Anyone Here Get Burnt on Luna

Trying2SaveABuck on 14/05/2022 - 00:50
Last edited 14/05/2022 - 00:52

So for all the 'cool' stories of Randoms getting rich off crypto this would be the anthesis of that. Luna one of the large crypto currencies which had a market cap over 18bn which uses some sort of algorithm to give value to its 'stable coin' UST has tanked 99.99%

im seeing people lose millions in essentially a few hours ill admit i brought the dip 35 dollars worth for like 75k tokens on the off chance this crap becomes a meme coin or rockets one day but it looks like Luna has been de-listed or put in a trading halted so it is essentially dead.

Anyone ride it from over 100AUD to sub 1cent

ill note some seriously sad posts around reddit and twitter with people losing houses, attempting self harm, losing life savings etc

Financial Cryptocurrency

Comments

            • [Deactivated] on 16/05/2022 - 03:31
              +1

              @[Deactivated]: Now try that again attempting to say the same about …. Bitcoin for example… you can’t

              • [Deactivated] on 16/05/2022 - 18:28

                @[Deactivated]: yes but I'm sure el salvador is having a great time after investing millions in bitcoin only for it to tank

                • [Deactivated] on 16/05/2022 - 19:00

                  @[Deactivated]: What do you mean by tank? As in the Bitcoin price or their setup? If you’re talking about price go look at the history of Bitcoin and it’s price since it’s inception and then explain to me what you see wrong with it?

                  • [Deactivated] on 16/05/2022 - 19:01

                    @[Deactivated]: The volatility and speculative investment that makes it difficult to use as an actual currency.

                    • [Deactivated] on 16/05/2022 - 19:24

                      @[Deactivated]: This is nothing new with Bitcoin. So why did they do it? Why will more countries do it as time goes on? When you think it’s over and down and out, buy as much as you can afford. In 10 years time you’ll thank me.

                      • [Deactivated] on 16/05/2022 - 19:46

                        @[Deactivated]: I never said it was new, I'm just saying Bitcoin isn't an exact replacement for something like UST/Luna.

            • buckerooni on 16/05/2022 - 17:54
              +1

              @[Deactivated]: yeah, THIS! you trust the people behind Terra and other crypto orgs like Tether more than the Gov? If you do, I suggest you should be more paranoid! Both can't be 100% trusted, but if I'm gonna choose one over the other…

        • virhlpool on 15/05/2022 - 19:17
          +2

          You don't trust casino but you still try your luck. It's the same logic which works for most of these.

      • darkmattersunB6c0MV on 17/05/2022 - 22:52

        Luna v2 is coming, with airdrop for hodlers

    • imcold on 18/05/2022 - 00:10

      It wont go to its April high.

      Over 6.9 billion luna tokens are now in circulation, up from 343 million the week before luna's crash.

      Pretty much 200 millions tokens are being added daily.

      which is equates to another 50% drop in its true value each and every day.

  • steven6 on 14/05/2022 - 13:55
    +22

    99.99% off? Shouldn't this be in the deals section?

    • hellousyd on 14/05/2022 - 14:04
      +2

      Not a deal because you are overpaying for something that is going to be free soon

      • steven6 on 14/05/2022 - 14:06
        +17

        Then post in the "Freebies" section

      • cute as duck on 15/05/2022 - 17:49

        I put it $100 yesterday for the kicks and to take advantage of the volatility and it went to $1500. Swapped $1400 to BTC and left the rest. There is profit to be made in the short term only. Don't put serious money in obviously.

        • johnno07 on 16/05/2022 - 08:22
          +6

          This is literally just gambling where you don't know the odds.

  • DreadPirateRoberts on 14/05/2022 - 14:07
    +1

    Took a punt on wrapped Luna last night with about $100AUD. It's now worth about $350AUD LOL. Not even worth withdrawing to deal with the tax

    • Understandable on 14/05/2022 - 14:21
      +1

      throw it into litecoin and put it on some crypto casino

      • techlead on 16/05/2022 - 10:33
        +5

        Its a CGT event if you exchange it with another coin.

        • Mr Haj on 16/05/2022 - 14:58
          +1

          as opposed to a capital loss if you don't exchange it with another coin before it tanks… not financial advice.

  • whatwasherproblem on 14/05/2022 - 19:24
    +7

    ill note some seriously sad posts around reddit and twitter with people losing houses, attempting self harm, losing life savings etc

    The schadenfreude is awesome and I'm genuinely entertained by all of the chaos.

    (Anyone thinking "you heartless monster, @whatwasherproblem!" should be reminded that the Luna/UST losers were the intersection of the Venn diagram between the worst brainlets that Reddit has to offer on the one hand, and the most obnoxious of the cashed-up cryptobro cultists on the other. Laugh and the world laughs with you.)

  • serpserpserp on 15/05/2022 - 12:47
    +1

    I shorted it and now have finally reached 10mln in my bank account

  • kaleidoscope on 15/05/2022 - 18:12

    ill note some seriously sad posts around reddit and twitter with people losing houses, attempting self harm, losing life savings etc

    got links please?

    • brendanm on 15/05/2022 - 20:09
      +1

      R/terraluna

      They've locked it now apparently, top pinned post is for the suicide hotline.

  • Keeegs on 15/05/2022 - 18:40

    Swyftx halted trading for LUNA, what platforms are you using to buy?

    • brendanm on 15/05/2022 - 20:09
      +2

      Binance.

  • plmko on 15/05/2022 - 22:45
    +1

    Not worth buying in unless it is 0.0001 or less for a punt.

    Remember there are now trillions of coins, loss of trust and zero proof their BTC collateral even exists.

    This is now worse than a shitcoin: No idea, no trust, loss value and inflationary. Shiba Inu is the total opposite of this now and for Luna to be worse than a meme coin says a lot.

  • Dack Smith on 15/05/2022 - 23:59
    -5

    Nothing wrong with Terra, Do Kwan Hyung made billions of dollars and so did many others.

    I’m sure people did their research beforehand.

    Crypto is the future, no doubt about it.

    • freefall101 on 16/05/2022 - 08:20
      -1

      Using this logic there’s nothing wrong with a Ponzi scheme, just ignore all the people who lost their life savings and focus on the wealthy.

      • techlead on 16/05/2022 - 10:38
        +1

        People lose their life savings buying property, does that make it a ponzi scheme? Did you hear about that couple who sued Westpac and lost because they lost everything buying property? What about that woman in Perth with 19 properties and when the property market crashed there, turned around and blamed CBA for lending her the money? haha

        • freefall101 on 16/05/2022 - 12:02

          I didn't say Terra is a Ponzi scheme, I said that simply because someone makes money out of it doesn't mean there isn't anything wrong with it.

          Pretty much like your example there, imagine if someone said "there's nothing wrong with lending $1.8m to buy property, people have made billions of dollars out of property" as a justification.

          • techlead on 16/05/2022 - 12:10

            @freefall101: I don't think Terra is a Ponzi scheme, but Anchor definitely is. That's the "protocol" which is giving 20% returns. That ponzi collapsed and the peg mechanism brought Luna down with it.

    • techlead on 16/05/2022 - 10:41
      +1

      I agree that crypto is the future, but it is very important to not lump Terra Luna with the rest of the crypto industry.

      As informed investors, everyone who has lost money should have done more research. I was always abit uneasy about the pegging mechanism of UST which allowed it to mint unlimited amount of Luna. This is what stopped me from going more heavily into the Luna ecosystem, unlike say ETH, Sol or Avax which each is a sizeable chunk of my portfolio.

      This risk has been demonstrated before, such as with Iron Finance.

  • bcdubz on 16/05/2022 - 01:09

    I had $2k USD worth of Luna.

    Had expected to hold long term and was fun to discover that worth less than a cent during the fuss.

    I got about 50 bucks worth where I thought it might bottom. Was a pretty good guess, I got over 10 million luna now worth more than the $2k I had and I've sold enough to cover the original loss plus a little extra.

  • Herbse on 16/05/2022 - 09:24
    +2

    Try NFTs next time.

  • techlead on 16/05/2022 - 10:37
    +2

    I sold my original Luna bags at over $100. Then tried to buy the dip too early at around $26, $16 etc. Good thing I made a big trade at around $0.60-0.80 and sold it when it pumped up to over $7, that offsetted alot of my losses.

    Now I bought back in at $0.000072 USD, gonna let those gains ride. If Luna has a future, it could become a big chunk of change, if not, no biggie, its a tiny tiny fraction of my portfolio.

    For many who bought Luna years ago, it would be one of the best performing coins by far before the crash. I watch a youtube channel called, Crypto Banter, the main host there, Ran had 1% of his portfolio invested in Luna, at its peak it grew to 85% of his portfolio, he didn't sell and he didn't buy more. He had to foresight to offload some of it, I think he reduced his exposure to the Luna ecosystem to around 50% of his portfolio and he lost around $12 million USD in this crash.

  • Whomastadon on 16/05/2022 - 11:18
    +2

    Crypto = scam, but it doesn't mean you cant ride the wave and make a quick buck or lose everything.

    • techlead on 16/05/2022 - 12:12
      -1

      Why is Crypto a scam?

      • Drakesy on 16/05/2022 - 12:19
        +2

        This thread pretty much is case and point

        • techlead on 16/05/2022 - 12:39

          How so?

          • Drakesy on 16/05/2022 - 12:43
            +3

            @techlead: The number of these coins that go to aero and take people down with them is phenomenal.

            All it is is hype, it offers no returns and there's no tangible value associated with it.

            • techlead on 16/05/2022 - 12:46
              -2

              @Drakesy: I agree for most coins, but doesn't mean the crypto industry as a whole is a scam. Bitcoin and ETH provide a lot of value.

              "Tangible value" is not essential and its not the only thing which provides value and/or returns. Intangible assets can also provide returns. Being tangible or not is not an indicator of a scam. There are many intangible assets in the traditional finance system as well. Goodwill for one. If you read the financial statement for a company, you can see these intangible items, does that mean they have no value? The positive figures against them on the financial statement says otherwise, is that a scam?

              • Whomastadon on 16/05/2022 - 14:00
                +4

                @techlead: If " most of " something is a scan, I'm more right by labelling it all as a scam, than more wrong.

                • techlead on 16/05/2022 - 14:26
                  -1

                  @Whomastadon: Just because scammers are taking advantage of the open-source, decentralised and permission aspect of crypto, doesn't make the entire crypto industry a scam.

                  The big players, like Bitcoin, ETH, BNB (the platform itself), Polygon etc etc are not scams. You can create a clone of Bitcoin in under 15 minutes and use it for scamming purposes and it appears scammers are taking advantage of that, hence thousands of scam coins.

                  Its like there are thousands of scam versions of CBA, St George or any other legitimate websites out there to try to fleece people's money. There are way more scam websites than legitimate ones. So am I "more right by labelling it all as a scam, than more wrong"?

                  • Whomastadon on 16/05/2022 - 14:41

                    @techlead: Too much mental gymnastics and goal post moving for me to make a judgement.

                    • techlead on 17/05/2022 - 15:12
                      +1

                      @Whomastadon: There's no goal post moving at all. You can't articulate why Bitcoin is a scam.

                      I made it easier for you, just outline why Bitcoin is a scam, not the wider crypto industry.

      • Whomastadon on 16/05/2022 - 12:25
        +1

        How isn't it?

        • techlead on 16/05/2022 - 12:39

          If you say unicorns exist, its up to you to prove that they do, not for me to prove that they don't. lmao

          • Drakesy on 16/05/2022 - 12:43

            @techlead: Not how the world works unfortunately.
            You do see how religion is still a thing right?

          • Whomastadon on 16/05/2022 - 13:59
            +1

            @techlead: Mate, I'm the one saying unicorns don't exist. Not you

        • michaelTito on 16/05/2022 - 13:55

          Copium.

      • buckerooni on 16/05/2022 - 18:05

        techlead - surely you know a thing or two about shitcoins aka 'Million' !

        • techlead on 17/05/2022 - 15:09

          Oh, you mean the s*coin pushed by the Youtuber, techlead? yea, he's a dodgy character. I didn't buy any.

  • bobolo on 16/05/2022 - 12:33

    I put $50k into Luna 2 days ago and yesterday I sold out at $250k. Shitcoin crashes always have a dead cat bounce after it bottoms out and you get 1 shot to make the most of it

    • Trying2SaveABuck on 16/05/2022 - 13:47

      i dont know why you were downvoted good on you for the solid gains

      • michaelTito on 16/05/2022 - 14:08
        +3

        I put in 250k today and sold out at 50k 2 days ago. I got 1 shot and made the most out of it.

    • Poor Ass on 17/05/2022 - 00:00
      +5

      Can you link a screenshot of ya success?

  • bobolo on 16/05/2022 - 12:44

    For all those thinking Luna will go back to $100, it would be impossible. There is too much in circulation already as a result of this crash. The market cap will be higher than all of crypto combined. There are a lot of crypto bros jumping in now with $50 bucks here, $1000 there. If you look at what happened with any other shitcoin in history, most will sell out if they 10x their money and the coin will never make it above a certain amount. With that said, these situations make it fun to take a gamble and 2 - 3x your money here and there if you are not fussed about losing it entirely.

    • Trying2SaveABuck on 16/05/2022 - 13:49

      although i agree you got to remember there was a guy who put 8k usd into shib and 12 months later it was worth 5billion usd….that is a hell of a lot more then 10x

      sure it is a 1 in 100m chance but it does happen.

      crypto is a bit of a crazy space

      • darkmattersunB6c0MV on 17/05/2022 - 23:00

        Different. The total Luna is over 6 trillion currently. Unless burned significantly, they will not reach $100.
        But even 0.05 would be great!

    • pompompom on 18/05/2022 - 12:21

      How does this work.
      Why are there more in circulation than there were before the crash. Did the issue more coins to prevent the crash ?

  • quanticism on 16/05/2022 - 16:04
    +1

    Been interesting watching this from the sidelines. I'm trying to understand the mechanics. Anyone have a good ELI5 article/video? My thoughts so far.

    Luna and UST have a special on-chain swap ability that is used to maintain UST's $1USD peg via arbitrage.
    $1 of Luna (as priced by external markets/the code uses an oracle to fetch this data somehow?) can be swapped (both ways) for 1 UST token (regardless of UST's external market price).

    Scenario 1: UST is below $1. People buy UST to burn for Luna to sell. UST price rises back to $1 but Luna's price dropped due to increased supply and selling pressure. If trading volumes for supply/demand of UST are "normal", then UST's price will quickly rise back up to $1.

    Scenario 2: UST is above $1. People buy Luna to burn for UST to sell. UST's price drops back to $1 due to increased supply and selling pressure. Meanwhile, Luna's price increases due to reduction of supply and buying pressure.

    Now if Scenario 1 occurs and the supply/demand volumes aren't normal - e.g. there's massive sell pressure on UST (if it was a coordinated attack, I imagine the attacker would short UST by borrowing large volumes of it and dumping it on the market).

    Through the arbitrage process above, Luna's supply starts inflating and its price starts dropping. Usually UST's price increases but due to the unusual sell pressure, UST's price remains unpegged, possibly even decreasing more due to the size of the sell pressure.

    More people start profiting via arbitrage which further tanks Luna's price. Some people start selling Luna simply due the price drop - they don't want their asset value to decrease.

    At a certain point, the risk of Luna's market cap dropping below UST's becomes real. If this happens, the ability to execute a UST-to-Luna on-chain swap becomes limited to only a portion of UST holders. This destroys the value of UST since the guarantee for everyone to be able to sell 1UST for $1USD via the on-chain swap has disappeared. So now, UST remains unpegged, there's no arbitrage reason to buy UST anymore since it's risky (you have to perform the on-chain swap before everyone else) and thus it's essentially worthless (might have jumped a few too many steps here since something not being backed 1:1 by a collateral doesn't mean it's worthless. Perhaps the momentum of Luna's fall combined with human psychology is what makes us think that it'll soon be worthless).

    The people that are still holding UST at this point now have 2 options to get rid of their UST:
    1. Sell 1 UST for a value less than $1
    2. Burn UST to mint $1 worth of Luna and sell that.

    Everyone will rush for option 2 while Luna still has value left, knowing that this will cause Luna's supply to increase and price to drop further.

    Anchor with its 20% APY somehow ties into this but I'll try and understand that later.

    • c0dingmachine on 16/05/2022 - 16:30
      +2

      People holding UST at this point have no option to mint Luna now. It's been disabled.
      The only option is to sell it for it's current floating value or hope that they have a bailout strategy that specifically includes people currently holding UST and is not based on a previous snapshot.

      Anchor had a 20% yield for depositing UST and the UST to pay this yield was provided by TerraForm Labs. TerraForm Labs had a bunch of Luna provided at genesis, and they minted UST using Luna every so often to replenish the pool for Anchor. At its peak it was depleting at around 5 million UST per day.

    • quanticism on 16/05/2022 - 18:16
      +1

      Reread what I wrote and I'm appalled by the lack of structure in my thoughts.
      This video was what I used to understand the arbitrage mechanics and this article was helpful in explaining how UST fleeing Anchor might have triggered the spiral of death.

      • quanticism on 16/05/2022 - 18:50
        +2

        This video gives more insight into the pitch for Terra's ecosystem. Didn't sound too bad. They definitely needed more dapps in their ecosystem that wasn't Anchor to give it value but therein lies a chicken-and-egg problem: why spend resources building dapps on an unproven network?

        In hindsight, the founders were likely too greedy with their desired adoption rate. Using Anchor's 20% APY drew in users too fast. They needed to let the ecosystem build out other useful dapps so everything wasn't based around Anchor. Instead they let the ecosystem devolve into a state where 75% of funds were in Anchor as opposed to being used else where in the ecosystem while UST and Luna's marketcap soared to the point that the Luna Foundation Guard's reserves were insufficient to defend the peg in the event of a bank run.

  • MindGrenadius on 16/05/2022 - 18:10
    +1

    Thankfully not but I know the pain all too well. I 100x'd my very meagre BTC balance in 2014 (in UROCoin, boy was that a ride) only to see it drop overnight by 80%. Painful stuff.

    I did almost put my BTC gains from last year into Anchor given the "relative" safety of UST over some of the other DeFi/staking platforms but I thought 20% was still a little too unsustainable. My hesitation has cost me a loooot of money in the crypto market in the last 9 years but this is one of the times it saved me. Sorry to all that did lose, but know that it's not the end. Start over, make smaller risks and do it over a long time. Short timeframes don't favour very many people in crypto.

  • Misha Bakunin on 16/05/2022 - 18:15

    It's always important to have diversity. I have about 6 main coins and a couple of others with a little in them. I admit I am maybe a little too vechain heavy but I like the project.

    Anyway, the point is if one crashes the others should balance it out over time.

    Having said that, I feel sorry for anyone who lost a lot from this, it would feel horrible.

  • [Deactivated] on 16/05/2022 - 19:07

    Got everything out 2 days before the plummet.

    • boozler on 16/05/2022 - 19:32

      sure you did and with the aide of the crystal ball, right.

      • [Deactivated] on 16/05/2022 - 20:22

        This is the timestamp of me getting out: 2022.05.10 11:21:20+10:00

        • mandelbrot on 17/05/2022 - 10:48
          +1

          Well, you got out when it had already dropped 50% overnight….. And 75% down from ATH 5 weeks earlier

          • [Deactivated] on 22/05/2022 - 16:10

            @mandelbrot: Yep, got out before it went completely poo. I got in at $15 and out at around $66.

  • bathuu on 16/05/2022 - 19:09
    +1

    Anyone see this crypto hype thing is playing out as 2000 dot com boom?

  • DingoBilly on 16/05/2022 - 21:46

    I feel terrible for the people who lost money on it, but it is crypto at end of day. I've been playing around in that space and the amount of greed and stupidity is ridiculous. People make 10,000s and then double down to try and make even more and end up losing it all. It's a gambler's/ponzi scheme afficiando's wet dream.

    Even after spending a decent amount of 6 months learning about it I can't for the life of me figure out why it has any value. Happy to cash out my profits into real money but others holding out for their 100x are just delusional and uneducated.

    • michaelTito on 17/05/2022 - 16:59

      Do you feel terrible for those who lost money at the casino?

  • Bid Sniper on 17/05/2022 - 09:05

    Alibaba magic carpet rug pull

  • RocketSwitch on 17/05/2022 - 09:37
    +1

    I didn't get burned, jumped on the opportunity, best I got was BSC version, $12K mc, however, I only put $5 haha, not bad profits, but yeah, should have put $350, D'OH!

  • Homr on 17/05/2022 - 10:32
    +2

    As mentioned in the other thread, I lost 3.5k

  • Munki on 17/05/2022 - 11:09

    Isn't it all about NFTs now?!

    • Trying2SaveABuck on 19/05/2022 - 08:32

      NFT's are dead man soon as corporations started pumping out NFTs for everything it went over kill

  • HangryCakeStore on 17/05/2022 - 11:15

    How much luna are people buying to see if they can win now?

  • havabeer on 17/05/2022 - 18:52

    Lol I only checked today. had $63 of fiat into it. Went to just over $100, now 0$

  • Dack Smith on 17/05/2022 - 21:20
    -1

    Many people profited from Terra, not sure why people think it’s a scheme?

    Perhaps people just need to understand crypto is not a risk free investment, however that may prove to be difficult.

    There’s just too much money and too little sense in people now, they’re only good for a beer and a whinge in the loo lol

  • Cluster on 18/05/2022 - 09:39
    +3

    Cofounder of Ethereum wants the US government to bail out smaller Terra/LUNA holders:

    https://www.reddit.com/r/Buttcoin/comments/urlle7/compensate…

    https://www.businessinsider.in/investment/news/ethereum-cofo…

    The founder of the second-largest cryptocurrency alluded to government intervention, saying FDIC insurance is an "obvious precedent" in reimbursing people who have lost money, citing coverage of $250,000 per person. He also referenced a separate Singaporean rule.

    Your average crypto investor when they're winning:

    "Hands off my crypto government! This is my money! We don't need your stifling taxation, regulation, and red tape! Code Is Law."

    But when they lose their bet:

    "Help! Help! Government, compensate me for my gambling losses! You have to do something to save me!"

    • techlead on 18/05/2022 - 13:22
      +1

      You know this kind of mentality is not restricted to crypto? It is quite normal for people to want to privatize profits and socialize losses.

      Do you remember back in the GFC (before the creation of crypto) all these companies running to the government for a bailout, yet all we hear about during the good times was "reduce taxes, to unleash business, reduce the shackles of taxes". All these companies gambled and lost and they ran crying to the government.

      • CrowReally on 18/05/2022 - 14:46

        Is there a key difference in one bailout being to a regulated industry that followed the government rules and one being the wild west? It feels hypocritical to want govt finance but not govt overlook

        • techlead on 18/05/2022 - 16:18
          +1

          I don't support those people running to the government for bail out. I don't think any government should bail out any crypto projects.

          It is also important to point out that the GFC occurred in a regulated environment, people were still negatively impacted. I don't support these regulated entities being bailed out too. They gambled and lost, why should the tax payers be on the hook for the negative consequences of those gambles?

          • CrowReally on 18/05/2022 - 16:27

            @techlead: "It is also important to point out that the GFC occurred in a regulated environment, people were still negatively impacted. I don't support these regulated entities being bailed out too. They gambled and lost, why should the tax payers be on the hook for the negative consequences of those gambles?"

            Yes, some people had played within the rules (and operated outside of the spirit of the rules) with their toxic loan nonsense - but they were a lynchpin in the regulated financial part of society we depended on (and hence too big to fail). The answer to that is penalties and further regulation to the existing system (to hopefully prevent it happening again).

            • techlead on 18/05/2022 - 21:00

              @CrowReally: Hahaha, penalties? What penalties?

              Not a single person went to jail for causing the GFC.

              • CrowReally on 18/05/2022 - 21:09

                @techlead: I answered your comment in good faith.

                If you personally feel the penalties imposed weren't strong enough then 1. I'd agree and 2. that doesn't change my answer to the question I was asked.

    • brendanm on 20/05/2022 - 06:49

      Vitalik is a strange one.

  • rektrading on 20/05/2022 - 20:48
    -1

    https://www.youtube.com/watch?v=pNH_PvkVN74
    A Few Musings

  • brendanm on 22/05/2022 - 22:02

    Redditors are now burning their luna 😂

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