Saturday, 25 May 2024

Crypto News

Community reflects on the lessons learned

Community reflects on the lessons learned

On the anniversary of the Terra Luna (LUNA) crash, the cryptocurrency community reflected on the lessons learned from the event that wiped out $40 billion in value and caused Bitcoin to drop from $28,000 to $19,000. While the incident was undoubtedly painful for those who lost money, it also served as a wake-up call for the industry to focus on liquidity, transparency, and user protection. 

Binance CEO Changpeng Zhao (CZ) shared Bitcoin’s price movement history in a tweet on May 11, recalling the crash of LUNA that occurred one year ago. CZ stated that there are several valuable lessons to be learned from this event. Following the crash, CZ has been emphasizing the importance of transparency and safeguarding users through his messaging, including his “poor again” tweet.

To prevent governance attacks after the significant devaluation of LUNA token, validators of the Terra blockchain swung into action on Thursday, May 12, to stop network activity.

Some members of the community expressed frustration that such a massive crash could occur in the first place, while others pointed out lessons they had learned from the incident, such as never trading emotionally and being strategic. 

Obinna Uzoije a certified data expert, talked about the necessity of doing due diligence on emerging projects before investing. Considering that the cryptocurrency market is highly volatile, and investing without proper research can result in significant losses.

Another member of the LUNA community mentioned that a well-cut-out risk management system can help prevent losses in crypto by providing a framework for managing risk and ensuring that investment decisions are based on sound analysis and planning. This system can include setting stop-loss orders to automatically sell assets if prices fall below a certain level, diversifying investments across different cryptocurrencies and assets, and setting allocation limits for each asset.

Despite the frustration, many in the community commended the step taken by Binance in the wake of the crash. Binance had let the Terra project team compensate affected retail users…

Click Here to Read the Full Original Article at News…