Only Whales Benefit from Cryptocurrency Flaws – Terra Luna’s Case

Terra (LUNA) coin came tumbling down all the way from $120 to less than 1 dollar cent following a Soros-inspired attack that saw the conspirer take away more than $800 million. The attack took place through the accumulation of at least $1 billion of Terra Network’s algorithmic stablecoin, UST. Followed by borrowing at least $3 billion worth of Bitcoins. The attackers went on to spread a Fear, Uncertainty and Doubt about alleged bank runs and peg manipulations. Later on, the alleged attacker dumped the $3 Billion worth of BTC, which went on to trigger a worldwide panic across the crypto industry. Terra Luna’s Market Volatility LUNA’s meltdown pulled with it the majority of the cryptocurrencies, as BTC hit a 3-month low of $26K. Meanwhile, at its lowest figures, the market choppiness index for Terra coin was at its highest. Either falling by huge margins or increasing its price by 3000%+. The result has been a crypto-wide tension over the risk associated with algorithmic stablecoins such as the UST. However, another implication has been the realization that small-holder crypto traders suffer the biggest risk in case of market manipulation. There are others who claimed to have lost their life savings (about 98% of LUNA investors) during the debacle. Lost Life Savings According to this article that appeared in the Business Standard, several small-holders testified to losing their life savings; or money they were saving to buy a ho...