🧵 Let’s explore how @coinbase mismanaged derivatives of $Luna & $UST on $ETH called wrapped Luna $wLuna $wUST to trade against their own clients, allow arbitrage for OTC, and dismiss/delist user funds to receive a larger portion of the $Luna 2.0 airdrop via @coinbasecloud (1/13)
Start by noting @coinbasecloud relationship with @terra_money as a validator and its importance on May 12, 2022. As $UST began to fall and cause $Luna infinite minting death spiral, the supply ballooned from ~400M to 6.9T causing massive arbitrage opportunities on $wLuna (2/13)
While @terra_money was flooded with billions of $Luna and priced at 7¢ the $ETH wrapped Luna $wLuna had a supply of a few dozen million and was selling on @CoinbaseExch at 50¢ for hours. Who was abusing this 600% premium? CB wallet in question: etherscan.io (3/13)
That night proceeded with trillions of $Luna minted and Terra “halting their network,” but suddenly at 4am a transfer from @terra_money Deployer sends 898B $wLuna to @coinbase. How, @coinbasecloud? (4/13)
If this wasn’t already suspicious enough, with certainty @CoinbaseExch market sells an otherwise inexplicable 250B+ $wLuna tokens into their own books, driving the price from .0035 to an astronomical .00000135. This is an ethical sacrifice for an arbitrage opportunity. (5/13)
Just stop offering the product to your clients, almost every other exchange had halted trading, but not @coinbase and @brian_armstrong. Another sweet opportunity to hedge their losses at the expense of clients. Here you can see the CB wallet balloon quickly: (6/13)
I must reiterate, how was any of this possible with the @terra_money blockchain halted to everyone else? Hmmm @CoinbaseCloud @stablekwon (7/13)
Fast forward a few days, $Luna develops memecoin status, much like $DOGE and $SHIB, with a twist of fraud. @CoinbaseExch decides to stop market buys on the product and announce a forward looking suspension of May 27th. An oddly specific date for “no communication.” (8/13)
But if you watched the @CoinbaseExch book for $wLuna, market buys never really stopped for @coinbase, just for you the buyer. This is self motivated; building a cheaper, bigger position to recoup losses and a larger portion of the $Luna 2.0 airdrop. (9/13)
Radio silence to their customers, many unsuspecting clients who don’t know how to maintain self custody, @coinbase and @coinbasecloud begin to burn billions of $wLuna over to @terra_money in preparation for the airdrop. See TXs up to 5/26 here: etherscan.io (10/13)
If it was in the best interest of @coinbase and @CoinbaseCloud to get the airdrop, why is that not also what modus operandi for their client? It’s despicable. Where did the missing equity of tokens from wrapped Luna go in the airdrop? (11/13)
Here are examples of the replies @coinbase customers with no other custody solution received leading up to the $Luna 2.0 airdrop, @brian_armstrong: (12/13)
In totality of the $Luna saga, @coinbase and @brian_armstrong used every opportunity to recoup losses and never acted in the best interest of customers. From arbitrage to market making and airdrop equity, $wLuna and $UST buyers are unjustly treated as exit liquidity. (13/13)
PS — @brian_armstrong @coinbase instead of delisting and denying your $wLuna $Luna clients an airdrop you participated in, why not take the time to educate customers on @CoinbaseWallet and do the right thing?
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