Wolverine vs. Magneto

So you're telling me you're made of metal... - Magneto to Wolverine...

May 13, 2022

Around 8:03 AM, #Tether tanked -99% to $0.0013 on CoinMarketCap, Bitfinex, and Binance, etc. By 8:57 AM, they scrubbed the $USDT crash and pretended it never happened. Too bad I recorded it on the blockchain, where it will live forever.

What is the attack surface of my portfolio given the zero-day trade sequence that took down The Terra Luna Ecosystem?

DeFi Made Here @DeFi_Made_Here

Consequences outside #terra after $luna collapse. Thread 🧵

Is this really like Wolverine vs. Magneto?

cyrus.ismoney.eth 🦇🔊🚬🎨👀 @cyounessi1

Over *four years* ago I was a research analyst at @scalarcapital. The Terra / $LUNA deal came across our desk and I was assigned to it because I was the DeFi guy. Here's what I had to say about the project. How did we allow it to end up like this?

If none of this makes sense to you, read below.

About a year ago, Day Traders rejoiced.

They had just liquidated a number of high-profile Hedge Funds by coordinating the rise of AMC over Reddit. For the first time, Day Traders had beat Hedge Funds at their own game using publicly available information.

After some of the most reputable Hedge Funds got liquidated, they had a hearing on the rise of AMC in the Senate. At the hearing Reddit Day Traders defended their ability to profit from holes in the marketplace. Ultimately, the Senate determined that the jungle needed to remain a jungle, rejecting the regulation of speculation in the stock market.

The Return of the Apex Predator

But even jungles have Apex Predators. This weekend, the Apex Predators of Finance - Hedge Funds - enacted sweet revenge on the Day Trading Community. They did it by disrupting the Tokenomics at the core of the Luna Ecosystem.

LUNA To The Earth

What's Luna? Luna is a stablecoin ecosystem that promised its holders 20% interest. That's the long and the short of it. Some called a 20% interest rate offer a perpetual motion machine, and they were right, but not for the reasons they may have expected.

On Monday, the revenge for AMC was carried out. The revenge was a coordinated series of trades that were in the works for at least six months. Why six months?

You don't borrow a billion of BTC overnight. In fact, one can imagine a scenario where the individuals who made the billion of BTC available were some of the same people depegging the Luna from $1; the depegging from $1 set everything into a spiral on Monday. Some in the community are criticizing Luna's Management for oversharing their product roadmap; maybe there are some things you don't want to share in public.

Right now, the Day Trading Community is waking up to the fact that Economies of Scale is the primary factor in Helmer's 7 Powers thesis on why companies win.