The LUNA ecosystem's failure is one of the most shocking events which has ever happened in the cryptocurrency market. There were hundreds of theories after this fall, however, the truth behind it still be a mystery. Many people believe that this was an attack created by a group of professional market makers from traditional finance to take their profits from shorting assets. This attack has ruined the whole of the biggest stablecoin ecosystem. Do-Kwon, the CEO of Luna, has surrendered from rescuing the old chain after many efforts, selling nearly all of the Luna Foundation fund, but the result remained the same, nothing better.
As an investor in this risky market, our task is to take the note out and write down everything, our own feelings and experience after looking at this event. Everything in life needs a lesson, and lesson will cost you many and many money. By researching another study case, like the failure of Luna ecosystem, we can minimize our future loss effectively.
Right after he Luna's price free-falling down 50% in 5th July, I believe that the quote: " Nothing is impossible" is true. History shows that there was no top 10 coins ( by marketcap ) in this market has seeing the dump like this before, and thus, many people believe in the future of the unsustainable business model of Luna. They are FOMO in this high UST apy up to 20%, although that profit is really hugh, but now, the UST value has divided 40 times from $1!!
The second thing which I have recognized after this is the word "Decentralized" in cryptocurrency. Many investors who have just joined this cryptocurrency for only year or less still believe that the Defi (Decentralized Finance) in cryptocurrency is 100% decentralized. The truth is that there are only 2 biggest coins which truely decentralized, which are: Bitcoin and Ethereum. The other tokens or coins is still centralized, which the power still belong to the dev team and early Ventures Capitals.
Lastly, I want to state that DYOR ( Do your own research ). Only believe in your own, although Luna is invested by many big Vcs like Binance Labs, a16z,... but it still fall down more than 99%!!. Learning how to do your own research is very important and it will help you to stand out of scam and rug pool projects. 90% of coins and tokens in this market is scam and trash. The point here is to avoid them as soon as possible to avoiding big loss in the future.
GOOD LUCK with our INVESMENT!! Hope that the cryptocurrency market will rise again after this "Black Swain" event!