Reasons why Luna Is Crashing

It's probably not new to anyone what the crypto markets look like currently, I'd say I myself is shocked to see Luna lose over 90% of its value currently, it's crazy out there. There are many reasons for this and the very first wild catalyst was moving the bitcoin reserve.

You don't just do that, because first thing first, it looks like a rugpull which means shaken investors and that will hurt your coin/token market and economy, and secondly, bitcoin market will react and that equally affects you as a tiny fish in the ocean

I really saw zero reasons to do this, and considering this ecosystem is supposedly a decentralized one, how then a reserve is moved without the community awareness. The crypto ecosystem is quite in its infant stage, we just have a bunch of children playing around, creating FUDs that will literally hurt them too, just for fun. It's a reactive community and we all know what happens when there's a negative reaction: Chaos

We Just Want Money

^{sadly, people don't see crypto as money yet}

There are just so many pieces to this puzzle, and one clear stand out is that crypto is actually yet to develop into what people would see and acknowledge as money. This is why crypto devaluation hits harder than country inflation. I mean it could take a year or two to turn $200 to $100 of goods prior to the inflation, but with crypto, this can happen in a day, or even worse!

Why? The USD unit of account

Although we have diverse utilities when it comes to crypto, the most important aspect of it is neglected. Many are yet to see bitcoin, or Ethereum, or hive or Luna, all we see is $28k, $2k $0.41 $0.38. This causes a wide market offset because the majority are USD minded, the number of coins doesn't matter, because it isn't viewed as a currency but more like a product in the market, which many just want to trade the difference into what they believe as money.

Let's take for example, NFTS in blockchain games. Most of the time when crypto takes a dive, people change asset prices, why? Because they don't want to be short on USD, not that the said asset deserved any more of the underlying currency. When you look at this from this angle, the majority are all about making a profit even if it hurts the system.

Luna is suffering currently because people care more about the instant gains than actually supporting the ecosystem. I mean would you take the opportunity if you saw a wild market offset where you can buy 41,000 bitcoins for $100? Of course you'd, and you'd likely dump it immediately too, just so as to repeat the process and earn more USD(money). This is what is called arbitrage, and it's always painted a good thing, but it's not much of a good thing when almost everyone is trying to do it, the results can be seen with Luna.

No matter how people may want to frame it, the system has lost a whole lot, and currently, what's more important to them is getting their shits together, than saving the market, makes me wonder how long before agencies start going after Luna for alleged crypto scam, haha, I'm sure we know how this works, it happens all the time and I wouldn't be surprised.

Posted Using LeoFinance ^Beta