Thread by @DU09BTC

1/ You no longer have to trust anon FUD on Twitter about #UST

You can now trust the well respected Wall Street Journal @WSJ

Here are the key points in their article that should raise your eyebrows. 👀

UST is on a thin line as its founder fights the SEC in court.

A thread 👇

2/ Exhibit 1:

"A new breed of cryptocurrencies is seeking to replicate the stability of the dollar. But critics say they are a disaster waiting to happen."

They mean #UST and DAI+BUSD/Paxos fudding UST.

Next 👇

3/ Exhibit 2:

"...algorithmic stablecoins aren’t necessarily backed by any assets at all. Instead they rely on financial engineering to maintain their link to the dollar. Some have failed, saddling investors with losses."

Is UST backed? Nope.

Next 👇

4/ Exhibit 3:

"The esoteric topic of algorithmic stablecoins has become more mainstream with the startling rise of TerraUSD, the most popular such coin [...] Luna effectively acts as a shock absorber for TerraUSD, buffering volatility in TerraUSD."

Getting close now.

Next 👇

5/ Exhibit 4:

"Ryan Clements, a law professor at the University of Calgary who has studied algorithmic stablecoins, says TerraUSD is susceptible to what crypto traders call a 'death spiral.'"

Now you get why Terra is buying #BTC to 'protect' the UST peg, right? RIGHT?

Next 👇

6/ Exhibit 5:

"An algorithmic stablecoin called Iron collapsed in a death spiral in June, costing investors about $2 billion. It was partially collateralized."

UST is also now partially collateralized by BTC. 👀

Next 👇

7/ Exhibit 6:

"A related cryptocurrency called Titan—which had played a shock-absorber role similar to Luna—plunged from $64.04 to roughly zero within hours [...] The team suffered a 'large-scale crypto bank run.'"

I repeat "shock-absorber role similar to Luna."

Next 👇

8/ Exhibit 7:

"Mr. Clements says no algorithmic stablecoin is safe from a death spiral. 'They are inherently fragile,' he said."

Don't fall for the FOMO narrative, it's 'inherently fragile'.

Next 👇

9/ Exhibit 8:

"TerraUSD is the brainchild of Do Kwon [...] Mr. Kwon profits from the expansion of TerraUSD [...] He sued SEC to thwart a subpoena against him [...] a federal court ruled against him [...] He is appealing."

Do you still trust the UST cult leader?

Next 👇

10/ Exhibit 9:

"One of the main factors behind the rapid growth of TerraUSD is an incentive scheme offered by Anchor Protocol. Those lofty yields helped drive demand for the stablecoin."

Look at that UST mcap pumping. It's on borrowed time. Be smart about it!

Next 👇

11/ Exhibit 10:

“I know a lot of people who, rather than keeping cash at Chase, they basically put all their money in UST. And they’re basically living rent-free because they’re getting paid on that yield.”

Look at these whales farming Anchor. There is no free lunch!

Next 👇

12/ Exhibit 11:

"Rival stablecoin issuer Paxos, worries that investors drawn into TerraUSD by high yields will ultimately be hurt if it collapses.

It’s definitely not a stablecoin, it’s an unstable coin.”

This is FUD from Paxos/BUSD, not some random anon on Twitter!

Next 👇

13/ While both DAI and BUSD have reasons to FUD against UST. The writing is on the wall.

We are in a bear market. Don't take more risks than necessary.

How many red flags do you ignore due to greed?

Next 👇

https://twitter.com/DU09BTC/status/1514996987741065223?s=20&t=qiAJ6Q9ParFu1eFNFPjVrA

14/ I've highlighted similar concerns before the WSJ article myself. 👇

Don't be fooled to think people don't pay attention, they do. People with a lot of cash at stake!

Pressure is definitely building up.

Only one way to release it. 😅

Next 👇

https://twitter.com/DU09BTC/status/1504862614572179456?s=20&t=pdETsUU3Rc5zeTc93jrtDQ

15/ If you liked this thread, #retweet the first post to get more of this content in the future! 😍

Stay in touch + follow @DU09BTC:

Discord: bit.ly/3n2gng0
TradingView: bit.ly/3FUjwHj
YouTube: bit.ly/3p8vPdf
Newsletter: bit.ly/3BuXf13

16/ Don't FUD me for not dropping the link to WSJ article. 👇

All exhibit quotes are from their article.

Here it is:
wsj.com/articles/cutti…