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LUNA Classic (LUNC): From the Peak of $119 to the Abyss of $0.00001 - A Costly Lesson in the Crypto World
The collapse of LUNC left a haunting mark in the history of cryptocurrency, as the value of this coin dropped from a high of $119 to just $0.00001 within 24 hours. This was a major shock to the entire crypto market, with many profound lessons about risk in the crypto world.
Causes of the Disaster
1️⃣ UST Loses Peg
TerraUSD (UST), a stablecoin designed to maintain a value of $1, failed to hold its value. As UST dropped below $1, a domino effect occurred, causing both UST and LUNC to free-fall. This marked the failure of one of the most critical mechanisms in the Terra ecosystem.
Causes of the Disaster
1️⃣ UST Loses Peg
TerraUSD (UST), a stablecoin designed to maintain a value of $1, failed to hold its value. As UST dropped below $1, a domino effect occurred, causing both UST and LUNC to free-fall. This marked the failure of one of the most critical mechanisms in the Terra ecosystem.
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