The Epic 99% Terra Luna Crash... An Inside Job or A Product of Pure Stupidity?

[mrquackquack]

If anybody has been paying attention in the last week, you probably have heard about the Epic and Massive Crash of one of the Biggest Top Digital currencies in crypto called Terra Luna. Within a matter of seemingly hours it dropped from over $100 to meer pennies. Bringing a mass amount of people a little bit closer to death and despair in the matter of minutes. Life savings, thousands of dollars invested and even millions just wiped away in a blink of an eye. Needless to say the question for most people would be "What Happened"? People are still trying to put the puzzle pieces together and they still can't come up with a reasonable answer. This epic debacle seemingly has also been blamed for almost unraveling Bitcoin and other major cryptos as well. Some people think it was an exit scam, a fraudulent project, an inside job and also just bad technical management of the project itself. Let us know in the comments below what you think of One of The Biggest Crashes In History.

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[Metroid]

Pure Greedy!!! But what we can expect from any POS coin anyway, 99.9% are all scam.

[Bttzed03]

There are many intricacies but if you strip it down, the design looks flawed. Safety mechanisms were set up to maintain price but it remains a bad attempt at creating a stable coin that is basically backed by another volatile asset. Some even blame LUNA's TPS and exchanges suspending deposit/withdrawals but when you think of it, why would it depend on those factors?

[mrquackquack]

Well seemingly for what has been broadcast etc etc... usdt or whatever the Terra Luna main "stable coin" was seemingly supposed to be pegged to 1 usd or very close to that price point but the way they conceived the idea was to almost cement its relations to the terra blockchain and its quote unquote minting function if the stable coin ever fell to a certain threshold or below thus therefore crashing the projects price point by flooding the markets with billions upon billions of terra luna coins.

[yazher]

the problem here is the investors don't take note of the event that occurred in the last years where altcoins are not 100% reliable, especially those who are not in the top 10 in the crypto market. I think we have the same scenario with this thing when the so-called squid game coin has crashed after its first impression to the public. the investors thought it was also an opportunity where in reality it's just another pump and dumps coins. same as this one where people got fooled because of the fake dumps.

[Dr.Osh]

this is purely the team's fault, it has led to a lot of wild speculation and it even has an effect on coins similar to LUNA. people think that a coin like this can make the price go down at any time. Even though the crypto world is full of risks, I think it's an exaggeration if we look at LUNA as a big project. although currently they are still trying to fix their problem but i think it is not possible to recover for the original asset owners when they hold their assets for tens of dollars per coin.

[shinratensei_]

Look at how stupid the team is. It can be seen from the LFG that already dumped to the bottom and then team didn't have any fund left at this moment. Scalpers are taking the momentum but team and investors even whales are getting damn shit coin in their wallet called luna.
Just feel sad to see how stupd the terra luna team is. It's stupidity of the team. I think that we must also aware with the fact once the new fork token will come and this will be also useless coin.

[Nivia1st]

team stupidity, and poor ecosystem. terra is overly confident in their system, but when there's a problem they can't solve it. This is what makes the problem big and crashes come. what's worse they seem closed and do not want to receive help from others. there are already many experts willing to lend a helping hand such as CZ, vitalik, polygon founder and many more. but they don't want to accept it.

[TastyChillySauce00]

All of faults already made by luna team. The team know they can stop the blockchain from minting and they are not doing it and they are wasting so many resources to buy back their own tokens that worth zero value as per the latest update from the LFG. The most stupid team in the crypto history. No reserved funds and the team can't execute the proposal to propose the refund to the small investors. Many people are still blaming the team right now and LFG twitter is still very crowded as this moment.
The new report said only less than 300 millions USD left

[Super Protocol]

Bad management? Greed? Stupidity? Bad planning?... What has happened (and continues to happen) with Luna can be described in many ways, but the first thing that came to mind was Bitconnect. Although the case of Luna and UST is different from what happened with Bitconnect, the result is very similar, many people bankrupt, billions of dollars that nobody finds, and a bad image (again) for cryptocurrencies. I think the point of this is that we cannot trust algorithmic stablecoins, but we can trust the ones we already know (USDT, USDC, BUSD and others).

[Henrobakkara]

Bad management? Greed? Stupidity? Bad planning?... What has happened (and continues to happen) with Luna can be described in many ways, but the first thing that came to mind was Bitconnect. Although the case of Luna and UST is different from what happened with Bitconnect, the result is very similar, many people bankrupt, billions of dollars that nobody finds, and a bad image (again) for cryptocurrencies. I think the point of this is that we cannot trust algorithmic stablecoins, but we can trust the ones we already know (USDT, USDC, BUSD and others).

You can say that now but let's not hope that someday one or more of these other stable coins will find themselves in this messy position and investors are back to nothing. However, my take is, that investing so much money on any other coin than Bitcoin is a major RISK in the skim of RISK.

[passwordnow]

How about the combination of both ends of investors and the developer's incompetence? I've seen a post about Binance's $1.6B total asset on Luna and then they've said that it's just now about $3000.
What the heck is with that trust from them? A total no hope from that amount of investment and I've seen CZ commenting on the recovery plan of Do Kwon and he said that the fork isn't the solution and it's not going to help.

[justdimin]

Look at how stupid the team is. It can be seen from the LFG that already dumped to the bottom and then team didn't have any fund left at this moment. Scalpers are taking the momentum but team and investors even whales are getting damn shit coin in their wallet called luna.
Just feel sad to see how stupd the terra luna team is. It's stupidity of the team. I think that we must also aware with the fact once the new fork token will come and this will be also useless coin.

This is true, all of it is just a way to see how stupid the team has been. However, one big question to ask about this situation is that, if the team is such a stupid one that couldn't prevented something like this then why did the investors trusted billions into this?

I mean this is the same coin that is worth fractions of what it used to be, dropped like 99.9% or something, it used to be 80+ dollars and look at how tiny it is right now. Whereas just a few weeks ago there were billions going into it and people trusted it. So, we can't just blame Luna and the team neither, we need to consider how the people who invested into it didn't really cared much neither to check in depth how good the project is.

[so98nn]

Pure Greedy!!! But what we can expect from any POS coin anyway, 99.9% are all scam.

Yup, that's why they should never switch ETH to POS also. Mined coins are way better than these shitty stuff. They have some sort of indirect phsyical presence and they can be felt by mining powers. I do mining of RVN, I know how stable that coin is even in the bearish market. Its dropped to pennies but it's not shattered like Luna, but following the current bearish trend. Definitely the coin will survive huge dumps as the time passes. There are halving steps so rewards drops and prices are increased for the Mineable coins. Luna incidence was terrifying. There is no official comments from the project devs regarding what happened. Or could be just work of purely one person holding the major amount of it.

[lobo13hf]

This is pure team's fault and stupidity. How stupid the team to handle the crash that happened before. They were saying they have been dumping bitcoin for zero result as per LFG report a few days ago. The regulators are still investigating this case and i hope that when they will find something and this will be published to give clarification to the all of luna and ust investors. Even the shit scam token like bitcoin was not doing this shit. people still have days to go out from the market but unlike it if terra luna was dumping so fast.

[Jackl87]

If anybody has been paying attention in the last week, you probably have heard about the Epic and Massive Crash of one of the Biggest Top Digital currencies in crypto called Terra Luna. Within a matter of seemingly hours it dropped from over $100 to meer pennies. Bringing a mass amount of people a little bit closer to death and despair in the matter of minutes. Life savings, thousands of dollars invested and even millions just wiped away in a blink of an eye. Needless to say the question for most people would be "What Happened"? People are still trying to put the puzzle pieces together and they still can't come up with a reasonable answer. This epic debacle seemingly has also been blamed for almost unraveling Bitcoin and other major cryptos as well. Some people think it was an exit scam, a fraudulent project, an inside job and also just bad technical management of the project itself. Let us know in the comments below what you think of One of The Biggest Crashes In History.

I don't own any Terra (Luna) myself and therefore i did not follow the project that closely but of course i also have heard about the events around Terra as it was a major happening within the crypto scene that basically put the whole market down with it. What i read so far about the crash of Terra is that there was a massive sell pressure for the stablecoin of Terra UST, which is not a 1:1 backed by reserves stablecoin likes USDT or USDC but a stablecoin that keeps it's value via an algorithm. The sell pressure became so high though that the algorithm could not maintain the price of UST and once that became obvious the panic sells of people began which made things even worse.
So i don't think it was an inside job or a exit scam or something, it was just a badly designed stablecoin in my opinion that was not ready for such a scenario.

[jrrsparkles]

As far as I read the team is the main reason for the coin to crah because they used lot of influencers to hype the project which eventually burst at some point because whales exited the market when they made enough profits so the poor investors who trusted all these influencers are affected which also affected the entire cryptocurrencies including the bitcoin but this is just expected to be temporary effect soon the investors will move on and learn to skip the projects with no real potential.

[X-ray]

It's very hard to speculate who is making the fault in this case but since we have seen so many times luna blockchain being halted and i can assume if luna developers have control over its blockchain like all of validators are centralized and it's also making a collusion to be able to halt the blockchain. From there i can speculate if luna team is making the biggest mistake that i have ever seen, it's makins vc, retail investors and many parties are loosing their money even cz and binance as well.
This can be an inside job caused by there are so many evidences related to the inside job

[sana54210]

Look at how stupid the team is. It can be seen from the LFG that already dumped to the bottom and then team didn't have any fund left at this moment. Scalpers are taking the momentum but team and investors even whales are getting damn shit coin in their wallet called luna.
Just feel sad to see how stupd the terra luna team is. It's stupidity of the team. I think that we must also aware with the fact once the new fork token will come and this will be also useless coin.

This is true, all of it is just a way to see how stupid the team has been. However, one big question to ask about this situation is that, if the team is such a stupid one that couldn't prevented something like this then why did the investors trusted billions into this?

I mean this is the same coin that is worth fractions of what it used to be, dropped like 99.9% or something, it used to be 80+ dollars and look at how tiny it is right now. Whereas just a few weeks ago there were billions going into it and people trusted it. So, we can't just blame Luna and the team neither, we need to consider how the people who invested into it didn't really cared much neither to check in depth how good the project is.

That is mainly because they trusted others and not trusted the team. If you see thousands of people trusting into a project, you trust those thousands of people to be right and invest because of it. Of course, this is not something that you should be doing but at the same time this is how people fall into ponzi schemes as well.

When you see a ponzi scheme where thousands of people join, you do not look at the project and research it and think if it is good or not, you look at the thousands and ask them and they tell you great things about it because so far they have been getting paid. In this context when they start to lose money, you do too, and that's when everyone realizes it's a ponzi.