#LUNA e #USUAL - Effects of a fraud on the crypto market.
The Earth Saga (LUNA), or how to turn billions into stardust in record time! It all started with the stablecoin TerraUSD (UST), which promised to always be worth US$1. To maintain this parity, a complex algorithmic ballet between UST and LUNA was happening behind the scenes. But in May 2022, UST lost its peg, and LUNA plummeted from US$ 120 to fractions of a cent.
In less than 24 hours, the crypto market saw US$ 1 trillion evaporate. Trust in algorithmic stablecoins went out the window, and regulators began to look at the crypto market with the same sympathy they have for poorly filed tax returns.
And the conductor of this opera, Do Kwon? He is now preparing for a trial in the US, accused of orchestrating fraud that would make even professional scammers take note. If convicted, he could face up to 130 years in prison. It looks like he'll have plenty of time to reflect on market volatility... behind bars.
The collapse significantly affected other cryptocurrencies. Between May 1 and 11, 2022, Bitcoin (BTC) fell 24.78%, Ethereum (ETH) fell 30%, and Solana (SOL) depreciated by 39.69%.
Those who stayed informed did not suffer major losses. Always stay up to date with projects related to your cryptocurrencies.
