A Single Wallet Sells 285 Million UST On Curve, And Binance Sees Massive Outflows

A single wallet dumped 285 million UST onto Curve and Binance, causing large outflows and causing UST to depeg temporarily.

Curve Finance focuses on stablecoin swapping, reported the massive UST selling:

“Yesterday, someone started selling UST en masse, so it started to depeg. However, that was met with great resistance, so the peg was restored. To get enough USD for that, a lot of ETH and stETH were sold also.”

LUNA supporters, on the other hand, feel that this was a “planned and concerted attack” orchestrated by a single player in order to harm the project, as “huge shorts on LUNA” followed.

Terra co-founder Do Kwon dismissed these worries on Twitter, saying that he “loves turmoil.” Terra (LUNA) subsequently slid to ninth place in terms of market capitalization. Terra UST, on the other hand, is still ranked 10th in terms of market capitalization and third in terms of market value.

UST is an algorithmic stablecoin that is pegged to the dollar using Terra’s native LUNA tokens as well as billions in Bitcoin. Unlike regular stablecoins, algorithmic stablecoins rely on an algorithm to incentivize traders to maintain the price stable.

UST is purchased by Justin Sun

In a tweet, Tron founder Justin Sun announced that he was purchasing UST. According to statistics released by crypto journalist Colin Wu, Justin Sun’s address has acquired around 1 million UST on Curve. TRON had only recently released USDD, an algorithmic stablecoin that mimics UST.

UST in Anchor reserves has seen a net outflow of around 2.25 billion in the last two days, according to Terra data. UST in Anchor reserves is currently down 17.93 percent. Terra (LUNA) has lost more than 14% of its value in the previous 24 hours, making it the worst-performing cryptocurrency among the top ten cryptocurrencies by market capitalization.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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