Thread by @TerraFormerUST

One of the scariest things in #cryptocurrecy is government (over) regulation. What if you could hedge against regulation in your crypto portfolio without shorting or leveraging anything? Read on to find out how! #LUNAtics #stablecoins
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https://twitter.com/coinbureau/status/1436662114538729474

2/ Right now SEC has @coinbase in their sights, as well as potentially stablecoins like $USDC and $USDT. Both of those coins are centralized - they supposedly hold USD cash and derivatives to back their entire crypto market cap.
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3/ It's possible that these USD funds could be frozen by SEC. That would destroy them as stablecoins. Yes, this is a worst-case scenario and a court case could potentially take years to play out. But at the same time, if SEC takes them to court the FUD will be instant.
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4/ If you were a whale with $50 million in $USDT and the SEC took @Tether_to to court, you would definitely freak out a bit and look to diversify your holdings, right? Where is the safe haven? Enter $UST.
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5/ $UST is an algorithmic stable and doesn't depend on any real-world USD holdings. The basics of it are that $Luna gets burnt to create UST and $UST gets burnt to create $Luna. It's like a virtuous cycle - that results in higher price for $Luna when $UST is in high demand.
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6/ So, let's explore a hypothetical scenario where SEC FUDs the crypto stablecoin market enough that 25% of the $USDC and $USDT mcap is sucked into $UST. What would that mean for the price of $Luna?
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7/ Hey I'm not a mathematician by any means, but I found some figures on Reddit that show some possible outcomes for $Luna prices.
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reddit.com/r/terraluna/co…

8/ This would mean $UST would go from $2.5b mcap to approx $25b, so 10x or so. This $Luna burning would push the $Luna mcap somewhere from 37.5b - 167.5b mcap. In terms of price, that's a 2.5x - 11x multiple from here, so price target for $Luna would be $95-418. 😎
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9/ Ok, but let's go totally crazy now - we are #Lunatics, right? What if $USDT gets shut down by the SEC? I'll spare you all the multiples etc this time and just go for the $Luna price target which would be an eye-watering $275-1178 range! 🤯🤑
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10/ Remember that this price action I'm speaking of is just from burning $Luna to create $UST. This doesn't take into account all the rest of the Terra ecosystem growth that is coming like the #columbus5 upgrade and the 50+ #TerraAutumn protocols launching imminently.
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11/ Hopefully this gives you an idea why holding $Luna can hedge against government regulation. Very few cryptocurrencies can do this and in my view it's an extremely valuable trait.
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12/ And even if the SEC ends up going after crypto with a very light touch, $Luna will still grow exponentially due to ecosystem strength. Pretty sure that means win/win, right?
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13/ Hey if you read this far, you are pretty awesome as far as I'm concerned! If you didn't like the math, please blame the Reddit poster😆If you like these tweet threads and want to see more, hit me up with a RT and a like so our #Lunatics community keeps growing! @TerraShills