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Did Someone Deliberately Attack Terra/Luna to Kick off a Death Spiral?

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Jon Wu, head of growth at Aztec Network, recaps a historically chaotic week in the Terra ecosystem that saw $UST depeg, Anchor depositors flee, and $LUNA fall 99%. Show highlights:

  • how $UST, $LUNA, Luna Foundation Guard (LFG), and Anchor Protocol are supposed to work
  • why Jon compares the Terra blockchain with VISA, LFG with the Fed, and Do Kwon with Jerome Powell
  • how a previous $UST de-peg foreshadowed this week’s dystopian price action
  • how a bitcoin short seemed to have kickstarted $UST’s depeg and why Jon thinks it was a deliberate attack
  • why Luna Foundation Guard originally purchased Bitcoin – and how that plan backfired and made the Terra death spiral even more violent
  • why $UST had such low liquidity this week – making it more susceptible to a bank run
  • what Jon’s predictions are for $UST and $LUNA going forward
  • what were the reasons behind Terra halting
  • why Jon does not think this will be the end of algorithmic stablecoins
  • why Jon thinks this should not affect ETH directly, even though there is a high amount of staked ETH in the Terra ecosystem

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Episode Links

Jon Wu

Jon’s Write-Up on the UST Depeg

Previous Unchained Coverage of Terra

  • Do Kwon on backing UST with BTC
  • Kevin Zhou on the risk of UST’s death spiral

Terra:

Other Recaps on Terra: 

  • Coinsmart. Europe’s Best Bitcoin and Crypto Exchange.Click Here
  • Platoblockchain. Web3 Metaverse Intelligence. Knowledge Amplified. Access Here.
  • Source: https://unchainedpodcast.com/did-someone-deliberately-attack-terra-luna-to-kick-off-a-death-spiral/

This Post was originally published on Unchained

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