$BTC Inauguration of the US President = the start of the alt season 💬 The attached chart clearly shows that after each presidential inauguration in the US, there is always a strong growth in the alt sector. This has happened in the last 3 cycles, and immediately after the inauguration, there is a huge influx of large liquidity into altcoins, which easily drives assets to new highs. We should expect a similar scenario this year. After the inauguration, I anticipate a smooth but steady growth, especially in altcoins. Trump's inauguration this year will be on January 20. Let's wait… Disclaimer: Includes third-party opinions. No financial advice. May include sponsored content. See T&Cs.
🔥🚨 The Unbelievable Fall of LUNC: From $119 to $0.00001 in ONE DAY! 🚨🔥
On May 7, 2022, Terra Luna Classic ($LUNC) shocked the crypto world, crashing from $119 to a mere $0.00001 in just 24 hours. How did this happen? Let’s break it down:
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💣 What Happened to LUNC?
$LUNC, part of the Terra ecosystem, was tied to its algorithmic stablecoin, TerraUSD (UST). This ecosystem was meant to be revolutionary, but a chain reaction of catastrophic events led to its collapse.
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🔍 The Reasons Behind the Crash:
1️⃣ UST Depeg Disaster UST, designed to stay pegged to $1, lost its value, triggering mass panic. With UST tied to $LUNC, the dominoes started falling fast.
2️⃣ Liquidity Meltdown Terra faced a severe liquidity crisis, making it nearly impossible for investors to sell their holdings. This scarcity fueled the price collapse.
3️⃣ Investor Panic As $LUNC’s price started to nosedive, panic set in. Investors rushed to dump their tokens, accelerating the decline in value.
4️⃣ Flawed Algorithm Critics pointed fingers at the algorithmic design of Terra's protocol. The system failed to stabilize UST, causing the collapse to spiral out of control.
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⚠️ The Aftermath:
💸 Billions Wiped Out: Investors lost fortunes in a matter of hours.
🚨 Shattered Trust: Terra’s reputation took a massive hit, leaving scars on the crypto space.
💥 A Hard Lesson: The collapse serves as a warning about the risks of algorithmic stablecoins and crypto volatility.
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🚨 What Can We Learn?
1. DYOR Always: Research the mechanics and risks behind any crypto investment.
2. Diversify Wisely: Never put all your funds into a single asset, no matter how promising it seems.
3. Be Cautious with Algorithmic Stablecoins: Their design can be innovative but also dangerously unpredictable.