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The Collapse of LUNA & UST and the Vulnerability in Crypto | Nathaniel Whittemore

Hidden Forces

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The Collapse of Luna: A Cautionary Tale

This chapter explores the rise and dramatic fall of the LUNA and UST ecosystem, examining the crucial factors that led to their collapse. It highlights the interconnected mechanisms between the stablecoin and its collateral, revealing how investor panic and market perceptions spiraled into a hyperinflationary crisis. Additionally, the discussion reflects on broader economic implications and the cultural dynamics driving the behavior of cryptocurrency investors.

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