LUNA crash highlights the risks associated with algorithmic stablecoins.
The altcoin crashed from $115 to $0, wiping out $60 billion from its market value.
TerraUSD did not rely on the traditional pattern of having physical assets as its backup.
An acclaimed crypto researcher on X has recalled the infamous events surrounding the LUNA crash a few years ago that exposed many crypto users to significant losses. Introducing his thread, the researcher described the incident as a LUNA crash that shook the crypto world. He considers it a classic case of the risks associated with algorithmic stablecoins.
$LUNA crashes from $115 to $0, shaking the crypto world.
~$60 billion vanished from the market's value.
The largest individual loss hit nearly $10 million!
Let's remember this story and discuss the risks of crypto 
pic.twitter.com/M7nlJJLSFO
— ardizor 
(@ardizor) October 26, 2024
According to the researcher, LUNA suddenly crashed from $115 to $0, wiping out $60 billion from its market value. One individual lost nearly $10 million, highlighting the extent of the potential risks associated with crypto investment.
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