How did the market cap of 41 billion disappear when the price of the coin went to zero in #LUNA ?
Today, I will deeply analyze the secrets of the great crash.
The reason is as follows: Following the Federal Reserve's interest rate hikes in 2022 and the evaporation of trillions from the U.S. stock market, on May 8, 2022, insiders discovered suspected cryptocurrency wallet addresses belonging to Wall Street brokers and major investment banks, which began to short the stablecoin UST of LUNA on a large scale.
This indirectly led to the decoupling of the stablecoin UST!
Before LUNA's demise, it casually brought down the Bitcoin price below $30,000. If the price of the stablecoin is below one dollar, it indicates decoupling. What happens when a stablecoin decouples? To put it simply, the stablecoin becomes worthless, and the token of this stablecoin has no value!
The reason why LUNA collapsed so quickly is also mixed with a Ponzi scheme-like funding mechanism. Initially, the founding team of LUNA promoted their stablecoin UST by claiming in the market that if you buy my stablecoin UST and store it in a certain place, you will receive a 20% interest rate per year.
Retail investors: A 20% interest rate per year? That's enough for me to live on without lifting a finger!
Indeed, during a bull market, everyone had relatively full wallets and was quite greedy towards the market!
The collapse of LUNA also serves as a warning to us: when disaster strikes, the first to run is the money, and what follows is just worthless paper!
Cryptocurrency relies on people's consensus. After the plummet of LUNA, the consensus among people was that the 'Maotai' of the crypto world, LUNA, had met its end!
