Of course!
At the beginning of 2022, I paid attention to Luna, the so-called crypto circle, but I felt something was off.
The first signal was the abnormal flow of funds in the Terra ecosystem. On-chain data showed that a large amount of institutional funds began to withdraw in late April, while the supply of UST was expanding. Observing through the blockchain explorer, I noticed several major whale wallets frequently transferring assets to other chains, which made me suspect that there might be hidden dangers within the ecosystem.
The second signal was the subtle change in market sentiment. There were more and more discussions on Twitter about the sustainability of the Terra mechanism. Some technical analysts said that UST's algorithmic stability mechanism might fail under extreme market conditions, and Luna's inflation mechanism would quickly dilute its price. I also noticed that the founder of Terra's tone on social media shifted from confidence to being tough, and even somewhat provocative, making me feel he might be hiding something.
The last key clue appeared in early May when Bitcoin's price fell, putting pressure on the entire crypto market. UST briefly decoupled to $0.98 for the first time. Although it quickly recovered, it made me realize that UST's stability was not unbreakable. I began to imagine that once market confidence collapsed, the decoupling of UST could trigger a selling frenzy, and Luna would be forced to issue more, ultimately leading both to zero.
On May 7, I was convinced that Luna was about to collapse. I decided to short Luna when the price was still around 80. The market generally believed it still had room to rise. I invested a few tens of thousands with 10x leverage, equivalent to hundreds of thousands in position. It was a bit like going all in because if Luna continued to rise, my account could be liquidated in an instant. But I believed in my analysis that the collapse of the Terra ecosystem was inevitable, so I decided to take a gamble.
On May 9, UST began to significantly decouple, falling below $0.9. Market panic started to emerge, and Luna's price quickly dropped from $80 to $50.
On May 11, Luna's price fell to $0.01, almost reaching zero...
If you want to seize this bull market, learning on the spot is definitely too late; it's best if someone can guide you to get started quickly.
I am mainly a blogger focused on fresh content.
Teaching a person to fish is better than giving them a fish.
