#StopLossStrategies
Another major crypto crash has occurred — the OM coin dropped from $6 to a fraction of a dollar within just an hour.
The cause was suspicious activity by its team, which triggered a massive sell-off. As a result, the coin lost a market cap of $5 billion and plunged to just a few million dollars.
A similar crash happened back in 2022 with the Luna coin, which fell from $116 all the way down to $0.00008. That crash was caused by its own stablecoin, whose value was tied to Luna. When the stablecoin's price dropped, the algorithm tried to maintain its peg by minting more Luna coins — resulting in a jump from 380 million to a staggering 6.5 trillion Luna in circulation.
The crash was so severe that it caused a domino effect across the entire crypto market, cutting Bitcoin's value in half. Overall, the Luna crash wiped out $60 billion from the crypto market — money that was lost forever.
That's why people say: never invest all your savings in crypto. Only invest what you can afford to lose without it seriously affecting your life.
