The fall of the fourth largest cryptocurrency began with an unannounced transfer of funds between trading pools on the night of May 7. It left the Curve pool with an imbalance on the side of Luna. This anomaly could have been set right as it’s not an entirely uncommon phenomenon.
But in this case, the situation turned from bad to worse, writing off one of the most infamous network collapses in crypto history. In an interview, Do Kwon admitted that he believes there was a mole inside this team and the crucial blow to the network came from an insider.
Within 13 minutes of the liquidity imbalance, some unknown traders sold off $200 million of UST. The trend continued through the next morning, which left the trading pool with a lingering imbalance and UST value wobbling from $1 to 99 cents. The UST had lost its peg to the dollar, although the margin was not significant.
Luna May Mayhem
“The sentiment on Twitter started to get worse… And then there started to be more people that were...
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