2024

<ul class="news-points">
 <li>LUNA crash highlights the risks associated with algorithmic stablecoins. </li>
 <li>The altcoin crashed from $115 to $0, wiping out $60 billion from its market value. </li>
 <li>TerraUSD did not rely on the traditional pattern of having physical assets as its backup. </li>
</ul>
An acclaimed crypto researcher on X has recalled the infamous events surrounding the LUNA crash a few years ago that exposed many crypto users to significant losses. Introducing his thread, the researcher described the incident as a LUNA crash that shook the crypto world. He considers it a classic case of the risks associated with algorithmic stablecoins.
<figure class="wp-block-embed aligncenter is-type-rich is-provider-twitter wp-block-embed-twitter">
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 <a href="https://twitter.com/search?q=%24LUNA&amp;src=ctag&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">$LUNA</a> crashes from $115 to $0, shaking the crypto world. ~$60 billion vanished from the market's value. The largest individual loss hit nearly $10 million! Let's remember this story and discuss the risks of crypto <img src="https://s.w.org/images/core/emoji/15.0.3/72x72/1f447.png" alt="👇" class="wp-smiley" style="height: 1em; max-height: 1em;"><img src="https://s.w.org/images/core/emoji/15.0.3/72x72/1f9f5.png" alt="🧵" class="wp-smiley" style="height: 1em; max-height: 1em;"> <a href="https://t.co/M7nlJJLSFO" target="_blank" rel="noopener noreferrer nofollow">pic.twitter.com/M7nlJJLSFO</a>— ardizor <img src="https://s.w.org/images/core/emoji/15.0.3/72x72/1f9d9-200d-2642-fe0f.png" alt="🧙‍♂️" class="wp-smiley" style="height: 1em; max-height: 1em;"> (@ardizor) <a href="https://twitter.com/ardizor/status/1850249665989771478?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">October 26, 2024</a>
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According to the researcher, LUNA suddenly crashed from $115 to $0, wiping out $60 billion from its market value. One individual lost nearly $10 million, highlighting the extent of the potential risks associated with crypto investment.
Related: <a href="https://coinedition.com/terraform-labs-bankruptcy-hearing-impact-on-luna-lunc-ustc-prices/" rel="noopener noreferrer nofollow">Terraform Labs’ Bankruptcy Hearing:…</a>
The post <a href="https://coinedition.com/terrausd-collapse-highlighting-the-risks-of-algorithmic-stablecoins/" rel="noopener noreferrer nofollow">TerraUSD Collapse: Highlighting The Risks of Algorithmic Stablecoins</a> appeared first on <a href="https://coinedition.com" rel="noopener noreferrer nofollow">Coin Edition</a>.

TerraUSD Collapse: Highlighting The Risks of Algorithmic Stablecoins

Coin Edition

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