Just before the crash of Luna and Terra, ‘whale’ investors shook hands
[아시아경제 송승섭 기자] Before cryptocurrencies Luna and Terra fell, an analysis showed that large-scale investors named ‘whales’ had organized their assets in advance.
According to major foreign media on the 2nd (local time), the financial company Jump Crypto cryptographic analyzes and discloses blockchain transaction data. In the data, it was found that some large investors organized the UST holdings. Some whales began withdrawing money from the anchor protocol in the Terra ecosystem shortly after the UST price fell below the $ 1 reference price (7th last month). However, small investors, ants, increased their value in UST by the 9th.
In a crash report released the same day, Crypto analyzed that the departure of whales was the decisive blow to the sharp drop in UST prices. Still, the relationship between the specific virtual currency wallet that caused the crash and professional trading companies was insignificant. This unidentified virtual wallet is estimated to have caused a plunge in UST sales worth $ 85 million (105.6 billion rounds) over the past 7 months.
Terra Luna is a cryptocurrency with a unique algorithm. When the UST price falls below one dollar, it automatically recovers one dollar according to the arbitrage algorithm. However, as defiance of the Terra system grew, the price of UST and Luna began to decline.
By Song Seung-seop, reporter staff [email protected]
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