The Success Paradox: How Success Can Become a Weakness Luna and FTX Examples 👉🚦🚦 💰👀🔊

📌Success, at first glance, seems like an indication that everything is fine and everything is going as planned. But, paradoxically, overachievement can become a project's greatest weakness. We can understand this better with examples such as $LUNA and FTX.

📌Luna and FTX are projects and platforms famous for their rapid rises and falls in the cryptocurrency market. Both had incredible success in the beginning. Luna's value skyrocketed, while FTX became one of the most popular cryptocurrency exchanges.

📌However, this success led both platforms to be overconfident and ignore the risks. Luna used a complex algorithm to support the stablecoin called TerraUSD (UST) now $USTC . This algorithm was supposed to act as a buffer against market fluctuations. However, a sudden decline in the market depleted the reserves used to maintain UST's stable price, causing Luna's value to drop suddenly and dramatically.

📌FTX, on the other hand, quickly grew both its stock market and its $FTT token with aggressive investments and risky trading strategies. However, these strategies resulted in the platform becoming overleveraged and vulnerable to market fluctuations. Eventually, FTX founder and CEO Sam Bankman-Fried faced allegations of fraud and money laundering, among other situations, leading to the collapse of the platform.

⚠️⚠️Luna and FTX's stories show that success can be blinding and overconfidence can lead to disaster. Being a successful project requires constantly evaluating risks and adapting to new conditions.