The Terra – UST contagion
Even with all efforts to “sacrifice LUNA to save UST” as well as trying to remove 1.3 billion UST from circulation in the past 24 hours, the price of both LUNA and UST is falling rapidly. While LUNA continues to drop below $0.04, UST has yet to regain the peg and is trading at $0.48.
Things get worse when the UST itself collapsed, triggering tremendous selling off on the entire market, pushing the Bitcoin price to drop below the threshold of $ 27,000, despite many reputable funds speaking out to reassure the community about the Terra crisis.
This led to a series of stablecoins consecutively depreciating on the afternoon of May 12, especially Tether (USDT) and a number of other algorithmic stablecoins such as Tron’s USDD or Near Protocol’s USN.
The largest whales also suffered
The total asset of the richest billionaires in the crypto space also “evaporates” quickly with tens of billions of dollars lost.
Binance CEO Changpeng Zhao is the most severely affected. According to Forbes, the richest man in the crypto space has lost about $37.6 billion. In addition, during this crisis, many investors achieved huge profits through LUNA short orders, this is also the reason why Binance had to delist LUNA from its futures, margin, and spot trading pairs.
The next big victim is the Founder and CEO of the FTX exchange, Sam Bankman-Fried. He suffered a $3 billion decline in assets. Despite his loss, the FTX CEO still believes that this crisis cannot drag the whole stablecoin segment into a recession.
Coinbase CEO Brian Armstrong is no exception to this “storm” as $4.4 billion has been wiped out of his total asset. Besides being swept by the current market situation, he has also dealt with the underperformance of his own company. Coinbase lost $430 million in Q1/2022, causing COIN price to plunge to the bottom in April.
Other notable victims are all leaders of various exchanges and platforms including Gemini exchange CEOs Cameron Winklevoss and Tyler Winklevoss ($300 million), Ripple founder Chris Larsen ($700 million), venture capitalist Tim Draper ($270 million), etc.
On the other hand, 5 out of the 10 companies holding the largest amount of Bitcoin in the world are suffering from a decline up to $300 million at the current BTC price compared to their initial investment. Outstanding names are MicroStrategy, Tesla, Coinbase, NEXON, and cryptocurrency mining company Marathon. Notably, these giants’ assets used to double at the time of Bitcoin setting an ATH at $69,000.
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