It is almost impossible to return “Luna” to the top ten on the list, especially since its capital has fallen to 645 million dollars in the order of 2786. Ayoub Arabi, business manager at Interactive Trade puts his finger on this topic.
The debate over whether stablecoins matter or not has ignited with the collapse of Terra (Luna). For some cryptocurrency users, this fall proves Stablecoins will not be able to really contribute to the development of the sector. Other users find it important. For them, cryptocurrency has a role to play. What is the true role of stablecoins in the digital asset ecosystem?
Ayoub Arbi, Chief Business Officer de « Interactive Trade », une plateforme spécialisée dans l’éducation du « trading » sur les marchés financiers et les technologies du Web 3.0, comme la blockchain et les crypto-monnaies, nous donne d’amples éclairages sur the question. During the summer of 2017, he first heard about “Bitcoin” and From “cryptocurrency”. Loved the concept, especially after reading the white paper for “Bitcoin”. He made a short trip, had experiences with companies in Tunisia and crypto projects internationally.
Quick adjustments And at reasonable prices
Ayoub tells us, “May 9 was one of the most memorable days in the cryptocurrency market and it was because of Luna. Luna is available today on many crypto exchanges, but investors suddenly lost faith in the entire ‘Terra’ ecosystem, it’s almost impossible to see Luna And it returns to the top ten on the list, especially since its capital fell to $645. million, on the order of 2.786.”
Founded by Daniel Shin and Do Kwon in January 2018, Luna is the “token” of Terra, a public blockchain protocol. Terra combines price stability and widespread adoption of fiat currencies with resistance to censorship Bitcoin (BTC) and offers fast and affordable settlements through the UST stablecoin. Terra offers fixed currencies pegged to the US dollar, the South Korean won, the euro, and all other currencies in the IMF’s SDR basket. Luna Like any cryptocurrency, it can be purchased either through centralized exchanges or decentralized exchanges (DEX). The latter is available on: Centralized exchanges: Binance, Kucoin, Gate.io, Bybit, and decentralized exchanges or swaps: TerraSwap and Loop Finance.
Good risk management
“It is an investment rule that the higher the risk, the higher the return. This is the case for cryptocurrencies, it is a market that has not yet matured, and if we compare it with a giant market like “Forex”, we find that the daily volume of currency exchange is about $6.6 trillion, while the market The entire cryptocurrency market cap did not cross the $2 trillion threshold at its peak with the bitcoin price at $69,000. However, it is advisable to be careful in this market because the manipulation and fraud are undeniable,” Ayoub Arabi emphasizes.
It is essential to have the necessary knowledge and good risk management to choose the right investments and be among the winners. As mentioned earlier, the Luna ecosystem created the Terra USD (UST) stablecoin which was used by a project called Anchor Protocol. “This protocol provides a return of 20% per annum in the form of stablecoin which is huge and can be one of the best investment tools from a risk-reward point of view,” says Arbi.
Anchor uses a “staking” mechanism, which consists of depositing an amount of ground-based stable treasuries of coins and blocking them for a period of time to get a return of 20% annually. Investors are still struggling about the financial instruments to choose or the best market to invest in and get the maximum possible return, the truth is that for the past 10 years, crypto has been unbeatable and the best investment.
“Cryptocurrency is king in terms of yield and we are talking thousands and millions in less than five years. A simple example is Solana which exploded from $1 to $259 in just 9 months,” reveals Ayoub Arabi. For him, with such miraculous gains, we are facing some disadvantages such as the unrivaled price volatility of the stock market, for example. In addition, there are many price manipulations especially for “tokens” with low capitalization.
Web 3.0, a real revolution
“Decentralisation, I’ve always loved hearing that word,” this enthusiastic young man declared. He continues: “A real revolution happening is the revolution of Web 3.0 based on ‘blockchain’ and cryptocurrency. Banking services such as savings, loans, and insurance were limited to a well-defined social class, while the majority did not have the right to access it. The Web 3.0 revolution is able to disrupt the system. The current concept is thanks to the concept of decentralized finance (Defi), which offers financial services and protocols that are open to all.”
The Chief Business Officer of Interactive Trade ensures that with this system it is not about creating 1% but for 100%. “More than $14 billion is tied up in the Anchor protocol, which indicates that these investors are only aiming for a 20% return. With such huge amounts, the return on investment for this protocol is no longer sustainable and the system is starting to indicate a vulnerability. Maintains Underground treasuries peg their currency against the dollar and are linked to Luna through a mint-and-burn mechanism.Deposits of ground treasuries fell sharply at the beginning of the week of May 9, from $14 billion to only $3 billion.This caused a panic from investors who liquidated their positions. Underground treasuries were cut off at the dollar even as Luna attempts to get them back by spending her $3 billion worth of bitcoin reserves.
According to Ayoub Arabi, the drop in Luna’s price from hundreds of dollars to cents isn’t something that goes unnoticed. After the ecosystem crisis, Terra made several attempts to get back into the race. There was the launch of Luna Classic (LUC) which is an alternative to Luna, which was launched in a new protocol series.
There is no safe investment
In addition, Luna investors received 30% of the reserves in a new currency called Luna 2.0. “I think it is very difficult for this project to recover because it has lost the trust of the community,” Ayoub adds. He continues: “There is no safe investment, another rule of thumb for investing, which I personally believe in. For Luna investors, it’s time to forget about it and move on. Otherwise, for other people, I would say you always have to be careful and forget about the idea of getting feedback. When buying Let’s wait for Luna to recover.On the other hand, for short-term traders, there are scalping opportunities for this instrument, due to its high volatility.
Everyone wants to leave the new Luna, because founder Do Kwon has lost his credibility with the community. “Luna has no future. The founder did not build a firewall around the algorithm, even when he had the opportunity. That is why they lost their credibility. Building the new Luna within the existing community would not make sense now. The downfall of Avax is directly related to the panic that occurred in the market, and the system is considered The environmental avalanche is strong, moreover, they do not have an arithmetic stablecoin like TerraUSD (UST), Ayoub announced.
After the collapse of the Terra ecosystem, many investors reconsidered their options, which is why Avalanche, which bears some similarities to Luna, was one of the cryptocurrencies that crashed; This also relates to the relationship between the two ecosystems especially since Luna bought $200 million in Avax as a reserve. The avalanche wasn’t the only one but many others like Solana and Chainlink suffered from the shards of the Luna Crisis.
“The web 3.0 revolution offers many opportunities, but the majority of people interested in this field get lost in various resources and lack a real destination for training, which is why we launched with my team Interactive Trade where we offer different educational courses for trading in financial markets, technical and fundamental analysis as well as blockchain development. Our mission is to build a community of heralds of the Web 3.0 revolution. We will not be stopped, but we are building real solutions based on blockchain technology because this is a real opportunity to change the future of our country,” insists Ayoub Arabi.
Be well informed before betting
The world of investing requires good management of risk and emotions, “Luna was a lesson learned but there are so many other opportunities I encourage everyone to research them without forgetting to be well informed before investing their money. Although the legal status of our country with regard to cryptocurrencies is not yet clear, there are plenty of other opportunities besides investing for people who find themselves afraid to invest. There are many job opportunities in the fields of development, marketing and finance, where the number of employees reaches 10 thousand $ a month for a minimum experience. Plus, it’s time to get started Which is growing to move to Web 3.0 solutions using technologies such as blockchain, DLT and NFT”, states Arbi.