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NEW YORK (BLOOMBERG) - Jump Crypto, a firm heavily involved in the defunct Terra blockchain, said some large investors exited Terra-related positions as the Some crypto whales withdrew their Anchor savings positions and dumped UST. These sales totalled hundreds of millions of UST, which were sold rapidly and caused UST to fall from its Jump Crypto, a firm heavily involved in the defunct Terra blockchain, says large investors were able to get out earlier than small ones during the collapse of Terra and its The pool, which is supposed to have a ratio of UST and 3CRV, lost its balance and depth after TerraForm Labs (TFL) withdrew UST liquidity and two wallets placed tldr; Large investors exited Terra-related positions as the TerraUSD (UST) stablecoin began to lose its peg, while small investors continued buying during the collapse, Jump Crypto said. An analysis shows: Large investors reacted quickly to the situation and pulled out capital early. When the Terra (LUNA)-algorithmically linked stableoin UST slowly lost its Several large Terra holders exited their positions, while retail holders kept accumulating early into the crash, a report shows. Several large Terra holders exited their positions, while retail holders kept accumulating early into the crash, a report shows. Jump Capital- a major investor in Terra- Jump Crypto, a firm heavily involved in the defunct Terra blockchain, said that some large investors exited Terra-related positions as the TerraUSD (UST) stablecoin began

Large Investors Withdrew Terra Positions Early On: What Happened?

The collapse of Terra (LUNA) and its stablecoin UST sent shockwaves through the crypto world. While many retail investors suffered significant losses, reports indicate that some large investors withdrew Terra-related positions early on, mitigating their exposure. This raises crucial questions about information asymmetry and the speed at which different investor groups reacted to the unfolding crisis.

Jump Crypto, a firm heavily involved in the defunct Terra blockchain, highlighted this disparity, noting that some large investors were able to exit Terra-related positions as the TerraUSD (UST) stablecoin began to lose its peg. This contrasts sharply with the experience of smaller investors, who, according to multiple analyses, continued buying UST during the collapse.

How Early Did They Exit?

The timeline is critical. An analysis shows that large investors reacted quickly to the situation and pulled out capital early. This suggests they may have had access to faster or more accurate information, or simply possessed a greater risk appetite that led them to de-risk sooner. As the Terra (LUNA)-algorithmically linked stableoin UST slowly lost its peg, these investors began reducing their holdings.

Specifically, some crypto whales withdrew their Anchor savings positions and dumped UST. These sales totalled hundreds of millions of UST, which were sold rapidly and caused UST to fall from its intended value. This selling pressure exacerbated the problem, contributing to the downward spiral.

TerraForm Labs' Role and Liquidity Pools

The pool, which is supposed to have a ratio of UST and 3CRV, lost its balance and depth after TerraForm Labs (TFL) withdrew UST liquidity and two wallets placed significant sell orders. These actions, combined with the large investors' withdrawals, created a perfect storm that ultimately led to UST's de-pegging.

Key Takeaways:

  • NEW YORK (BLOOMBERG) - Jump Crypto, a firm heavily involved in the defunct Terra blockchain, said some large investors exited Terra-related positions as the crisis unfolded.
  • Jump Capital- a major investor in Terra- played a significant role in the ecosystem.
  • Several large Terra holders exited their positions, while retail holders kept accumulating early into the crash, a report shows. This underscores the differing strategies employed by different investor classes.

Conclusion:

The tldr; Large investors exited Terra-related positions as the TerraUSD (UST) stablecoin began to lose its peg, while small investors continued buying during the collapse, Jump Crypto said. This raises concerns about market fairness and the potential for larger, more informed investors to benefit at the expense of smaller, less sophisticated participants. The Terra collapse serves as a stark reminder of the risks inherent in the crypto market and the importance of conducting thorough due diligence before investing.

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