Terra over at the eToro app concerning LUNA-LUNC transition
eToro, the social trading app, popular among cryptocurrency investors caused terra and panic on 26 May 2022.
This terra and panic continues as I write for many of eToro’s crypto $LUNA traders and investors.
With no warning, completely out of the blue; no phone or email alerts, nothing, eToro released news about the LUNA crypto it has listed on its trading and investing platform.
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The news eToro released on its trading platform reads as follows:
🚨🚨 IMPORTANT ANNOUNCEMENT FOR $LUNA HOLDERS This is to inform you that due to the Terra hard fork, as of 18:00 (GMT) today, May 26th, 2022, investing on $LUNA will be disabled for an undetermined time frame.
Okay so far I would say maybe this kind of suspension can be normal during a major transition.
Although eToro were right to use the little red emergency lights on their message given the use of the word ‘undetermined’.
This did raise concerns in my mind.
It would have been better to write something along the lines of; we will re-open trading on your $LUNA investment, on its new name $LUNC, once the transition has been completed.
eToro went on to write in their message:
It’s important to note that if $LUNA is re-enabled for investing on eToro, the ticker name (symbol) will change from $LUNA to $LUNC (Terra Classic). ⚠ NOTES: 1️⃣
Okay, so when eToro wrote “if” $LUNA is re-enabled… This got eToro users mad. eToro sure did upset the Lunatics.
The use of the word “if” is a cause for major concern; what if eToro doesn’t “re-enable” LUNA with its new name LUNC…what happens to my F *** investment? many eToro users replied under the message.
Other eToro users said that they are going to leave eToro for good.
F***, I thought this is serious. It’s almost as if eToro had planned this, as if they just do not care.
Businesses that make lots of money can and mostly do become complacent and end up not giving a S*** about their customers. They forget what made them great.
eToro’s message goes on to read:
After 18:00 (GMT) today, May 26th, 2022, you will not be able to open new positions in $LUNA.
Okay, fair enough, if trading is going to be suspended or frozen while the change takes place then this is normal.
eToro go on to say:
It will also no longer be possible to manage existing positions in $LUNA i.e. you will not be able to close existing positions, edit your Stop Loss/Take Profit, execute pending orders, place new orders, and/or receive price updates.
And okay, well, yes this make sense during the transition right? Well hold your horses, what comes next really got the Lunatics upset.
It was absolute bedlam on the eToro message board.
There were just so many messages, I couldn’t keep up with reading them all.
It was like the dying days of a Ponzi scheme when everyone is rushing to try and make sense of the news.
And other investing selling before the deadline, re-investing, and maybe even investing even more money.
The price of LUNA crypto crashed to around 0.00010, with some investors accusing eToro of deliberately manipulating the price (by releasing damaging news) so they can profit from the chaos it would cause.
Other investors wrote that eToro could have designed the situation to buy up as much LUNA as they can for next to nothing. And then make a fortune following the transition to the new coin LUNC.
As fast as such messages appeared, they were being removed from eToro, probably by their teams of customer service agents.
The message eToro posted on its website went on to say:
*Any $LUNA holders who want to close their positions should do so before 18:00 (GMT) today. 2️⃣ The Terra hard fork is expected to result in the creation of a new coin.
The Lunatics who collectively have massive investments in LUNA were furious.
eToro were more or less telling traders and investors to pull their money. To close their positions before 6pm.
I know they wrote “who want to…” but what eToro wrote next led LUNA traders and investors to take from that that their investment was not safe.
You can view eToro’s policy regarding forks here: www.etoro.com/news-and-analysis/etoro-updates/etoro-hard-fork-policy/ We will share an update on whether eToro will list this new coin after the fork.
And there it is above… if eToro decide to list the new LUNA coin following the fork which will be called LUNC (Terra Classic)
I’m a pro trader and investor and that message got me worried. And I don’t panic too easy.
eToro ended their message with the following:
We would like to remind you that due to the unpredictable nature of this event, it may be necessary to make additional changes with little or no notice. We will keep you updated via the feed. – The eToroTeam
I don’t have a large investment in LUNA, but I really did feel for the crypto investing community as a whole.
Reading their messages on eToro and seeing many messages being removed by the eToro team depressed me.
Some investors wrote that they would be suing eToro.
Other investors wrote that they would be reporting eToro to the regulators; FCA in the UK; CySEC authority in the EU; FinCEN in the USA; and the ASIC in Australia.
Then someone posted a warning and request to eToro in a message. And this was copied and re-posted by many thousands of investors on the $LUNA message board.
The message was then edited and reposted many times. So that now there are lots of variations.
One variation of the message reads as follows:
I declare with this announcement, today, May 26, 2022, I am publicly and in digital format requesting eToro and/or anyone directly or indirectly employed by eToro as a second or third party not to sell my $LUNA crypto coins (or Classic Luna) Please do not sell, reverse or delete my position in Luna (or Luna Classic) and my investment until I tell you to. The only exceptions are unless you have my written consent or if the total amount of my investment in Luna (or Luna Classic) reaches $2 million or if I can be guaranteed to receive the same amount of units in a new coin today as you (eToro). (26/05/2022) refers to Luna Classic or the same amount of Luna in coins
And so you get the idea from the messages being posted for the eToro team.
$LUNA traders and investors should not have to post such protective messages on a social trading and investing app.
While all these messages were being posted, 6pm came and went and it appeared that trading for $LUNA continued on eToro.
Crypto investors reported that they were able to buy and sell $LUNA on eToro long past the 6pm GMT deadline.
Yet no updates came from eToro regarding any changes.
Moreover no update from eToro to let its users know whether the new $LUNC crypto coin would be added to their site.
As I write, I believe eToro traders and investors are still being kept in the dark.
If eToro do not decide to list the new LUNC coin on their platform then basically when LUNA dies proper, so too will the value of people’s investment.
It’s clear to me that the eToro message caused panic selling, which then led to the $LUNA price crashing from almost 0.00020 to around 0.00010.
I cannot say why eToro did what they did, but something doesn’t seem right at all.
As I write, the LUNA price is 0.00014. It did not recover following the last minute update from eToro.
The panic and uncertainty also affected the price of other cryptocurrencies as investors had enough and closed positions to take their money elsewhere.
I believe eToro full well know, or should know if they are going to list the new $LUNC coin on their platform.
eToro should have been upfront about what they intend to do. It is highly unprofessional to drop a last minute damaging message on crypto traders and investors.
If eToro intend to list $LUNC then they should just say so without causing fear, panic and uncertainty. The very emotions traders and investors need to avoid.
It’s a bit like someone telephoning you to tell you your house is on fire, but don’t worry it’s being put out with petrol.
On top of all this, the eToro spread on LUNA is ridiculously high. Average 30% sometimes 50%. It varies. And this when the price action is only moving sideways.
The terra for LUNA-LUNC traders and investors is not over since eToro are keeping them in the dark.
There hasn’t been any updates for over 9 hours at the time of writing since their failed message to their loyal users.
Or maybe eToro didn’t fail, but gained what they intended when they dropped their $LUNA message on their investing platform.
I’m not certain how the events of 26 May 2022 GMT will impact on their users moving forward.
But I think trust has been lost and eToro don’t seem to be doing anything to re-establish that trust.
Greed corrupts. Absolute greed corrupts absolutely.
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For a social investing site, the actions of eToro are pretty damaging to investors.
Keep sharing this article on the eToro site. And let’s hope that $LUNA investors receive justice.
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