LUNA Collapse Comes to Light: Whose Mysterious Wallet Is It?

LUNA: Jump Trading Group, a trading firm headed by Kanav Kariya, who is on the board of the LUNA Foundation, has published a report for Terra (LUNA). According to the report, when the US dollar stablecoin of the TerraUSD (UST) stablecoin began to slide last month, a number of large Terra (LUNA) investors left their positions – smaller investors continued to buy the coin as its price fell.

Jum Crypto has touched on many details in its LUNA report

Jump Crypto refers to the depegging of Terra stablecoin, where blockchain analysis firm Nansen reassesses its findings, noting that “seven” wallets, one of which is affiliated with the Celsius Network (CEL), may have played a risk factor for the UST stablecoin to become unstable. published an autopsy. “There is indeed a rapid decline, which is generally reflected by the major wallets,” the statements were used.

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However, they added that while these wallets “actually make up most of the early exit”, they are actually “part of a much broader trend.” The report also focused on the role played by Anchor, a savings, lending and borrowing platform running on the Terra platform. The authors of the report, Jump researchers Nihar Shah and Maher Latif noted that some large UST depositors exited Anchor in the first few days of May, while some smaller players bought more between May 7 and May 9.

Big investors were already out of their positions

The researchers explained that the UST moves appear to have separated the stablecoin from the US stablecoin. Noting that although small investors continue to buy, the exit of large investors from their positions puts a significant pressure on the price, the company added the following on Twitter:

The exits on Anchor – particularly overnight on May 7 and the morning and afternoon of May 9 – put significant pressure on the UST constant. Large depositors led outflows disproportionately. In fact, small depositors increased their investments in the process.

LUNA Informer Speaks: These Are Behind the Crash! As we reported, researchers traced the origin of the May 7 crash to “a combination of transactions in the UST/3CRV pool.” They added that transactions involving “withdrawal of UST liquidity” and “two wallets with large UST sell orders” “distort the balance and depth of the pool.” The report noted that while small investors with assets under $10,000 in Anchor tightened their purchases, larger depositors had already exited almost 15 percent of their UST positions in Anchor.

The fate of the 85 million dollar wallet is unknown

In the case of mid-size depositors, classified by the authors in the report as “wallets with $10,000 to $1 million in Anchor deposits,” these individuals quickly fled protocol on May 6 and held first 5 percent of their positions for the first three days thereafter, and soon after. lost 30 percent of it,” he says.

On May 7, the mystery wallet sold its UST position for approximately $85 million in a series of transactions. This move was the first in a series of events that triggered the greater catastrophe. In May, Citadel Securities and BlackRock said they had nothing to do with Terra’s collapse, after many on social media began speculating about who was responsible for the incident.

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Larry Brown

I graduated from Yale University, Department of Television. I have been a professional news writer for 3 years. I am continuing my career here by establishing site 3 months ago.