As regulation became increasingly stringent, BTC continued to decline on the first day after the weekend, halving (50% +) from the peak of $69000 in November 2021 and approaching the $30000 mark At the same time, some "stable currencies" that claim to be linked to the US dollar are also struggling to maintain - for example, terrausd (UST) has lost its anchor twice in a row recently, so that Luna foundation guard announced the allocation of huge BTC reserves to ensure the stability of the currency value of UST.
It is reported that "stable currency" aims to link with relatively more stable assets such as US dollar or gold to reduce volatility and take into account various advantages of digital currency (such as fast trading), while "algorithmic stable currency" is a cryptocurrency variety that relies on algorithms to maintain currency value.
As for UST, terraform labs does not actually hold cash reserves, but plays a role similar to that of a central bank to maintain currency stability - with the help of smart contracts / automatic decision codes written into the blockchain to achieve its purpose by consuming its sister token Luna.
As the organization behind ust stable coin, Luna token and Luna foundation guard (hereinafter referred to as LFG), terraform labs emptied $1.3 billion of bitcoin reserve wallet (about 42350 BTC) on Monday when the price of ust fell to about $0.95.
On the same day, #luna's topic tag once reached the top 10 of the list on social networks. Take Weibo, which has 570 million monthly live data, as an example. As of Monday night, the reading volume of relevant posts was close to 15 million times.
A big V in the coin circle pointed out that as ust broke off its anchor, Luna foundation sold big cakes all the way to ust to renew its life. However, judging from the current situation, this drop in the bucket is of no help at all.
Even if LFG issues a $1.5 billion loan to continue to infuse soul soup into UST, the general trend is gone. Even if it is lucky to be rescued, it may suffer from trembling Parkinson's disease.
With only half of his life left, it is estimated that no one will dare to play after the mechanism suspicion + trust crisis.
Finally, although it is difficult to infer how many people are still participating only from the data of network analysis companies such as similarweb (H / T Wu blockchain), an exchange that has long been at the forefront of the world's top 15 shows that nearly 1 / 10 of its traffic comes from China.