LUNA UST: IMPORTANT UPDATE… is it over yet?
I want to bring you some immediate updates as to whats happening with tara luna. I want to talk about whats going on with usdt as well, because that is currently d pegged from the dollar as well. Things are pretty crazy. The overall market cap is nearing one trillion dollars and we just have things spiraling out of control right now, and i just want to ease some nerves and just talk about exactly what is going on so about wasting any more time. If you dont know me already my names connor and i am not – i repeat – not a financial advisor – i am literally just the guy sitting in his room talking about the cryptocurrency markets, all right, so dont make any financial decisions based on these videos and look at That we got tether at 0.98 and 98 cents right now down 1.86, we did have a dip all the way to 98 cents. This is to do with just the mass absolutely mass panic thats going on right now. Currently, as we speak, the greed of beer index sitting at 12 people are absolutely panicking, as we speak. The overall market cap down 15 in one day 15 in one day, bringing us to 1.17 trillion dollars. Now, with that said, if you are still trying to make the best of the current market situations, one of my favorite exchanges is still crypto.com ive been using these guys for a number of years now.
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So if we go into a long term bear market here, we can expect around a 19 000 bitcoin if we have the same scenario play out so lets go through this thread that they posted the prevailing peg pressure on ust from its current supply overhang is rendering Severe dilution of luna so with that said, guys, remember, im seeing a lot of tweets with people saying theyre actually going to be buying luna or theyre buying a dip or whatever it is. But please remember that yes, the market cap now is at 400 million. Absolutely insane it was 32 billion just a month ago, 32 billion, and now we are sitting at 400 million. In fact, just a week ago it was 30 billion absolutely insane stuff here, but please remember that the whole ecosystem, the way it works, is now minting luna. At an alarming rate, so, if you are buying here remember, the circulating supply is being diluted a lot right. So what used to be an 85 luna would be much much smaller here. Considering the market cap is whats important. So please do keep that in mind. Of course there is a possibility you can make games, but this is a very, very risky time for me. I am literally just sitting at the sidelines right now: im, hopefully waiting for ust to re peg thats. What i would like because then ill have cash to continue buying the dip, because most of my cash was sitting right there, which was a mistake right ive been over this.
It was a mistake right now sitting at 62 cents. Yesterday we were closing in on 80 cents, we were getting in on there. We actually got up to 81 cents, but i am hoping that this sorts itself out, of course, that is pure hope right anyway, back to twitter, the primary obstacle is expelling the bad debt from the ust circulation at a clip fast enough for the system to restore The health of on chain spreads so right now it seems that their main goal is to fix the ust theyre, not so much worried about luna, which is obviously bad news if you are a long term holder of luna. Luckily, i wasnt, but my thoughts go out to anyone who was im, sorry that this has happened its absolutely horrible, but to expedite the goal. Several measures are being taken. First, the current prop 1164 will expand the base pool size to accelerate the burn rate of ust helping deflate the on chain spreads. Tfl is also initiating three more emergency actions. One proposal to burn the remaining ust in the community pool tfl will burn the remaining 371 million ust cross chain on ethereum tfl, just state 240 million luna to defend from the network governance attack. Now that lunar is sitting at just 10 cents, this may not actually be enough to do anything, but i am hoping that theyre going to continue. This work continue to try and bring ust back to peg now.
Moving on, you can find this full proposal here. Tfl report the remainder of the ust deployed as liquidity incentives on ethereum over the last few months. This is 371 million ust back onto terror and burn it all using the burn module pending the results of the governance proposal. So tfl is currently exploring the best avenue to burn the remainder of its ust holdings, much of which is being accrued in the recent days to absorb the sell offs of ust in various open markets. Overall, approximately 1.3 billion will be eliminated from the ust supply upon executing the three proposed items above. This equates to roughly 11 percent of the outstanding supply expelling the systems. Bad debt above item should help restore on chain swap spreads to a meaningful level where the peg pressure on ust is significantly alleviated. Once new base proposal passes, this will also expedite the process. Please note that tfl is in the war room and has been non stop for the past four days, working on solutions and potential avenues to help affected users and stop the beating publicly. We will continue to release updates as developments unfold, so things are developing right now. We are still in the dark whether or not this is actually going to get sorted out. It does seem that there is some entity behind this attack. This was potentially a coordinated attack on the terra luna ecosystem. There was rumors that it was blackrock or citadel the guys behind the whole amc and gamestop stuff, but those rumors have since been dispelled, maybe theyre just saying it wasnt them and it was but overall it seems like it wasnt them, but it does still seem that There is some bad actors behind all of this, which is absolutely crazy, considering how much pain and suffering this has actually put onto people, which is absolutely terrible, but you know some people are just downright right.
With that said, crazily enough, we have had 1.28 billion dollars worth of liquid asians people are still playing with too much leverage its absolutely insane, and this was definitely not helped by tethers price, actually de pegging slightly there, and if we do check out the crypto bubbles. We can see right now. Basically, the only thing that is considered green right now would be ust, because there was another huge dip in the price overnight and dont. Forget that yesterday we had the inflation cpi data and its at 8.3, which is slightly lower than it was last month, but not as good as what people were hoping. So with that said, i do hope. I provided you some value today. I do want to bring you updates when they happen with exactly what is going on in this whole terra luna debacle.