“Terra’s UST is a financial mummer”

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The media analyst of financial markets gave his opinion on the recent fall in cryptocurrencies and provided advice to invest in this delicate moment

The Bitcoin (BTC) and cryptocurrencies They started the week with widespread crashes that shook the market, which has been undergoing a strong correction since the end of 2021.

On this occasion, one of the main factors in this collapse was the Terra Crisis (MOON)considered one of the cryptocurrencies of the moment, which collapsed more than 98% in the last days, and UST, its stablecoin equivalent, which lost its peg to the dollar.

For its part, BTC fell below $30,000 per unitits lowest value in 11 months.

The cryptocurrency created by Satoshi Nakamoto trading at less than half of its all-time high reached in last novemberwhen grazed the u$s69,000 per unit. In the last 24 hours, in fact, fell more than 8%.

Bitcoin (BTC) fell below $30,000 and drags down the cryptocurrency market

Bitcoin crash: the position of Carlos Maslatón

In this context, more than one crypto expert comes out to put cold cloths on the situationwhile others do the opposite and add more fuel to the fire.

Among the first group appeared Carlos Maslatón, liberal referent and one of the most controversial financial analysts in Argentinaand clarified that total concern is unnecessary as a result of what happens.

According to Maslatón, “what happens in the world bitcoin and ethereum It is normal and usual in the financial markets: after strong increases, they correct the excess of financial leverage”. This was expressed in an interview with Infobae.

The specialist is defined in your account Twitter as a “liberal of Manchesterian capitalism. National anti-communist right wing. UBA lawyer. Elliott Wave Technician. Bitcoiner. support to Milei President 2023″.

Carlos Maslatón, the mediatic Argentine economist, gave his opinion on the fall of Bitcoin and cryptocurrencies

Carlos Maslatón, the mediatic Argentine economist, gave his opinion on the fall of Bitcoin and cryptocurrencies

After the uploads, come the corrections

For Maslatón, with financial assets it usually happens that “after strong rises they correct the excess of financial leverage. As prices are not sustained, the number of buyers who entered taking debt from the market have to disarm positions with a falling market.”

He added: “That makes the market go even lower. It is something regular and every time it happens, there is no need to look for a special foundation: This same tendency to disarm positions occurs in the world’s main stock markets. This downward movement of the crypto world does not have a specific foundation.

When asked about how it will be the end of this trendthe economist specified: “The fall is in an advanced stage of development and close to completion. Bitcoin peaked in November 2021, when it hit $69,000, and is developing a typically corrective and countertrend movement, with a drop, a recovery in the middle, between March and April, and now we are seeing the final leg of the decline “.

“I don’t see additional bearish deepening, 2008 style. This fall is reduced, it’s a scare“, large.

According to Maslatón, after a strong rise, corrections are coming, as happened to Bitcoin after reaching its maximum of $68,500.

According to Maslatón, after a strong rise, corrections are coming, as happened to Bitcoin after reaching its maximum of $68,500.

Luna and UST’s mistakes

The analyst also described Terra, Luna and UST as “cases apart”: “It is a poorly armed crypto project from financial theory, with non-enduring principles. They issued two crypto exchangeable with each other, one of them pegged to the dollar. They are very difficult parities to maintain, it only worked with a rising Moon. And it didn’t happen.”

In early April, Luna hit its all-time high. However, he then regressed considerably until his most recent nosedive.

“It is a project with macro flaws: they wanted to be a central bank of a crypto universe, with a poorly armed currency board: they remunerated deposits. It is a universe comparable to the Central Bank of the Government of Macri: Federico Sturzenegger issued and in order for that money to be demanded, he resumed it paying an interest rate”.

Maslatón remarked that for an Argentine speculator “it was obvious that this was going to happen and the result is a system that crashes. It’s good that this ultra speculative madness of flimsy foundations has fallen, does nothing but demonstrate the strength of BTC“.

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“It is a project with macro flaws: they wanted to be a central bank of a crypto universe, with a poorly armed currency board,” Maslatón describes about Terra

The savings of Argentines, in the crosshairs of the crypto fall

The liberal referent also mentioned that Argentine investors will be affected “only if they were leveraged in crypto”.

“There the market shot them and forced them to reduce positions due to the impossibility of maintaining something with debt. Generationally, this adjusts for new entrants: hundreds of thousands who took this as a game: bought one crypto, leveraged another, and bought a third. This is not a game of chance, it is serious: every generation of debutants goes through liquidations of these characteristics. It is a global phenomenon, it does not only happen here and with crypto“.

Asked about recommendations for anyone interested in entering the cryptocurrency ecosystem right nowMaslatón warned: “The market is not a tug-of-war or a game of chance. You always have to study before choosing a product“.

“If it’s crypto I recommend looking at the price history, analyzing technique and fundamentals and discarding delusional offers that invite crazy profits. Much beware of pyramid and ponzi schemes. And you don’t have to do what the majority does because that’s a ceiling signal,” he added.

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The economist recommends that beginners look at price history, analyze technique and fundamentals, and rule out delusional offers in the crypto ecosystem.

In conclusion, the economist does not particularly consider Terra’s UST a stablecoinbut rather as a “financial mummer”.

A stablecoin is to store fiduciary currency, dollars or euros, in a currency board, and against that issue a crypto with a parity that cannot be broken. There are many, but the best is USDT (Tether)somewhat defamed and criticized, but I do not share the criticism. USDT is truly a currency board. It has a minimal lag in the market but it is part of this noise,” the analyst concluded.

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