ARK: Now Decoupled From Terra, “Bitcoin’s Selling Pressure Should Subside”

newsbtcPublished on 2022-06-07Last updated on 2022-06-07

Abstract

The Terra / Luna / UST collapse keeps on generating headlines. This time, we’ll use the data in ARK’s “The Bitcoin Monthly” report to establish its impact on the bitcoin...

The Terra / Luna / UST collapse keeps on generating headlines. This time, we’ll use the data in ARK’s “The Bitcoin Monthly” report to establish its impact on the bitcoin ecosystem. Remember that the non-profit organization LFG, AKA the Luna Foundation Guard, accumulated BTC to defend UST’s peg to the dollar. In a then-delated May interview, Terra’s Do Kwon said that they were trying to get to $1B in BTC so that “besides Satoshi, we will be the largest single holder of Bitcoin in the world.”
Do Kwon also proclaimed, “within the crypto industry, the failure of UST is equivalent to the failure of crypto itself.” At one point, it appeared that BTC and UST’s destinies were inextricably linked, but the bitcoin network absorbed the collapse nearly unscathed. Let’s look at ARK’s numbers and try to figure out how it did it.
Terra, The Largest L-1 Blockchain Failure Ever
At this point, everybody knows what happened with Terra. Nobody knows how it happened, though. Was it a coordinated attack or did the natural market’s forces trigger the death spiral event? We wouldn’t know, but the fact of the matter is that the UST de-pegged from the dollar, and this caused a bank run that the Anchor protocol couldn’t handle. The whole situation created the death spiral and the eventual demise of the algorithmic stablecoin and its twin, LUNA.
How big was the collapse? According to ARK’s report:
“In addition to causing the crash in UST and Luna, we believe Terra is the largest layer-1 blockchain failure in crypto history, wiping out a combined $60 billion of market capitalization between UST and Luna.”
Huge in size by any metric, but, how does it compare to previous crypto collapses? The only comparable one was “the Mt. Gox hack that stole 5.7% of total crypto market cap in 2014, Terra’s collapse destroyed roughly 2.7% of crypto’s total market capitalization.” The Mt. Gox hack almost destroyed the bitcoin network at a time when it was more vulnerable. The Terra collapse felt like a breeze in comparison, but, as the numbers show, the impact was significant.

BTCUSD price chart for 06/07 - TradingView

BTC price chart for 06/07/2022 on Eightcap | Source: BTC/USD on TradingView.com
How Did The Terra Collapse Affect BTC?
Besides the LFG foundation reportedly selling its 80K BTC, the collapse created extreme selling pressure on bitcoin. According to the report, “exchanges recorded net inflows of 52,000 bitcoin, the largest daily inflow in BTC terms since November 2017 and the largest inflow ever in USD terms.” These are notable numbers.

Bitcoin Net Flows To and From Exchanges | Source: ARK’s “The Bitcoin Monthly”
According to the bitcoin blockchain, the account associated with “LFG currently holds 313 BTC, down from 80,934 BTC held prior to Terra’s unraveling”. Did they sell the rest, though? Nobody knows for sure. Back to the report:
“To backstop UST’s peg, The Luna Foundation Guard (LFG) reportedly sold most of its ~80,000-bitcoin reserves, contributing to this record inflow.”
Surprising even hardcore bitcoiners, the network resisted this massive sell-off without breaking a sweat. Sure, bitcoin’s price suffered, but the blow wasn’t even close to being fatal. And ARK’s prediction reflects that fact, “now decoupled from the Terra blockchain, bitcoin’s selling pressure should subside, yet contagion in the crypto markets is still inconclusive.” Why? Because “bitcoin’s more secure and conservative blockchain should gain market share.”
Are Algorithmic Stablecoins Even Possible?
To answer this we’ll quote NYDIG’s report “On Impossible Things Before Breakfast,” which comes with the subtitle, “a post-mortem on Terra, a pre-mortem on DeFi, and a glimpse of the madness to come.” As the titles gave away, NYDIG believes that not algorithmic stablecoins nor DeFi as it currently stands are possible. Why? Well…
“No matter how well intentioned, all algorithmic stablecoins will fail and the vast majority – possibly all – of DeFi’s current versions will fail, where “fail” here means not gaining sufficient critical mass to matter, being hacked, blowing up, or being altered by regulation to the point of non-viability. In the end, the Terra project could control the supply of its money, but it couldn’t make its people value it. A printing press was the only (non)answer. Sound familiar? Lacking a lender of last resort, DeFi (re)creates the problems solved by central banks. Bitcoin solves the problems created by central banks.”
As it usually happens, we could summarize this whole article with the old adage: “Bitcoin fixes this.”

Exploit Wallet Converts Stolen Tokens Into 18,510 ETH And 1,548 BNB

An exploit-linked wallet has reportedly converted stolen assets into 18,510 ETH (approximately $30.83 million) and 1,548 BNB ($924,000). According to on-chain tracking data cited by WuBlockchain and Lookonchain, the attacker sold compromised "H tokens" to obtain these more liquid assets and still holds an additional 111.36 million H tokens worth about $14 million. This conversion into major cryptocurrencies like ETH and BNB is a common step after an exploit, as attackers move from illiquid, traceable tokens toward deeper, more liquid assets. This consolidation can signal potential next steps, such as moving funds through bridges or mixers, and complicates recovery efforts for security teams. While blockchain analysis provides real-time visibility into such transactions, the identity of the wallet controller often remains uncertain. The data serves as a valuable snapshot of fund movement, highlighting the role of on-chain monitors in tracking security incidents before official investigations are complete.

bitcoinist2h ago

Exploit Wallet Converts Stolen Tokens Into 18,510 ETH And 1,548 BNB

bitcoinist2h ago

"119 to 176 Dollars": Behind SpaceX's Listing, MSX Once Again Successfully Executes the Pre-IPO Closed Loop

Following May's 300% gain on Cerebras, MSX delivered another outstanding performance during SpaceX's listing night. On June 12, SpaceX (SPCX) launched on Nasdaq, reaching a high of $176. This marked the successful culmination of MSX's Pre-IPO project launched in March, where users subscribed at $119, achieving gains of approximately 40-48%. This event validated MSX's complete Pre-IPO mechanism, a crucial advantage in a market where access to top-tier private company equity is typically limited to institutions. MSX's model provides a full cycle for users: subscription (at $119 for SpaceX), real-time on-chain portfolio tracking, optional early redemption, seamless conversion to tradable spot assets (SPCX.M) upon IPO, and final settlement in stablecoins. This end-to-end process distinguishes MSX from platforms that faced settlement issues during the SpaceX IPO, highlighting that the core challenge of Pre-IPO is not just access, but a clear exit and conversion path post-listing. This success with SpaceX is MSX's second major Pre-IPO verification, following the Cerebras listing in May, which yielded ~300% returns for early participants. These back-to-back achievements demonstrate MSX's capability to source, structure, and deliver real assets through a replicable on-chain model. The true barrier for Pre-IPO products lies not in providing an entry point, but in ensuring reliable fulfillment from subscription through to post-IPO liquidity. MSX's proven闭环 (closed-loop) process addresses this, offering Web3 users a structured way to access high-growth, pre-public companies in sectors like AI and frontier tech. MSX plans to continue expanding its Pre-IPO portfolio with this focus on authenticity, transparency, and post-listing execution.

Odaily星球日报6h ago

"119 to 176 Dollars": Behind SpaceX's Listing, MSX Once Again Successfully Executes the Pre-IPO Closed Loop

Odaily星球日报6h ago

Frax Governance Weighs Raising sfrxUSD Aave v4 Allocation Cap To $50 Million

Frax Finance governance is considering a proposal (FIP-4XX) to increase the allocation cap for its sfrxUSD strategy in Aave v4 from $20 million to $50 million. This is framed as a strategic expansion to support ecosystem growth and enhance distribution, not merely a short-term yield play. Aave is a critical DeFi lending market, and deeper integration helps frxUSD and sfrxUSD reach more users and strategies. The raised cap provides deployment flexibility, but actual usage will be managed based on liquidity and risk. The proposal highlights the competition among stablecoin protocols for placement in major DeFi venues and demonstrates how governance uses incremental caps to control growth and risk.

bitcoinist8h ago

Frax Governance Weighs Raising sfrxUSD Aave v4 Allocation Cap To $50 Million

bitcoinist8h ago

Arbitrum Foundation Funding Proposal Seeks $16M, 1,700 ETH And 230M ARB

The Arbitrum Foundation is seeking substantial new funding through an on-chain governance vote. The proposal, titled "Continued Funding for the Arbitrum Foundation," requests $16 million in real-world assets (RWAs), 1,700 ETH, and 230 million ARB tokens to support its operations for another year beyond the period covered by a previous funding plan. According to a governance roundup, technical costs are projected to make up 54% of all anticipated expenses for 2027, highlighting the ongoing engineering and infrastructure needs of the Arbitrum One and Nova scaling networks. The vote, which closes on June 25, 2026, presents a key decision for ARB token holders on allocating significant treasury resources to the central operating body. The outcome will signal how Arbitrum's DAO balances decentralization with the practical need to fund ecosystem development, partnerships, and technical maintenance. The large request, particularly for native ARB tokens, makes this a sensitive governance moment with potential implications for market sentiment and the network's competitive position in the Ethereum scaling landscape.

bitcoinist10h ago

Arbitrum Foundation Funding Proposal Seeks $16M, 1,700 ETH And 230M ARB

bitcoinist10h ago

TRM Warns Crypto Scammers Are Seeding World Cup 2026 Ticket And Betting Traps

TL;DR: Crypto scammers are seeding early-stage ticketing, betting, and fan token scams ahead of the 2026 World Cup. Blockchain intelligence firm TRM Labs warns that fraudsters are establishing infrastructure for scams targeting the upcoming 2026 FIFA World Cup. While current financial losses are small, the firm identified three live operations using familiar tactics. Key scams include fake ticket portals that mimic legitimate checkout pages to steal crypto payments, and fixed-match betting schemes promising guaranteed results for upfront payments. TRM also flagged speculative, unofficial "fan" or commemorative tokens, like a $WORLDCUP token, which carry pump-and-dump risks as they lack official FIFA affiliation. Scammers are using cross-chain swaps and exchange accounts to obscure fund flows. One identified Polygon address for a ticket scam received around $1,562. Total identified receipts across initial World Cup-related addresses remain under $1,700, indicating these are seeding campaigns rather than large-scale operations. The early warning highlights that as major events approach, scam activity tends to grow. Users are advised to exercise extreme caution with crypto payments for tickets, betting tips, or unofficial event-themed tokens, and to verify all affiliations through official channels.

bitcoinist11h ago

TRM Warns Crypto Scammers Are Seeding World Cup 2026 Ticket And Betting Traps

bitcoinist11h ago

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What is TERRA

Exploring the Terra Ecosystem: A Comprehensive Overview Introduction In the ever-evolving landscape of blockchain technology and cryptocurrency, the Terra Ecosystem has emerged as an ambitious project designed to facilitate a decentralized financial system. This innovative platform focuses on creating stable and scalable algorithmic stablecoins, aimed at driving the widespread adoption of cryptocurrencies. In this article, we will delve into the foundational aspects of the Terra Ecosystem, exploring its operational mechanisms, its creators, investors, notable components, and the timeline of its development. What is the Terra Ecosystem? Founded in 2018, the Terra Ecosystem is a layer-one blockchain designed to provide an efficient and reliable payment platform. The core mission of Terra is to create a preferred form of money that is not only decentralized but also practical for everyday use. 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1.2k Total ViewsPublished 2024.12.17Updated 2024.12.17

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Welcome to the HTX Community. Here, you can stay informed about the latest platform developments and gain access to professional market insights. Users' opinions on the price of LUNA (LUNA) are presented below.