Oh boy, one of the largest cryptocurrency crashes just happened now this happened a couple days ago, so i know that im not like literally doing this an hour after, but this is such a big event that i have to split this video into multiple videos, because today Were going to be looking at just one aspect of the massive crash now to understand cryptocurrencies, i think somewhere around a trillion dollars just got like wiped off the board. Okay, this was a big drop that affected, basically every large mega cryptocurrency out there now to understand. Ladies and gentlemen, okay, cryptocurrencies are sort of the hot thing. Okay for the last couple years. You know youve probably heard about them. You probably heard that some people on the internet would like to say. I made millions of dollars on you, know specific coin or whatnot. Youve probably heard that theres a bunch of pump and dumps a bunch of scams in the crypto sphere, im somebody that once really believed in things like cryptocurrencies and to this day i still kind of do but again without things like regulations, and you know proper. You know education about the matter, a lot of people jump into it and lose a crap ton of money, but were going to get to that all in a bit because todays crash is brought to you by something known as terrorcoin now to understand what is terracoin. Okay, you might have heard of something known as a stablecoin.

Okay back when we were doing save the kids and we covered things like that. A lot of people all right in these spheres, trade in stable coins, stable coins like usd tether usdc coin. A lot of these coins that are stable because they peg their own value to one dollar, the exact value of the united states dollar, okay, and which is why their name are always usdt. You know usd coin in this case were looking at ust, which is us tara, okay, which is terra usd a stable coin, one of the largest stable coins that lost nearly all of its value over 95 percent of it. In the course of just a few days. Now, in fact, heres a stable coin right now: okay, in a stable coin, having a fluctuation of a penny up and down is not uncommon, but in the course of a few days things went nuclear on the 9th may 9th it started losing all of it all. The way to 80 cents, 76 and 74 cents 71 at the lowest around 70 cents. Now this is sort of the nuclear bomb moment for any sort of stable coin right and of course it went back up a little bit. Then it tanked and tanked, and tanked and tanked to nothing. In fact, the symbiotic coin that it is in correlation with which is lunacoin, lost this much of its value. In just a few days, it went from literally being at around 100 right per per coin, all the way down to less to just 0.

0022, all right cents of its actual value. That is, that is about a hundred percent price change. That is straight up. Hating thats not going to the moon thats going to the center of the goddamn earth, so imagine if somebody invested their life savings into it, their life savings are worth and all at this point, okay, all in a matter of a few days now tara usd in This case, the reason why it fell, one of the reasons is to understand what terra is: terra is a stable coin. Okay, it has a community of lunatics, quite literally lunatics, in this case, all right. This is the industry leading decentralized, stable coin. Now, of course, this is a decentralized stable coin, and actually one of the terms that they use is an algorithmic stable coin. Their blockchain was literally allowed to host a multitude of algorithmic stablecoins on its network. So what is an algorithmic stablecoin lets understand what it is. A stablecoin like we just covered usdc usd tether or cryptocurrencies that basically hold their value because they effectively are pegged with actual. You know, uh value, a collateral if you will right so any stable coin. Thats out there. You know that has collateral back to it. Basically, states that we have some level of capital that is again the collateral to peg our value to one dollar. Okay were not literally just creating this chucky cheese token, with nothing backing it, nothing to serve as a fallback.

If you will the collateral now, of course, in this case an algorithmic stable coin does not have any collateral. In fact, it is uncollateralized so because the value is not backed by any external asset whatsoever, they actually use algorithms, okay, so these algorithms again are basically the thing that try to hold that one dollar peg. Now, while an algorithmic coin sounds really good. In theory, none of them as far as ive known, have actually been able to hold that one stable peg so again to cover how usd tara worked because of its algorithmic stablecoin. The way that this system basically kept its peg or, in theory how it kept its peg, was by providing a balance between the various traders to help maintain the peg using a nice algorithm. In this case, ustera the usd tether or sorry not tether, usd tara was actually paired. With that luna token we just saw earlier so every time a us terror token is minted right. Basically, one dollar of luna, the sister cryptocurrency, is then burned and again vice versa. Okay back and forth so when the price of u.s terror drops below the one dollar peg, the traders, in this case, who are you know within this ecosystem, are then encouraged to just keep burning the us terror. So, basically, by removing the terror from the circulation theyre, then forcing the value to go back to the one dollar peg. Now, of course, when you burn you receive some luna token at the discounted rate, thats sister crypto token, that also when tits up now again because less u.

s terror is then exchanging. You know, wallets around the price should stay near that one dollar peg. Now, if the price of u.s tara coin exceeds that one dollar peg, then those traders who are in the system are then you know basically told you should start burning the luna token and then gaining a dollar in u.s. You know terra. So again, this careful balance helps maintain the value of this stable coin to the one dollar peg. Of course, what happens next was actually kind of unexpected. Now, what had actually happened was anchor protocol, which is a savings lending and borrowing platform thats on the terra. Blockchain was basically one very important crucial moment to keep. You know the entire us terror, at least as stable as it seems now from what it started to show is at some point, their deposits started to really drop at this point, and once those you know, deposits started going down every value, the sister token uh luna And u.s tara started falling down to absolutely nothing okay. Now again, because of these, you know loss and deposits to anchor. What had started to happen was that as the value went down, there were then just a massive crap ton of uh sell offs. Basically, withdrawals of u.s terror, okay, which started tanking everything, and within a few days the value went from that stable, peg all the way down to nothing effectively. This was d peg. Now we all knew that algorithmic stable coins were a little sh.

You know sketchy to walk onto okay. This was sort of unproven ground. In fact it is really unproven ground. You know this is to a point where, like really really smart individuals in this field, such as ryan, clements, whos at the university of calgary faculty of law, literally talks about you know stable coins and the fragility of algorithmic stable coins. Specifically, now again, i highly recommend you read that if you want, but this is generally how one of the largest stable coins in the market right now effectively went from being you know, having value to basically being valueless, does this have any form of rebound? I personally dont think so, but then again, none of this video should be taken as financial advice im, not a financial advisor im, just somebody that is really really into this world, and i wanted to share with you something that i found super interesting and im. Ive been looking into for the last, you know couple days ever since this has been going down, because trust me, this is a very, very big moment for anybody in the crypto world. Anybody in the finance world, if anything, because this has ripples throughout the entire community even beyond just crypto, there is a lot of money lost and it really does show you know nothing gets me more than the smugness of the company behind this right like this. Is the actual ceo doe quan, who basically started on other cryptocurrencies quite literally days before realizing this was going to happen to him, actually watch it its like karma in action? I i wonder how many of these companies you think are entering the space just because its hot and theres a lot of funding versus the ones that will still be here.

You know like two to five years later, 95 were gon na die, yeah 95 percent theyre going to die yeah 95 yeah brother. You might add yours to the 95 list, because boy yall went tits up. This is what like pride does to a. Let me tell you: it absolutely: takes you down now theres been a few conspiracy theories floating around this. I believe this is from like the finance board over at 4chan who basically talked about the tara luna attack. So here they mentioned blackrock and citadel borrowed a hundred thousand bitcoin from gemini. It appears in their loan book they swapped 25 000 of that bitcoin into u.s terror. This was all done quietly in anticipation of the attack when the time was right. They called up dokwan at terra foundation and said they wanted to sell a lot of btc for u.s terror, as it was a large trade they told them. They didnt want to move the market and asked if they would like to buy their large block of btc at a discount for u.s tara. Dokwan took the bait. He gave them a large chunk of u.s tara, thus lowering the u.s terror liquidity significantly. At that point, blackrock citadel dumped all of the btc and u.s terror, causing massive slippage and triggering a cascade of force selling in both assets. The real problem was blackrock citadel knew that anchor, which holds a lot of luna, which we you know the anchor.

You know platform we looked at was a ponzi scheme, they offered 20 staking apy for christs sake, and the crash would trigger more withdrawals than anchor can pay. These force, withdrawals and selling would trigger a massive sell off in luna, thus further breaking the dollar peg and wrecking the market. Further blackrock and citadel can now buy the btc back cheaply to repay the loan and pocket the difference. Meanwhile, billions of longs and bitcoins are or wiped out. This was pure market. Manipulation, of course, is one of the conspiracy theories floating around now, because this is a source on 4chan. I dont know how much i can track it with a grain of salt, as somebody thats been on the old boards for a long time. I know a lot of shenanigans happen up there, but you know for those of you, whove been in the crypto sphere or the finance sphere. You know that blackrock and citadel securities are not exactly unknown in the sphere. Now theyve completely denied the fact that they were behind cratering the coin and, of course you know, i have no proof to say otherwise or whatever um. This is just the rumor mill thats been floating around. That said, though, it really does show you that if these attacks could happen when it comes to crater coin, or you know when it comes to not crater coins, but when it comes to like a stable coin, it really just puts the entire.

You know it really. Just paints the picture of how fragile these entire ecosystems really are and really, if you were somebody that was behind the whole concept of these uh, you know various uh algorithmic stable coins. It might make you think twice now. My good friend coffeezilla was retweeting a few things as i was over the weekend when i was out just witnessing this crash and uh, he started retweeting a certain user known as cryptoman ran whos just one example of a type of person. That really rubs me the wrong way. Now again, of course, as you can see, when it comes to any crypto related twitter account, no none tweet was deleted by the tweet author yeah. I wonder why. Okay, i want deleting your tweets doesnt really help because other chat other like twitter accounts. Other you know, users on the internet. Have this amazing thing called a screenshot button. Im gon na teach you guys how to use this. Okay on a modern day, smartphone! Okay, you can typically press two buttons all right and bam, take a photo of whats on the screen wow, what a simple novel concept, so every dumbass tweet you make, can be saved for posterity to the end of time. Now, of course, this person posts this tweet right, where they archived this one again, even giving the id and the link in the original tweet, which i assume is already gone, buying luna now. This is by the way 11th of may.

Okay, remember: luna is dropping like a rock. Let me show you exactly how it dropped like a rock there. Look at that that tweet was on the 11th of may 5 in the goddamn morning. You know what the price was 11th of may look at that a dollar. If you even follow the advice now boom, you are down to less than pennies youre done its over. Do not listen to financial advice on talk to an actual financial advisor im. Not a financial advisor. Do not listen to anybody on reddit twitter dailymotion youtube. Whatever these people are not experts theyre out there literally goading you into dumb mistakes, dont. Do it so again buying luna now is the best risk reward trade ive seen in a long time. There is a chance that it goes to zero, but if it doesnt, you may pick up tokens at crazy prices, hey guys it could either crater to the bottom or go right. The economy could literally collapse or you could be billionaires, wow man, intellectuals. I see right here now. Of course, this is a long now. There is a lot of uh analysis going down into this situation. Zach actually has an amazing tweet thread about this, where he finds alleged wallets of of this user of of it seems like crypto. Man ran and uh basically points it to every time he hypes up a youtube video. He like actually is dumping a token allegedly right, allegedly, is a strong word, because i havent proved these wallets belong to him, but lets just look at one exact tweet.

Here he puts up one case which is aioz where hes like rant tweets by aioz. Now literally, he said, buy aioz. Now this is financial advice. Just this is financial. This is how scummy it gets. If true, okay, all right, he puts this out. Crypto banter proceeds to dump twenty thousand dollars worth of aioz less than 24 hours afterwards. Cb also dumps 31.2 thousand dollars worth of aioz less than 24 hours later so here they even got like transactions of the entire thing, where they swapped aioz for actual ether right. So they swap the ether for 20 000 usdc. It hurts. It really does hurt to witness okay just constantly it just hurts. It hurts to go down and do it now again, ladies and gentlemen, if these wallets are are belong to this person, they should be investigated by the feds. Okay, in fact not just investigated, if it turns out that they actually did this. If these allegations turn out to be true, they should be serving prison time. Okay, now theres a whole slew of these crazy finance channels on the internet, who knows which one is really invested into a project which one is it whos just trying to get you to offload a bag whos trying to use you as exit liquidity? So they can just sell off a bag, real, quick, okay or try to pump up whatever investment they have. Who knows all right, its a completely unregulated untapped market and its one that you cannot trust at all.

You know the markets that these people tie into the markets that these people get into the most are the ones that are the most financially destitute, okay, people who are like how can i turn my thousand dollars into ten thousand dollars, so i can pay for rent. So i can, you know, pay for student loans, so i can buy food. Those are the people that are obviously targeted the most in this entire situation. If youre rich, you dont need to invest in chuck e cheese tokens, okay, you can buy land, you can buy tangible assets that actually can go higher. You can hire financial advisors that do the hard work for you, so you can just keep getting richer. The only people that these fintech youtubers and influencers target the most are the ones that are the most financially destitute, the ones that fall for the the ones that look at the fancy house and the lamborghini and think wow. This guys got it all im gon na follow this persons advice and bam, thats the biggest mistake right there. What really burns me the most okay and again im, not blaming anybody either. Here, okay, like crypto man, ran again. These were just allegations we ran into, but i told you these were like one of many types of people that rubbed me the wrong way. Personally again, these people could be completely legitimate. Who knows maybe crypto man ran, could be 100 true and honest and uh.

You know it is what it is, but uh. I always have my doubts regarding anybody in the sphere. What burns me a lot is when you go to the tara luna reddit, okay, which is currently filled with a lot of posts regarding attempted suicides. People are talking about it. You know theyre literally posting the hotlines all over there. In fact, their entire story is one of the highest posts. Right now is somebody whos sharing their story of attempted suicide. Now, the reason why i make these videos in particular why i want to stop scams, why i want to stop influencers preying on their fans. Is this this? These are the people that you are actually ruining you might be like i made a bag. Let me buy my lamborghini and call it a day. These are the people that you burn down their ground. Every time a scam or ponzi happens. Somebody loses their money. Okay, now heres the thing. If youre rich, you can afford to lose a few thousands, maybe millions of dollars, and it may not cause you any harm, but for somebody who put their entire life savings because they believed in somebody parasocially. Yes, thats a lot of it. A lot of the fault lies on that person: theyre not completely blameless, but in this world, okay, theres a certain degree of responsibility. You have in the influencer space when you have an audience to not take advantage of your fans and not lead them down a bad way.

A lot of the people in this board right now are facing some severe financial crisis. Some people imagine losing almost 100 percent of your life savings that you tossed into one coin. Yes, you made a very, very dumb mistake and now youre the one, arguably paying the biggest price for it, because richer people in the situation diversified their holdings. They might even be able to get bailouts out of the situation. I do say, though, if you are experiencing some really bad thoughts, you should go and call up your suicide hotline. You should go speak to some therapist and you should understand that even if youre facing bankruptcy, it is not the end. You have a very big lesson to learn and you have a very big lesson to rebound from im, not going to say that it gets easy or, like you know, hey the grass is greener on the other side or like hey theres light at the end of The tunnel right now im saying youll: get there eventually its going to be a tough road getting there, but losing and ending it all right now is is not even. It should not be the idea that you should let float into your head when faced with a circumstance like this, because everyone involved in a situation like this has the capacity to turn their life around and be in a better situation than they are currently. Okay. Ending your life, all right is a very, very final thing, and it doesnt mean that ending your life basically means that if you had greener days, you know years from now months, from now decades from now, you gave up on them and thats, not something anybody should Do but i know this video has gotten pretty serious.

I wanted to talk about the largest crypto crash, but i think it has to end on a note that constantly reminds people that, at the end of it, theres always a human element that gets lost. That said, though, ladies and gentlemen, if you learned something, let me know in the comments section below, if you like what you saw please like comment and subscribe just like if you dislike and if youve been affected by this itll get better, you got to learn how To crisis manage right now talk to somebody that can help you guide your way through bankruptcy and restoring your financials in the long run.