Can the big waterfall in the crypto world really scare people?

Elon Musk said: Yes, let's take the classic Luna as an example. You have 10,000 Luna, and while you were sleeping yesterday, it was worth 1 million USD. When you wake up, it has turned into 700,000 USD. You say, I've been in the crypto world for so long, a mere 30% drawdown, UST only depegged by 10%, I trust Do Kwon, so I sleep soundly again. The next day when you wake up, it has turned into 10,000 USD. At this point, you think it has already dropped by 99%, it should have bottomed out, right? If I buy the dip now and it goes up to 10 USD, that’s ten times my investment, how wonderful! So you sell everything and scrape together 200,000 USD to buy 200,000 Luna. At this point, you can’t sleep anymore, you are watching it closely hoping it can bounce back, but you can only watch the price drop from 1 to 0.1, down to 0.000001, and finally it gets delisted. In the end, in just three days, your 1.2 million USD asset has shrunk to the price of a breakfast. You are completely broken. #巨鲸动向

Apart from Luna, there are many differences between the crypto world and traditional financial markets. First, it operates 24/7 without rest; second, there are no limits on rising or falling prices; third, the entry threshold is extremely low; fourth, there are many people abusing leverage; fifth, the fluctuations of altcoins are limitless. Especially the combination of points three, four, and five makes it quite normal to get rich overnight or go bankrupt overnight. Be cautious with leverage, everyone. You may think five times leverage is low, but little do you know that days with over 20% fluctuations happen every year. Due to leverage, the more it drops, the more uncontrollable it becomes, ultimately leading to a chain of liquidations. Why did ETH drop to over 800 during this bear market? Isn’t it because the liquidation prices on-chain are clear, and there are funds willing to buy the cheap corpses?