Sometimes you need a laugh after a serious event. This made me | Entirely Crypto

Sometimes you need a laugh after a serious event. This made me laugh. But the Luna/terra incident was devastating. A lot of people lost their life savings. I hope you guys are okay.

The story for those that don’t know is that this was mostly a community trust based stable coin with Luna trying to back it with Bitcoin. What happened was Luna had a war chest of 1b in Bitcoin, Bitcoin was tanking, so their war chest was lower, someone was selling more than 1b worth of ust. They tried using their Bitcoin warchest but then the price dropped to 97 cents. Fund and institutions knew how this worked and knew it was a game of chicken if people pull their money out it’s a race to the finish line. So when they see a stable coin at .97 cents they start pulling out bringing the price down further, then it started a snow ball effect with worried retail investors and the rest is history.

Luna went from $100 to 1 cent. This is a learning experience, don’t invest in anything if you don’t understand how it works. Stay safe