May 11, 2022: $LUNA Eclipse 🌑🇺🇸

Attack on Terra stirs questions about regulation, conspiracy theories

Thanks to @cryptochamomile for the headline

As $LUNA nears capitulation, a call for humility and compassion.

Cobie @cobie

Feel sorry for those that lost everything, unfortunately going to be lots of normal people that cannot stomach those losses, it’s very bleak

Those of you who know people who were heavily exposed to the Terra ecosystem, reach out and make sure they are OK. For everybody who got involved for the wrong reasons, plenty of people trusted their friends and didn’t know any better. Poor people feeling wrecked by inflation, desperate for any refuge, are now hurting more. Talented builders who just followed the users are seeing their work erased.

RYAN SΞAN ADAMS - rsa.eth 🦇🔊 @RyanSAdams

What's going to happen to all the Terra builders? They've suddenly found themselves in Weimar Republic. Incredibly painful lesson. Really important for builders to choose their L1 wisely. Developers are the ultimate investors. They have the most to lose.

Terra Builders & Community: Planning @TerraBuildersU

Dear Terra Community & Builders. We have established this Twitter account as a means for a collective re-grouping of the Terra community. Our mission is to collectively determine the best path forward for all community members and builders in a coordinated fashion. $UST $LUNA

Let the sins of the past remain in the past. For our movement to succeed we need to build a global community. We need to extend a hand up to the displaced members of the Terra community and invite them to bring their talents to benefit the broader movement.

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This morning, Terra slid further, with UST depegging as low as $0.30 before recovering to $0.58 at time of publication.

The $LUNA token dropped even harder, down 95% in the past week to $3.82 and 43rd on CoinGecko.

Kwon issued a lengthy statement, most notably conceding that $UST would move towards a collateralized model.

Do Kwon 🌕 @stablekwon

1/ Dear Terra Community:

Do Kwon 🌕 @stablekwon

12/ As we begin to rebuild UST, we will adjust its mechanism to be collateralized.

The Terra community will probably survive in some diminished form and begin the rebuilding process. Billions of dollars worth of money has been unimagined from existence. Truly a wild time.

Any of the rumored bailout plans would have inevitably benefited insiders at the expense of outsiders. Instead we ripped off the Band-Aid.

Tyler Reynolds @tbr90

My prediction is that this funding is made up of big bag holders of UST who want to repeg the system for long enough so they can exit Spending $700M or $2B to save $5B becomes rational But they can’t give liquidity to all $15B UST owners, so any solution is inherently DOA

To understand the mechanics of how it happened, this describes it in full detail.

Onchain Wizard @OnChainWizard

How to make a >800 million dollars in crypto attacking the once 3rd largest stablecoin, Soros style: Everyone is talking about the $UST attack right now, including Janet Yellen. But no one is talking about how much money the attacker made (or how brilliant it was). Lets dig in🧵

How to Make $800m in Crypto, Soros Style - Breaking $UST

Those of us still standing have to prepare ourselves for the next battle. Make no mistake, the regulatoooooors are coming. They are merciless, indiscriminate executioners. They smell weakness and are ready to act. We must prepare to fight. Today’s post for paying readers discusses how.

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