Update: We wrote a new post with the recent Big Luna Coin crash. After the recent events, no analysis would make sense for Luna coin and assets within Terraform Labs. If you are wondering why the Luna Coin dropped, please read our article below:
Luna Coin: What is behind the big crash?
Luna coin has dropped to around $0.005 for now.
Why did this happen? Actually Simple, some entities saw that this algorithmic stabilizer was going to be a problem and broke the system to make HUGE profits. Some of the billions of dollars worth of UST sold by the market against USDT would break the 1:1 ratio and bet that the algo would create and sell large quantities of LUNA tokens, resulting in a massive drop in value.
While many people lost large sums of wealth, a few entities became very rich by knocking LUNA down.
The only way to stop this collapse is to destroy the UST and stop the algorithm…
Not Investment Advice
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Disclosure: Authors are invested in cryptocurrency projects and have cryptocurrency holdings – including those covered on this website.
