UST, a stable coin not even pretending to be backed by the very thing it was pegged to fails. Unlike USDT, USDC or GUSD, there was a documented plan of attack to take UST down 6 months ago, someone just raised enough capitol to execute it.
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We’re discontinuing the Stablegains service
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Re: We’re discontinuing the Stablegains service
#32Obviously I'm a little out of the loop, but what is the "attack" they talk about in the new plan? I thought the coin just death spiraled.
Re: We’re discontinuing the Stablegains service
#33> Stablegains is not accepting any new users or any new deposits on our platform. At this time, please DO NOT use your deposit addresses as any funds sent might not be recoverable.
It boggles my mind that people don't see that the inability to block/reject payments is a fundamental flaw of cryptocurrency.
Re: We’re discontinuing the Stablegains service
#34> While we have informed users that there are no absolute guarantees against risks
I'm... uh.... fairly certain this was not the crux of their marketing which severly downplayed the underlying risk. There is also a huge spectrum between "we cannot guarantee that there is 0 risk" (which seems to be what the above sentence is saying), and "there exists a risk that all of your funds disappears in 24 hours".
It seems like there is some serious rewriting of history going on here.
Question though, do the founders here have any potential criminal liability from this whole situation (including apparently lying about what they were doing with their customers funds)?
Re: We’re discontinuing the Stablegains service
#35Earlier quoted context omitted.
A fraudulent company going bankrupt because the fraud collapsed.
Source on the company being fraudulent? Source on Terra being a fraud? Please provide sources for your ad-hominems.
Anybody promising low-risk, high-return investment is a fraud. After all, why would they have to convince you to invest money if they could just do it themselves?
Re: We’re discontinuing the Stablegains service
#36TerraUSD Price (UST) $0.05468 So, 95% of the value is gone. Can anyone explain how the fork, airdrop, and other gyrations the Terra/USD promoter is proposing will work, and where any actual money comes from?
Much the same way as this scam.
Re: We’re discontinuing the Stablegains service
#37Earlier quoted context omitted.
Source on the company being fraudulent? Source on Terra being a fraud? Please provide sources for your ad-hominems.
I’d probably assume somebody looked at “15% interest” as a sales pitch and “losing all of your money” as the actual thing that happened and concluded that it was fraud. What exactly is fraud by your estimation?
There is intent behind fraud.
Re: We’re discontinuing the Stablegains service
#38Obviously I'm a little out of the loop, but what is the "attack" they talk about in the new plan? I thought the coin just death spiraled.
The thoughts are that someone borrowed lots of BTC and UST, started selling UST to depeg, then started selling BTC as they tried to regain the peg, the joint selling of BTC lowered the price making it harder, actually impossible,to regain the peg.
Re: We’re discontinuing the Stablegains service
#39Earlier quoted context omitted.
>Terraform has $3B (ish, stores as Bitcoin) that they could use to try to buy back faith in their coin. This is not correct. They used those bitcoins to try to defend the peg. Here you can see the actual treasury: https://datastudio.google.com/u/0/reporting/b31cc9e5-c54c-44...
> This is not correct. They used those bitcoins to try to defend the peg. My understanding is that its more likely that they were allowing connected insiders to cash out at face value rather than "trying to defend the peg" at the prevailing market rates.
No public evidence of that as of now, but it could definitely be true. The interesting thing is that it doesn't really matter, those "insiders" would have dumped the coins in the open market breaking the peg even further. So yeah, maybe LFG could have sold the bitcoins a bit better in the open market, but I don't think that it would have made a difference.
Re: We’re discontinuing the Stablegains service
#40I recommend skimming over the list of blog posts shared over the course of a year about the rise and decline of a crypto startup. It's a great post-mortem: https://medium.com/@kamil.ryszkowski