Today, when we talk about the plummeting luna, it took less than 5 days to fall from the original $120 to not even 1 cent.
In recent years, digital currency investment has become the mainstream of the market, many like this Petertil in Silicon Valley, Elon Musk have made a windfall by grabbing money in this digital currency. But luna this explosion, directly put everyone's faith in this digital currency overturned, hundreds of thousands of people burst the position, owed a bunch of debt, but some people at the same time used it to earn more than 10 million yuan in one night, today from the following angles, to share this matter with you.
The first luna as the so-called blockchain circle of Moutai how the coin circle Moutai was attacked by this traditional financial sneak attack and plummeted at once. These wall Street investors, how they make money, their methods will definitely shock you. The second point is luna, how it became the belief of people in the currency circle. The third point is why this luna thunderstorm occurred in South Korea, and why so many Koreans have been so affected. The last point is to make a prediction about Bitcoin, these electronic currencies, and understand what the future of this digital currency world will look like.
Before we get into the luna incident, let's solve a problem with you. It is these investors on Wall Street, how they are empty gloves white wolves, not spending a penny can make money. First of all, we must popularize a concept called big short, not that movie, but those who specialize in using short investment products through unfavorable market trends and eventually making large profits. Just like Soros sniped at the entire Asian financial market and caused a financial tsunami in Asia, but he made a lot of money.
Let's take a look at the riots of these wall Street people, this time short luna, led by the two companies of Blackstone and Castle Fund. When they were at the top of Bitcoin, they borrowed 100,000 bitcoins, remembering that it was borrowed, and the market value of these 100,000 bitcoins at that time was probably close to $4 billion. Then they ran to the market and began to sell short orders, trying to short Bitcoin and luna, simply put, is to keep selling in the market, then more people selling, the price will naturally fall,
In this way, they slowly smashed the original 40,000 yuan of bitcoin to only 34,000 US dollars. At this time, the opportunity appeared, as these two big bears began to smash the market, many leeks in the market had some panic, they also began to sell, plus this market, has been in this United States in the interest rate hike, the global economic instability of such a situation. The following large number of retail investors who hold Bitcoin began to sell.
We need to know that many digital currencies, his price is bound to each other, when bitcoin plummeted, it led to a UST coin pegged to the US dollar at that time began to fall, and ust is built on the luna system. So as the ust's pegging to the dollar failed, the price of the ust plummeted, and the whole luna also began to collapse, so the leeks that the gang began to invest in luna lost.
And when the price of the entire market began to fall to a very low level, Wall Street bought back the 100,000 bitcoins they sold at that time and returned them to the original institution, and left in a dashing manner. At this time, the money they earned was all done by the 100,000 bitcoins they borrowed.
Why is it said that this event has cross-era significance in the entire currency circle? This is because the entire blockchain, for the first time, was sniped by the traditional financial community, that is, Wall Street. And this time the beating was a failure, and the flash crash of luna caused people to begin to believe in virtual currencies such as blockchain began to collapse. You know, luna is called the coin circle Moutai. In the past 20 years, his valuation has risen by 300 times, the annualized yield is more than 30%, it can be said that it is a proper demon stock, and many people who have invested in Moutai say that it is much more reliable to put money on Moutai stock than to store money in the bank.
Luna is not only known as the coin circle Moutai, but its valuation has been stable in the top ten of this blockchain ranking, so the entire flash crash of luna this time is a very big blow to the entire blockchain industry, luna, which was invented by a Korean blockchain company called Terra. They are known for the stability of this algorithm, in fact, as a coin issuer, the small partners in this coin circle know that many companies are issuing coins, and many of the coins issued are air coins, what art coins, and what real estate coins, their price rises and falls, has no practical significance.
So the founders of this luna thought that people would have this level of concern, so as early as the early days of this luna, they promised investors a minimum annualized return of 20%. And on top of luna's algorithm, a ust was invented to bundle directly with the price of the US dollar. Simply put, when you spend $1 to buy a $1 worth of UST, its algorithm can guarantee that no matter when and where you are, your $1 UST will not be worth less than the actual $1. With this 20% return rate, coupled with such a precise algorithm, a lot of investors began to frantically pour into this luna. It's like a bank or a state standing up and giving everyone a bond similar to a treasury bond, or a bank's bond, then everyone thinks that there is nothing to worry about when the annualized yield is so high every year.
But one thing they miscalculated was something similar to our real-life run. That is, when all users come to the bank for money at the same time with the bank's passbook, the bank will collapse in a short period of time, even if he has more money. So it took luna almost a short time to fall from $120 to $10. And when he reached $10, a lot of people started coming in and bottoming out, thinking it was definitely luna, the ultimate bottom. But unexpectedly, he fell from $10 to $1. Do you think it's his lowest price, and soon he came to 1 cent and fell several times after the 1 cent price. When the price of luna fell by only 0.00001 cents, many people found opportunities to make money, especially when it was revealed on the Internet that a little girl made more than 10 million yuan in one night, many people chose not to short this luna, and many people chose to do long luna. The actual situation is that because the price fluctuation at that time was too large, many platforms at that time said that there was no way to accurately calculate what the specific income of luna was, which led to many people making money, but there was no way to withdraw cash.
Who is most affected by the development of this matter? Many of the investors are from one country, south Korea.
Then we can't help but ask, why do so many of these digital currencies come from South Korea? Why are South Koreans so crazy about this digital currency, this emerging technology? Tell everyone that South Korea is the first country on the planet to disappear in the future. Definitely not alarmist, this is a prediction made by an economist. You can see that south Korea now ranks second from the bottom in the proportion of new births in all countries in the world.
South Korea's newly inaugurated president is named Yoon Seok-yue and has a very beautiful wife. Although the age is now 50 years old, it is definitely not too much to describe the appearance of flowers and moons, but the wife of the new president of South Korea announced that she does not plan to have children, so they have several cats and several dogs to replace the child's position.
Why don't Koreans like to have children? On the one hand, we have to say that the entire economic trend of South Korea in recent years is not good, and on the other hand, this little friend in South Korea, after they were born, the competition pattern they faced was really too fierce, and many parents did not want their children to face such a fierce competition.
South Korea's superficial economy looks very developed. But one potential danger behind South Korea's economy is that the lifeblood of South Korea's economy is in the hands of this few chaebols. There are several very famous companies in South Korea, such as companies like Samsung, LG, and Lotte. Although these companies are small in number, they occupy the most important financial source in South Korea and send the most important jobs to the market. Because the vast majority of small and medium-sized enterprises in South Korea provide jobs, there is no way to compare with the large groups controlled by these chaebols, which has caused a situation of 10,000 people crossing the single wooden bridge, that is, almost all students are desperately trying to study hard and squeeze into these large enterprises.
So it has created a very strange situation, that is, South Korea's education is the highest in the world. To what extent, more than 1/4 of the people in South Korea who are now unemployed at home have a university degree or above. But it turns out that if you want to squeeze into the top companies in South Korea, it's harder than going to the sky. Because with the slowdown in the economic growth of these large companies, these chaebol companies not only did not recruit many new people, but also continued to reduce this job, so many fresh college students simply could not find a good job.
Two years ago, there was a very popular TV series in South Korea called Sky City. This TV series depicts a top Korean family, that is, those who live in high-end neighborhoods, and their parents are either lawyers, doctors, and entrepreneurs. Inside it looks like the income is very good and the whole family is very cozy. But in fact, behind the scenes, they are racking their brains for their children to squeeze into the three most famous universities in South Korea, namely Seoul National University, Korea University and Yeonsei University, and are called the three universities in South Korea. As a result, Korean students can't get into these three universities in order to get in.
So the TV series depicts these colleges and universities in South Korea, they face the pressure of the college entrance examination, many times at 12 o'clock at night on the street, you will see a group of students who want to take the college entrance examination, still shuttle through these convenience stores to buy some food, and then fill their stomachs, hurry home to sleep a short sleep, go to the next place of tuition. It's really crazy.
Although I still dream of taking the college entrance examination today, I still feel lucky, because at least I was not born in a country like South Korea. So when we saw Netflix's hot squid game last year, many people would think that this was just a TV series. But as everyone knows, this is actually a real trend of Young Koreans at the moment, a large number of Koreans can't find jobs now, and many Young Koreans just get a career that can fill their stomachs, so they will choose to take risks.
I have seen a media report that there are more than 60 million stock investment accounts active in South Korea, but you know, the population of South Korea is just over 50 million. It is this environment that has caused many Koreans to no longer believe in trying to change their destiny through traditional work, but to believe in those investment opportunities, and then be able to let themselves fight and make their fate change dramatically.
After telling you about the back of luna's thunderstorm incident, let's make a summary, tell you which people are suitable for blockchain, which people are not suitable for not touching, and predict the future blockchain These new investment products, his future performance will be how.
We need to know that whether it is Bitcoin or these new nfts or web 3.0, it is in the early stage of the application of blockchain technology, and it has not yet been universally used in society. Coinbase, the trading hub, can see that after it went public, the company's stock price fell by 80%. As a trading center with Bitcoin and these blockchains as the core of transactions, in the end, its value has no way to get a recognition from the world, proving that today's blockchain-centric transactions of any such digital currency have not yet been recognized by a mainstream of the market.
Blockchain projects mostly use Ponzi designs, which can only be used as a growth tool for a short time, and eventually need to find a stable profit model that is not Ponzi. Terra couldn't find it. In the process of Luna's decline, many friends spent a small amount of money to buy Luna, "spending hundreds of dollars to have fun" . The collapse of the star coin, which once reached the top ten in the cryptocurrency market, is considered by some insiders to be a big event worth remembering. Of course, it is precisely because of the plunge that Luna went out of the circle, rising from the bottom to the highest point of nearly a thousand times, and countless people who successfully bottomed out earned a large amount.
For those young people who really want to use the concept of blockchain in the short term, let themselves get rich overnight, and change their bicycles into motorcycles. Even Bitcoin, or any other coin, is actually not suitable for you to invest. Because today's blockchain application has not yet penetrated into our lives. All forms of transaction remain based on the overall value of the blockchain. So a large number of people are speculating as their first primary goal.
In the process of investing, once there is a large number of such shorts. The giants on Wall Street, when they use traditional financial means to enter the market, our ordinary leeks simply have no way to cope. So if you bet on all your assets, if you trust the people around you who are going to cut your leeks, if you tell you all kinds of new concepts, you are doomed to be disappointed, you are doomed to lose an accumulation of assets that you have worked so hard to get.
Does that mean that Bitcoin or blockchain are not worth investing in? In the long run, it still feels like investing in these blockchain technologies, and these digital currencies are still the right decision. We need to know what is the logic behind the development of this blockchain today. Are these really opportunists? Are these really these leeks? Not really, because these opportunists, as soon as the market crashes. They'll be the first to run away.
To give you an example, can you know why house prices in Singapore are rising so much? Can you understand why big city license plates and why Rolex is so expensive? What is a core concept behind it? Singapore's high housing prices are not only related to the rising demand of his population. Another important reason is because their tax system in Singapore is very low. They used a low tax to absorb a lot of money into the country. Many wealthy people move their companies to countries like Singapore in order to enjoy low tax rates and lower their taxes. And when they make money in Singapore, they don't let their money flow back into their wallets. Because as soon as the money is returned to your country, it means paying taxes. So a lot of people will keep their money in that country, and eventually they'll put it into real estate in that country.
So even though the tax rates in singapore that restrict overseas people from investing in real estate have become incomprehensible, there are still many people who invest. Many people do not understand why many people want to fry Rolex to fry license plates. The reason is simple, because you buy a Rolex, you buy this license plate, and the money you earn does not have to pay taxes. This has become one of the best channels that many rich people use to hoard their wealth.
So speaking of which, tell you, what is the next important concept behind supporting this bitcoin? Most of the friends with very high incomes around them have their own e-wallets. Worst also more or less stored on this platform some Bitcoin, or Ethereum. For these people, what is the logic of buying Bitcoin and Ethereum? The reason is simple, only the moment the money goes in, the government sees it, and in the future, no matter what transactions they make in this, how much money they make, as long as they don't bring up the money for a day, the government has no way to collect their taxes. So it has created an investment concept like this e-wallet, this blockchain, which has become an important channel for many rich people to store their wealth in the future.
And this group of people is the core personnel in the concept of blockchain in the future. When you see this layer, you can tell you with certainty, whether it is the future application of blockchain technology. Or is it an advantage that he brings now to a hidden investment, which will cause the future in a long time, the blockchain will become an important channel for investment, and his value will rise steadily.
So what is the conclusion, for those leeks who want to make a lot of money in the short term by investing in these blockchains, investing in what luna. I can tell you that this heart is dead, but for those friends whose wealth has accumulated to a certain level, who are planning, and have a long-term investment plan, take out for example 1% or 2% of the wealth and take the blockchain as a long-term plan, they will feel that this is a very smart investment choice. Because you are fully capable of taking a risk on the market, and if the technology of this blockchain is really used in the future, you will at least not miss this wave of dividends in the market. In a word, you can never make money outside of your perception.