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$3B in Bitcoin was sold in a last-ditch attempt to save UST from collapse

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Re: $3B in Bitcoin was sold in a last-ditch attempt to save UST from collapse

#121

Post by vkou »

vmception wrote: post #26
NelsonMinar wrote: post #22

Earlier quoted context omitted.

I'm sure we'll have an orderly audit and accounting for the loss of funds as adjudicated by the appropriate courts!

By 2032? We need new songs, “you just got Do Kwon’d” instead of “Mt Goxxed”

Just as a reminder about how Mt Gox played out - it looks like all the people who lost money on it will receive 1:1 fiat-denominated compensation for their losses, Mark Karpeles won't serve a day in prison, and is likely to walk away with ~3 billion worth of BTC[1].

Who'd have thought that failing to operate a bitcoin exchange is a thousand times more lucrative than actually operating one!

[1] If Mark owed you a bitcoin back in 2014, you're not going to get that bitcoin back. You're going to get somewhere between ~$200 and ~$600 back. He's going to keep the other $30,000.

Re: $3B in Bitcoin was sold in a last-ditch attempt to save UST from collapse

#122

Post by eric_cc »

jtaft wrote: post #106
eric_cc wrote: post #90

Earlier quoted context omitted.

LUNA minted trillions of brand new tokens within the span of a day or so rendering the token worthless. This is due to the way LUNA was tied to the algorithmic stablecoin UST. It was a true ponzi. BTC's max supply is capped and the release schedule of new coins is fixed and predictable. There is no possible way that trillions of new bitcoins could suddenly be created.

Do you think the value of Bitcoin will go to zero due to lost private keys?

I think it would sooner be rendered obsolete for another reason before this scenario.

It would take a long, long time for this to play out.

Re: $3B in Bitcoin was sold in a last-ditch attempt to save UST from collapse

#123

Post by foobiekr »

lamontcg wrote: post #108
joosters wrote: post #4

"Sold" It's hard to show that they really sold these coins. Certainly, the LFG transferred the coins to some different exchanges. But did they truly sell them? If I was running a dodgy ponzi scheme and saw it collapsing catastrophically, I don't think I'd be throwing good money after bad trying to futilely patch it up. Much better to stash the remaining assets away somewhere and personally cash out later on. Also, “I…

> “In a sense, the market is going to take that as kind of bullish.” I mean everything is a bit oversold right now on negative emotions, both in the crypto space and in the stock markets. There's probably going to be a positive bounce just because markets don't move in straight lines. There is always the chance that something else explodes due to stress tomorrow and hits the headlines and crypto and/or stocks start m…

By what metric are things oversold? Valuations are still crazy by most perspectives, price/earnings, debt/revenue, etc. etc. etc.

Expect more losses.

Re: $3B in Bitcoin was sold in a last-ditch attempt to save UST from collapse

#124

Post by eric_cc »

matheusmoreira wrote: post #120
eric_cc wrote: post #117

Earlier quoted context omitted.

> There absolutely is Banks and/or exchanges cannot create more bitcoin.

Sure they can. You deposit 1 BTC, they loan it out to someone else. Boom, 2 BTC.

No. There is still 1 BTC in this scenerio. When you choose to deposit your 1 BTC you've lost custody of it and somebody else has gained possession of it. All you have is a promise that you'll get it back - which is not === BTC.

Re: $3B in Bitcoin was sold in a last-ditch attempt to save UST from collapse

#125

Post by vmception »

lvass wrote: post #42
vmception wrote: post #17

I mean that was the expected outcome and now people are like “proof of the expected outcome!?!” Following months of outcry about the unsustainable nature of Terra Luna, Do Kwon through his foundation tried to partially collateralize the stablecoin with bitcoin, with a goal of buying up to $10bn of bitcoin. He got $3-5bn (at the time, price changed a lot), and this prolonged the confidence system for one additional mo…

>So it doesnt matter whether we get records from exchanges It matters a lot. The rumor mill has it LFG directly rescued a few whales in the first sign of crisis. This is a very serious accusation I'd urge no one proclaim without definite proof. If they concentrated their usage of the reserves to keep the peg earlier, possibly anyone selling below $1 would take an immediate loss and no noticeable depeg would even happ…

> Nothing different would happen. People want to see Do Kwon have more reasons to have charges against him

Re: $3B in Bitcoin was sold in a last-ditch attempt to save UST from collapse

#126

Post by skinnymuch »

vmception wrote: post #105
jandrese wrote: post #49

Earlier quoted context omitted.

Huh? https://coinmarketcap.com/currencies/terra-luna/

You would be better off using a spreadsheet updated with your own data points than price aggregators. But that very website says the 24 hour low was $0.00001675 and the current price of $.00016 is 10x higher The reality is that the lows on specific exchanges had more zeroes than that

Sure but how much legit volume did those specific exchanges do at those price points allowing more than 50x or 100x returns?

Re: $3B in Bitcoin was sold in a last-ditch attempt to save UST from collapse

#127

Post by NovemberWhiskey »

eric_cc wrote: post #124
matheusmoreira wrote: post #120

Earlier quoted context omitted.

Sure they can. You deposit 1 BTC, they loan it out to someone else. Boom, 2 BTC.

No. There is still 1 BTC in this scenerio. When you choose to deposit your 1 BTC you've lost custody of it and somebody else has gained possession of it. All you have is a promise that you'll get it back - which is not === BTC.

You'll have to explain how that's usefully different from the fiat context.

Re: $3B in Bitcoin was sold in a last-ditch attempt to save UST from collapse

#128

Post by skinnymuch »

javert wrote: post #66
vmception wrote: post #21

Earlier quoted context omitted.

> Also, “In a sense, the market is going to take that as kind of bullish.” - a.k.a. the standard 'this is good for bitcoin' quote, applicable whatever the news is! Yes all weekend I had been wondering and cautious based on how much bitcoin was left to sell! Its just a commodity, supply can be faster than demand, specifically when one whale is expected to flood the market Terra Luna rallied 500x (50,000%) off the lows…

There are lots of scenarios where the Luna becomes somewhat valuable again. A truly major crypto coin like Luna has never truly disappeared. Probably someone will make a fork like "Luna Classic." There are lots of these things (ETH classic, Bitcoin Cash, Bitcoin SV) that have zero rationale for existing, but are still traded with a high valuation. tl;dr people will attempt to reflate their bags; some moderate success…

Eth classic is a good one to exist to remind people about what decentralization means these days and what trust the contracts/code really means.

Re: $3B in Bitcoin was sold in a last-ditch attempt to save UST from collapse

#129

Post by lumost »

lamontcg wrote: post #108
joosters wrote: post #4

"Sold" It's hard to show that they really sold these coins. Certainly, the LFG transferred the coins to some different exchanges. But did they truly sell them? If I was running a dodgy ponzi scheme and saw it collapsing catastrophically, I don't think I'd be throwing good money after bad trying to futilely patch it up. Much better to stash the remaining assets away somewhere and personally cash out later on. Also, “I…

> “In a sense, the market is going to take that as kind of bullish.” I mean everything is a bit oversold right now on negative emotions, both in the crypto space and in the stock markets. There's probably going to be a positive bounce just because markets don't move in straight lines. There is always the chance that something else explodes due to stress tomorrow and hits the headlines and crypto and/or stocks start m…

The fact that crypto is correlated with tech stock valuations should be raising eyebrows. Flash back a few years and the hypothesis that bitcoin would hedge inflation/fiat depreciation was standard. If BTC is correlated with equities, why not just hold productive equities?

Re: $3B in Bitcoin was sold in a last-ditch attempt to save UST from collapse

#130

Post by eric_cc »

NovemberWhiskey wrote: post #116
eric_cc wrote: post #92

Earlier quoted context omitted.

Terra (token LUNA) is its own chain. Trillions of brand new LUNA tokens were minted within the span of a day or so rendering the token worthless. This is due to the way LUNA was tied to the algorithmic stablecoin UST. It was a true ponzi. BTC's max supply is capped and the release schedule of new coins is fixed and predictable. There is no possible way that trillions of new bitcoins could suddenly be created.

> There is no possible way that trillions of new bitcoins could suddenly be created. That's a slightly strong perspective; it is not impossible; it is merely extremely hard.

> it is merely extremely hard.

Care to elaborate how it could be done?

Even if it were to happen, which it could not, the chain would fork from the moment before the hack and continue on without the hack.

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