Re: Will LUNA's downfall scare away investors from the crypto market?
The fall of LUNA plunged many investors into a financial hole and it will be extremely difficult to restore confidence, as many lost a lot of money on this fall. Against the backdrop of a sell-off in the cryptocurrency market, other altcoins and stablecoins also suffered. Although such collapses of large tokens in the crypto market are rare, the fall of the UST stablecoin will undermine the credibility of all other stablecoins, even secured ones, and this threatens capital outflow, which we are now seeing.
Many investors are angry with the LUNA/UST collapse, so it's going to take a while before confidence is restored into the crypto market as a whole. There's a lot of negativism right now, leading major cryptocurrencies like Bitcoin and Ethereum downhill. I'd say the Terra project is already doomed, because the team failed to meet with the community's (and investors') demands. Instead, they listed to the validators by making a new chain from scratch. Money was put above the community's interests.
You can already see the new Terra 2.0 coin struggling to reach the "double digits", so it's likely the project will fade into oblivion as people move on to the next big thing in crypto. Who knows if crypto emerges bigger and stronger after the LUNA/UST crash? Just my opinion
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I think when the terra project tries to recreate a new coin which is currently called LUNA and the token that was previously LUNC then it will still not be able to give trust to investors and whales again, the founder of terra in my opinion is very lucky because it is still alive and well. do not run into hiding because there are several other projects that have developed well and one day collapsed, causing the founders and developers to leave the project.
I think all the projects developed by Do Kwon are not very interesting anymore and it's better to try other altcoin projects and make this terra an important lesson that cryptocurrency has a very high risk.