Charles hoskinson luna1/2/2024 ![]() Luna's rise in popularity and the massive price rally lent credibility to the project in the eyes of investors, and the project's media CEO DoKwon gained popularity on Twitter. The market ignored the warning signs when the Waves project's stablecoin Neutrino, which was supposed to reflect the price of the dollar, collapsed over a month ago. achieve high returns on investment while not taking risks. This is somewhat reminiscent of the adage where investors wanted to 'have the cake and eat it too' i.e. Luna's story exposed the truth about the recurring behavior of people who, seeking an escape from risk, engaged in seemingly safe, 'stable cryptocurrencies'. These features attracted the attention of many market participants who wanted to avoid the risks of owning other cryptocurrencies. The creators of Luna created a system that was supposed to provide a return on passive investment of up to 20% and act as a 'safe haven' asset even during market crashes. Thanks to the rising price and market capitalization, the investors' rewards were also increasing, which attracted additional participants. During this time that Luna attracted interest due to its increasing reward rates for providing liquidity in the system. During the massive post covid surge of cryptocurrencies, millions of fresh investors entered the market and outbid each other to buy various 'trendy' projects. Luna benefited from a popular trend in the cryptocurrency world called DeFi, or 'decentralized finance', which allowed holders of projects like Luna to benefit from advanced financial mechanisms that rival the offerings of the traditional banking system. This comes less than 12 hours after Hoskinson slammed Mike Novogratz, the CEO of Galaxy Digital Investments for hating on Cardano and supporting other cryptocurrency projects, especially LUNA.Start investing today or test a free demo Open real account TRY DEMO Download mobile app Download mobile app Should I buy some Luna for negative correlation? “Should I buy some Luna for negative correlation?” Reacting to the comment today, Hoskinson quoted Kwon’s post saying: While this comment apparently angered the Cardano community and Hoskinson, the Cardano boss had to wait for the perfect time to respond and it happened to be when the price of LUNA was down over 43% in the last 24 hours following investors’ lack of trust in the Terra team. Replying to comment, Kwon noted that the LFG may need to buy ADA, Cardano’s native cryptocurrency, for negative correlation, an investment strategy involving a union between two variables where one increases as the other declines and vice versa. ![]() However, things did not go as planned and investors suffered huge losses in the process. ![]() Some users suggest that maybe the nonprofit building reserve for the UST is planning to burn other cryptos instead of LUNA, its native cryptocurrency.Īnother Twitter user, with the username asked whether all the cryptocurrencies purchased by LFG are added that if indeed the assets are correlated then it is possible that the Terra CEO did not hear about the Long-Term Capital Management (LTCM) story, which attracted billions of dollars from investors on the promise that it would take advantage of an arbitrage strategy to benefit from changes in market behavior. ![]() The cryptocurrency community was confused as to why LFG chose to purchase another cryptocurrency as opposed to its initial plan of buying Bitcoin.īased on this lack of clarity, several questions were raised about the rationale behind the LFG’s recent AVAX purchase. The inclusion of native token marks the start of a diverse pool of layer one crypto assets helping support the $UST peg,” LFG wrote on Twitter. “Welcoming $AVAX as the second major layer, one crypto asset next to $BTC as part of the $UST Reserve. ![]()
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