Ok first things first, I'm not here to spread fud, I'm just expressing my opinion and I appreciate those of you who want to have an opinion on this post.
As we all know, Terra Luna has became the second largest DeFi according to DeFi Llama (TVL $19.07b). with only 14 protocols
LUNA is part of an algorithmic balancing system that helps stablecoins running on the Terra blockchain maintain parity with fiat currencies. One of the major developments from the network’s Columbus-5 upgrade in October is a new design for keeping stablecoins pegged to their fiat value: whenever UST is minted, LUNA with the same amount of value is burned. But we must remember, this applies to the opposite.
If you want to know about Coin Burning CLICK HERE
Here's my opinion: "So, as UST demand goes up, LUNA’s price also goes up. But what if UST demand goin down? is LUNA's price also drop down?"
There's multiple incentive programs on Terra LUNA, and that's making a high demand for UST
"Luna acts as a sort of volatility absorption mechanism for Terra’s stablecoins, so Luna’s performance may correspond with that of Terra’s stablecoins. Though Terra’s stablecoins, including dollar-pegged UST, are performing well now, it’s impossible to predict the future performance of any asset and whether it will be able to withstand high volatility or a bear market." -Source CNBC
sec.govHere's another "risk" that i think it has an impact to Terra LUNA. SEC is “currently investigating" Terraform over whether it is selling unregistered securities” and that this subpoena is “related to Terraform’s Mirror Protocol, which offers synthetic versions of stocks, and not the Terra protocol itself. As we all know Ripple XRP has been fighting fiercely with SEC since December 2020 and the price is stuck because of it.
what "if" SEC will pursue Terraform Labs on 2022? will it repeat again like SEC vs XRP?
"On Dec. 17, over a month after the SEC’s application was filed, Kwon and Terraform Labs’ lawyers responded, denying the SEC’s claims that the subpoenas were properly served and asking the court to dismiss them outright. The SEC has until Friday, Dec. 24, to respond to Kwon’s motion of opposition. Separately, the SEC must respond to Kwon and Terraform Labs’ civil suit by Dec. 27" - Source CoinDesk
Regardless of it all, Terra LUNA is still a good good project! cool kids call it a DeFi Farmers GodLand. I don't know why, maybe because the high incentive and yield, easy to use and UI friendly.
BUT! what can i see right now! the farmers is slowly changing to OSMOSIS, which is on Cosmos (ATOM)
Okay okay, that's it. i will make another post about Cosmos and Osmosis later, here's just some teaser. you can research it more. this is why ATOM has been rallying up tho
More chart has been posted here! check it out! > TA and CHART
I posted some of my fundamental logic here! check it out too! > Recap