Flagship Pod 5/15: Terra, F1, Inflation & More!

market & industry analysis May 15, 2022

Every single Thursday we host a live discussion in our Discord channel at 5:00pm EST.

This gives you the opportunity to ask us questions and hear our thoughts on the things you want answers to!

Here's what we went over: 

  • The historic collapse of UST and Luna

  • Why the market is staying volatile

  • How to understand where we are in the market

  • The ways Formula 1 (F1) can win in this environment.

If you'd like to listen live and ask us questions throughout the next live session, just join the weekly Thursday afternoon session at 5:00pm EST.

Keep reading on below for the entire transcript!


Peter Starr:

And now coming to you live from Moby.co, this is The Flagship Pod, a weekly live discussion on the market, the economy, and the various forces powering the world around you. As always, I'm your host, Peter Starr, bringing you this time, once again, just another dark week in the markets. We've had an absolute collapse in the crypto markets fueled by a crash in Terra LUNA. We're seeing potentially some silver linings on the inflation side of things with a potential peak of inflation based on the CPR report that came out this week, fingers crossed. But we're still seeing various tech selloffs and a lot of just generally bearish signaling coming out of the market. As always, it's a super fun time in the market, and to have that super fun conversation, I am, as always, joined by Justin Kramer, CEO co-founder here at Moby.co and our chief analyst. Justin, man, how are you holding up? It's just a crazy time, right?

 

Justin Kramer:

Yeah. You said it right. It is a crazy time right now. I think we're seeing this deep selloff into the markets that we haven't yet really seen. There's been a lot of volatility, a lot of down days, but the market has just been bleeding red over the last week or so. So excited to talk through some things today, what it means, why it's happened, and how we're playing it going forward. I think for the first time, personally, starting to really feel like this is a real bear market and that there's a lot of negative sentiment out there. So I think this is a really pivotal week going forward.

 

Peter Starr:

In terms of just understanding the direction the market is going to take moving forward, too, it's really important to understand that a lot of people are first time investors when it comes to jumping into the stock market. So many new retail investors were minted during the flush of cash a lot of people had during 2020 that we're finally seeing the party end there and the market stabilizes around real values. So we'll get into all of that and begin to understand how the market is reevaluating itself. But it's really encouraging to see people compare this to 2000 and 2008 and be like, "It's not nearly as bad as those things," which is the cold comfort we get. But let's get into the news.

First and foremost, the main thing in everyone's mind right now is that the entirety of crypto is falling around the collapse of Terra LUNA. Not collapse. Let's not say that. It hasn't been de-listed yet, but they halted the blockchain today after an unprecedented drop in value. Let's see, LUNA is trading sub a dollar now after being above 100 dollars literally six days ago. So let's get into that. So obviously, we've been talking ... Audience, if you're new to The Flagship Pod, we've been long on Terra LUNA for a pretty long time. Justin, your analysis called Terra back when it was sub 10 dollars, right? When did we start thinking about Terra as a potentially solid project?

 

Justin Kramer:

Yeah, I think that timing is somewhat accurate. Started thinking about it at the beginning of the summer, mostly. About August of 2021, almost a year ago. Back then, to your point, trading in the teens, really liked the project, started getting much more prominent, started rising in price, more popularity, lead to more price rising and so on and so forth until this year, we had a high of roughly 120 dollars. So some of our early followers, traders got to see a lot of the upside. Once it started peaking, we sold a lot of our position.

Luckily, got out towards the top. Still, we're checking out, love the long term viability of the project, but definitely at that price, there was a lot of risk baked into it.And over the last few months, as things started to really unwind, both in the stocks and crypto market, we saw this massive, massive selloff over the last 24 to 48 hours in Terra, going from one of the top 10 largest coins in the world down to, effectively, just pennies on the dollar. So to see the rise and fall is a case study within itself, and we can definitely get into why it happened, what it means, and implications for other projects now going forward.

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