I wanted to see what Wiki-idiots had to say about the collapse of Luna.
They don't explain the collapse in any meaningful way.
No surprise Molly White is on top of the subject like White on Rice.
https://en.wikipedia.org/w/index.php?ti ... on=history
This is what Molly has to say on the collapse
See also: Cryptocurrency bubble § Collapse of Terra-Luna
Beginning on 9 May 2022, the tokens made headlines after UST began to break its peg to the US dollar. Over the next week, the price of UST plunged to 10 cents, while Luna fell to "virtually zero", down from an all-time high of $119.51. The collapse wiped out almost $45 billion of market capitalisation over the course of a week.
On 13 May, Terraform Labs temporarily halted the Terra blockchain in response to the falling prices of UST and Luna. Despite the company's attempts to stabilise UST and Luna via its bitcoin and other cryptocurrency reserves from the Luna Foundation Guard, the 1:1 peg of UST to USD did not materialise. As of 16 May 2022, blockchain analysts claim that the usage of the bitcoin reserves of LFG still remains largely uncertain.
Likely causes of the collapse included mass withdrawals from the Anchor Protocol days before the collapse, investor concerns about cryptocurrencies more generally, and a drop in the price of bitcoin. During the collapse, holders converted Terra into Luna via the mint-and-burn system, which caused the price of Luna to collapse due to its increased supply. This in turn destabilised the balancing mechanism between the currencies.
This is what I understand to be simple and true
"The downward pressure on reserve assets coupled with withdrawals, triggered a stress scenario akin to a 'run on the bank.'” Mike Novogratz ----- Lack of regulated reserve levels, the quality of the reserves (in the form of other volitile and untested cryptocurrencies) and most of all - investors chasing an 18% promised return (a return typical of a ponzi scheme) in a derivative "coin" in the same fraudulent eco-system.
There is no need to understand anything on the part of Wiki-idiots as long as a source exists.
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