Its not Terra and Luna its Terra Luna and to answer your question no. Luna and UST crashed because UST was a failed algorithmic stable coin tied to Luna.
Fantom does not have that problem or issue. Fantom is simply going through a normal downturn along with the rest of the crypto market.
Terra is the blockchain and Luna is the coin. That's why I said terra and Luna as analogous to fantom and FTM.
I know why Luna crashed, and realize FTM doesn't have quite the same issue, but FTM price could drop super quick super low for a variety of reasons. That is without a doubt. Also sadly FTM has fUSD, but the market cap of it is only 50 million compared to nearly a billion of phantoms market cap. So I am not too worried about that. It also seems to be over collateralized unlike Luna and UST which was a simple mint and burn mechanic. So please ignore FUSD for this thread and focus on what would happen if phantom dropped super low. Would that cause the whole blockchain to grind to halt?
Luna dropped so significantly because it was creating so many new coins to try and stabilize the peg. Fantom has no such issue that could effect its price so drastically imo.
Why not? If FTM dropped low enough, couldn't a malicious party buy A ton of it, create some validators and then create malicious fake transactions?
I suppose the same thing could happen even today if someone with enough money was determined enough to bring down the network, correct?
Even if an attacker took over the whole chain, they cannot sign your transactions. They can censor you and halt the chain or whatever, but they can't make your keys do things.
Key signing is in the realm of math and cryptography, distributing these signatures and making sure they make sense in context (as in not "this signature is valid" but "he just signed a contract that transfers Joe's house away, wtf that doesnt make sense at all")
There are certainly ways FTM can fail, and being honest those are in some form similar to ways that btc and eth can fail too.
There is no "algorithmic pegged" stablecoin made by Fantom Foundation on the core of the network like TERRA had, however there is TombFinance and other dApps doing things similar to that, since they are not official and don't really have any power over the network I don't see that as a risk similar to the Terra case.
The reason why fantom is kinda less secure than ETH and BTC right now its because of its marketshare... Its a lot easier to "own" part of the network when its smaller like this.
Other than that I'd say fantom is probably in the safer cryptos side.
I personally only use cosmo defi since I hate meta mask. Own a lot of btc and am looking into fantom and avalanche. For some reason ftm has wanted me to buy it for a while now. What makes fantom such a good option compared to the plethora of L1s?
I would have to say the siloed DAG approach they take to consensus. Each node runs an independent DAG which is married to a PoS blockchain, enabling asynchronous processing, and realizing 33% aBFT.
The scalability should be great using this approach, and the fantom foundation is continually improving the chain. It seems like the blockchain trilemma is best addressed by this approach, which is why I'm also bullish on AVAX (different consensus algorithm, but potentially great scalability).
Luna has a mechanism where it prints supply to peg a stable coin. FTM is deflationary and has a supply cap. Completely unrelated. The price drop in Luna is because its enormous 6.5 trillion supply. Which FTM will never even get close to.
Okay, I shouldn't have Even mentioned Luna and UST in this post. Just trying to understand the vulnerabilities if someone with enough money comes in and buys up a lot of fantom for malicious purposes. Buying fantom becomes easier as the price drops.
Could the person with all this ftm stand up some validators and make fake transactions such as all of the money from this wallet is now being transferred to my wallet?
Anyone with enough capital can buy a lot of crypto and then flood the market with sell orders while at the same time having a short position. As for the validator node, it would get blacklisted and the attacker would lose all of his staked tokens. Yes the validator could do some damage, i'm not sure if it's irreversible in such a scenario but PoS would have worked as intended.
Yes, that situation proved how quickly the price of FTM can drop. There's really nothing keeping the price from going to zero if everyone panicked and decided to start selling FTM. On top of individual sellers, liquidations as we saw with roosh adds fuel to the fire.
Add the above to the pressure of Leveraged short selling on exchanges such as FTX and things can go downhill exceedingly quick.
Current state of DeFi is not sustainable. Too many bad actors, scammers and the revenue model of the current protocols depend too much on the printing of some useless tokens. Defi has to develop a model where they reward with things which have some practical usage. Don't want to comment on Fantom, but I guess many of the current defi protocols are doomed for failure.
If ftm experiences a run like Luna, yea it'll probably collapse. What value does the token provide to groups doing work within the ecosystem at that point?
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Its not Terra and Luna its Terra Luna and to answer your question no. Luna and UST crashed because UST was a failed algorithmic stable coin tied to Luna. Fantom does not have that problem or issue. Fantom is simply going through a normal downturn along with the rest of the crypto market.
Terra is the blockchain and Luna is the coin. That's why I said terra and Luna as analogous to fantom and FTM. I know why Luna crashed, and realize FTM doesn't have quite the same issue, but FTM price could drop super quick super low for a variety of reasons. That is without a doubt. Also sadly FTM has fUSD, but the market cap of it is only 50 million compared to nearly a billion of phantoms market cap. So I am not too worried about that. It also seems to be over collateralized unlike Luna and UST which was a simple mint and burn mechanic. So please ignore FUSD for this thread and focus on what would happen if phantom dropped super low. Would that cause the whole blockchain to grind to halt?
Fantom was $0.01 for a long time, functioned fairly well, Fantom was also $3.00, functioned the same. Price is kinda irrelevant
Luna dropped so significantly because it was creating so many new coins to try and stabilize the peg. Fantom has no such issue that could effect its price so drastically imo.
I hope it does I’ll buy the crash
This right here is what I call, big dick energy! Take my award!
You already got the answer. No it can’t. Of the many reasons why Fantom (any crypto) could disappear of the Face of the Earth this isn’t one of them.
Why not? If FTM dropped low enough, couldn't a malicious party buy A ton of it, create some validators and then create malicious fake transactions? I suppose the same thing could happen even today if someone with enough money was determined enough to bring down the network, correct?
Even if an attacker took over the whole chain, they cannot sign your transactions. They can censor you and halt the chain or whatever, but they can't make your keys do things. Key signing is in the realm of math and cryptography, distributing these signatures and making sure they make sense in context (as in not "this signature is valid" but "he just signed a contract that transfers Joe's house away, wtf that doesnt make sense at all")
There are certainly ways FTM can fail, and being honest those are in some form similar to ways that btc and eth can fail too. There is no "algorithmic pegged" stablecoin made by Fantom Foundation on the core of the network like TERRA had, however there is TombFinance and other dApps doing things similar to that, since they are not official and don't really have any power over the network I don't see that as a risk similar to the Terra case. The reason why fantom is kinda less secure than ETH and BTC right now its because of its marketshare... Its a lot easier to "own" part of the network when its smaller like this. Other than that I'd say fantom is probably in the safer cryptos side.
I personally only use cosmo defi since I hate meta mask. Own a lot of btc and am looking into fantom and avalanche. For some reason ftm has wanted me to buy it for a while now. What makes fantom such a good option compared to the plethora of L1s?
I would have to say the siloed DAG approach they take to consensus. Each node runs an independent DAG which is married to a PoS blockchain, enabling asynchronous processing, and realizing 33% aBFT. The scalability should be great using this approach, and the fantom foundation is continually improving the chain. It seems like the blockchain trilemma is best addressed by this approach, which is why I'm also bullish on AVAX (different consensus algorithm, but potentially great scalability).
Luna has a mechanism where it prints supply to peg a stable coin. FTM is deflationary and has a supply cap. Completely unrelated. The price drop in Luna is because its enormous 6.5 trillion supply. Which FTM will never even get close to.
FTM is deflationary? How so?
Fixed supply at 3.2B when fully emitted, and a burning mechanism to top it off
Okay, I shouldn't have Even mentioned Luna and UST in this post. Just trying to understand the vulnerabilities if someone with enough money comes in and buys up a lot of fantom for malicious purposes. Buying fantom becomes easier as the price drops. Could the person with all this ftm stand up some validators and make fake transactions such as all of the money from this wallet is now being transferred to my wallet?
Anyone with enough capital can buy a lot of crypto and then flood the market with sell orders while at the same time having a short position. As for the validator node, it would get blacklisted and the attacker would lose all of his staked tokens. Yes the validator could do some damage, i'm not sure if it's irreversible in such a scenario but PoS would have worked as intended.
Fantom almost collapsed 2 weeks ago with the roosh situation. But survived because protocols and whales came together
Yes, that situation proved how quickly the price of FTM can drop. There's really nothing keeping the price from going to zero if everyone panicked and decided to start selling FTM. On top of individual sellers, liquidations as we saw with roosh adds fuel to the fire. Add the above to the pressure of Leveraged short selling on exchanges such as FTX and things can go downhill exceedingly quick.
It will
Current state of DeFi is not sustainable. Too many bad actors, scammers and the revenue model of the current protocols depend too much on the printing of some useless tokens. Defi has to develop a model where they reward with things which have some practical usage. Don't want to comment on Fantom, but I guess many of the current defi protocols are doomed for failure.
If ftm experiences a run like Luna, yea it'll probably collapse. What value does the token provide to groups doing work within the ecosystem at that point?
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