The trading firm Jump Trading Group, chaired by Kanav Kariya, who is on the board of the LUNA Foundation, has published a report for Terra (LUNA). According to the report, when the US dollar stablecoin of the TerraUSD (UST) stablecoin began to slide last month, a number of large Terra (LUNA) investors left their positions – smaller investors continued to buy the coin as its price fell.
Jum Crypto detailed in LUNA report
Jump Crypto lost UST stablecoin of “seven” wallets, one of which is connected to Celsius Network (CEL) Blockchain analysis firm Nansen has published an autopsy on the depegging of Terra stablecoin, in which he reviewed his findings. “There is indeed a rapid decline, which is generally reflected by the major wallets,” the statements were used.
However, they added that these wallets “actually make up most of the early exit”, that they are actually “part of a much broader trend.” The report also focused on the role played by Anchor, a savings, lending and borrowing platform running on the Terra platform. The authors of the report, Jump researchers Nihar Shah and Maher Latif noted that some large UST depositors exited Anchor in the first few days of May, while some smaller players bought more between May 7 and May 9.
Large investors had already exited their positions
Researchers explained that the UST moves appear to have separated the stablecoin from the US stablecoin. Noting that while small investors continue to buy, the exit of large investors is putting significant pressure on the price, the company added on Twitter:
The exits in Anchor – especially overnight on May 7 and the morning of May 9 and afternoon – exerted significant pressure above the UST constant. Large depositors led outflows disproportionately. In fact, small depositors increased their investments in the process. As we also reported on
Kryptokoin.com , researchers pinpoint the origin of the May 7 crash to a combination of transactions in the UST/3CRV pool. They followed up. They added that transactions involving “withdrawal of UST liquidity” and “two wallets with large UST sell orders” “distort the balance and depth of the pool.” The report noted that while small investors with assets under $10,000 in Anchor tightened their purchases, larger depositors had already exited almost 15 percent of their UST positions in Anchor.
fate of $85 million wallet unknown
In the case of mid-size depositors classified by the authors in the report as “wallets with $10,000 to $1 million in Anchor deposits,” this People quickly evaded protocol on May 6, and during the first three days after that, they lost first 5 percent and then 30 percent of their positions,” he says.
On May 7, the mystery wallet sold its UST position for approximately $85 million in a series of transactions. This move was the first in a series of events that triggered the greater catastrophe. In May, Citadel Securities and BlackRock said they had nothing to do with Terra’s collapse, after many on social media began speculating about who was responsible for the incident.
