"95% of the total cryptocurrency market is going to die. It's also very entertaining to watch those projects die"
— Do Kwon, the creator of Terra Luna in 2021
It's official: Terra Luna is dead.
After crashing over 99% in the course of days, there's no stopping the once king of algorithmic stablecoins from going to zero. Terra Luna was a top ten coin worth 20 billion last week. Now it's less than nothing. Every crypto exchange in the world will delist it.
So far all of this has caused a lot of panic in the crypto markets.
Tether is off its dollar peg, Bitcoin is in freefall, and record amounts of media organizations are rubbing salt in the wounds of crypto investors.
Is this it?
Can we finally say that crypto is dead?
The Mechanics of Terra Luna's Failure
Finacnial natural selection. It's happening right now.
Crypto projects like Bitcoin and Ethereum are slowly rebounding but stablecoins and a majority of the altcoin market are in for a very tough time.
Terra Luna failed because its founder, along with some of the top institutional investors in the industry including Celsius, Galaxy Digital Holdings Ltd., Jane Street, Jump Crypto, and Nexo, believed it was a good idea to back a stablecoin with an extremely volatile asset. That asset being Terra Luna.