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 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.
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
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.
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.
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.
I don't imagine that anyone will find themselves sued successfully...
I understand the empathy, better than contempt.
But what were they thinking? Sorry they lost all their money. A fool and their money....
I'll know the crypto rush is over when you can't "stake" for 10% anymore.
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.
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.