Chapter 408: Death Spiral

Quan Daoheng had assumed Fanghuan Exchange would eagerly seek cooperation, like other platforms.
However, his application was rejected within days, without even a decent reason.
Since that was the case, he had no choice but to place all his bets on FTX.
"How are FTX's sales going?"
"Excellent! FTX is sparing no effort in marketing us, with their advertising everywhere.
The ads are full of slogans like 'A new concept currency system,' 'An epic project that will lead a new revolution in Tbitcoin!'"
"Of course, look who created it." Quan Daoheng's face regained its confident smile.
If Fanghuan Exchange were willing to list, the influx of funds could at least double.
But since they didn't appreciate it, so be it. There was nothing to regret.
As long as they used FTX as a springboard, they could still expand their business.
Then, Fanghuan Exchange would definitely regret it!
“However…”
Kwon Do-hyung’s smile suddenly froze, a sense of unease creeping into his heart like a ghost.
Fanghuan Exchange rejected him too quickly, too decisively, without even a symbolic lengthy review process, simply shutting him down.
What did this mean?
“Could it be… they know something?”
They know the real, deeply hidden secret behind his creation of this coin?
***
Wall Street, Goldman Sachs Headquarters.
When the cryptocurrency wave first swept the globe, countless people, including traditional securities firms, viewed it as a monstrous threat, asserting it was a scam and warning investors to stay away.
But now, the winds have strangely reversed.
Ordinary retail investors are still shouting “High risk, beware of scams,” while those securities firms and investment companies that once despised it are now eagerly diving in, becoming the most active players.
They are packaging Bitcoin and various cryptocurrencies as various financial derivatives and selling them with great enthusiasm.
“Mr. Bell, have you heard about the news from Fanghuan Exchange?”
“Oh, you mean they refused to list Luna and Terracoin?”
“Yes. And the founder of that coin seems furious, now releasing smear articles everywhere, saying Fanghuan Exchange is out of touch with the times and maliciously badmouthing them.”
Goldman Sachs manager Bell was squinting, repeatedly processing this information.
Luna and Terracoin are currently highly sought after by major financial institutions on Wall Street. Many companies have developed complex financial derivatives based on them, selling them very successfully.
Against this backdrop, Fanghuan Exchange, as an industry leader and a market behemoth, actually refused this lucrative opportunity that was practically handed to them.
This matter has a sinister edge.
“They think this project carries a risk of fraud?”
“No, it's probably not just for that reason.
According to the intelligence we just received, Fanghuan Exchange seems to be preparing to issue a new coin, a… stablecoin they developed themselves.”
“What? Fanghuan is going to get involved themselves?” Bell exclaimed in surprise.
"Yes. It seems they're targeting Luna and Terra."
Moreover, it's said that this new coin will be deeply integrated with all of Fang Huan's platforms, with a very wide range of applications.
"This approach... is interesting."
"However, the interest rate definitely can't compare; it can't possibly offer the terrifying 20% ​​return like 'TerraCoin.'"
"So, it might just be a defensive measure to prevent user churn." Bell pondered.
But upon closer reflection, something felt off.
Fang Huan's plans have always been subtle and far-reaching.
This time, Fang Huan personally intervened, using his vast business empire as backing, coupled with their unfathomable capital power, to issue a coin supported by a massive real-world application scenario...
Once this thing takes off, the waves it will create will likely be much bigger than imagined.
"And there's another rumor circulating in the market lately."
"Go on."
"It's said that a group of short-selling funds are secretly gathering, targeting the system vulnerabilities of Luna and Terracoin."
Such rumors are common in the capital markets.
Whenever a trend emerges, flies inevitably swarm in.
"System vulnerabilities? They want to... artificially create extreme volatility to attack its stability mechanism and force it to collapse?"
"Yes. Theoretically, if enough selling pressure can be created, causing Terracoin's price to fluctuate wildly, it will force Lunacoin to be issued indefinitely to save the market.
Once Lunacoin is issued indefinitely, its price will plummet instantly."
"If the project team can defend it, that's fine, but once it triggers market panic and causes other investors to follow suit and sell, it will instantly create a… 'death spiral'!"
Of course, this is just theory.
Launching an attack of this scale requires astronomical sums of money.
The Luna project team and the financial group behind it must have anticipated this and prepared a massive amount of "ammunition" to support the price.
The possibility of crushing it with a single surprise attack is extremely slim.
"Wait," Bell's eyes suddenly sharpened, "when did this rumor start circulating?"
"Not long ago, just in the last few days."
"Was it around the same time as the news that Fanghuan Exchange was preparing to launch a new coin?"
"Uh, yes... Ah! Mr. Bell, you mean, this batch of short-selling funds... was gathered by Fang Huan?!"
.
"We've been dealing with Fang Huan for so many years, can't you see it?" A cold sweat broke out on Bell's back.
"Those short-selling funds that manipulate the international market are practically fanatical in their worship of Fang Huan!"
"If this attack is real, if behind these mad dogs stands that monster Fang Huan..."
"It will be a... cataclysmic financial catastrophe!" The subordinate gasped.
"Exactly! With Fang Huan's stature, if he personally stabs them in the back, do you think those two flashy punks can withstand it?"
There is no evidence to prove that Fang Huan is the mastermind.
Kobel clearly remembered that in the bloodbaths that had struck countless countries and stock markets over the past few years, no evidence had ever been found to prove that Fang Huan was the mastermind behind it all.
But! The lack of evidence was the most terrifying evidence!
“Pass the word!” Kobel abruptly stood up and issued the order decisively.
“All financial products in our company related to Luna and Terra are to be liquidated! Immediately! Right now!
Also, send people to keep a close eye on those short sellers!
Whenever they make a move, we’ll follow them in!
We might as well jump on this bandwagon!”
“Yes, sir!”
Upon hearing this, the subordinates rushed out as if their backsides were on fire.
Everyone knew that even a moment's delay wouldn't be a matter of making money!
It would mean being completely devoured, bones and all, by the impending financial tsunami!