The crypto winter is about to come, but every winter begins with a capitulation sell-off… bringing What is the real cause behind it? Let’s get deep into the market analysis of possible fraud and scam encircling the top crypto Terra Luna:
According to the youtube channel crypto chico, There might be one greater implosion that rocks the crypto markets, even making the biggest Now many investors believed Celsius had overexposed themselves to Terra Luna and UST. However, the CEO of Celsius Alex Mashinsky took to Twitter to dispel the rumors.
Celsius Network, a crypto lender, has seen the value of assets placed on its platform drop by half this year, a reminder of the pressure the industry is under as digital token prices continue to decrease.
According to its website, as of May 17, Celsius had just under $12 billion in assets, down from more than $24 billion in late December 2021. The firm claims to have 1.7 million customers, making it one of the largest in the crypto lending industry.
“At Celsius Network, we’ve explicitly indicated that we have little exposure to Luna and $UST on multiple occasions,” Mashinsky said. Despite the fact that I understand that people attempting to sell you competing services are spreading these charges, you must believe our Twitter posts. That’s a wonderful thing because they weren’t overexposed… It’s possible, though, that this isn’t the reason for their decline.”
Various Frauds Could Be to Blame for the Crypto Market’s Tragic Decline
While most investors are worried about their money as the Crypto market continues to fall, a YouTube channel, Chico Crypto has hinted that various scams or frauds could be the reason for this capitulation dump.
According to the channel, the tragic fall of Terra Luna and the downgoing prices of Bitcoin are caused by various companies including Celsius Network, Tether USDT, and Binance.
Reality Check of Capitulate Dump in the Market
The channel also stated that there have been hundreds of small transactions from Celsius Network for a small amount of Ethereum.
The company has been using hundreds of different wallets to keep transferring small values of coins internally, and ultimately converting that into USD or other assets. This could have caused a capitulate dump in the market.
So is Terra Luna Another Scam ?
While Celsius is under scrutiny for their suspicious activities, executives of Tether USDT are also accused of bank fraud by the US Department of Justice.
The fraud happened a few years back and according to the reports, the company executives have been under the circle of authorities since 2018. The fraud included unlicensed money transmitting business, Reginald Fowler.
Former co-owner of NFL’s Minnesota Vikings is charged for $750 million fraud through various Crypto exchanges. Kraken, Bitfinex, and Crypto Capital have all been involved, and Tether was dealing with Crypto Capital.
Tether’s market cap was reduced to 44 percent which caused a capitulation dump from their side. At that time, Bitcoin had gone to $3200 from $6K.
Another Capitulation Dump like the one in 2018?
Tether has again been losing its market cap, and that might have brought up another capitulation dump in the market.
Things will become clearer as the investigation proceeds, but one thing is clear it’s not Bitcoin’s value that is falling but it’s the frauds that have been hurting the market.
Hence the disclosure of Tethers reserves could be another reason insiders are selling,” the analyst suggested.
Following the collapse of another stable coin, investors in Tether recently withdrew over $7 billion, reportedly amid new fears about its stable coin’s backing, and raising new questions about the reserves, it claims back its stable coin, according to a court document.
The pressure is on in court to figure out who is financing Tether.
Now that the market is going through major ups and downs, we can conclude that Terra LUNA’s demise demonstrates the overall instability of the crypto markets.
It could also be a red indicator indicating the possibility of manipulation. Furthermore, the TerraUSD depreciation exemplifies the issue with stable coins in general.