Cardano CEO Shares Message Alleging Cause of Terra’s Downfall -Breaking
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Cardano CEO Shares Message Alleging Cause of Terra’s Downfall- Charles Hoskinson sent a message that alleged the reason for the crash in the UST and LUNA prices.
- It involves a Blackrock (NYSE) and Citadel scheme to force massive liquidation.
- Do Kwon, on the other hand, shared their LUNA price recovery and UST price recovery strategies.
Charles Hoskinson, creator of the (LUNA and stablecoin UST) price crashes recently posted a message.
According to a message sent to Hoskinson by a person named Anna, the event is a well-executed strategy that capitalized on Terraform Labs CEO Do Kwon’s alleged naivety and Anchor being an alleged Ponzi scheme.
Blackrock and Citadel are crypto investment management companies. Anna claimed she borrowed 100,000 bitcoins at Gemini. The companies received the money and claimed they converted 25,000 Bitcoins into UST.
They then contacted Do Kwon and said that they were interested in selling a large amount of BTC to UST. They offered to buy large amounts of BTC at a discounted price, which was accepted by Do Kwon. Unfortunately this led to UST’s liquidity being reduced.
Blackrock and Citadel are alleged to then have dump all bitcoins and the UST. This caused massive slippage, and triggered a series of forced liquidations in both assets.
This message was concluded
Blackrock and Citadel now have the ability to purchase the BTC cheaply in order repay their loan and keep the difference. The rest of the VaR and longs fell out, with billions being lost.
On the other hand, Do Kwon finally spoke up about the details of the rumored recovery plan for TerraUSD’s (UST) de-pegging. In a series of tweets, he proposed to increase “basepool from 50M to 100M SDR and decrease PoolRecoveryBlock” from 36 to 18. Consequently, this move will raise the minting capacity from $293M to “$1200M”.
Kwon shared his views on possible causes of de-pegging in addition to this suggestion. He said that the stablecoin’s price stabilization mechanism is absorbing 10% of UST’s total supply and that the cost of absorbing huge amounts of stablecoins simultaneously “stretched out the on-chain swap spread to 40%.”
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