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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

#91

Post by zyemuzu »

ordinaryradical wrote: post #46
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…

Where is this rally you reference? All the charts I can find sink to zero with no significant movement after that point.

I saw people verifiably 5x catching the bottom, I have seen nothing of 500x at all.

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

#92

Post by eric_cc »

loceng wrote: post #78
eric_cc wrote: post #69

Earlier quoted context omitted.

> 'this is good for bitcoin' A total ponzi scam coin crashed. This IS good for Bitcoin. Bitcoin is not Luna nor is it one of the thousands of other garbage scam coins. The faster those coins are proven scams the better. Too many people falsely equate "Bitcoin === Crypto".. or "a fan of bitcoin is a fan of all crypto". So I'd bounce this back to you: How is Luna's Ponzi crash NOT good for bitcoin?

What functionality was different between Bitcoin and Luna? Is Luna not run off of Bitcoin? So if Luna could function as a Ponzi scheme, why doesn't Bitcoin inherently have that same capability or function embedded into it? Or is there something preventing that from happening with Bitcoin? Confused.

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.

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

#93

Post by ptudan »

firloop wrote: post #71
ptudan wrote: post #10

Earlier quoted context omitted.

Unweathered protocols on eth failing shouldn't affect bitcoin. They're only related insofar as they are both crypto. The $3B in bitcoin sold could have been anything.

Minor nit but Terra isn't a protocol on Ethereum, Terra is its own L1 that competes directly with Ethereum.

Lol duh, I totally knew this. Thanks for the correction

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

#94

Post by nullc »

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…

I think it's a simpler explanation to assume that they would have robbed it by taking their huge stashes of luna and exploiting their 'buying'... it would hold up much better under scrutiny and they could still manage to transfer a significant fraction of the value into their pockets.

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

#95

Post by netheril96 »

djantje wrote: post #14

I don't understand, if $3B in bitcoin is sold to save UST we should also be able to see a equivalent of that $3B in Terra/Luna/UST buys? I don't understand crypto, and or how the Luna/UST works, but if you supported/buy something this should be visible, not only in vanished bitcoins, or am I mistaken?

The volume of UST and Luna are huge for the past few days. Way more than several billions.

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

#96

Post by jcranmer »

jandrese wrote: post #49
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…

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

The absolute low appears to be ~2e-5, and the (very temporary) high after that is 6e-3, which is a ~300x rally. However, the 6e-3 high was very temporary, with 4e-4 being the more durable high, with current prices running ~1-2e-4.

...I'm finding it easier to refer to the prices here in scientific notation, and to look at the price graph in log scale. That gives you an idea of how far the price has gone.

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

#97

Post by exdsq »

celdon25 wrote: post #20
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…

I would hope that there would be some kind of evidence that can corroborate this. A sudden movement of 3B is a lot to hide on a public ledger, exchanges or no. Someone will certainly be connecting the dots.

I saw a twitter thread that this was a sell off to repay investment whales at a better rate than the real one - it was some big twitter guy in the space but I couldn't find it if I tried. If anyone knows the one I mean, please comment it here!

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

#98

Post by eric_cc »

ethanbond wrote: post #86
eric_cc wrote: post #75

Earlier quoted context omitted.

> Doesn't the first line answer the second? To be clear, you're suggesting: "because people are uneducated about bitcoin and crypto, when one project fails they will incorrectly connect it to bitcoin. And that's bad for Bitcoin." These events are great opportunities to educate ignorant people. > 0 such ignorant people will learn more about bitcoin and why it's not like crypto like Luna. Greater education is extremely…

If these are good opportunities to bolster the credibility of BTC et al., the community must just do a very poor job of capitalizing on those opportunities. It is strictly a bad look to have headline after headline affiliating this entire economic sector with fraud, and frankly the shills’ reactions just make the headlines even more unflattering.

> headline after headline

This has more to do with media and social media thought bubbles. This is no different than any other topic in the news. There are highly intelligent takes out there. But click bait, trolling, and confirmation bias bs rises to the top in certain areas of media and social media.

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

#99

Post by bpt3 »

jpmattia wrote: post #81
onlyrealcuzzo wrote: post #40

Earlier quoted context omitted.

Only 3.87% of Tether was backed by dollars: https://siliconangle.com/2021/05/13/tether-releases-reserve-... So it could drop pretty far.

> Only 3.87% of Tether was backed by dollars For comparison: Citibank had only 11.73% Tier 1 capital in their 2021 report: https://www.citigroup.com/citi/investor/quarterly/2021/ar20_... Couldn't find a breakout of their Tier 1, but it includes high-quality credit items as well, so actual dollars is well below 11.73%. So in other words: SiliconAngle.com is writing clickbait and doesn't understand modern banking.

Did Citibank claim that its value was one-to-one backed with U.S. dollar reserves until they were caught not doing so?

If not, they're probably not a relevant comparison to Tether.

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

#100

Post by djantje »

px43 wrote: post #45
djantje wrote: post #14

I don't understand, if $3B in bitcoin is sold to save UST we should also be able to see a equivalent of that $3B in Terra/Luna/UST buys? I don't understand crypto, and or how the Luna/UST works, but if you supported/buy something this should be visible, not only in vanished bitcoins, or am I mistaken?

It was supposed to be quicker, and automatic, to prevent the collapse, but it's a relatively new system and still under manual control. In theory some set of humans have been tasked with slowly buying more and more UST to build up confidence, and restore the peg. This can't really happen because LUNA is worth basically zero now, but who knows.

Ah, yes, this part I can understand: to late with support and then the UST holders started selling, taking their loss, and in the proces devaluating UST

But the backing of UST(or Luna?) should be visible in soms large/or a lot of transaction in a small time window somewhere, if they started buying/supporting it with $3B, I would think

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