r/CryptoCurrency • u/Exirr 🟩 554 / 554 🦑 • May 13 '22

ADVICE Warning: don't buy the 99.99% dip

The way the algorithm works for the mechanism means you can trade UST for equal value of LUNA. So the simple version is that when someone sells one UST for $0.40 then it creates another 400 LUNA if the price is at $0.001 per LUNA. And if the price is $0.0001 it will create another 4000 LUNA from that one UST.

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So it might seem like a great deal and that you are buying the dip 99.99% down but the amount of coins is growing massively too. You can check their API here (link from coingecko)https://fcd.terra.dev/v1/circulatingsupply/lunaCirculating supply is now over 150 billion according to their API. over 3* as many as XRP. This will go to SHIB levels as that previously $13 billion of UST unlocks itself.

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Anyway just a word of caution not to buy the dip becuase it will continue to dilute massively. I already lost some money myself buying the dip until I released how the minting mechanism works. Sorry its like 2 days too late. But hopefully this saves someone from making the same mistake.

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u/ASK_IF_IM_HARAMBE Tin | r/WSB 15 May 13 '22

do you know literally anything about luna? the ust de-pegged. there was $18 billion in it. anyone who wants their UST at full price transfers it to $LUNA and then sells the $LUNA. that's why the price of $LUNA keeps dropping.

This is why $LUNA has been the dumbest experiment in the history of crypto.

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u/LordPrettyMax Bronze May 13 '22

I don’t think he cares bro

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u/ASK_IF_IM_HARAMBE Tin | r/WSB 15 May 13 '22

it's not gambling if you know the outcome. it's going all in on a losing hand after everyone's shown their cards.

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u/Elean0rZ 🟩 0 / 67K 🦠 May 13 '22

To the extent that there is such a thing here, the one that's the "safer" gamble IMO is UST itself. Trading at .15 or so right now. The argument is that so long as somebody somewhere is trading LUNA and the Terra blockchain isn't totally dead (obviously neither of which is guaranteed at present), then UST is algorithmically certain to return to $1 at some point--the unknowns being when, and how low LUNA would have to go for that to happen.

Still definitely a gamble since the whole thing may well just fully die, but at least it's a gamble with more tractable parameters.

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u/CopyRatatat 🟦 24 / 24 🦐 May 13 '22

Yes, have a look at the other algorithmic failure TITAN/IRON. IRON has returned to $1 while TITAN is 0.00000008