UST stablecoin collapse has been one of the major events of the last couple years as for the crypto industry. This article will cover the main opinions, that have formed because of that crash.
Big project always survive
Even though the native coin of Luna has gone all the way down to times less than a cent after having a record price of 120$ per coin, Luna is still the second biggest chain in terms of smart-contract quantity based on it, right after Ethereum. The newly released Luna 2.0 coin is constantly rising in price and is now worth 2$, which means developers and investors still understand that the technology Luna has is useful and has a high utility.
The crypto sector doesn’t only take into account the rules of market, but does so with the rules of community as well
The crypto space does not function solely according to the laws of the market. Users, who bought millions and billions of LUNA at a meager price had to reckon with the opinion of the existing LUNA community, who wished to make a fork, creating the new LUNA 2.0 asset and turning the original LUNA asset into LUNC (Luna Classic) to save it from collapsing completely, but also “pinching off” most of the value, the original network had.
The newly minted “millionaires” of LUNA had a choice: either to sell the asset that had risen in price thousands of times immediately after the rebound from the bottom all the up to the fork, or to keep their coins to then receive an airdrop of the new network coins, realizing that priority in such a distribution would still not be given to them, but to users who owned LUNA before the UST collapse story started.
If a single project dumps, the market is about to dump too
The whole crypto market is one big ecosystem, which needs every project to work properly and not lose any of its functionality. Even though there are audits made on every big project, risks are still out there.
When a big project dumps the community loses faith and loyalty to blockchain and a so-called panic sell starts. The investors, who have been holding big amounts of crypto in their portfolios, exchange decentralised assets to centralised ones. All that is due to how young the crypto market is and how fast it is developing. People are used to companies that slowly build their way through, but then they see crypto projects with sky-rocketing coins and don’t understand how come that be so.
Considering the crypto industry is one big ecosystem, we shouldn’t forget about all the assets that are pegged to bigger project’s coins and all the assets that hold their value in bigger project’s coins. Those have no way other than dumping as well, which also leads to big market sectors collapsing.
Those three statements aren’t new to the more experienced users of blockchain, but Luna has been the best proof for them, showing that the crypto and stocks markets have a significant difference between them.
