#️⃣ #CryptoNews #Binance #crypto
🔻 Breaking News: The collapse of currency #LUNA✅ reminds everyone of the dangers of high-promise projects.
In a dramatic escalation, Terra founder Do Kwon admitted his guilt in financial fraud charges leading to the collapse of the Terra–LUNA system, which destroyed the crypto market by nearly 40 billion dollars in 2022.
🌀 How did the collapse happen?
The algorithmically-backed stablecoin TerraUSD was not sustainable and collapsed entirely during an attack from traders who shorted the platform, leading to a catastrophic collapse of LUNA.
Do Kwon's confession and the accompanying legal claims caused the project to lose all trust from investors, including massive funds and portfolios.
📉 The Real Impact:
The value of LUNA and the old Terra market fell irreversibly, leaving behind financial ruin and a loss of investor trust.
A similar collapse occurred in other projects, but this was the most notable in crypto history so far.
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💡 Summary:
The story is a direct warning:
> Do not risk your capital on projects built on promises and complex calculations, especially if there is no strong real basis.
Invest in transparent currencies, stable projects, and if the project's circumstances are murky, stay away immediately.
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🤔 Question for the audience:
Do you have an investment harmed by a sudden collapse in a currency? Share it to inform and educate others 🤲👇