Reasons Why The Crypto Dream Is Turning Into A Nightmare

Terra Luna Crash

The Terra-Luna Crash is one of the most serious implosions in crypto’s short history. Terra was a strong example of a stablecoin with a fixed value of one U.S. dollar. In short, developers create them as safe investments alongside floating currencies with fluctuating values (via The Guardian).

However, when the latter loses all of its value it also affects the stablecoin. That’s exactly what happened to the Terra and Luna coins as they left owners with nothing. They suffered staggering losses after a death spiral went into full flow. It was a nightmare for these investors and severely impacted the market.