LFG’s Council said some days ago that they would loan 750M to OTC trading firms to catch the UST-peg again:
It seems to me (and I think everyone just slipped that parte) that the council, knowing that the price of luna would just evaporate, moved the money (as they explicited) to trade firms to (a) gain capital and (b) rebuy tokens at a fraction of a cent, for, after that, burn the excess of supply.
This little article shows where all the BTC went:
My personal thought is that this is a smart move (as long as the 1.5BI USD weren’t used to trying to save UST), because the Council could buy tons of the exceding supply at the lowest price ever (0.00000122).
This way, they could bring some confidence back, rise the luna price and even gain some capital trading both sides of the game. Besides that, 80% of the trading volume is concentrate in binance. That means binance is earning tax fees from every transaction.
In order to preserve their own name and help the luna ecosystem, binance could help the supply burning by directioning parte of the taxes to LFG’s rebuying plan.
See, this is some speculation of my own. Even though we haven’t much information about what is happening behind de scenes, i don’t think that the project is dead at all. I think that binance and LFG could work together, simply because no one will benefit from a 33 bilion dollar wipe out.
Finishing my thoughts, it seems not likely that Do Kwon is just sitting in a room thinking about a hipotetical saving plan. Maybe there are some things going on already.
when are they gonna rebuy these tokens with it?
It would make sense to buy back and burn, it would explain the price action on Binance and everyone who held on to their Luna or UST would benefit in the end. It would also match what CZ suggested about burning the excess supply. I wonder if they are trying this out and started the process on Binance before making an announcement.
What happened to the funds at Binance and Gemini? Is there anything actually left?
Yes that is fairest and non damaging possible solution that would benefit users, holders and the blockchain
yeah, thats what i think. They started the work in silence, because could backfire again if they stated this plan out loud
Well i bought lower than that so that would be nice, make me one of the biggest Luna holders:)
Yeah, definitely - otherwise everyone would be buying Luna before they themselves had a chance to buy at the lowest prices. In fact, there is a distinct moment when the price suddenly stopped going down and reversed back up and never went lower again - this might be when they started buying.
If they dumped on everyone then they would get into even more trouble.
I assume they took CZ’s advice behind the scenes and everything is coordinated with Binance. Also, I’m not convinced by what CZ wrote on Twitter about enabling trading so that victims could swap their worthless Luna for something else.
There is another added benefit - at these prices and with this price action, victims could potentially recover their losses relatively quickly with minimal capital, particularly considering the deflation that is to follow via the burning.
None of the above is financial advice and all of it is speculation.
If I understand the situation correctly, then CZ is a major original backer of the Terra ecosystem, and therefore has a vested interest in its success, and possibly major influence over the their coming decisions. Its all speculation, but I think the reason why Terra stopped minting new Luna, is CZ pulling strings.
yes! that or Do Kwon just admited he is not so smart and gave a chance to someone who can handle
I saw this proposal earlier and really like it.
I was wondering what kind of Luna price would be achievable if this proposal were to be adopted?
Would those who held on to their Luna ever have a chance of seeing prices return to the pre-attack levels? If so, then it’s would be ideal - UST/USD parity should be restored and eventually a realistic Luna price.
If they were going to buy all the tokens they should have when the supply hit 600 trillion and the LUNA market cap was like $150 million. Just a complete fail.