UST Stablecoin Veers Wildly From Dollar Peg (

Discussion in 'Crypto Assets' started by Statistical Trader, May 9, 2022.

  1. NoahA

    NoahA

    To be honest, I never understood why people would have so much money in a stablecoin. Sure, you have money in Luna because of the price appreciation, but with UST, its a coin that is pegged to the dollar, yet carries no extra incentive but extra risk. You could say exchanges needed this because they weren't able to transact in dollars, so selling in and out of crypto required you to put it into something else that was stable. But there are enough exchanges these days that allow you to hold dollars, Kraken and FTX comes to mind.

    Max just did a video on a possible rescue plan for Luna/UST. I'm a bit disappointed because he sounds like he is hurting, and yet his channel is probably bringing in so much money, that he can absorb whatever loss he had in Luna/UST. He makes the case that people thought that UST was safe, and thinks the holders should be compensated even more than holders of Luna. But once again, I just don't understand why you would put so much faith in a derivative of a dollar.



    Maybe now, especially with prices coming down for all L1's, people were holding onto dollars waiting for a possible entry, so its especially bad timing for UST to fail. But I'm still surprised to learn people had to much in UST since it wasn't appreciating. (oh wait.... maybe they were doing the yield farming for guaranteed 20%.... so they figured the UST is safe, and 20% was therefore pretty much a guaranteed return)

    I lost a bit on Luna coins, and even bought 100 coins when it was 20 cents.... LOL. But I think this is overall a very good thing for bitcoin. When its in your hardware wallet, there is no counterparty risk. Luna breaking should actually bring more traffic to bitcion once the dust settles.
     
    #21     May 15, 2022
    johnarb likes this.
  2. johnarb

    johnarb

    George (CryptosRus) describes his loss on Terra as the price of a house (not in Cali, probably)

    I had 6 figures in stablecoins, USDT, USDC and MIM, never held UST (not now, most crypto liquidity got sucked into my BAYC purchase)

    The big difference in holding USD at an exchange vs holding stablecoins on local wallets is centralized vs decentralized

    Holding funds at Coinbase, Kraken or Gemini requires trust and I'm sure you saw the recent disclosure made by Coinbase that any assets held in the exchange can be used in a bankruptcy sale. I don't think Coinbase is anywhere near bankrupt

    UST with 20% on Anchor was the reason many got sucked in

    I bought Luna at $21, but sold position for a loss around $17-19 last year it went as low as $6 and made a massive bull run to over $100 and I was kicking myself for not getting back in

    Now I'm glad I did not get back in
     
    #22     May 15, 2022
    NoahA likes this.
  3. Pekelo

    Pekelo

    You are going to end up like Newton. He made money in the tulip craze in the beginning, then cashed out, FOMO, got sucked back at much higher prices and held for too long.

    My friend's son bought a small house with his crypto gains, smart kid. Hell, maybe you can eventually buy a virtual house in the metaverse with your NFT profits...
     
    #23     May 15, 2022
  4. johnarb

    johnarb

    Newton was very very smart, but I'm not, I failed College Calculus. I keep it simple as a result

    BAYC NFT is not my only holding. Bitcoin is always the core holding

    Last week, I mentioned converting a lot of my crypto assets (altcoins and NFT's) to USD, so at this time, BTC and BAYC compose 95% of the crypto portfolio

    What's all the gibberish above mean? It's simple, I have clear visibility to risk exposures

    -------------

    Good for your friend's son on cashing out his crypto profits to convert to a house

    I did the same last year but to USD, not another asset that has risks and maintenance costs

    ------------

    I know you think NFT's are all going to 0, mainly because you do not understand it

    To be fair, I'll list the reasons why I hold BAYC

    • BAYC is the #1 NFT project in the whole space
    • The team behind BAYC (Yuga Labs) got $450M funding from VC's at $4B valuation
    • Yuga Labs is building the metaverse using NFT's for in-game assets and currencies
    • They have the strongest partners, you can go to the websites
    • As a BAYC holder, I get allocated crypto assets in this metaverse, for example, OtherSide Otherdeeds land and artifacts and crypto assets in the metaverse
    • They are competing with Facebook that changed its name to Meta and has announced $10B as budget for building the FB metaverse
    • Perhaps I'm biased, but the crypto community is more excited about the Otherside metaverse as was recently shown by the huge success of their metaverse land sale than the FB metaverse

    Goldman Sachs, Citibank and their ilks think the metaverse is going to be worth trillions of $

    FB is taking the metaverse seriously that they even changed the company name to Meta

    I think you should watch the movies "Ready Player One" and "The Free Guy"

    Because of your cynical mind and others like you on ET, you will probably miss the metaverse opportunities just like you missed Bitcoin

    -----------------

     
    #24     May 15, 2022
  5. If you want to make good decisions regarding crypto currency, you should stay updated several times a day.
     
    #25     Aug 25, 2022

  6. yes, we rely on johnarb for all the news. he's mr crypto
     
    #26     Aug 25, 2022
    johnarb likes this.
  7. Not only that, but if you want to earn interest, you should have a platform to guide you.
     
    #27     Aug 29, 2022
  8. For example, I chose to work with hodlrate.com since they seem the most trustworthy of all the companies I've tried. Moreover, they have a compact yet useful website that helps me to make the best decisions regarding this topic. If you need some help, I recommend them. They can compare each currency at any time, and it's 100% accurate.
     
    #28     Sep 1, 2022
  9. Overnight

    Overnight

    Dude, that video you posted from the Twitter was just a FP game. Who cares? It was not ANYTHING like "Ready Player One" or "Freeguy".

    Those experiences will not happen in our lifetime. Stop investing in shit.
     
    #29     Sep 28, 2022
  10. Oh fuck, once word gets out that Shitterberg's metaverse is going to be yet another virtual flop, I can just image how much lower the shares will get. Cathy Wood has some idea...


    Not that it's a bad thing....
     
    #30     Sep 29, 2022