28/05/2022
Following the crash of one of the most notable DeFi ecosystem and its algorithmic stablecoins, Terra from Luna labs, many in the community have been wondering what the cause was and eagerly waiting to see whether this is indeed the end for TerraLuna’s ecosystem or a hard lesson learned for the future. We Gathered as much information we could to give hints on what is going on, without further ado, let’s jump in to what’s been going on.
How and what caused history’s biggest crypto crash to date? 👀
🧐 Theory n⁰1
The most prominent theory is down to two of the world’s biggest multinational investment funds, Blackrock and Citadel, who borrowed 100k BTC from the Gemini exchange to purchase UST from Terra, and then proceeded to conspire to dump the assets causing a huge sell off and ultimately knocking a staggering $28 billion off Terra’s market cap. Terra in order to try and repeg their stablecoin sold 15k BTC as collateral which in turn caused a domino effect that resulted in history’s largest crypto crash. Though many believe this to be the primary cause, Blackrock, citadel and Gemini deny these allegations.
More details on the following link: 🇬🇧
https://www.etfstream.com/.../blackrock-and-citadel.../....
🧐 Theory n⁰2
By May 2021, the UST had already lost its dollar peg. It was apparently Jump that emerged as the possible culprit.
The same company that had been involved in the Solana Wormhole hack. At the time, a rescue plan of over $300 million was put in place within hours to prevent a collapse of the ecosystem on Solana. Many wondered where the money made available by Jump came from. It is possible that there is a link between the two events.
More details on the following link: 🇫🇷 https://fr.investing.com/.../terra-luna--larnaque-de...
Is there a way back? Which one is going to be saved Luna, UST or both?
🎬 Episode 1:
The team are looking for a solution to solve this issue that is seemingly impossible for most people to overcome for most people, however it has triggered CZ (Binance CEO) and Vitalik Buterin (Ethereum CEO) to jump in on helping the Terra community through these apocalyptic times. Do kwon is opting for a revival plan by creating a hard fork (copy of a blockchain) to be known as Luna 2.0. CZ thinks this will prove to be worthless (pre-crash the Binance CEO had $1.6 Billion worth of Luna). Both CZ and Vitalik believe that there should be a burn of Luna tokens that have been overproduced from 85 million to around 6,500 billion tokens and they are ready to bring some collateral in order to rebalance the equity between Luna and UST.
More details:
🇫🇷 https://www.cointribune.com/.../vitalik-buterin-vient-a.../
🇫🇷 https://cryptoast.fr/changpeng-zhao-pdg-binance-affirme.../
🇬🇧 https://cointelegraph.com/.../binance-ceo-cz-to-support...
🇬🇧 https://bitcoinist.com/terra-flaw-ethereum-creator-slams.../
🎬 Episode 2:
Not only have incredibly influential individuals taken the plunge in saving Terra, but the belief that both tokens could be saved are fading away. Swiss asset manager GAM has also taken a leap of faith in order to try and save Terra’s UST and has made a proposal to invest 2 to 3 billion dollars in that favour. Whilst working on the best decision to make, and stop the overproduction of Luna token that causes its devaluation the blockchain has been put on pause at block 7607789.
More details:
🇫🇷 https://www.lacryptomonnaie.net/.../le-gestionnaire.../...
🎬 Episode 3:
Do kwon the CEO and founder of TerraLuna ecosystem has asked the community validators to take a vote on what should be done in order to save their ecosystem and more precisely asking them if they are in favour to go for a hard fork of Luna/UST. The answer was almost unanimous with 90% of the community voting against the idea.
🇬🇧 https://www.theblockcrypto.com/.../terra-community-seems...
🎬 The final Episode:
Do Kwon insisted by showing the community what the revival plan involving a hard fork would look like by publishing “The revival Plan” document on Twitter.
Following this a second vote was made and surprisingly the community validators answer took a very different turn and agreed to activate the revival plan with 65% of votes in favour for the hard fork, that will take place on the 28th of May 2022 at around 6:00 AM UTC.
More details:
🇬🇧 https://cryptoast.fr/terra-proposition-fork-blockchain.../
🇬🇧 https://www.gfinityesports.com/cryptocur.../terra-luna-vote/
🇬🇧 https://agora.terra.money/.../terra-ecosystem.../8701
Our advice to all Enochians: 🤑
Diversification is key. Be sure not to hold all your eggs in one basket and never invest more than you can afford to lose. Though seemingly obvious, it’s a common mistake that is made and have cost many their entire portfolio.
The revival plan being activated for UST and Luna holders before the crash have been taken into consideration and there will be some sort of compensation with the initiation of the revival plan. Snapshots have been taken on the 7th of May 2022 and 27Th of May 2022, obviously holders of Luna and UST after the crash will not entitled to the same compensation plan as holders before the crash.
For those that had Luna and UST on exchanges such as Binance and Kucoin (during the snapshots), don’t worry, no need to transfer anything to Terra Station as both exchanges will support the airdrop of the upcoming fork.
Follow the link to calculate how much Luna you’ll be airdropped:
🇬🇧 https://terrarity.io/luna-airdrop
🇬🇧 https://medium.com/.../terra-2-0-luna-airdrop-cd08a6d9cfcd
Many scammers will profit from this crash to lure investors to invest in fake Luna 2.0. Be sure that the information comes from reliable sources and follow the official company channels and websites below:
🔵 Coinmarketcap:
https://coinmarketcap.com/currencies/terra-luna-v2/
🔍 Website:
https://www.terra.money/
🔵 Twitter:
https://mobile.twitter.com/terra_money (Terra official)
https://mobile.twitter.com/stablekwon (Do Kwon Official)
https://mobile.twitter.com/cz_binance (CZ_Binance Official)
🔵 Telegram:
https://t.me/TerraLunaChat
This article has been written for informational purposes only and should not be considered as a financial advice.
All the team wish you happy profits, and as always please trade with caution!
Team @ Enoch 🕊
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🇬🇧https://t.me/enochcrypto
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Thank you for being part of Enoch 🤝
Terra 2.0 is nearly here. As a community-owned network, Terra will have its native staking token, LUNA, airdropped to its community, as…
