Terracotta | Finance times

good news all together!

shortly before the announcement of a recovery plan for $ ust . Stay there.

-MACH KWON 🌕 (@stabfukon) 10. May 2022

his plan to save Terra, the algorithmic stable coin, who loosened from its bond on Monday and has been flaring billions of VC capital since then.

So far, the plan has failed spectacularly:

Here is what happened overnight. The Luna Foundation Council, the central bank of Terra, tried to defend the bond by giving his recently acquired Bitcoin reserves rather than liquidated, while he also undertook to buy Bitcoin with clocks of local territory:

4/ As a result, the LFG council decided to carry out the following:

-Borrow BTC worth $ 750 million to OTC trading companies to contribute to the protection of the VAT bond.

- borrow 750 million VAT to accumulate BTC if the market conditions normalize.

- LFG | Luna Foundation Guard (@LFG_ORG) May 2022

It was reported that the great advice of Terra also tapped crypto investors overnight in the hope of applying another $ 1 billion. According to reports, the defense financing package included the issue of Luna, the governance token of the protocol with bobbing stabilization mechanism, with a discount of 50 percent.

The details that I have heard, but possibly not final:

-Jump, Celsius and Jane St. have already promised that Alameda has not yet
-The goal is an increase of 1 billion to 1.5 billion USD
-50 % discount on Luna-Spot with 1 year lock + monthly linear vest over 1 year
-total obligations of ~ 700 million USD from tomorrow https://t.co/btqjrf0eqm

- Larry Cermak (@lawmaster) 10. May 2022

It may not be surprising that a proposal to obtain rescue funds by putting an effective short position on your own stable coin matrix did not help to restore the confidence of investors. At Pixel, the market capitalization of VAT of $ 5.5 billion is secured by the market capitalization of Luna of less than USD 1.9 billion.

After the floor has disappeared, retailers (who identify themselves as crazy people) have given up the luna-tort-swap stabilization mechanism and instead rush to the outputs. Appeals to rest have shown little effect:

always close ... stay strong, crazy

-MACH KWON 🌕 (@stabfukon) 10. May 2022

And when the sun goes down above the great magical field of money from Luna-Terra, there will be many opportunities for "I told you". To start us, here is a good contribution by crypto promoter Richard Heart, who comes to the point:

Why are I always right? #ust #luna https://t.co/6skrandbqy

- Richard Heart (@Rhardheartwin) 9. May 2022