T for Terror, T for Terra, and the perfect time for crypto critics
The UST and LUNA continue to plunge down with no stopping; investors are beginning to get weary of it because they don’t know how far down its going to go. After losing its $1 peg the crypto investors were curious as to why it happened and thought it was probably a glitch believing it will climb back up but unfortunately LUNA went down to $0.68 as of Tuesday which was heartbreaking to investors but what would say they are feeling now because it currently sits at $1.42 according to coinmarketcap.
This past week hasn’t been funny as the market is currently bleeding and investors are losing a lot of money, and this is the perfect time for crypto critics to raise up their heads to say what they have to say about crypto. So many people believed Do Kwon saw it coming months back when he had plans to back UST with Bitcoin and only if they had listened to him this wouldn’t have happened but who can really predict the crypto market?
Well the only thing is that in the coming days, UST and LUNA might not be significant again in the crypto market and that’s not just because of what is happening now in the market but because the Luna Foundation Guard's (LFG) Bitcoin reserve has however been liquidated which saw LUNA’s market cap plunged by billions of dollars and now currently sits at $1.5 billion from over $2 billion according to coinmarketcap as at time of writing.
This plunge of a stablecoin has been a great lesson for investors and marks the point at which an algorithmic stablecoin came to an end. The only investors who are safe from this season are those that diversified their assets because the risks of losing all their assets were minimal compared to when they had invested it all in one coin. So diversifying is still forever important.
The current purge or plunge of crypto vividly shows that before you invest in any coin or token, make sure it’s the money you can afford or are willing to lose to avoid stories that touch.
Posted Using LeoFinance Beta