Advertisement
AD

Main navigation

TerraUSD (UST) Collapse Could Be Orchestrated by Small Group of Large Wallets: Report by Nansen

Advertisement
Fri, 27/05/2022 - 15:53
A
A
A
TerraUSD (UST) Collapse Could Be Orchestrated by Small Group of Large Wallets: Report by Nansen
Cover image via stock.adobe.com
Read U.TODAY on
Google News
Advertisement

Cryptocurrency forensics firm Nansen indicated four phases of TerrsUSD (UST) stablecoin de-peg to U.S. Dollar that took place two weeks ago.

No, UST was not taken down by a single attacker

According to the detailed report released by Nansen today, on May 27, 2022, the theory about UST being attacked by a single powerful entity that is being widely discussed on Crypto Twitter is senseless.

Instead, seven large wallets (sophisticated traders, "token millionaires" and so on) explored the imbalanced status of UST-LUNA's tokenomic design.

Advertisement

Most likely, on May 7, 2022, they started moving UST liquidity out of Anchor Protocol (ANC). Prior to the Terra (LUNA) drama, this protocol offered up to 19.5% in APY on UST stablecoin.

Related

Then, they started to aggressively move liquidity from Terra (LUNA) blockchain to Ethereum (ETH) via Wormhole bridge infrastructure.

Nansen shared the addresses of seven whale-driven wallets that played significant roles in this process. Nansen's heuristics identified them as "Token Millionaires" and "Heavy DEX Traders."

Terra 2.0 launch caused debates in crypto community

Finally, the mentioned accounts started swapping UST to other stablecoins on Curve Finance (CRV) liquidity pools. Once UST de-pegged, massive arbitrage opprtunities were opened up due to "inefficiencies" between various price sources.

As covered by U.Today previously, as a result of events, UST stablecoin and Terra (LUNA) asset dropped to almost zero levels. Terraform Labs' founder Do Kwon initiated the restarting of the network.

Related

However, the global cryptocurrency community is not excited by this proposal: some services even refused to add new assets to their trading suits.

Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.

A
A
A

Related articles

Advertisement
TopCryptoNewsinYourMailboxSubscribe
TopCryptoNewsinYourMailboxSubscribe
Advertisement
Advertisement
Subscribe to daily newsletter

Recommended articles

Latest Press Releases

Our social media
There's a lot to see there, too

Popular articles

Advertisement
AD