Are my assets safe from the recent LUNA and UST turmoil?
Table of Contents
Around 9 May 2022, Terra’s algorithmic stablecoin UST de-pegged and LUNA crashed from $100+ to almost zero. Prior to the crash, UST was the 4th largest stablecoin and the 10th largest cryptocurrency by market cap.
Consolidating statements from some of the crypto platforms covered on this site regarding their exposure to LUNA and UST.
Celsius Network CEO Alex Mashinsky tweeted:
All funds are safe. We continue to be open for business as usual— Alex Mashinsky (@Mashinsky) May 11, 2022
As part of our responsibility to serve our community, @CelsiusNetwork implemented and abides by robust risk management frameworks to ensure the safety and security of assets on our platform.
DeZy wrote a blog article to address this concern from customers.
DeZy is not impacted by the events related to UST or the Terra / Luna ecosystem. Funds are safe.
We only build on top of XSGD and USDC.
Received email from Haru Invest on 13 May 2022:
Haru Invest only supports three types of cryptocurrencies: Bitcoin, Ethereum, and USD Tether. We do not support LUNA or UST nor do our trading strategies rely on these currencies. Hence, we have not experienced any related losses.
We take the security and stability of your assets very seriously and would like to assure you that our in-house trading team implements strategies that focus on increasing the volume of your crypto assets, regardless of market volatility.
In addition, we do not rely on other DeFi or CeFi platforms, such as Anchor Protocol for maintaining your assets.
Hodlnaut shared on Discord:
Hodlnaut is NOT all-in on UST as one particular rumour on Reddit has mentioned. This is an unbased claim. Yields on USDC/USDT/DAI are generated in-kind and paid by our loans to institutions and a small amount to DeFi Protocols like Compound Finance.
Following on the above point, Hodlnaut has risk management policies in place in case of any worst-case scenarios like the one UST is currently facing - a de-peg from $1. We have already put forth this policy and have mitigated the risk moving forward.
We would like to point you back to the ToS at www.hodlnaut/com/tos and the disclaimer all users have agreed to before registering for an account if you have any questions about any compensations and liaibility claims of any sort - we unfortunately do not and will not cover it as stated.
However, following the above point, withdrawals are not halted on all assets. Business and operations are as usual.
On 27 December 2022, Midas.Investments sent out an email announcing the closure down of the platform as a fixed yield CeFi platform with a 50 million deficit on their books. Many clients are set for a loss.
In the spring of 2022, the Midas DeFi portfolio suffered a cumulative loss of 50 million dollars (20% of $250 million AUM). After Celsius and FTX events, the platform experienced over 60% of AUM being withdrawn, creating a large asset deficit. Based on this situation and current CeFi market conditions, we have reached the difficult decision to close the platform.
More details on our Midas.Investment page
Mr Iakov “Trevor” Levin, the CEO of Midas Investments, shared on Discord:
We have also de-risked our stable coin portfolio from any depeg scenarios.
Additionally, Midas did not have UST in its portfolio and monitors all other stable coins carefully on all exchanges and major wallets.
This is one of the most intense days in crypto and your funds safety is our core priority.
For those who’ve asked or wondered, Nexo is market neutral and has no net exposure to UST or LUNA.— Nexo (@Nexo) May 11, 2022
Not all stablecoins are made equal. $UST, the algorithmic stablecoin of the $LUNA ecosystem, suffered a major "bank run" and lost its peg. We do not have any direct exposure to $UST or the $LUNA ecosystem!— StableHouse (@stablehouse) May 11, 2022
dUSD on DeFiChain
DeFiChain blog post: The Differences Between UST on Terra And DUSD on DeFiChain
DeFiChain Twitter Spaces:
“The supposed stablecoin UST is crashing, and some people from the community have voiced concerns if the same thing might happen to DUSD on DeFiChain. In this Twitter Spaces, we discuss the major differences between UST and DUSD and why there is absolutely no reason to worry about DUSD on DeFiChain right now.”
Twitter Spaces LIVE NOW: Is dUSD the same as UST. No it’s better! This is why!— DeFiChain (@defichain) May 11, 2022
Live ticker below 👇https://t.co/WkL3ESl7pt
Gemini dollar (GUSD)
Email from Gemini:
#1. Stable and fully-backed: Gemini achieves stability for GUSD by pegging its value in a 1:1 ratio to the U.S. dollar and collateralises each Gemini dollar against a U.S. dollar held in a Gemini Trust account. For every GUSD in existence, Gemini holds one U.S. dollar.
#2. Fully audited: Our GUSD reserves are audited monthly by an independent registered accounting firm. Plus, the Ethereum smart contract has been audited by Trail of Bits, a leading information security research and development firm.
#3. Transparent to all: Anyone can view the stablecoin’s transaction history, current price, market cap, and other data on an Ethereum network block explorer.
Local news coverage
- What Terra Luna Crash Means For Investors & The Future Of Crypto | Money Mind
- How a trash-talking crypto bro caused a S$56 billion crash
- Some young investors get burnt by cryptocurrency crash, regret recklessness; experts raise depression fears
- Explainer: Crypto crash — why it’s difficult for burned Luna, TerraUSD investors to seek financial recourse
Mental health and counselling support
- National Care Hotline: 1800-202-6868
- Fei Yue’s Online Counselling Service: eC2.sg website (Mon to Fri, 10am to 12pm, 2pm to 5pm)
- Institute of Mental Health’s Mental Health Helpline: 6389-2222 (24 hours)
- Samaritans of Singapore: 1800-221-4444 (24 hours) / 1-767 (24 hours)
- Singapore Association for Mental Health: 1800-283-7019 (Mon to Fri, 9am to 6pm)
- Silver Ribbon Singapore: 6386-1928 / 6509-0271 (Mon to Fri, 9am to 6pm)
- Tinkle Friend: 1800-274-4788 (Mon to Fri, 2.30pm to 5pm)
- Touchline (Counselling): 1800-377-2252 (Mon to Fri, 9am to 6pm)
- Terra Analytics: Luna Circulating Supply Changes
- Celsius Network, Finblox, Hodlnaut, Vauld, and Zipmex have become distressed platforms. Are other platforms safe?
- Implosion of FTX and its corporate sibling, trading firm Alameda Research
- Hodlnaut Review, Usage Tips and Referral Benefits (defunct)
- Sep 2022 Crypto Industry Updates
- Exploring Liquidity Mining of Decentralised Assets on DeFiChain