Chaos in Crypto! Terra, Celsius, 3AC, Trx, Solend!

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Coinmonks

4 min readJun 22, 2022

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Amid the bear market in cryptocurrencies, Chaos began to happen to the enormous companies active in the crypto market one after the other. Wealthy companies like Terra Foundation and Celsius Network were among this crowd. What’s everything with their financial team! Didn’t they predict the bear market?! Didn’t they consider a backup plan for such circumstances!

If they keep halting or de-pegging, what happens to the crypto market?
Will Bitcoin Plunge once again?

Chaos

Terra:
Everything began on May 15th with the de-pegging of UST that caused Luna to collapse. You can read everything in our earlier article about it. This incident affected the crypto market to crash, even Bitcoin itself. Such a big company with its incredible reputation happened to deal massive damage to the crypto community. Yet no logical response is shared with the investors who suffered losses. Even the Luna 2 was not successful after the airdrop.

Solana:
Then, it was the turn of Solana to get halted and cause fear in the heart of Defi fans and investors once again. On May 31st, 2022, when this blockchain halted for the second time in May for about 5 hours, everyone was concerned that it might follow the path of Luna to the grave. Fortunately, it didn’t happen.

Celsius:
On Monday, June 13th, major cryptocurrencies tumbled following the Celsius lending firm announcement. Bitcoin touched an 18-month low of $30,349. Ether dropped as much as 16 percent to $1,585, its lowest price in two years.
After more than a week, this firm said “it will take time” to restore operations as bitcoin continued to plunge yesterday.
How do they expect people to ignore their lifetime assets when these tragic incidents happen one after another!

3AC:
As the crypto winter intensified in early June, Galaxy Digital CEO Mike Novogratz said he thinks two-thirds of crypto hedge funds will go out of business. His prediction took days to start bearing out.

After $400 million in liquidations, a major hedge fund in the space, Singapore-based Three Arrows Capital, or 3AC, was reportedly facing insolvency later during the week, and many dominos look likely to fall next.

TRX:
Similar to what happened to UST, USDD is deviating from its peg to the US Dollar. Although users can massively redeem USDD for USD, the price isn’t restoring itself in the slightest. If anything, it continues to drift lower and lower. Since nearing the $1 peg, it has dropped to $0.99, $0.97, and even $0.995 in quick succession. That may not seem like a big difference, but it shouldn’t even exist in the first place.

Solend:
“After Celsius and 3AC tanked the market, another concerning event started to emerge. With nearly a billion dollars of liquidations on the line, the price of one of crypto’s largest L1s is at stake.” Miles Deutscher said. He explained that there are a few reasons why we should be careful about Solend protocol. One of them was a major liquidation of $Sol. As the situation got worse, the users’ funds became more vulnerable due to the high slippage. A lot was going on in the media about voting to control the position manually, which would compromise the decentralization and contacting the whale to negotiate for a solution. Seemingly, after some time, s/he showed up and worked it out somehow by moving funds.

https://twitter.com/solendprotocol/status/1539176192925806592?s=20&t=lJ_A2szrKXqzq51dPzM92g

Will Bitcoin Plunge once again?

Currently, Bitcoin is hovering above $20,000, but what will happen to its price and altcoins prices if these kinds of embarrassing phenomena keep happening along with all negative news concerning the interest rate and inflation?
Many big companies are close to liquidation calls, and it would tragically happen if Bitcoin loses this major supporting area and drastically plunge to another support level!

Aren’t these companies supposed to have a plan for such circumstances?! Altcoins have fallen more than 90% by now! A disaster would definitely happen to the price of altcoins and the whole cryptocurrency market cap.