30th May 2022 > > Terra yet again.

tl;dr

Terra fiasco follow-up, and a brief whale-watch.

Market Snap (at time of writing)

Market Wrap

Good sized increase in open positions for the leverage players, balanced on both sides.

LUNC (Luna Classic or Luna 1.0 if you will) rallying a decent 50% overnight outperforming LUNA, its replacement blockchain. That’s a potentially interesting conundrum.

Curious Cryptos’ Commentary – Follow-up to the Terra fiasco

Putting aside the disappointing launch of Terra 2.0 (from the perspective of owners’ pre-attack), I came across this piece of on-chain analysis about the Terra fiasco:

https://www.nansen.ai/research/on-chain-forensics-demystifying-terrausd-de-peg?utm_source=twitter&utm_medium=organic&utm_campaign=Research_USTdepeg_27May22

It is a long read, and it is quite complex, and I am not claiming that I could ever have the patience to do this kind of work.

But I think it is very instructive and illuminating in terms of just how deep and how far on-chain analysis can go, in such a short space of time. Another shining example of how the legacy financial system is put to shame by the blockchain revolution.

Drug dealers and money launderers are much safer handling the EUR 500 note.

Curious Cryptos’ Commentary – Whales are buying

According to Glassnode Analytics, whales – wallets with more than 10,000 BTC – have been increasing in number for the last 3 months:

This metric is often claimed to be a good indicator of future price action by the less precise crypto commentators, but I tend not to agree.

The same graph shows that the number of whales increased by approximately 15% in the weeks just before and after the all-time-high for BTC last November:

The simple narrative (or urban myth if you like) that whales feed off the fish only when it suits them to do so is just that – it is too simple to be true.