What Led to the Fall of Terra Luna Sample

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Nate Stoneman

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Description

A snippet from a podcast-style narration recapping a monumental point in crypto history.

Vocal Characteristics

Language

English

Voice Age

Young Adult (18-35)

Accents

North American (General)

Transcript

Note: Transcripts are generated using speech recognition software and may contain errors.
what led to the fall of tara luna. If you are generally interested in the crypto market, you must be very well acquainted with the fluctuations and volatility of these currencies. However, it's the first time we have heard about a 99.99% fall in the value of any Cryptocurrency. Yes, I'm talking about tara luna. So what happened and what eventually caused this crash? Keep watching as I unfold. The reason for the fall of terra luna to date, there is no evidence as to what caused the massive crash, crippling a coins value that was very well performing. So let's just discuss what could have possibly led to the fall of terra luna. There are certain coins in the crypto markets that are called stable coins because their value is pegged against a certain fiat currency theoretically speaking that these coins have enough reserves to pay off all of the investors in case of cash outs, these coins are termed heaven by the crypto investors as they are assumed to remain stable in times of fluctuations in the market. One such coin is terra usd which shares the same Blockchain platform as terra luna. Terra usd is backed by terra luna at this point, there are many conspiracy theories as to what caused the crash of both the coins. However, there is one reason that holds substantial weight when it comes to explaining the crash of both. The coins. Terra usd saw a massive sell off in the market over several exchanges along with shorting of terra luna on May 8th around 286 million tera USd tokens were sold, coupling this sell off with the shorting of the luna coin. The algorithms that keep these coins balanced failed badly. The algorithms failed, and before the investors could do anything on their end to save themselves, the coin unp egged, erasing the market cap of luna roughly up to $11 million.