Why Did The Terra Coins Fell? What Are The Main Reasons?

[Good-Guy]

The fall of Terra coins such as Terra (Luna) and Terra(USD) has been one of the greatest shock many cryptocurrency investors have experienced. This downfall of the Terra network is quite horrible and I think that many cryptocurrency enthusiasts will never forget what just happened. Many investors lost billions of dollars after investing in the Terra coins. The Terra Luna coin fell from $67 to $0 within a few days. On the other hand, the Terra USD also fell from $1 to $0. There are so many people who are making different claims about why this happened.

One commentator stated that this happened due to the fact that the Terra coin creators basically created more tokens than that were required on the network and this led to gradual decrease in the price of the coins because the circulating supply of the coin became too high and this had an effect ion the overall market capitalisation that led to fall of the coins. Moreover, some people are even theorising that the blockchain of the Terra network ceased to work in a proper manner and this is why the coins fell in value. So, can someone explain why and how did all this began in the first place?

 

[Sotherefore]

I have tried researching on the main reason why the coin has to be so useless as it is and I have been able to find out some complicated reasons like that which I can't even explain to other people . But whatever could be the reason , I believe that is not just the best thing to do because a lot of people have lost so much of their life saving just because of that cryptocurrency and from all possible indication , There is no assurance that the cryptocurrency can be revived back from the current price to its original price.

We just have to try as much as possible to be very careful in the crypto space and we also have to understand the type of cryptocurrency we are investing on because most cryptocurrency can be so dangerous as we have seen in the case of Luna . Normally no one knew the luna could crash to such a price within that period of time.

I really thank God I did not invest a single of my earning on the cryptocurrency because I could have regretted the whole thing by now. I am just thinking about other people that invested heavily in the coin believing that they will one day sell it for profit.

 

[richpanda]

Because luna is a ponzi scheme. 20% APY is not sustainable.

 

[ArsysX]

Sems that FTX was behind the terra crash, this is one theory

 

[MayaBright]

The Terra Coins fell in value due to a combination of factors, including a decrease in demand for the coins, a decrease in the number of users, and a decrease in the number of transactions being made with the coins. Additionally, the market was flooded with new coins, which led to a decrease in the value of the Terra Coins. Finally, the market was also affected by external factors such as government regulations, which further contributed to the decline in the value of the coins.