Why I traded 40% of my BTC for LUNA during this crash!! It was both a defensive and offensive play!!
Above is the YouTube video expanding on this article below.
If you have watched my videos or read any of my articles, you would know by now how I am excited about the Terra (LUNA) ecosystem. I am aware that a lot you reading this article are the same way! Now our excitement is usually seen not just by our mouths, when we speak about a project but our wallets. As you know I am invested over 200 projects both in time and my finances. I wrote an article about this explaining my reasons. Feel free to read that and upvote. Even within all those projects I have some favorites.
Usually when a crash happens, is when I like to load up on Cryptos that I am interested in. Sadly the opposite happens in the space. This always amazes me. Everyone loves to get stuff on sale but when it comes to investing, the opposite always happens. People start buying when things are running up and start selling when it’s going down. It’s the buy high, sell low mentality.
Anyway, enough of my tangents! Lol! During this crash, as everything got on sale, I started looking at what to buy! I saw that Terra (LUNA) price was falling harder than a lot of projects. This did not make sense to me considering all that will be happening in a few weeks. For those that are not aware, there is an upgrade called Columbus 5 coming up in few days. This will improve the performance of the Terra blockchain and will facilitate burning of more LUNA. There is so much more to it that this simple explanation but this upgrade will be huge for the Terra (LUNA) ecosystem.
So many projects are on the sidelines waiting for this upgrade, Loop community being one of them. So when I started looking at how the price was going down, it really shocked me. I understand that because of the Anchor Protocol borrowing, some people do sell to shore or payoff their loans so they are not liquidated. I am one of those guys. It’s always interesting during these times because I have to continuously check what is happening on Anchor Protocol platform. Initially my wife thought I was cheating on her because when I wake up in the night, I have to check what is going on. She might have thought Anchor was the name of a Lady since it was to blame for my continuous checking of what is going on. She finally realized this so when she sees this happening, she asks whether I have been liquidated to which I reply “H’ no!!
I always have reserve Crypto or fiat to shore up my capital or payoff my loans but this time, the fiat was spoken for and most of my Cryptos were dear to me. When I started looking at my Bitcoin (BTC), it struck me that I could use some of that. Now my BTC is not one of the Cryptos I never touch but after thinking about the performance I have had with buying LUNA at $0.50, If I had put just a quarter of my BTC at the time, I would have returned the capital a lot of times. Hindsight is 20/20. LUNA is not at $0.50 so why would I part with my BTC? Because there is so much happening on Terra (LUNA) ecosystem that I cannot even keep up. Just to name a few; Loop as I have mentioned previously, Pylon protocol, Starterra, Anchor Protocol, Mirror Protocol, Angel Protocol, Spar, Apollo, Nebula, and the list goes on. Not only that but the powers that be a looking to crack down on centralized stable coins like USDT and USDC which are behemoths in the space. With that, UST which is totally decentralized and algorithmic will become more appealing to people. With demand for UST, comes minting and every $1 of UST minted, $1 of LUNA has to be burned.
What this all is seeming like is another repeat when LUNA price ran up from $0.50 to $20. Is this going to happen again? Absolutely. Now it’s hard to have timelines. It was a no-brainer trading those BTC for LUNA. Not only that but I used it to shore up my loan capital on Anchor Protocol. This was not only an offensive move but a defensive one at it’s best. So what do you think? Was this a crazy move or a wise one. You let me know in the comments!
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