Understanding the Collapse of LUNA: Key Reasons Behind the Crash
The dramatic collapse of LUNA, the native token of the Terra blockchain, shook the cryptocurrency world in 2022. Once hailed as a promising project with an innovative algorithmic stablecoin, Terra’s ecosystem spiraled into one of the most catastrophic failures in crypto history. This article explores the four primary reasons behind LUNA's downfall: flawed stablecoin mechanics, poor risk management, market manipulation, and loss of investor confidence.1. Flawed Stablecoin MechanismThe Terra ec...
Understanding the Collapse of LUNA: Key Reasons Behind the Crash
The dramatic collapse of LUNA, the native token of the Terra blockchain, shook the cryptocurrency world in 2022. Once hailed as a promising project with an innovative algorithmic stablecoin, Terra’s ecosystem spiraled into one of the most catastrophic failures in crypto history. This article explores the four primary reasons behind LUNA's downfall: flawed stablecoin mechanics, poor risk management, market manipulation, and loss of investor confidence.1. Flawed Stablecoin MechanismThe Terra ec...
