iBankCoin
18 years in Wall Street, left after finding out it was all horseshit. Founder/ Master and Commander: iBankCoin, finance news and commentary from the future.
Joined Nov 10, 2007
22,010 Blog Posts

TERRA STABLECOIN DECOUPLED FROM DOLLAR PEG; LEHMAN MOMENT FAST APPROACHES FOR CRYPTOS

TerraUSD is supposed to remain “stable” to the dollar, as part of one of many crypto funding schemes that I will not pretend to even begin to understand. What I can relay to you now is a massive crisis happening in cryptos, stemming from this stable coin decoupling to Mr. Saylor’s MSTR now underwater on his BTC, and rumors of margin calls at his company.

THIS IS NOT A GOOD LOOK FOR CRYPTOS.

This all harkens back to Tether funding schemes and now one wonders if this could happen to TerraUSD — can it happen to others?

LUNAUSD is also in collapse mode, not to mention just about every other crypto out there.

People parked money in this so called “stable coin” for security and it turned out to be a scam, on par with money markets breaking the buck. Unless they get a bailout, which I doubt, this will have lasting effects on the entire crypto space and the stable coin concept forever.

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5 comments

  1. henryfool

    maybe it’s just a Long-Term Capital Management not Lehman.

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  2. john galt

    I was doing me all day because that’s what I do, you say it’s a weekday I don’t know what that means. Had a good fire and got snowed on again in the Wyoming mountains. Take a deep breath in…. damn that’s good stuff. Can we please appreciate how great a line was “The soft sounds of chubby bodies hitting the pavement” couple posts back catching up but hahaha that’s so good.

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  3. roguewave

    In one way, crypto is like every other new industry – experimental. One bad o-ring can destroy you. Industrial revolution, the automobile, flight, AI. Thousands or millions will die during the experiments.

    I have been offline, so I don’t know what failed with UST but 1 bad line of code in a million can make the difference.

    The invention of crypto is on par with the wheel or gunpowder. Accidents will happen but the genie is out of the bottle. World changing. This is temporary.

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  4. roguewave

    Paraphrasing voorhees: people in tradfi making fun of UST not realizing their stablecoin depegged by 8% this year

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    • Mr. Cain Thaler
      Mr. Cain Thaler

      But it’s only measured against the dollar.

      If you own this you lost that same 8% AND just got your head bashed in.

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