updraftplus domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /home/aonyeani76/cryptocurrencypanther/wp-includes/functions.php on line 6131hustle domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /home/aonyeani76/cryptocurrencypanther/wp-includes/functions.php on line 6131wpforms-lite domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /home/aonyeani76/cryptocurrencypanther/wp-includes/functions.php on line 6131Cardano creator Charles Hoskinson recently shared a message that alleges the cause of the price crash of Terra (LUNA) and stablecoin UST.
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.
The scheme involved crypto investment management firms Blackrock and Citadel, whom the person Anna claimed to have borrowed 100,000 bitcoins from Gemini. After receiving the said amount, these companies were claimed to have converted 25,000 bitcoins into UST.
Afterward, they contacted Do Kwon, saying that they wanted to sell a lot of BTC for UST. However, they were said to have offered to sell a significant amount of BTC for a discount, which the latter accepted. Unfortunately, this caused UST to lower its liquidity.
Once this happened, Blackrock and Citadel were alleged to have dumped all the bitcoins and the UST, which caused huge slippage and triggered a cascade of forced liquidation in both assets.
The message concluded:
Blackrock and Citadel can now buy the BTC back cheaply to repay the loan and pocket the difference. Meanwhile, billions of longs and Bitcoin VaR were wiped out.
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”.
Alongside this proposal, Kwon also shared his thoughts on the possible cause of the de-pegging. 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%.”
Original Source: https://coinquora.com/cardano-ceo-shares-message-alleging-cause-of-terras-downfall/
Disclaimer: Cardano Feed is a Decentralized News Aggregator that enables journalists, influencers, editors, publishers, websites and community members to share news about the Cardano Ecosystem. User must always do their own research and none of those articles are financial advices. The content is for informational purposes only and does not necessarily reflect our opinion.
Coinbase Global Inc (NASDAQ: COIN) has been slapped with a class-action lawsuit that alleges the cryptocurrency exchange is operating as an unregistered securities bourse.
What Happened: A complaint filed with the Southern District Court of New York on March 11 alleges that Coinbase is selling 79 cryptocurrencies that are unregistered securities.
The three plaintiffs named several popular large-cap cryptocurrencies in its list of alleged unregistered securities including Cardano (CRYPTO: ADA), Polkadot (CRYPTO: DOT), Decentraland (CRYPTO: MANA), Shiba Inu (CRYPTO: SHIB), and Dogecoin (CRYPTO: DOGE).
The Coinbase users who filed the suit claimed the platform is in violation of federal and state law by selling these assets and should compensate all users who suffered losses while trading them.
They, however, added that Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH) should not be considered unregistered securities because of their decentralized nature, stated the lawsuit.
See Also: Crypto Exchange Coinbase Forms A Political Action Committee
Why It Matters: Last year, Coinbase suspended trading of Ripple (CRYPTO: XRP) on its platform after an SEC lawsuit named XRP an “unregistered security.”
The crypto exchange has often voiced the need for regulatory clarity in the digital asset space and has even put forth its own recommendations for favorable policy. The head of rival retail brokerage platform Robinhood Markets Inc’s (NASDAQ: HOOD) legal department called Coinbase’s recommendations “one of the stupidest ideas.”
Price Action: At press time, Bitcoin was trading at $40,500, down 1.28% in the last 24 hours.
Read Next: Coinbase Scraps Clunky Process To Add Crypto Funds To Wallet: Here’s How The New Feature Works
Photo courtesy: Coinbase