I had exited about a month ago now in April 2022 and had all my Ethereum in the form of USDT. I had actually compared USDT or USDC and the conclusion is in the future I might choose USDC as stable coin to exit investments and hold coins. Therefore I was waiting for the next Big Bear event.
Right before the Crypto dropped we can see multiple US Fed report on increased inflation:
https://fortune.com/2022/05/11/investors-inflation-cpi-report-fed-rate-hike-markets/. This morning on my Samsung S22 with a Microsoft news setup. I saw the news : Bloomberg: Bitcoin’s Unraveling Tops 50% From Peak With Drop Below $31,000 and then quickly checked my Binance widget on my phone. With this cumulation of news marked the beginning of the Bear Market for the financial world but at the same time in the Crypto world.
However, this Bear market was bigger and much worst than I thought. At the same time, it has caused Terra Luna x UST to crash. UST was an interesting project because it was one of the most successful algorithmic stable coins. And to see this crash has caused the bear market for crypto to sustain much longer because such a huge collapse has reduced confidence in the crypto market. At the same time shows how volatile such projects in crypto without regulation and controls can be.
A simple summary of the Terra Luna x UST 45 Billion dollar Crash event.
What did we learn?
Why didn’t the 20% return raise alarms? or did people want to quickly get the 20% return before it crashed.
The magic invisibility cloak here was the algorithmic stable coin UST. Stabilizing money is not a new concept humans have been doing it as long as the foreign exchange has existed.
But coming back to stable coins USDT USDC vs stable algorithm Coins UST and Titan Ions.
