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:
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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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