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| Why is luna crypto crashing | Feb 9, , am EST. This deflationary protocol was meant to ensure luna's long-term growth. Log in. It peaked in November, and with aggressive liquidity tightening signals by the Fed, all asset markets have since seen a correction. Times Everywhere. For the uninitiated, Luna is the native cryptocurrency of the Terra Ecosystem. As TerraUSD fell, the losses bled into other cryptocurrencies. |
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| Why is luna crypto crashing | Terra is a blockchain network that specialises in stablecoin creation. The key takeaway should be that if an investment seems too good to be true, it usually is. To understand the crypto catastrophe, you first need to know what a stablecoin is. Anchor, now a shadow of its former self as the main driver of demand for UST on the Terra network, has proposed temporarily cutting its interest rate to a minimum of 3. To incentivise investors, Terra airdropped new Luna tokens otherwise called Luna 2. That's wishful thinking. Stablecoins serve as a link back to the traditional financial system, acting as a currency with a value that many people understand. |
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The collapse of the Terra many users felt that Anchor of the worst crypto crashes.
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