price crash of LUNA, Do Kwon, Co-Founder and CEO of TerraForm Lab, proposed to "revive the Terra ecosystem". The crux of this initiative is to rebuild the new system with a limited supply of 1 billion LUNA. This means that the whole project will be brought back to the time before the crash, minus the amount of capitalization that has evaporated.
Of which 40%, or 400 million tokens, will be divided among LUNA holders before the UST de-peg event (losing the $1 mark). Do Kwon said the data to determine is taken from the last time UST was priced at 1 USD on the Binance exchange.
400 million LUNA will be divided among UST stablecoin holders up to the time of network reset. This can stimulate buying for UST in the near future, as this group is divided by a large amount of cryptocurrencies.
In addition, 100 million tokens will be allocated to LUNA holders up to the time of network closure. The remaining 10% of tokens are used for future community development.
A mournful week for the crypto market
Luna has become worthless coin. The price of Luna fell below zero, after TerraUSD also fell despite being designed to pegged to the USD.
Luna's sudden "death" comes at a time when cryptocurrency prices are generally down and raises important questions about the efficiency of the entire cryptocurrency market. In just a week, Coinbase's valuation has plummeted, Bitcoin's price also broke the $ 30,000 mark for the first time since last summer and so did Tether.
Many global financial markets have also fallen sharply in recent weeks, as investors worry about inflation and rising interest rates. But what's going on in the crypto market is even more intense.
This development is overshadowing claims of digital currency as a "hedge" against inflation or acting as a kind of digital gold, let alone that many crypto believers are proud of the potential of digital currencies. coin will become the mainstay of the new global financial system.
Research firm CryptoCompare said Luna was "the largest drop in value this time around when it comes to a single project in the history of the cryptocurrency market."
Luna's debacle is "one of the biggest crypto disasters I've ever seen," said Ran Neuner, a well-known cryptocurrency trader. This is really a wake-up call, he said.
Terra's size is relatively small, so the collapse of this coin does not create a "domino effect" on the virtual currency market. More importantly, the event raised concerns about potential uncertainties in other stablecoins, including the biggest ones like Tether. On Thursday, Tether lost its $1 peg, as the coin's price fell to 95.11 cents.
Andrew Beer - member of the board of management at Dynamic Beta investment company, said: "Investing Terra is like putting your money in a bank in Iran with 20% interest and then they suddenly close. Good luck. Good luck getting your money back or understanding what happened."
| The cryptocurrency market has shown "extraordinary strength" and survived "near-death" times. For example, last year, this market lost 30% of its value in just 1 day when China banned Bitcoin mining. |
