With emerging technologies like Web3, Metaverse, and Decentralised Finance (DeFi) technologies, it is quite evident that cryptocurrencies are here to stay and that too for an infinite time.

Malicious intent, manipulating data, and unstructured and unauthorised use of finance led to the gradual bankruptcy of the well-known exchange platform.

Black Swan events like the Luna crash and FTX will just rebalance the industry to shed the unhealthy ecosystem

The introduction of Cryptocurrency was like the discovery of fire or sliced bread. It is a one-of-a-kind, rare, phenomenal digital asset that functions on blockchain technology.

It has completely transformed the way investors look forward to financial independence. This could be seen as a way to freedom from the dictates of central banks and regulations. However, It always took investors on a roller coaster ride. Few of them became ‘instant’ millionaires while others are still in the process.

Since its arrival, cryptocurrencies are going through their worst crisis. Bitcoin faced a straight fall on the face in late 2020 and is yet to recover, the collapse of some so-called ‘stablecoins’ have put a question mark on the crypto industry. To make the industry even more volatile, the giant cryptocurrency exchange failed. Allegations of fraud layered on the FTX case.When it hit the bottom last year, it was all tears. With the collapse of FTX, the third-largest crypto exchange platform, and other crypto projects, the last year seems to be the darkest hour in the crypto sphere. It is filled with many ‘Hows’, ‘Whys’, and ‘Ifs’!

The Great Fall of #FTX and FTT

Sam Bankman-Fried(SBF) co-founded Alameda Research in September 2017, which made profits by hedging crypto assets. Looking at the exponential growth, SBF founded FTX Trading Ltd. (Futures Exchange), an exchange platform for cryptocurrencies. Other than providing exchange services, FTX created its native token, called FTT.A report revealed, the sister firm Alameda held a large portion of its assets in FTT tokens. After this report, a series of not-so-good events bombarded FTX. #ChangpengZhao (CZ), CEO - #Binance - the leading exchange announced the sale of all of his holdings of FTT. When FTX’s customers found out, they panicked and tried to withdraw their money. FTX could not handle such a massive amount of withdrawals and buckled under market pressures, inching closer to insolvency. When the layers of the case unfolded themselves, another shocking revelation was made. FTX’s bookkeeping system allowed them to secretly shift $10 Billion to Alameda without alerting anyone. Thus, it gradually slipped into bankruptcy, filed in November 2022. In a meager 8 days, the company had Zero valuation. The users were to bear a loss of almost 800 Million. Amongst all the hues and cries one can observe that the death of FTX was majorly because the face behind it misused the technology.

It is not wrong to believe that malicious intent, manipulating data, and unstructured and unauthorized use of finance led to the gradual bankruptcy of the exchange platform.

Terra #Luna Failure

Stablecoins are often assumed to be safe havens in the crypto space. Impliedly, they’re meant to have a fixed value. Terra was becoming one of the biggest red-hot crypto projects. The network and its founder, Do Kwon, took four years to get pride and prestige in the crypto world. In just a matter of a few days, it hit the bottom, crashing down.TerraUSD (also known as UST) and Luna are two sister coins on the Terra network.The idea was to leverage the arbitrage to take advantage of Luna and maintain the price of UST constant at $1. This would eliminate the requirement for the platform to maintain US dollar reservoirs. The platform would use built-in algorithms to monitor supply and demand market forces for both coins to maintain equilibrium. The belief was that Terraform Labs could use clever mechanisms along with billions in Bitcoin reserves to maintain the peg of UST without the backstop of the USD. As depositors lost faith in the tokens in May of 2022, They rushed for the exit in the cryptocurrency equivalent of a bank run. Media sources had begun to label the Terra stablecoin and Luna token a Ponzi scheme and a rug-pull scam.

Cryptocurrencies Are Here To Stay

The cryptocurrency sector has been through a rough patch this year, and while it has been shaken up, all of us can use the disruption as a learning experience. Moreover, this is seen as a welcome change. With emerging technologies like Web3, Metaverse, and Decentralised Finance (DeFi) technologies, it is quite evident that cryptocurrencies are here to stay, and that too for an infinite time!

The Bottom Line

It is a learned opinion now that cryptocurrency is not just a fad, it is not going to disappear anytime soon. The durability of crypto-assets will continue to evolve and transform with the technologies that support them. Black Swan events like Luna crash and FTX will just rebalance the industry to shed the unhealthy ecosystem.

#coingabbar

Terraform Labs Co-Founder Do Kwon Charged with Fraud After Arrest in Montenegro

Do Kwon on the Run for Months After Collapse of UST and LUNA

Federal prosecutors in the U.S. have charged Do Kwon with fraud, just hours after his arrest in Montenegro. The co-founder of Terraform Labs had been evading arrest for months following the collapse of UST and LUNA. Bloomberg reports that Kwon was detained at an airport in Podgorica, Montenegro, where he had attempted to board a flight to Dubai using falsified Costa Rican travel documents.

Kwon now faces multiple charges, including conspiracy to defraud, two counts of commodities fraud, securities fraud, wire fraud, and conspiracy to defraud and engage in market manipulation. These charges have been filed by the Southern District of New York. If he is extradited to the U.S. from South Korea, it will mark the largest criminal case to emerge from the bear market.

The collapse of UST and LUNA had raised concerns in the cryptocurrency world, with Terraform Labs being accused of failing to properly manage the risks associated with its stablecoins. This latest development will likely add to the skepticism surrounding the stability and legitimacy of stablecoins, which have been gaining popularity as an alternative to traditional currencies.

In conclusion, Do Kwon's arrest and subsequent charges serve as a reminder of the risks associated with the cryptocurrency market. It is essential that companies operating in this space take the necessary steps to ensure compliance with regulations and to manage risks effectively. The outcome of this case will undoubtedly have far-reaching implications for the future of stablecoins and the cryptocurrency industry as a whole.

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#Launchpad #lunc #Luna #GPT-4 #Fed

If I have to put up with being laughed at because I write the truth because others don't do their own research because they simply haven't learned anything from the past, I'll do it for you.
Luna's maximum supply should be fixed at 1 billion as stated by the team but this is not quite the truth. let's look at the block explorer. As you can see, the total supply is already well over 1 billion ! 🤷🏽‍♂️
let's go further. you can check Luna's annual inflation rate in the whitepaper this is very easy To do this, simply click on the whitepaper and read it thoroughly. For some lazy people who rely on the statements of others, I will do it for you.
so and please before you comment on my post again that I'm lying or talking shit please remain respectful until you have checked it yourself thank you❤️ #HotTrends #Luna #dyor $LUNA

Recently, a significant verdict was announced by a federal jury in New York, where South Korean cryptocurrency magnate Do Kwon and his company Terraform Labs were found to be involved in fraudulent activities. This ruling sheds light on justice for investors who witnessed the value of their investments in cryptocurrency plummet to almost zero.
The genesis of this civil lawsuit can be traced back to February 2023 when the U.S. Securities and Exchange Commission (SEC), the regulatory body responsible for protecting investors' rights, decisively stepped in and filed a civil lawsuit against Kwon and Terraform. The complaint detailed how the defendants meticulously orchestrated a fraudulent scheme, resulting in market losses of up to $40 billion. They spun a beautiful lie to investors, exaggerating the prospects and stability of the cryptocurrency tokens they issued, luring countless people into this financial whirlpool.
Following the market crash in 2022, Kwon took the path of fugitive. He faced not only criminal charges in the United States but also became a subject of pursuit by the South Korean police. The former cryptocurrency tycoon recently obtained bail from a prison in Montenegro - where he was arrested last year - and is now awaiting extradition.
In Kwon's absence, a federal jury in the Southern District of New York carefully listened to the testimony of investors who purchased Terraform tokens, whistleblowers from companies that collaborated with Terraform, and other key witnesses. After less than two hours of deliberation, the jury unanimously ruled that Kwon and Terraform were unequivocally responsible for making false statements and misleading investors in their civil fraudulent activities.
In a subsequent statement, Gurbir S. Grewal, Director of Enforcement at the SEC, said, "We are pleased with today's jury verdict, which firmly establishes the responsibility of Terraform Labs and Do Kwon for a massive cryptocurrency fraud. While cryptocurrency investments may seem enticing, full of promises, the lack of necessary regulatory measures has led to extremely serious consequences for real-world investors. We will continue to steadfastly uphold fairness, transparency, and order in the market, protecting the legitimate rights of investors."
Market analyst Noelle Acheson (formerly of cryptocurrency brokerage firm Genesis Trading) commented that the civil trial outcome for Kwon, along with the recent judgment against Sam Bankman-Fried, founder of the cryptocurrency exchange FTX, marks the end of a painful period for the cryptocurrency industry. Acheson remarked, "Many people are deeply saddened by Do Kwon's actions. Those investors feel betrayed." She further noted, "Hopefully, these events will remind people to do their homework before investing, ask more targeted questions, and avoid being misled by empty and unrealistic promises."
Kwon co-founded Terraform with Daniel Shin in 2018. In 2020, the company ambitiously announced the launch of a stablecoin called TerraUSD (UST), claiming its value would be pegged to the U.S. dollar, providing investors with a safe haven from the volatility of other cryptocurrency markets.
Stablecoins typically maintain their specific value by backing them with a basket of underlying assets such as cash and short-term government bonds, allowing investors to redeem them at any time. However, Terraform claimed that UST would adopt a unique mechanism, pegging it to another token issued by the company called LUNA, using complex algorithms to maintain its value relative to the U.S. dollar. If the value of UST deviated from $1, traders would theoretically be incentivized to buy or sell the stablecoin to restore its value to the target level.
In early 2022, UST and LUNA gained popularity, with LUNA even becoming one of the top 10 cryptocurrencies by market capitalization globally at one point, followed closely by UST. Acheson said, "This mechanism was both intriguing and novel, and many smart people at the time believed it could work."
In May 2022, a sudden storm swept through the cryptocurrency market. As large UST holders began selling the token in bulk, UST quickly deviated from its peg to the U.S. dollar, causing panic in the market and triggering a broader sell-off, with the price of UST plummeting almost to zero. At the same time, other tokens associated with LUNA and Terraform also suffered significant losses, with their market capitalizations shrinking drastically. Acheson commented, "The mechanism UST claimed to have built on a false assumption, that people expect it to self-correct, so it can self-correct." She further pointed out, "[Kwon] made unrealistic marketing claims about the stability of the stablecoin, misleading many investors."
This event not only plunged the cryptocurrency market into a downward spiral but also triggered a series of chain reactions. A number of cryptocurrency companies found themselves in trouble, with the hedge fund Three Arrows Capital being the hardest hit, declaring bankruptcy in June. Subsequently, cryptocurrency lending companies Voyager Digital, BlockFi, and Genesis also faced difficulties, indirectly impacting the stability of other major cryptocurrency companies such as FTX. This storm sent shivers through the entire cryptocurrency industry like never before.
#bIgEr4You #Lunc #Luna #USTC
$LUNA $LUNC $USTC

Chapter 13: Cosmic Awakening

In the wake of the celestial convergence, the Terra Luna (#lunc ) community found themselves in a state of cosmic awakening. The journey through the crypto universe had opened their eyes to the boundless possibilities of decentralization, and their spirits soared with newfound purpose.

As the price of Terra #Luna continued to ride the cosmic waves, KAM and the community navigated the uncharted territories of the crypto cosmos with steadfast determination. They were no longer mere spectators but active participants in shaping the future of decentralized finance.

The cosmic awakening had sparked a surge of creativity within the Terra Luna ecosystem. Innovations and ideas bloomed like celestial flowers, each one adding a unique hue to the ever-expanding universe of possibilities.

The Terra Luna team worked tirelessly to bring these visions to life, coding away in the cosmic depths of their virtual realm. New features and improvements were introduced, each one reflecting the principles of #decentralization and community empowerment.

"We are on the cusp of a revolution," KAM proclaimed, his voice echoing across the stars. "The cosmic awakening has ignited a fire within us, a fire that shall illuminate the path to a decentralized future."

The Terra Luna community echoed his sentiment, their unity and resolve stronger than ever before. They were no longer mere stargazers; they were cosmic pioneers, driven by a shared dream of decentralization and financial sovereignty.

As the days turned into cosmic cycles, Terra Luna's journey continued to capture the imagination of the crypto universe. Each chapter of the saga revealed new wonders and challenges, but the community stood united, ready to face whatever lay ahead.

Amidst the cosmic awakening, the burn rate of Terra Luna became a topic of celestial fascination. The supply of LUNC steadily decreased as more tokens were burned, further solidifying the deflationary nature of the cryptocurrency.

"We are witnessing a cosmic dance of scarcity and value," Do Kwon explained, his words carrying the weight of celestial wisdom. "The burn rate of Terra Luna reflects our commitment to a decentralized monetary system, where scarcity is a cosmic force that drives value."

The burn rate was not merely an economic concept; it was a cosmic principle, a reflection of Terra Luna's journey towards a new paradigm of finance. With each burned token, the community's dedication to decentralization grew stronger, paving the way for a cosmic shift in the financial landscape.

As Terra Luna's price continued to soar amidst the cosmic awakening, KAM felt a sense of cosmic responsibility weighing on his shoulders. The community had entrusted him with the guardianship of their dreams, and he vowed to protect their vision with unwavering resolve.

"Our journey is one of cosmic significance," KAM said, his voice steady. "We are not bound by the limitations of the past; we are cosmic pioneers, forging a new path towards financial empowerment and freedom."

And so, the cosmic awakening propelled Terra Luna into uncharted territories, where each chapter of the saga revealed new revelations and cosmic wonders. The community stood united, their belief in decentralization shining like a constellation in the crypto cosmos.

As they continued their cosmic odyssey, the Terra Luna community knew that the journey was far from over. The crypto universe held infinite mysteries, and with each step they took, they carved a celestial legacy that would echo across the cosmos for generations to come.

(To be continued...)

Note: The cosmic awakening marks a pivotal moment in Terra Luna's journey, where the community's belief in decentralization and financial sovereignty is ignited. With the burn rate of Terra Luna reflecting their commitment to scarcity and value, the crypto universe awaits the next chapter of this cosmic saga. If you wish to explore further into this captivating webtoon, let me know, and we shall continue this cosmic adventure in the upcoming chapters. #luncs

#Luna

luna

A year ago today, UST/LUNA crashed. $40 billion in value gone. BTC went from 28k to 19k.

A few lessons can be learned.

#BRC20 #btcordinals #memecoin #newtokenininnovationzone

The Closure of Shuttle Bridge: Potential Impacts on the Crypto Ecosystem

Cryptocurrencies and blockchain technology have gained significant importance in the financial world today. Within this ecosystem, bridges that enable asset transfers between different blockchain networks play a crucial role. In this article, we will explore the potential impacts of the closure of Shuttle Bridge, particularly in relation to LUNC (Terra Luna) and other cryptocurrencies.

Shuttle Bridge is a protocol that facilitates integration between Terra ecosystem and different blockchain networks. It enables the bridging and transfer of assets, especially for cryptocurrencies like #LUNC (Terra #Luna ). However, the closure of Shuttle Bridge can have various consequences.

**Negative Impacts:**

1. Decreased Liquidity: Shuttle Bridge expands liquidity pools by facilitating asset transfers between different networks. The closure of the bridge reduces liquidity and narrows trading opportunities. Particularly, the decrease in liquidity of liquid assets like LUNC (Terra Luna) can lead to price fluctuations and market instability.

2. Price Volatility: Shuttle Bridge helps stabilize prices by balancing price disparities between different networks. With the bridge's closure, these arbitrage and balancing mechanisms cease to exist. This can contribute to price volatility and instability.

3. Interoperability Loss: Shuttle Bridge enhances interoperability by enabling asset transfers between different blockchain networks. The closure of the bridge complicates or hinders integration between different networks. Users are restricted in their ability to transfer assets and capitalize on advantages across different networks. This negatively impacts user experience and may limit ecosystem growth.

4. Ecosystem Contraction: The closure of Shuttle Bridge can limit growth opportunities for the Terra ecosystem. The obstruction of integration between different networks diminishes the potential for expanding user bases of LUNC (Terra Luna) and other assets. Additionally, the ability to contribute to the DeFi ecosystem is curtailed.

**Positive Impacts:**

1. Enhanced Security and Reduced Risks: The closure of Shuttle Bridge can reduce security risks associated with asset transfers. This translates to decreased potential for errors, attacks, or network issues.

2. Technological Advancements: The closure of Shuttle Bridge presents an opportunity for developing new technological solutions and innovations. Developers can create new bridges or interoperability protocols that facilitate secure, fast, and efficient asset transfers.

3. Alternative Solutions and Innovation: The closure of Shuttle Bridge stimulates the search for alternative solutions and encourages innovation within the crypto ecosystem. New bridges or interoperability protocols that enable asset transfers between different blockchain networks can be developed.

4. Development of Autonomous DeFi Protocols: The closure of Shuttle Bridge can accelerate the development of autonomous DeFi protocols. These protocols automate asset transfers between different blockchain networks, reducing reliance on centralized bridges.

It is important to note that the closure of Shuttle Bridge can bring forth both positive and negative effects. In both cases, technological advancements and collaboration among ecosystem participants are crucial for realizing positive impacts. However, the outcomes may vary depending on the circumstances, underscoring the significance of closely monitoring the future of Shuttle Bridge.