It is not my pleasure, but it is my duty to bring you an update on the situation happening with tara, luna, ust blackrock citadel, a tweet from charles hoskinson and u.s treasury secretary, janet yellen, and how all of it has to do with the obliteration of tens Of billions of dollars worth of investor value, locked up in the taro luna cryptocurrency and the ust stablecoin were going to be discussing all of that and more in this video. So if you do enjoy todays video make sure you hit that like button subscribe to the channel and strap in because this one is going to be a bit of a roller coaster without much further ado lets go ahead and dive right on into it. It all started on the 4th of may 2022 when tara luna started going through what seemed at the time to be a regular drop from 88 dollars down to what would end up turning into 79 70 60 and then on the fateful day of may, the 9th Tara luna began a drop from 60 all the way down to 60 cents, and that would occur in just 48 hours. In that time, tara luna would drop from being in the top 10 to below rank 50 as it traded below a dollar for a number of hours. At the time of recording this video, it has recovered and is trading it 2.54 cents. If you could call that a recovery but is still down 91 percent on the day, but looking at the last 24 hours of price we can see, it was not just terra that dropped significantly.

Tara, usd also dropped 42 percent. The stable coin thats supposed to be pegged to one dollar is currently trading at 51 cents. This all started on may the 9th when terry usd started to slip away from its peg at one dollar lost its peg and fell all the way down to a local low on may. The 9th of 69 cents recovered back to 90 and then would go on to drop with luna down to 29 cents, 70 cents away from its supposed peg at one dollars. So what happened? How did tens of billions of dollars of cryptocurrency investor valuation slip away in just the span of two days? Well, charles hoskinson, the founder of cardano may have an idea as to what occurred, and i quote so heres the word on the street on luna to rephrase that heres a rumor that i heard i dont know if its true, but i figured i would share it With you thats what hes saying here to read this tweet black rock and citadel two fund managers in the united states, which managed 10 trillion dollars and 35 billion dollars respectively, borrowed 100 000 bitcoin from gemini. It appears in their loan book they swapped 25. 000 of that bitcoin into ust. This was all done quietly in anticipation of the attack. When the time was right, they called up dokwan the founder at tara foundation and said they wanted to sell a lot of bitcoin for ust their stable coin.

As it was a large trade, they told him, they didnt want to move the market and asked if he would like to buy their large block of bitcoin at a discount for ust. Now keep in mind. Dokwan has been accumulating. Bitcoin hes been attempting to get all the way up to 10 billion dollars worth of bitcoin. He wants to back ust in bitcoin now, unfortunately, that vision may be in jeopardy. Actually, most certainly is, but it actually would make sense that he would want to buy a large sum of bitcoin like this again. All of this is speculation. All of this is rumor. I am not saying that any of this is true, but i do need to share it with you. Continuing on dokwan took the bait. He gave them a huge chunk of ust, thus lowering the ust liquidity significantly at that point, blackrock and citadel dumped all of the bitcoin and ust causing massive slippage and triggered a cascade of forced selling in both assets. The real problem was that blackrock citadel knew that anchor, which holds a lot of luna, was a ponzi scheme thats. Another accusation that i cannot substantiate im just reading this. They offer 20 staking apy for sake, and this crash would trigger more withdrawals than anchor could repay these forced withdrawals and selling would trigger a massive sell off in luna, thus further breaking the one dollar peg and wrecking the market. Further blackrock and citadel can now buy bitcoin back cheaply to repay the loan and pocket the difference.

Meanwhile, billions of longs and bitcoin var were wiped out. This was pure market manipulation. Ive said it a few times im going to say it one more time. This is a rumor as far as im aware at the moment, this is unsubstantiated and i am not trying to spread a rumor. What i am doing is my job, which is sharing with you one of the potential causes of what is going on here, because if we dont understand what happened, if we dont understand why it happened, then we cannot possibly hope to understand what will happen to luna And i know a lot of you guys are holding luna bags that you would most certainly like to go back to where they were were going to talk about whether or not thats going to happen here in a minute now. What i think is important to note is that when you see a cryptocurrency stablecoin get away from its one dollar peg, then you start to see a lot of fear: tara, usd dropped, all the way down to 70 cents, and that definitely put a lot of fear In anyone who was holding that stable coin, luckily he was able to recover to 90 cents, but the confidence had been shattered and it was not able to recover back to a dollar. And then once confidence is gone in a stable coin, then all hell breaks loose and we dropped all the way down to 30 cents.

Moving on here you can see that theres another tweet from charles hoskinson here that says the rumors floating around about how luna collapsed. So quickly all converge on the same reality that every d5 protocol and cryptocurrency face. There is a massive attack surface for hackers and traders. If there is an exploit, someone will find it and someone will break it. Whether or not it is true that doe kwon gave a lot of ust for 25 000 bitcoin in return is true or not. It does raise a concern if luna recovers, will it still have, or even does it currently have the power to be moved that much by one man? If so, then we have to ask him very serious questions about how centralized luna is if dokuan truly is able to just say heres, however much ust for 25 000 bitcoin is that a system that is built on its own footing or is that a system that Can easily be turned on and off by a man named dokuan. I actually have a lot of respect for dokwan. I dont think that he acted maliciously and i cannot prove any of these accusations that were made against him. But i do want us to understand that there is a very high calling for decentralization in cryptocurrency and when we talk about projects like solana and like other projects that maybe have concerns about centralization. It is events like this that lead us to those concerns.

Decentralization is a founding principle of cryptocurrency and if you lose it, then you will lose the integrity of your blockchain system and then you will eventually lose the confidence of all of your investors, as has currently happened on luna now guys the rumors are running rampant. I dont want to give a lot of credence to this rumor, because this is even more unsubstantiated, but some people are saying that treasury secretary, janet yellen ordered blackrock and citadel. To do this. I dont think thats. True. However, i have no idea. What i can say is that janet yellen, the u.s treasury secretary, has been wanting to put a lot of regulations on stable coins for a while now, especially algorithmic stable coins, because of their more decentralized nature. Now she has ammo to start putting more regulations on stable coins, because she has a very strong argument to be made that stable coins pose a major threat to consumer interest. I dont think they do, i think, not understanding, cryptocurrencies and not understanding what youre investing in is what poses a threat to consumer interests, but the federal government likes to play the helicopter parent and janet yellen is definitely going to be having some more ammunition now that This has occurred so be on the lookout for the next six to 12 months. Frankly, even over the next week for more talk about stable coin regulation, youre – probably going to see a lot in the news about janet yellen.

So what do we do from here? Well, if youre holding luna, my heart goes out to you and im very sorry to say that i honestly at this point, do not know if luna can recover from this. I frankly dont think that it can and the reason is one something we dont really know. Quite what happened in the technology or in the governance or in the development of luna that led to a massive drop of 99 within a week. We dont know what caused it. Even if we did know what exactly caused it, it would still not help the fact that confidence in luna has been completely and utterly devastated. It is non existent if youre holding luna right now. I dont know what to tell you. I dont know to tell you whether you should sell whether you should hold and wait for a rally. What i can tell you is that this is a good opportunity to learn, everythings an opportunity to learn, and this is also a good opportunity opportunity to show your strength whenever a market goes through. Something like this. It is devastating. This is not the same thing as an 80 drop on bitcoin, where the fundamentals were the same. As far as we can tell, the fundamentals on luna have been shaken in a potentially unrepairable way permanently. Bitcoin thats not happened. The fundamentals are never shaken on bitcoin, so we dont have that concern, but with luna now it has a blemish on its record.

If its ever going to recover theres going to need to be a lot of branding, work done theres going to be need to be a lot of honesty from the terra, luna team, the luna foundation and theres going to need to be a very serious change. In the way that luna is operated and runs so that there is absolutely no doubt beyond a shadow of a doubt that this could ever happen again, if you see all of those things occur, then you might see a recovery on lunas price. Maybe it jumps all the way back up to five or ten dollars as people buy the dip, but does it manage to hold that price level? At this point i dont know, i honestly will believe it when i see it at this point, you will not see me buying this dip on luna. I personally think that would be a very big mistake. You could miss out on an opportunity by not buying this dip, but at the same time the project did just quite literally go to zero dollars. I also want to make it clear that im not throwing any shots at dokuan im, not throwing any punches at anybody over the luna foundation. I dont have any reason to believe that dokuan or anybody at luna was acting maliciously. I have no reason to believe that tara, luna and ust is a ponzi scheme. I have no reason to believe that it was any kind of scam or anything malicious, but what i do know is that its very very important that we vet our projects and that we understand how they work so that we can be on the lookout.

For these things, and sometimes you dont – have the ability to know that something like this is going to occur. We didnt know that this was going to happen. Just by reading the white paper you wouldnt have been able to anticipate this. This is a black swan event that nobody could have predicted was going to happen so im not saying doing enough research would have predicted. This was going to happen, but what i am saying is that what we can do, because we cant affect whether or not luna is going to crash and burn, but what we can do is we can invest in ourselves. Educate ourselves become better every single day. Make sure that were not overly diversified but diversified enough make sure that we have our foundation in bitcoin, because this is not something that can happen to bitcoin. It is the only cryptocurrency that is truly 100 decentralized, and i just pray that you would look at everything. Thats occurred here as an opportunity, and one final thought: if you know anyone who was in luna or who got someone into luna, this could be a very dangerous time for them. I cant really get into what im talking about, because this is youtube and youtube doesnt like us, discussing these subjects, but its important that we do. I think you can read between the lines. Anyone who had large positions in luna anyone who helped other people or encouraged other people to take large positions in luna or anybody who lost a lot of money today and yesterday, check on them make sure theyre, okay and uh.

You might save a life because, unfortunately, during crashes like this ive seen it happen before, and i dont want to see it again, but it is dangerous. It is a matter of life and death in some cases. So please make sure youre checking on your friends and anybody. You know who is in luna and if nobody is checking on you and youre in that situation we would love to do that. Shoot us an email support cryptojab.com. We are overwhelmed with uh customer service. Queries right now with the launch of club, defies beta im, just going to be honest with you, but we will try to help as much as we can. Our heart is in the place where we want to help and we want to be there for you if this is something that you have struggled with. I just encourage you to look at this, not as a loss, even though it is but look at this as your tuition for your education in cryptocurrency, so that you can go forward with new lessons and become more successful in the future. This doesnt have to be a setback for long its something that you can come back from if you enjoyed todays video, make sure to hit that like button subscribe to the channel before i go, though i do just first want to thank each and every single last One of you for watching, as always – and i will see you guys in the next video peace, whoa whoa – look at this guy.

He watched the entire video. What a cool guy! I think the next thing that he wants to do is hit the like button and then probably even subscribe to the channel and perhaps even comment down below what he thought, that that would be pretty cool wow.

https://www.youtube.com/watch?v=2qvr2OHd2A4