When something is supposed to be $1 and it’s not, that’s usually not good. $LUNA and $UST might have failed, but bitcoin (and crypto) is stronger for it. gckaloudis reflects in this week’s Crypto Long & Short newsletter.
, couldn’t bring UST back to $1. Between UST and LUNA, over $40 billion of value was lost.
What exactly happened doesn’t really matter. What really matters is that when something bad happened, Terra couldn’t handle it. What really matters is that an undercollateralized, algorithmic stablecoin will fail no matter how long it succeeds. The system failed. But if we’re honest, UST was a wild success up until the moment it wasn’t. History should serve as a lesson here, when we inevitably will see a successful UST copycat crop up in 2027 or whatever.
We also are incredibly lucky that UST and LUNA aren’t big or intertwined enough to cause mass hysteria across all markets. I honestly believe we were lucky this happened in 2022 and not in 2030. Bloomberg’sFive years from now, if every cryptocurrency goes to zero … well, I don’t know what the next five years will be like, but a plausible story is that there will be continuing integration of crypto into the real economy.
I think we are numb to these large numbers given the unprecedented bull market of the last 13 years, and so this bears repeating. Bitcoin was a worthless, purely peer-to-peer version of electronic cash created by an unknown person in 2009. No big company or government put marketing, research or legal dollars behind it, and yet it is now a serious macro asset that important
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Bitcoin on the battlefield: How Ukraine is utilizing crypto | Crypto Stories Ep. 9On Feb. 24, 2022, Ukraine braced itself as Russia launched its invasion, an unprecedented war against a small neighboring country. But the battle was not onl...
Read more »
This Week's Recap: UST's Depeg and LUNA's Demise, Crypto Markets Lose $500 BillionThis week saw the demise of the Terra ecosystem as UST lost its peg and LUNA collapsed to virtually zero. The entire market is down some $500 billion.
Read more »
Coinbase, MicroStrategy and Other Crypto Stocks Finally See Some Relief After Recent LossesShares of Coinbase, MicroStrategy and other crypto-related stocks were up sharply on Friday after a rough week of losses. By mikeybellusci
Read more »
Coinbase never capitalized on the good times in cryptoIn a gold rush, the guy selling shovels gets rich even if there's no gold.
Read more »
Crypto donations fund ATVs and gas masks for Ukrainian militaryIn the last week, Ukraine's minister of digital transformation Mykhailo Fedorov has announced the purchase of five all-terrain vehicles and 5,000 gas masks through Aid for Ukraine crypto donations.
Read more »
Former 'Crypto Queen' Ruja Ignatova Put on Most Wanted List | CoinMarketCapThe infamous OneCoin CEO Ruja Ignatova disappeared in October 2017, after defrauding billions of dollars in a Ponzi scheme 😰 Branded the 'Bitcoin killer,' OneCoin grew to be one of the largest crypto — but investors were not able to cash out 👇
Read more »