Will LUNA's downfall scare away investors from the crypto market?

[RussianEnglishTranslation]

This past week has been all about LUNA's downfall in price and how UST lost its peg at a very fast pace. Many investors lost their money as the cryptocurrency went from being worth around $80 to just $0 in a few days. There's a lot of FUD surrounding crypto right now, especially with Terraform Labs' inability to restore the peg. If LUNA doesn't recover, this could lead the whole crypto market towards another direction. As promising as crypto/Blockchain tech is, things like this greatly damages its reputation.

Do you think LUNA's downfall will scare away investors from the crypto market? If not, why? Is there light at the end of the tunnel for the whole crypto/Blockchain industry? Your input will be greatly appreciated. Thanks.

You're in luck. Since you posted this the market recovered and there was a Luna v2 airdrop. There is also a CNDL bounty, which is a great way to recoup some of those Luna losses. Next time do more research before investing. Only invest in projects that have real world usecases, not stablecoins with ponzinomics.

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[NicNacCoin]

Of course the money people have lost from Luna will scare people from investing for the rest of their lives.This is the first time in my life that I have seen such a popular and the best coin of the year being scammed.I've never seen anything like it. Luna answer will intimidate every investor and deter people from investing

[whiteblue]

Of course the money people have lost from Luna will scare people from investing for the rest of their lives.This is the first time in my life that I have seen such a popular and the best coin of the year being scammed.I've never seen anything like it. Luna answer will intimidate every investor and deter people from investing

I don't think Luna's investors will deter or scare people from wanting to invest in Luna, but suggest that we should be careful when investing in Luna and consider before rushing to make instant profits. The luna coin no longer has the trust of the community so it would be easy to drop the price at any time before the luna holder loses even more.

[dezoel]

The LUNA team committed a big scam. The airdrop must be for all UST token holders both before and after the attack. Luna tokens were distributed only to owners of UST tokens before the attack, who used their tokens in Anchor Protocol. Holders of UST tokens before the attack did not receive compensation for losses.

Interestingly, I disagree with this. I do not think that they scammed anyone, I do not think that they are bad people, I just believe that they are morons who couldn't protect the money they were given and they just did stupid things.

Maybe I am wrong, and they actually did scammed people, maybe Do Kwon is a bad person who stole your money, but to me it looks like they tried something and did it legit and ended up losing a ton of money while doing it and other people scammed them out of your money. It is like a bank getting a bank robber, the bank is not the responsible party there, the robber is, but the bank lost your money, so you would be angry at the bank of course.

[LUCKMCFLY]

I think that the fall of LUNA will not scare away any investor from the market, on the contrary it will attract more towards btc because they will consider it the safest of all investments, it is clear that they can establish some altcoins as the best refuge options when BTC is trending bullish and want to do maybe a 2x, 3x, 10x in the best of scenarios, but those who lost with LUNA know very well that they were exposed to the fact that something like this could happen, in fact any cryptocurrency can happen, and it is very minimal the option that BTC happens something like that because there is very strong institutional investment.

[asyakashi]

Some investors who are new to cryptocurrencies and are recommended to invest in LUNA must experience severe depression and trauma. With that incident I'm sure some of them really think cryptocurrency is a big scam. But in fact they may not have researched the big risks of investing because they were only consumed by the talk that was in LUNA who bought at the initial price.

[BlackBaron]

Some investors who are new to cryptocurrencies and are recommended to invest in LUNA must experience severe depression and trauma. With that incident I'm sure some of them really think cryptocurrency is a big scam. But in fact they may not have researched the big risks of investing because they were only consumed by the talk that was in LUNA who bought at the initial price.

Many beginners are very frustrated and traumatized by the loss effect of Luna investment, so it is very sad if any other investors suggest investing in risky coins, I think they should find a professional mentor for investment advice on potential coins like BTC and ETH.

[0verseer]

The LUNA team committed a big scam. The airdrop must be for all UST token holders both before and after the attack. Luna tokens were distributed only to owners of UST tokens before the attack, who used their tokens in Anchor Protocol. Holders of UST tokens before the attack did not receive compensation for losses.

Interestingly, I disagree with this. I do not think that they scammed anyone, I do not think that they are bad people, I just believe that they are morons who couldn't protect the money they were given and they just did stupid things.

Maybe I am wrong, and they actually did scammed people, maybe Do Kwon is a bad person who stole your money, but to me it looks like they tried something and did it legit and ended up losing a ton of money while doing it and other people scammed them out of your money. It is like a bank getting a bank robber, the bank is not the responsible party there, the robber is, but the bank lost your money, so you would be angry at the bank of course.

It's very hard to swing from "they're just incomplete" to escape all the responsibility and potential of "doing it intentionally". No, I don't believe the Terra/Luna team. They realize they can just turn off Luna's minting right away when UST loses its peg. But they don't and only after many times of Luna's minting, making Luna lose 99% of its worth then they stopped despite many people telling them to do that at the start. The case of Luna will scare away investors from the crypto market since we now have some more clever tricks of self-sabotage, an exit pulls far better than those 'inside hacks'.

[ilovealtcoins]

I think that the fall of LUNA will not scare away any investor from the market, on the contrary it will attract more towards btc because they will consider it the safest of all investments, it is clear that they can establish some altcoins as the best refuge options when BTC is trending bullish and want to do maybe a 2x, 3x, 10x in the best of scenarios, but those who lost with LUNA know very well that they were exposed to the fact that something like this could happen, in fact any cryptocurrency can happen, and it is very minimal the option that BTC happens something like that because there is very strong institutional investment.

Yes, going through luna downfall i see more people starting to go back to bitcoin than trying to make a quick profit from altcoins and shitcoins. Luna was an expensive lesson that many had to pay. Cryptocurrency is really risky and it becomes even riskier if you invest in a currency other than bitcoin.

[Fredomago]

I think that the fall of LUNA will not scare away any investor from the market, on the contrary it will attract more towards btc because they will consider it the safest of all investments, it is clear that they can establish some altcoins as the best refuge options when BTC is trending bullish and want to do maybe a 2x, 3x, 10x in the best of scenarios, but those who lost with LUNA know very well that they were exposed to the fact that something like this could happen, in fact any cryptocurrency can happen, and it is very minimal the option that BTC happens something like that because there is very strong institutional investment.

In terms of hard learning process, those who lose from Luna will now realize how quick your money will be liquidated if you don't analyze that well, the dumped that take place is reality, there's no easy access to success, everything should be taking into account that if you invest with good and solid asset like Bitcoin, the chance of gaining as passive is possible while aiming for quick profits using alts always have this kind of high risk.

[lixer]

Some investors who are new to cryptocurrencies and are recommended to invest in LUNA must experience severe depression and trauma. With that incident I'm sure some of them really think cryptocurrency is a big scam. But in fact they may not have researched the big risks of investing because they were only consumed by the talk that was in LUNA who bought at the initial price.

It is hard to admit it but that is going to be the case that happens if ever the first investment that they picked up is luna or not just luna but any other cryptos that can end up on the same path as luna. We are lucky because by the time we enter here, there are still less scams and it was bitcoin is the one that we pick up first.

If ever there are crypto enthusiast around the people that invests in luna, they can give comfort and educate those people that it was possible for crypto scams to be avoided and not all cryptos are like that that can heavily collapse. Let us only hope that the second time they come back they will now choose the right coin this time because if not then they won't give cryptos a chance anymore.

[Japinat]

This past week has been all about LUNA's downfall in price and how UST lost its peg at a very fast pace. Many investors lost their money as the cryptocurrency went from being worth around $80 to just $0 in a few days. There's a lot of FUD surrounding crypto right now, especially with Terraform Labs' inability to restore the peg. If LUNA doesn't recover, this could lead the whole crypto market towards another direction. As promising as crypto/Blockchain tech is, things like this greatly damages its reputation.

Do you think LUNA's downfall will scare away investors from the crypto market? If not, why? Is there light at the end of the tunnel for the whole crypto/Blockchain industry? Your input will be greatly appreciated. Thanks.

I would admit that the LUNA's downfall has created fears in the market especially for those newbies who are only thinking about money making, and this scenario gives them a big lesson. However, i don't think that this will totally scare away all those who plan to invest in crypto because not all coins have the same fate with LUNA, others have succeeded while some ended up in zero value. Just like bitcoin, no one can tell that this could survive even a decade, but here it is right now, still standing firm and its far happening from its downfall.  I guess its a matter of positive mindset and the right choice of coins.

[Abiky]

The LUNA team committed a big scam. The airdrop must be for all UST token holders both before and after the attack. Luna tokens were distributed only to owners of UST tokens before the attack, who used their tokens in Anchor Protocol. Holders of UST tokens before the attack did not receive compensation for losses.

That's totally unfair. Without taking into consideration all UST holders, the crypto project will quickly lose investors' confidence. I've seen investors' reactions towards the new Terra 2.0, and I have to say they're not pretty good. Without solid backing from these key players on the market, how will the project succeed in the long run? I hope the LUNA/UST crash won't scare away investors from other cryptocurrencies, or that would mean the end for this exciting revolution. At least, the negative effects of the crash won't last for long. As long as decentralization prevails, nothing else matters. Just my opinion

[andyou1234]

I think that the fall of LUNA will not scare away any investor from the market, on the contrary it will attract more towards btc because they will consider it the safest of all investments, it is clear that they can establish some altcoins as the best refuge options when BTC is trending bullish and want to do maybe a 2x, 3x, 10x in the best of scenarios, but those who lost with LUNA know very well that they were exposed to the fact that something like this could happen, in fact any cryptocurrency can happen, and it is very minimal the option that BTC happens something like that because there is very strong institutional investment.

yes, you are right, crypto users and investors today will not be afraid of the market because of the fall in LUNA, even with the decline in luna, crypto users are more inclined to invest in coins that have strong fundamentals such as BTC, ETH and BNB, but everyone is only wary of tokens that have a low level of stability, and it's best to avoid coins or tokens that are still in the development stage, and certainly won't repeat the same mistake wanting to re-invest in a new version of LUNA.

[zasad@]

The LUNA team committed a big scam. The airdrop must be for all UST token holders both before and after the attack. Luna tokens were distributed only to owners of UST tokens before the attack, who used their tokens in Anchor Protocol. Holders of UST tokens before the attack did not receive compensation for losses.

Interestingly, I disagree with this. I do not think that they scammed anyone, I do not think that they are bad people, I just believe that they are morons who couldn't protect the money they were given and they just did stupid things.

Maybe I am wrong, and they actually did scammed people, maybe Do Kwon is a bad person who stole your money, but to me it looks like they tried something and did it legit and ended up losing a ton of money while doing it and other people scammed them out of your money. It is like a bank getting a bank robber, the bank is not the responsible party there, the robber is, but the bank lost your money, so you would be angry at the bank of course.

you can call it whatever you want, but it's a scam. The best traders earn 20% per year, the best traders in the world have earned about 20% per annum for over 20 years in a row.
Why did this project promise a 20% annual reward in stablecoins? For getting UST you need TERRA coins. Demand for Terra is growing at a tremendous pace, so you can promise a profit of 100% per annum, but the bubble will burst anyway.

[Oasisman]

Of course the money people have lost from Luna will scare people from investing for the rest of their lives.This is the first time in my life that I have seen such a popular and the best coin of the year being scammed.I've never seen anything like it. Luna answer will intimidate every investor and deter people from investing

Well, that's not far off from happening to every alts in the market. One greedy mistake from the developers/founder that mints millions or billions of supply, that would always cause a tragic fall. What happened to Luna might happen to every alts in the market.
Crypto investors has no reason to be afraid of investing in crypto again if they understand the risks lies after they put their money into it. Only those who has no basic understanding how crypto works will get afraid of what happened to Luna.

[Abiky]

Well, that's not far off from happening to every alts in the market. One greedy mistake from the developers/founder that mints millions or billions of supply, that would always cause a tragic fall. What happened to Luna might happen to every alts in the market.
Crypto investors has no reason to be afraid of investing in crypto again if they understand the risks lies after they put their money into it. Only those who has no basic understanding how crypto works will get afraid of what happened to Luna.

I don't think what happened with Terra/LUNA was a result of greed, but rather bad planning from developers and the founder. They tried to save the UST peg, but increasing LUNA's supply did not help. After things didn't turn out to be as they hoped for, a new chain was proposed aiming to bring a fresh start to the project. The community disagreed with the fork, yet developers (and the founder) continued to carry on with the same. If they would've listened in the first place, perhaps Terra/LUNA would've been sitting among the top ranks in market cap by now.

Something similar might happen with other alts if developers are careless. There's a reason why Bitcoin is still the #1 cryptocurrency in the world. While other coins lack decentralization and are often hyped, Bitcoin provides a sound financial system that delivers as intended. Who knows if 99.99% of cryptocurrencies disappear (LUNA included) within the not-so-distant future? Just my thoughts

[gianlamin11]

Maybe i would agree a part but bitcoin is the only crypto which i have trust and also the only hope on the market beside luna crush people now will learn and aware of such kind project and will also reserch before investing there hard earn money.

[ethereumhunter]

I guess LUNA's investors have already left the project because many are losing their money while investing in it. They do not want to have another loss so they take their money away and search for another project which can be profitable in the future. The project itself seems can not sustain and raise after the bad things happen. I was one of the previous investors but I had already sold my LUNA at the middle-high price and used some funds to buy back at the lowest price. I am willing to see what will happen later and can accept anything that happens to that project.

[Sayeds56]

This past week has been all about LUNA's downfall in price and how UST lost its peg at a very fast pace. Many investors lost their money as the cryptocurrency went from being worth around $80 to just $0 in a few days. There's a lot of FUD surrounding crypto right now, especially with Terraform Labs' inability to restore the peg. If LUNA doesn't recover, this could lead the whole crypto market towards another direction. As promising as crypto/Blockchain tech is, things like this greatly damages its reputation.

Do you think LUNA's downfall will scare away investors from the crypto market? If not, why? Is there light at the end of the tunnel for the whole crypto/Blockchain industry? Your input will be greatly appreciated. Thanks.

Luna crash has already given enough damage to the market which is evident from consistent bearish trend after this unfortunate incident. Honestly speaking it has scared away Investors which is  visible when we look at declining coinmarketcap that simply means capital  flight from crypto market. Market participant fear further crash in many other projects like Solana and even stable coins are vulnerable because all of them are not fully backed by Fiat dollars.