Yup, I thought about posting a correction, but figured it would be outdated by the time I was finished, heh.
It's not looking good at the moment... I know HN isn't very fond of crypto, but I still feel for everyone stuck in UST space right now. I've been there with other assets, and it's too damn stressful.
There is so much red across the board in cryptoland... it's gonna be a stress test for more than UST and LUNA.
> I know HN isn't very fond of crypto, but I still feel for everyone stuck in UST space right now.
I can't speak for HN, but any financial instrument that can't be easily differentiated from a ponzi scheme should be assumed as one unless proven differently. I think that's just investor due diligence frankly.
Hey, I'm ~$3,000 in which isn't zero but also isn't that meaningful.
I'm holding and taking no action (ie, not buying more). It's at the risk exposure I'm comfortable with.
Then again I held my shares in sun microsystems until the very end. No regrets on that either.
This is not financial advice, I'm probably a fool. FWIW, UST is recovering way quicker then my positions in Nvidia and Adobe are. It's back to $0.92.
In an environment where companies like Rivian are down over 90% and across the board 75% stock price drops are common right now, recovering in 24 hours is pretty great
Out of curiosity, what's the point of having a "position" in a stablecoin? It seems that if they manage to maintain the peg, there can't be any gains either. My impression was stablecoins are mainly used as an intermediary when converting between crypto positions, as a kind of "crypto reserve currency".
The value is "holding" at $0.66 right now (in that it stopped going down... for now... anyway). This crash is utterly fascinating to me. Its definitely a slow-motion train wreck.
I do feel for the people who are in this crash right now, wondering if they should get out right now, or if it will be back to normal tomorrow morning. But I don't think this stablecoin has ever dropped this low before.
I think I can understand the stress anybody is feeling from this. Its kinda horrific. I remember when money-markets lost their peg back in 2008 and pretty much the world went apocalyptic. I can't imagine what it feels like to lose 30% of an alleged "stable" value in a few hours.
The thing is that people had pretty good reasons to expect Money Market Mutual Funds to be stable at $1. Everybody who really understood them knew that breaking the buck was possible, but absent fraud, it wouldn't have been possible without a massive economic collapse (which didn't happen).
Nobody in their right mind should have expected UST to remain stable for any length of time at all, as it is fundamentally built on smoke, mirrors, and Ponzi's best friend.
I'm sure there will be some sad stories about people who had no idea what they were buying that lost money they couldn't afford to gamble with, but it's really hard to feel too bad for the suckers and hypemonkeys who memed this stuff into having temporary value.
> I remember when money-markets lost their peg back in 2008 and pretty much the world went apocalyptic.
For comparison, I believe it was only one money market fund that had to break the buck and sell for something like $0.97 instead... and the withdrawals were hitting 10% of total money market fund value in a few days.
By some reports, Binance has set a floor price on trades at $0.70, so people cannot sell lower. It has also suspended withdrawals. So this 'holding' may be influenced by one of the largest exchanges effectively halting trading.
So from what I can tell they removed those constraints earlier today, and after a brief attempt to prop the peg back up somehow, which saw it hit $0.95, the UST price has been back down between $0.3 and $0.5.
I don't imagine that anyone will find themselves sued successfully...
You're wise to avoid the updating and it will be painful for many people. I had friends explain that stablecoin was the way to make an easy 20%. I can empathize with their pain.
That's a bit misleading--you can only stake for 10% if you agree to lock up a large amount of money in CRO for a long period of time, and if you agree to a three month fixed-term deposit for the USDC you're "staking". CRO exposes you to arguably more risk than the staking is worth, and the fixed-term deposits have the downside risk of crypto.com literally collapsing and not being able to pay you back.
If you want staking rewards on USDC (from crypto.com) without a fixed-term deposit, the best you can do is 2%. If you want to avoid having to lock up $40,000 in CRO for a minimum of 6 months, the best you can do is 1.5%. Given that you can earn 0.7% on a FDIC-insured deposit in actual USD, that's not much of a deal.
> I'll know the crypto rush is over when you can't "stake" for 10% anymore.
Agree with tkfu that this is misleading. You're looking at 6% for a 3 month lock up right now without investing in CRO. I think 3 months is fairly short compared to say US I-Bonds which are currently paying over 9%.
3 months ago you could have locked in a 3 month investment in USDC for 10% though without any CRO. It should be noted that you're not actually get 10% after 3 months though, more like .25 .1 * (Your investment). 3 months = .25.
* I-Bonds interest changes every 6 months. Lockup period is 1 year. You lose 3 months interest if you take it out before 5 years though.
$0.72 on Coinbase.
But to be fair, the last 5 minutes have been brutal...