It’s only been a few weeks since the Terra ecosystem imploded, leaving one of the worst scenes of destruction in the history of digital currencies in its wake. An estimated $60 billion was wiped out as the UST stablecoin lost its dollar peg, causing a death spiral that left both LUNA and UST worthless virtually overnight.
Yet, as authorities in South Korea investigate Do Kown and Terraform Labs, major exchanges like Kraken, FTX, and Binance listed LUNA2 without a second thought for customer protection. Predictably, it immediately crashed and lost most of its value.
LUNA2 crashes and burns
There’s an old saying that it takes one tree to make a million matches but only one match to burn down a million trees. Do Kwon, the charismatic figure at the helm of Terraform Labs, finds that out the hard way.
After convincing major players in the ecosystem to support a fork and relaunch of the Terra blockchain, he’s finding that his trust among investors is gone. After LUNA2 was airdropped to LUNA (now known as LUNA classic) token holders and listed on several prominent exchanges, speculators quickly dumped it, causing it to crash from $18.87 to $4.39 at its lowest point.
It’s still unknown who was behind the attack on the UST algorithmic stablecoin. Speculation on social media has pointed at everyone from Do Kwon himself to BlackRock. At one point, BlackRock had to make a statement denying involvement as angry speculators fired accusations amidst rumors of investor suicides and stories of ruined lives.
Yet, amidst all of this chaos, and despite ongoing legal investigations in South Korea, the largest exchanges listed LUNA2 without a second thought.
Kraken, FTX, and Binance are still protecting speculators from BSV
If anything should lay bare the rank hypocrisy and true intentions of the exchanges mentioned, it’s the fact that they all delisted Bitcoin SV in 2019/2020 and have listed endless numbers of worthless tokens since. With the listing of LUNA2 so soon after a major crash that damaged countless lives, it should be clear that the only concern of these exchanges is lining their own pockets with trading fees, customer protection be damned.
Figuring this out is key to understanding why they all simultaneously delisted BSV. While they cite legal action by Dr. Craig Wright as one reason, many have also attempted to smear BSV as a scam or ripoff version of Bitcoin, knowing that if most people understood Bitcoin’s true capabilities, their exchanges, which depend on the existence of endless altcoins, would quickly go out of business. Therefore, they choose to ignore the fact that BSV most closely follows Satoshi’s original white paper and that Dr. Wright was both granted copyright on the white paper and named Bitcoin’s sole inventor in a Florida courtroom while continuing to push the lie that a 2017 hard fork (BTC) is the genuine Bitcoin.
How much longer can the ‘retailers’ stay in the dark before they realize that digital currency exchanges are no more than casinos that couldn’t care less about them? Will the prompt listing of LUNA2 and the continued refusal to list Satoshi’s original Bitcoin awaken them? That remains to be seen. However, wheels are in motion to bring the truth to light as Dr. Wright sues Coinbase (NASDAQ: COIN) and Kraken for “passing off” BTC as Bitcoin. If Dr. Wright wins, the LUNA crash will look like a mere warmup lap as major exchanges go under, mass lawsuits follow, and the Bitcoin brand returns to BSV. Consider yourself warned.
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