On May 13, Luna – one of the cryptocurrency’s crashes raised concerns around the globe. According to a statement by the Luna Foundation Guard (LFG), the non-profit organisation’s cryptocurrency reserves fell from around 80,000 to around 300. As a result, several investors were left exposed to volatile market conditions.
Industry experts attributed this fall in Luna’s value to factors such as the whale dumping of tokens which refers to participants such as foreign institutional investors who are bulk buyers and sellers – as this led to a state of panic around retail investors. “The question revolves around blockchain technology’s ability to handle such shifts in market sentiments. While algorithmic stabilisation of stablecoins cannot be ruled out, it is necessary to make the technology resilient during such situations. Terra’s downfall taught us the need to focus more on building rather than on earning,” Aliasgar Merchant, developer relations engineer, Ignite, a blockchain development company, said.
As we can see, even experts advised us to stay calm and not panic with the situation. In addition, let’s look at the incident in a different way. It may become a chance for us to thrive in the future. If you are a wise investor, you could definitely see which time is the best to put your money on and it turns out you are the winner.
In such a current situation maybe it’s a chance for investors to pay their attention to other things, other business, other projects, and prepare ready for the recovery market, when their products are available to launch into, then earn profits.
As the quote: the bigger the challenge, the bigger the opportunity for growth. Perhaps the Luna coin incident will turn out a great chance for many enterprises to be grown, and developed more. Therefore, is the Luna coin incident a crisis or an opportunity? We bet that each of us have our own answer about that.