Multiple cryptocurrency holders all over the world have expressed dire thoughts on LUNA's tragic fall. The sharp crash in Luna's exchanges brought the impossible turn back as it seems worthless and created a major impact in the crypto world. The stability of crypto assets again has been questioned leaning the lack of regulations and governing factors in safe exchanges.
Luna Affects Bitcoin
As seen in the last couple of days, Bitcoin expresses another downfall along with the other altcoins. This once again tests the trust of investors, not just bitcoin though but all crypto assets. Making a huge panic attack and barely expressing grip in the market. The risks in investing in cryptocurrency do not apply to small traders as this is considered the most volatile asset.
Domino Effect on Cryptocurrencies
This can deny the fact that many have shaken into fear of investing in crypto. This initially got triggered when TERRA's sister company of LUNA lost its clench to the US Dollar. TERRA is considered one of the stable coins in the market. This created a domino effect and since lots of investors show disinterest it immediately led to its downfall. The major effect has depleted LUNA from a billion market cap and later plunges to zero.
In the crypto world, the word rug pull is common for that newly released coin that later plunges its value once the market cap reaches a massive amount of value. it is a typical scam promotion of coins to different social media platforms. This gets the expression of "pulling the rug out" this involves hyping the token even before its actual release and then pulling out before the project is built. Whilst, LUNA has been established for several years now, this is not considered a rug pull since the developers were able to bring the asset's purpose. The only downside is that this is the rift effect from its sister company leaving billions of investors in great shock.