Just a rando I came across, capturing my vibe.
Did something precipitate this big crap in crypto?
The Fed’s recent interest rate hikes have ended the zero/negative real interest rate speculative boom, dragging down crypto overall (and stocks too.)
Mind you, the crypto market has been trending down since the Fed started signalling this last fall. The ongoing decline is just getting a lot more attention right now because the ramifications of the continuing slide are starting to be much bigger and more catastrophic for crypto.
Such as Luna/Terra, the fourth largest cryptocoin, crumbling to dust this week. Which was inevitable anyway regardless of rate hikes or an overall decline in crypto, since it was a Ponzi scheme. And not just in the general sense that all crypto is a bigger-fool scheme, but in the specific sense that the people running the coin were paying people to use it, promising a guaranteed, perpetual 20% return a year via the Anchor program - a promise, of course, they could not keep.
That’s some serious drugs there.
Goodnight Irene.
(Currently if you are interested in setting some money on fire, you can buy $LUNA – maybe – for about one half of one cent. And $UST “pegged” to the dollar (those were the days) is now trading at 17 cents.
Come up with a plan to “reconstitute” it? This is like a 3rd grader who was caught cheating, and now they’re going to change that “E” to a “B” by adding two curvey lines thinking they can fool Mom.
By reconstitute, they mean disappear for a few weeks, come back under a new internet pseudonym, build some cryto cred for a few weeks with the new handle on twitter and some discords, then launch a new stable coin project!
The best response I’ve seen to that particular crypto bro:
ThE nExT StEvE jObS!!!
Dunning-Krugerrands.
That reminds me. At least Krugerrands were cool in the 80s and 90s as an awesome action movie plot device. They were right up there with bearer bonds. What does modern society have to offer as an equivalence? Ape jpgs? Fuck that. Riggs and Murtaugh won’t even get up from their desks for that.
I wonder if there’s some advertising “out” in a contract that allows an entity to cancel a commercial if something recent happens that shows the product or company advertising it is harmful?
Or…is that a cautionary tale about fully vetting your potential new advertisers because once the ink’s on that contract, you’re under obligation?
In any event, I would hope that anyone who looked at either of the Terra coins Tuesday (UST and LUNA) would’ve been like “LOL no”. And I’m not sure what miniscule percent of the tiny viewing audience for that game would even be interested. But still…
Found the tweet. It’s pretty benign (if sadly funny in hindsight) as these things go.
At least with the deutsche marks, you could use them as kindling.
Patrick Boyle on the different types of stablecoins and why Luna/Terra failed:
Thrag
3098
With the corpse of terra having been cast over the side and forgotten, the band has started playing again and there’s dancing on the deck. It appears to be buy the dip day so far with most coins rebounding. BTC up about 10% at the moment. Some minor shitcoins showing huge gains on the day.
Makes sense given that a lot of the drop in BTC was from fear that Do Kwon would be liquidating more BTC to prop up UST. No more UST, no more dumping of BTC to worry about. At least not for that purpose.
Menzo
3100
Oh the poor schmucks who bought Bitcoin at $60k and then panic sold yesterday.
Thrag
3102
More “no single point of failure” news.
Isn’t decentralization great!
