/biz/ - Business & Finance

>>58212143
Hubris is a sin. Praise Christ for putting this gook in his place. Happy Easter!

the fraud isn't Terra or Luna per say, it was the fake 30% APY
afaik there are laws against ponzi schemes
I know the term gets thrown around a lot in crypto, and misused, but in this case, the money being made on selling Luna was used to pay the APY on Terra (stablecoin)

everybody needs a scapegoat

I forgot the name of the platform where they were paying 30%, but that's the "illegal" part afaik

Bizcoin ( Ticker : BZC ) on base
>3k marketcap
>deployed and abandoned.
>low liquidity but can be fixed.
>has the porteinal to be the official bizcoin.
>easiest x10000 ever.
wait until it gets good liquidity
One anon is making a tg.

Biz is taking over.
The biz s long awaited moonshot

https://www.dextools.io/app/en/base/pair-explorer/0x4d554c5369763b4914c55d982ed007f5f8db41ce?t=1711924265156

>>58212143
What are the chances that this guy actually thought his algorithmic stablecoin would stay pegged to the USD indefinitely, and genuinely didn't foresee that some whale could just intentionally throw everything off balance by sneezing in his general direction? In other words, was he malicious or just retarded?

>>58212143
Stealing the reserve BTC that was supposed to be used to protect the Luna chain.

>>58212143
he was arrogant about commerical espionage which in an unregulated market isnt illegal but made enough noise to attract the attention of the public. then his (admittedly good) project collapsed which was (possibly) unfortunate but then he outright lied about "deploying capital" while fleeing a algorithmic death spiral with billions? one thing he did that was right was unlock the staking collateral, but i am unsure that was him personally.

imo he deved a good project that collapsed under pressure, he could have saved it by at a great cost but decided to keep the great cost to himself, smelling blood the feds jumped him, now "we" are poor and he is "poor" but the feds got rich. corruption and skull duggary at its finest.

>>58212339
anchor. i.e. celsius, MIM, alameda, nexo, et al. orgy

>>58212383
he had to be aware of the absurd overleverage on his chain. it was the same leverage that pushed ethereum to 4k. the yields on anchor were chased by "CeDeFi" dumping customer deposits to buy ether and then stake it. it was a massive clusterfuck. even in the end he had one hand on the throttle and one hand on the eject (see >>58212384). it was either valhalla or hell. it did not work out

>>58212456
I remember people online warning that Anchor protocol's 20% annual yields were unsustainable, but that 16% would have worked fine. I was tempted to put my entire net worth into UST back then, but thankfully, I trusted my instinct which told me that something about that situation was just not right. It was just a few weeks later after deciding "hell no" that the entire Terra-Luna chain imploded along with UST.
Nowadays, I don't trust any stablecoin or lending platform that offers more than 6% APY. I had money in all the lending platforms back then, but somehow, I had a gut feeling it would all collapse, and so I took out most of it before the implosion of celsius and h0dlnaut.
I still ended up losing like $20k USD worth of crypto to Celsius, which would have been worth upwards of $80k in today's value, but at least I didn't lose my entire net worth to it like some people did.
Overall, I am massively skeptical of stablecoins, especially "algorithmic" stablecoins, after seeing what happened to Luna, and even to centralized lending platforms that were supposed to have their own reserves and safeguards against catastrophic failure like that

>>58212586
in the context of bull market mania and the fed's vacillation, it seemed like anything was possible and that bitcoin's decline to 45k was just another pullback. the belief that the dollar would hyperinflate and that volume would only increase. but rationally or instinctually people were aware of just how much leverage was in the system and where the bottlenecks were. attacking the Curve LP was enough to trigger that latent fear of collapse. the result was the liquidation of an entire blockchain. the underlying thesis was not wrong: if dollar velocity continued to rise, terra would survive. we are barreling to a point where something like terra would work as an exit valve for dollar liquidity. if something like that returns, it won't be controlled by a random korean guy with shady backers. it will be institutional

here's an article from about a month before the collapse (and wow, it was only 2 years ago, it feels like 4). I'm sure there were many others like this one warning of what was to come, but regardless it illustrates the story quite well:
https://decrypt.co/98482/we-need-to-talk-about-terras-anchor

>>58212143
the docs clearly showed that they KNEW they were running a ponzi scheme. They even went into great detail how it would inevitably collapse.

>>58212315
How was it fake if it was going to your wallet? Unless it was saying you earned 30% APY but we're only getting 3% for example

>>58212143
>me when they finally jail me up cuz doing too much profit using truflation
yeah, i think the fed got some skill issue, making money online/crypto is becoming too easy

>>58212143
>Creating a crypto in good faith that didn't work out is not illegal.
It never was in good faith.

>>58212383
He had former failed algo coins before this one. He knew what he did to steal money.

>>58213404
>How was it fake if it was going to your wallet?
The ponzi was entirely reliant on hidden liquidity pools that could increase or shrink in size depending on how much people were investing or how much people were cashing out. At a certain point, and this happened, if there was not enough liquidity because the ponzi got drained of ACTUAL money, then it would collapse in the spiral that did happen. Do Kwon straight up yoinked a fuckton of money from this liquidity pool all for himself then "oh no its collapsing" soon after. He blames an attack, but someone only kickstarted the inevitable. His plan was to run away with all the money before the collapse so he could hide better, but someone smelled blood in the water of a vulnerable ponzi scheme.