If you lost money on TERRA, read this!
So much has gone down recently with the TERRA ecosystem; massive depeg and sell-off of the supposed stablecoin UST, and backing coin $LUNA.
For many, it’s too much information to consume in a short time. A lot of smart people have explained the events via Twitter threads.
People have lost a lot of money - for some, their life savings. Of course, many DEFI believers fully trusted the most decentralized stablecoin 'UST’ enough to go hard on it. UST was the 4th largest stablecoin and had already gained acceptance by the crypto community.
To buttress this trust, Anchor protocol had multi-billion dollars in TVL - a large chunk of which have been withdrawn during the death spiral of UST/LUNA.
It’s tough to believe this level of bank run would ever happen on Terra. I mean, stablecoins are supposed to be “stable” (i.e pegged to $1) right?
Here we are though, dealing with the risks inherent in innovation.
I’m not going to try to retell the story of how the depeg happened; however, it’s worthy to note that Terra is taking some necessary steps to try to restore UST peg (currently trading at 0.41), albeit at the detriment of $LUNA (inflation). What happens to LUNA afterwards will be left to discover. But i think the first priority is to try to save UST.
Why DIE?
Sadly, there’s been about 10 reported cases of suicide due to the UST/LUNA fiasco. It hurts, however, it doesn’t make sense. The world will move on, whether the Terra ecosystem recovers from this or not.
Money will always be money and there will be opportunities to make it back.
If you like me, have lost a lot of money, one piece of advice I’ll give you right now is:
NEVER WALK AWAY FROM CRYPTO!
It’s a total waste of time to walk away from crypto in a bear market, all to come back in a bull and recycle your mistakes over the next dump. You can’t make a dime in crypto that way.
People who will benefit the most are those who show up in bull and bear - it’s way more rewarding to show up in ‘bear’ because way fewer people are interested in the market. It’s time to discover the true builders and bank on them while there’s not much interest. In a bull, you hardly stand the competition - especially without big bags.
If you want to make generational wealth in crypto, you need to consistently grind through winter as well as summer - unless, of course, you create a project and “rug”(X).
Technically, Bitcoin still has lower levels to clear. But I’d recommend you never 100% wait for a bottom. Recovery will happen faster from that bottom and you might be caught waiting for pullbacks by the time you spot it (in retrospect).
For sure, we can’t tell if we’ll have another ‘black swan’ event soon that will ridicule the current dumps, but dollar-cost averaging your way through the lower prices is a sure way to grab a seat at the next 100x crypto gains.
Remember that market conditions like this will always provide one thing - opportunity!
The crypto community needs each other more in times like this. We must learn to build and not tear down. It takes a lot of talent and energy to build valuable products like what we have in the Terra ecosystem.
Stay strong friend - and never take your foot off the pedal!
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