Jack Melnick from the The TIE joins the Insights crew to discuss the LUNA/UST collapse. How did the LUNA "death spiral" start? Was it a coordinated attack? Did investors really know what they were getting into? Did Do Kwon? And what does it all mean for the crypto industry?
00:00:47— Jack Melnick introductions
00:02:42 — Context for the Terra/LUNA meltdown
00:05:20 — What is an algorithmic stablecoin?
00:06:30 — Anchor’s unsustainable yields
00:07:47 — Bleak macro conditions’ impact on Terra
00:08:46 — Do you think funds and retail did due diligence on algo-stables?
00:12:32 — How did the "death spiral" start?
00:18:40 — What were people selling UST for?
00:21:06 — UST’s "stability" mechanism
00:23:39 — Timeline of the collapse
00:25:44 — The LUNA short trade and Do Kwon’s bets
00:27:34 — Was it a coordinated attack?
00:29:50 — People in crypto shouldn’t put faith in "the figurehead."
00:31:40 — How did LFG’s BTC purchases play into it all?
00:35:58 — Did Kwon really know what he was doing?
00:40:04 — Reserve cofounder on algorithmic stablecoins
00:45:23 — Do we need an fiat-pegged algorithmic stablecoins?
00:48:40 — Terra "Classic" and Terra 2.0?!
00:50:22 — Does this exacerbate the bear market?
00:53:58 — Why do people think USDC is safer?
00:57:12 — Declining stablecoin market caps signalling bear market
01:00:52 — Closer to the crypto top or the bottom?
01:03:27 — If you like BTC at $69K, you should love it with 50% off
01:05:27 — Closing thoughts (and are institutions buying more than retail?)
Follow Jack Melnick on Twitter: @YoniJMel
Follow OKX Insights on Twitter: @OKXInsights
Further reading from The TIE and OKX Insights around topics discussed:
Death of an algorithmic stablecoin — lessons from the LUNA meltdown
https://www.okx.com/academy/en/elastic-supply-stablecoins-explained
Subscribe to the OKX Insights newsletter to stay up to date with all things crypto: https://newsletter.okx.com/ACE505628
Connect with the hosts on Twitter:
@XBT002
@0xMugen
@lilycap_
@0xBathang
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"Send It" is a podcast created and hosted by members of the OKX Insights team: Maxwell Koopsen, Adam James, Rick Delaney and Olivia Capozzalo.
Episodes on Fridays.
OKX Insights is the research and analysis team at OKX, a top global cryptocurrency exchange and DeFi ecosystem.
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Please note, this podcast is not intended to be investment, trading or financial advice. Also, the views and opinions expressed on this podcast are those of the individuals and do not reflect the official views of OKX.
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The content provided in this video is for informational and educational purposes only. Nothing discussed in this video is intended to be investment advice. This content, and any information contained therein, does not constitute a recommendation by OKX to buy, sell or hold any security, financial product or instrument referenced in the content.
