2022-05-13 06:44:55
LUNA Investors beware!
Guys I am seeing heaps of people on the forums and groups pouring significant amounts of money into LUNA now that it is worth virtually nothing. I thought I would try and throw some information out that might try and help people.
The relationship between UST/LUNA needs to be restored as the whole ecosystem relies on these 2 coins working in unison. UST price increase requires essentially burning of LUNA and vice versa.
What's that mean?
It means you wont see any significant price recovery on LUNA (if it recovers at all) until its primary stable coin regains its peg of $1 (or at least some signs of life), which is the UST coin listed on the chart below. As you can see it is currently trading at 12c or there abouts.
Due to the mechanism's set up to maintain the peg on UST, UST cannot increase in price without LUNA decreasing in price. Therefore if you are throwing lots of money in LUNA now hoping for a lotto ticket, it is destined to fall further than where it sits currently for UST to regain its peg.
This is crypto and anything can happen, as we saw with one of the top 10 cryptos essentially ceasing to exist overnight. If you are genuinely looking at buying into LUNA for a long hold it is worth considering this relationship between these 2 coins, which are essential for the ecosystem to exist.
Food for thought guys, this is the best time to sit back, do some research into projects you think have a bright future and monitor them, waiting for what you determine as suitable entries.
Also a good opportunity to revise your trade plan, see what you might have done wrong over the last 6 months and grow and learn from it.
Good luck out there guys and please make sure you are reaching out and talking to people if you are feeling emotionally drained from all the red out there.
1.4K views03:44
M
