The R Roundup: Do Kwon’s $LUNA Disintegrates Into Dust — ISSUE #36
When this publication first started there was no expectation of what kind of news we would deliver but at no point did it cross the paradigm that we would cover a historic crash to zero by such an industry-backed project.
Across the past week, the most spoken about topic in every crypto discussion was without a shadow of a doubt the absolute obliteration of $LUNA and algorithmic stablecoin $UST. In what would need an extended postmortem the question is what happened to lead to this disintegration.
In what looks like a historic black swan event this thread provides an in-depth explanation of what happened to the Terra ecosystem👉:
Concerns began to rise as $LUNA was fast-moving closer to 0 due to the mechanism $UST was using to restore that peg. Those who were worried about the crushing of the ecosystem were waiting on edge for a response from founder Do Kwon however after hour responses between updates Do Kwon addressed the Terra community👉:
Key market leaders were all caught in two minds with just less than a month ago $LUNA & $UST was soon looking like an industry dominator; CZ announced his disappointment referencing the “lack of handling by the Terra team”.
The markets have certainly never seen such a well-backed and well-funded project plunge to the lows it saw.
There is no doubt a large number of people who were supporters of $LUNA may have lost a large number of their portfolios but it’s important to remember that regardless of losses, the market always recovers and it’s not the end.
Instagram Supports NFTs 🤳🖼
Since the company changed from Facebook to Meta, there has always been an expectation that all companies under that umbrella would begin to become more welcoming toward crypto.
NFTs have been touted as the bridge between social currency as we know it on the traditional web into the internet of the future and with the fast-growing popularity of cryptographic art, Instagram has planned integrations.
It was reported some months ago that this integration was only a matter of when rather than if and lately, it has come to light that Instagram have the intention to support NFTs from all different chains such as; $ETH, $SOL, & $MATIC.
With over a billion active monthly users, the reach which Meta has cannot be understated in its pursuit of crypto adoption however they have expressed the intentions to support some of the more common NFT wallets like Metamask.
Regulators Turn Attention To Stablecoins👨⚖️
Following on from the $UST de-pegging circumstance, there is no doubt this can be a foresight into the fact that the crypto market is still extremely under-matured whilst developing massively.
There always seems to be a tendency of conflict between regulators' comments and those who are avid crypto users due to the emphasis on decentralisation amongst the vast community.
US Treasury Secretary Janet Yellen has said that despite the pressures of the risks that regulators have emphasised that can come with the stablecoin market, it hasn’t “reached a size that would pose a systematic risk to the US financial system”.
Despite identifying and referencing the current situation with Terra and the scrutiny which Tether faces, she emphasises the understanding and the association that the fed has connected between stablecoins and "bank runs"
She used the famous “broke the buck” phrase to express what occurred with $UST and momentarily with $USDT to emphasise the importance of stablecoin regulation from Congress.
Legislation tends to go through arduous discussion and doesn’t tend to be resolved in quick succession. If the fed does attempt to get its grip on the stablecoin market it will be a prolonged debate.
Mayhem For Azuki 🥷🏾❌
It seems like this week we have seen major narrative changes and what was once touted as “blue chips” has had some huge revisions this week in the markets.
The phrase when it rains, it pours has never been more evident than this week in the markets as following on from the major $UST situation, we saw one of the largest NFT collections come under the microscope when the founder who is known as Zagabond exposed his journey leading to his creation of Azuki.
In what seemed like an oddly timed released journal on his journey, Zagabond exposed that he was the founder of three NFT projects that had been abandoned.
Those collections were: CryptoPhunks, Tendies and CryptoZunks
Due to the nature of which Zagabond had been rumoured to leave those previous projects, people started to speculate that there was no developmental intention for the projects which saw fit to call the previous projects rugpulls.
Due to not any form of ratified explanation for what a rug pull it or not, a lot of people came to the defence of the Azuki founder claiming that these projects were not rug pulls and famous NFT influencer Andrew Wang made the following comments “there was no product-market fit at the end of the day.”
Vagabond took the matter to spaces where he dedicated some time to explaining his devotion and commitment to fully building out Azuki.
Why Is Everyone Bearish 🐻: Sentiment Update🧘♂️
If you are a custom to crypto, you will start to get the same feeling that you probably got last May however for those who may have never seen this before it’s probably a major shock.
There is no doubt that seeing projects dropping 100% in a week and stablecoins de-pegging is very difficult to stomach however it is important to remember cryptocurrency is going nowhere. It’s not clear what the knock-on effect will be following the crazy week we have seen but whatever the outcome make sure you avoid any noise that isn’t aimed to manipulate your journey. Some people are committed to the development of the space and if anything now is the time to try and tap into that.
There is no time in crypto more entertaining that when everything is going down but you should also remember that things are exaggerated in the markets in both directions. The Russian Roundup commits to delivering authentic news and making sure that there is extensive research before stories are cXYZu t.
Throughout the whole journey, we commit to providing the space with as many resources as we can!
It’s important to remember that this is such disruptive tech there is no doubt in its adoption and its wider use case however the real wins come from avoiding all the cultish and psychological traps to stay afloat.
As a reminder this is not a trading signal, it is an opinion and each trader/investor should know and understand the risks attached to trading. At no point should this be regarded as financial advice
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