Terra Fiasco Is An Expensive Crypto Tuition

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Almost Got Rekt πŸ™ƒ

Planned a 3-day vacation long ago but didn't realize such crazy shit would happen while I was gone. I am back in my senses from the holiday hangover, it's now business as usual. I consider myself one of the luckiest bastards in crypto. A few days ago, I sold almost all of my LUNA to invest in the COSMOS ecosystem when I enquired @jk6276 about how to do it. Although my ATOMs are worth a lot less now due to the market crash but they didn't go to dust like LUNA. Some of my profits were kept in UST in the hope to avoid market volatility and have leverage during the dip. It is obviously now going to zero. I am not selling whatever's left because there's no fucking point. I found the coin at a point when the price was only 2-3 dollars per coin. Moreover, as soon as my investment goes 2x or 3x, I take out the amount I invested which is what I did LUNA but a bit late. It went 10x in no time so I went greedy af. Let's say if I invested $1000 to get 20 coins, I would sell 10 coins when the price of 20 coins reaches $2000. I did something similar when the price went 10x instead of 2x and all the way up to $100, I sold quite a lot to park my profits. LUNA didn't make me rich or burn me but it gave me enough to set up my long-term crypto portfolio. Most importantly, it gave me a shit ton of learnings for life. I didn't exit because I saw the clear-cut flaw in the system, but because I wanted to use that money for another investment. That's why I feel that I was lucky enough to escape at the right time. Good Riddance!

On the other hand, I am really not happy with myself because even when I started having my doubts after LFG (Luna Foundation Guard) decided to buy BTC as collateral for an algorithmic stablecoin, the luna influencers clouded my judgment. I believed them that LFG would save the day when the time comes. Fortunately, I did not have much LUNA left to face that dreadful situation. When the time came, it tanked! 99% of us didn't take any action even when several critiques have been made against UST Pegging Mechanism & Do Kwon's ability to handle this shit. I have personally made enough profit in LUNA but I could have made a lot more if this shitshow didn't happen. Not feeling much terrible but feeling extremely sorry for my fellow LUNATics, some of them actually lost their life savings and even homes because of this long coming death spiral. Denial is your biggest enemy in this game. This year I am going to do my best to learn and understand the fundamentals of tokenomics. Will focus on optimizing my portfolio allocation based on facts and data and not out of excitement over some YT videos. Doubling down on my research efforts before and after investing in a coin is a must now.

Single Point of Failure

Do Kwon, Founder of Terraform Labs always talked about creating decentralized money but in reality, Terra was centralized af. Most of the initial supply of LUNA was distributed among TerraForm Labs, employees, and a few early investors. It's also called ninja mine or pre-mine. The Hive community knows what it is. This gave power to the hands of a few people and groups. Moreover, they only have 130 validators which makes it even more centralized. Luna Foundation Guard aka LFG (not Let's Fucking Go), a non-profit organization registered in Singapore, and they are responsible for the development, marketing and sustainability of Terra (LUNA) ecosystem. Do being the biggest influencer on the platform leading Terraform Labs & LFG was the single point of failure. That's what happens in a centralized system. Everyone was banking on him to take action and solve the issues as the custodian of the reserves but his efforts (if made any) didn't go down well for LUNA & UST prices. Almost everyone suffered including him because of the long-coming death spiral. @edicted did a great breakdown on the topic and explained what exactly happened with LUNA. Mostly because there were no safeguards in place to avoid the spiral. Clearly, the BTC reserves were not enough. That's why $HBD as a long standing algorithmic stablecoin has several defenses that avoid infinite death spirals. Check out the post by @taskmaster4450 where he explained them in detail. Also checkout the post by @dalz on how the debt ratio on Hive is calculated and how it helps the blockchain to keep the economy healthy even during the extreme market crashes such as the current one.

Terrasco Was An Expensive Tuition

Terra Fiasco, also known as the Terrasco will go down in the history books of crypto for sure. No matter what happened, we cannot deny the fact that Terra has created a kickass community of builders. Most of them might move on to other projects and I am sure they will do pretty well. WBE 3 is a sea of opportunities and we are only getting started. I hope the community moves on either to create a community-owned network or try other things that could suit them but they don't have to be stuck in the aftermath of this fiasco. It's great learning for all of us involved and even Do. For some people including me, an expensive one even though I am not at an overall loss. But I consider it as a loss of opportunity because I had devoted my precious time apart from the investment like many others. The great thing about this fiasco was that no crypto course would have taught the shit I discovered because of it. Spend money on 'doing' and you can 'learn' in the process they said.πŸ™ƒ Don't put your life savings though even when you are absolutely sure. That's a rookie move when it comes to crypto investments.

What did you learn from this fiasco? Did you get rekt? If yes, what's your next plan to rebuild? Comment below!




https://leofinance.io/@finguru

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finguru#4062


Not financial advice. For infotainment purposes only.

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59 comments
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Luna is turning into the Enron of crypto. I didn't hold any but it really sounds like you managed your stake pretty well, taking profits and leaving some base investment in. I can't say I find a lot of fault with how you handled it.

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It was the save of the year. Just got lucky! Hope ATOM treats me well and don't try to shit on me like Terra did. πŸ™ˆ

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What lessons we get in the crypto-world. I didn't do any investment in LUNA, but i got hacked months ago. Almost 40% of my portfolio evaporated. I still holds some ADA and ONE. And some extra cash to trade waiting for any possible chance to get a rally. I got some as APE, WAVES...

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Sorry for the hack mate. It sucks 😞 Good to see that you are still in the game standing strong. Waiting for the next move. That's the way to go.

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Great post highlighting the best resource available on Hive on the Terra / HBD topics.
What makes me sad is that it was advertised as a stablecoin and less technical people could have put their savings expecting 20% APY.
No matter how much $HBD is backed, we should learn from this as we are not immune to this type of event

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What makes me sad is that it was advertised as a stablecoin and less technical people could have put their savings expecting 20% APY.

I was one of those people @vlemon πŸ˜‚ but learned my lesson very well.

No matter how much $HBD is backed, we should learn from this as we are not immune to this type of event

Damn right! That is why we need to have more use cases of HIVE/HBD and try to generate more multichain liquidity.

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It is crazy how the exchanges still trade those TERRA and LUNA tokens even when the blockchain is stopped.

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It is now back up I guess. Trading is necessary for the current holders.

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They seem to have done some arrangements and the chain is up again. It seems they want to let bridged assets holders leave with their assets.

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Yes, I had a huge fiasco with LUNA as I lost all my investment because I was greedy and foolish.

But I plan to recover and learn from the mistake, besides being attentive to the publications of users who have more experience that can help me to make an excellent research, that will help me a lot to recover.

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Ouch! Sorry for the loss man. This is an expensive learning for all of us. We need to learn how to research on our own and not come to conclusions on the basis of others' opinions.

Let's emerge bigger and better this time. πŸš€πŸš€

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I did not invest anything in LUNA and UST but this incident is a good learning that we should not consider anything as stable. A proven track record is surely needed and even if the project do well then also diversification is required.

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100%. That's the best way to go. Getting burned in crypto is easy. Hence diversification is great. Make a rule and never go above that percentage.

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Very fortunate of you to have gotten out earlier, there are lessons to learn for everyone, investors and non-investors of Luna alike.
We really have to cultivate the habit of thoroughly checking project(s) before investing.

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Well, I had always wanted to invest in Luna but was too lazy to buy some because I didn’t care to do my research before buying. But I wanted to buy UST and stake for the 20% APR, thanks to the Hive witness for increase the HBD savings to 20%. So yeah, I am lucky too. Glad you didn’t lose much

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Your laziness saved your ass bigtime mate. :') But still, you need to let it go. πŸ˜‚πŸ˜‚ Btw, Hive Savings is a pure blessing. You are doing the right thing by putting your money there. I believe in Hive Devs to keep working on adding more layers of security to avoid UST-LUNA.

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RIP to the wallets of those that lost. I hope it recovers at least some. Also - the graphic rekTerra is gold. lol

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I didn't join LUNA because HBD started offering 20% and I was like I didn't want to join only for the yields. Terra didn't have that many applications and the development was lagging. So besides the 20% APR and loans, it didn't really provide that much.

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Witnesses did a masterstroke by increasing the HBD Savings APR to 20%. I hope we can get some Terra community members on Hive to try it out since they don't have any other option left.

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I had some LUNA on osmosis locked in 14 day unbonding pools... not enough to be an issue... but enough to feel the burn. ATOM and OSMO as well as RUNE all got hit hard as they were massive LP pairs with LUNA and UST. Crazy... but I also know Crypto... when shit hits the fan... forks, airdrops and other things seem to appear out of nowhere.

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It's good you made profits prior to the fall and although you lost some potential ones on your remaining hodl, at least you were not rekt completely. Definitely a learning curve.

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I actually didn't even have a sat worth of USDT or Luna, but I feel bad for those who lost :( I had been flipping Hive and USDT to build up my Hive, but thankfully all orders were on the Hive side at the time. Think I'll stick with the Hive / btc pairing for a while for that purpose πŸ˜‚

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Can't go wrong investing in Hive. ;) I am also buying as much as I can during the bear. Let's crush it.

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Great to know that you managed to exit for a far better project. LUNA is Do Kwon's second stablecoin failure. There are some new events that has been revealed about his previous attempt which had a similar ending to LUNA. The way he want to restart the blockchain is also a centralized joke. I had some respect for LUNA and Do Kwon's attempts. Now it seems my trust and goodwill was a misplaced one.
!PIZZA
!LUV

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That's quite shady. Not sure if that's true but LUNA is a complete shitshow. Many (including me) did not see it coming while it was quite visible and there were enough warnings from the people all over.

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I wonder if TERRA was a fiasco or did it show how people are attached to money and not a platform?

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Haha. That's another way to look at it. Overall it was an unfortunate event. Many people didn't think this would happen in broad daylight.

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I lost around 1000$ invested to take time to test and truely understand the ecosystem. I tried also to get my money back speculating for a day on UST when it was recovering. Finally converted at lost everything to Cardano.
For me it has been a great lesson.

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Sorry for the loss mate. I have been through this so I can understand. We gotta learn and move on.

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