We've all seen the article and I'll post a link below but heres my view. and yes I am COMPLETELY biased thinking this is a BIG BROTHER banking type move to make money.
The article
news.bitcoin.com/stablecoin-implosion-luna-and-ust-lose-significant-value-downturn-ripples-across-the-crypto-economy/
My thoughts:
Personally I thin it's a ploy to drive the drive extremely low while gaining massive popularity with this token. I think the "devil is in the details" of this article. It was said I think in the second paragraph.
"First, we endorse the community proposal 1164 to Increase basepool from 50M to 100M SDR *) Decrease PoolRecoveryBlock from 36 to 18 This will increase minting capacity from $293M to ~$1200M,” the Terra co-founder added."
If course u want to mint more to sell more but the more u have minted without active investors per coin or share, then the total minted becomes worth-less. That is until "the troubles" are resolved and the price has room to increase.
As noted in the article, Keon and other major players at the top already have large reserves but at that point they had reserves of a limited supply of a commodity.
Business rule 101:
Create so.ething that everyone wants as long as u have control of its value. If you cant co trolls the value, then create an intrest.
If you cant create intrest, then scare the ppl who own it into thinking itll be worth more.
But if everyone already has one, then you'll need to create more to gain more investors because ur current investors are maxed out.
The article
news.bitcoin.com/stablecoin-implosion-luna-and-ust-lose-significant-value-downturn-ripples-across-the-crypto-economy/
My thoughts:
Personally I thin it's a ploy to drive the drive extremely low while gaining massive popularity with this token. I think the "devil is in the details" of this article. It was said I think in the second paragraph.
"First, we endorse the community proposal 1164 to Increase basepool from 50M to 100M SDR *) Decrease PoolRecoveryBlock from 36 to 18 This will increase minting capacity from $293M to ~$1200M,” the Terra co-founder added."
If course u want to mint more to sell more but the more u have minted without active investors per coin or share, then the total minted becomes worth-less. That is until "the troubles" are resolved and the price has room to increase.
As noted in the article, Keon and other major players at the top already have large reserves but at that point they had reserves of a limited supply of a commodity.
Business rule 101:
Create so.ething that everyone wants as long as u have control of its value. If you cant co trolls the value, then create an intrest.
If you cant create intrest, then scare the ppl who own it into thinking itll be worth more.
But if everyone already has one, then you'll need to create more to gain more investors because ur current investors are maxed out.