Luna continues to haunt the crypto realm after swallowing 3AC, Celsius, a new name has been added, Uprise. The South Korean crypto investment startup went for a toss shorting the Luna Classic Token. At the time of writing, Uprise has already lost 99% of its assets. Perhaps deleveraging hasn’t happened to the extent that it was believed.
What is The Matter With Uprise?
The crypto investment startup Uprise uses HeyBit, a trading bot to perform speculations with marginal risks. However, on Wednesday, the trading bot made a disastrous decision costing the ecosystem millions in funding. LUNC has done well to reach $60; however, when HeyBit shorted LUNC, suddenly the market spiked and liquidated the entire portfolio of Uprise.
The move has hurt most of the Uprise investors that belong to the upper echelons. Most of them are corporations and they have got a lot to lose from this event. After this event, Celsius, Voyager, BlockFi have a new name Uprise who has been affected by the Terra Fiasco.
That said, crypto deleveraging could further bring the dark side of the bear market which has not been unveiled yet. Analysts at JP Morgan have already said that if the bear market has to end, the reckless speculation at the crypto market with a 10x to 20x leverage must end. Most assets are either trading at a premium in comparison to the spot market or at a discount. If sustainability fails to establish strongly in the crypto market, investors would be eager to flee it as and when needed.
