Below is a deeper analysis of the impact of the Terra (LUNA) event and the OM (Mantra) event on the cryptocurrency market in various aspects:
⸻
1. Impact of the Terra (LUNA) event – 2022
a. Market sentiment
• The Terra event has caused a severe loss of trust within the crypto community, especially with algorithmic stablecoin projects.
• Leading to a massive capital withdrawal wave, pushing the overall market into the “crypto winter” of 2022.
b. Domino effect
• Many funds and investment projects in LUNA and UST have been affected:
• Celsius, Voyager, Three Arrows Capital have all defaulted or gone bankrupt.
• DeFi ecosystems linked to Terra have been paralyzed.
c. Regulatory changes
• Prompting governments and financial institutions, particularly the SEC and IMF, to accelerate stablecoin regulation.
• Laying the groundwork for stricter regulations, including requirements for transparency of collateral assets for stablecoins.
d. Development redirection
• Developers are starting to shy away from algorithmic stablecoins.
• Capital flow is shifting towards collateralized stablecoins (USDT, USDC) and projects with higher transparency.
⸻
2. Impact of the OM (Mantra) event – 2025
a. Investor sentiment
• The sudden collapse has led the market to begin questioning real asset tokenization (RWA) projects.
• However, the rapid recovery shows that confidence has not completely vanished, but is shifting to a state of “extreme caution.”
b. Trend forecasting
• Mantra is one of the first projects to implement tokenization of UAE national bonds, therefore:
• This incident may slow down the wave of tokenization of traditional financial assets.
• However, large institutions like BlackRock continue to invest in RWA, indicating that confidence in this segment has not been completely extinguished.
c. Impact on exchanges and risk management
• A wake-up call about liquidity control and managing large trading positions on exchanges.
• May force exchanges to tighten leverage, increase transparency about liquidity reserves, and update risk warnings.
d. Crypto ecosystem
• Although OM collapsed, many still see this as a “technical incident” rather than a scam model.
• The Mantra project is still ongoing, which helps maintain hope and trust in RWA as the next wave in crypto.
Summary of far-reaching impacts
