Does the rise and fall of the cryptocurrency market really scare people to death?
Let's take the classic example of Luna.
You have 10,000 Luna, and while you were sleeping yesterday, it was worth 1 million USD. When you woke up, it had dropped to 700,000 USD.
You thought to yourself, having been in the cryptocurrency market for so long, a mere 30% retracement isn't too bad, and UST has only depegged by 10%. You continued to believe in Do Kwon and went to sleep confidently again.
The next day you woke up and it was down to 10,000 USD. At this point, you thought it had already fallen by 99%, so it couldn't possibly drop any further, right? Buying in now at the bottom and watching it rise to 10 USD would be a tenfold gain, how wonderful.
So you sold everything, gathered 200,000 USD to buy 200,000 Luna. At this moment, you couldn't sleep; you watched it constantly, hoping it would rise back up. But all you could do was watch the price drop from 1 to 0.1 down to 0.000001 before it finally got delisted. In the end, within three days, your 1.2 million USD in assets shrank to the cost of a breakfast, and you completely broke down.
