Actually, I just made a tiktok clip about LUNA and got more views than usual, so I’m excited to write about this, but $LUNA or $LUNC doesn’t change anything guys =)))) )))) Through the article, I also want to tell you about the risk factor in this Crypto market. ————————————— ***The spiral of death*** When When it comes to $LUNA, no matter what, we have to repeat the $LUNA – UST mechanism. The mechanism that built $LUNA’s reputation and also brought down an empire in the Crypto market. In a word, when $UST is not at 1, the mint-burn mechanism will work, impacting the supply of $LUNA to ensure $UST is back to 1. When that happens, $LUNA – UST falls into a death spiral where the extra $LUNA printing failed to bring $UST back to 1, eventually resulting in the mechanism printing an infinite $LUNA. ***Yesterday’s low is today’s top*** Infinite printing of $LUNA has caused the price of $LUNA to drop dramatically. However, what I want to talk about in this article is about the unlimited discount in the value of $LUNA. If we look at the chart of $LUNA at that time, no matter what time we bought, just an hour later, our $LUNA value is always dividing by 2 in terms of value. This may be confusing for some newcomers to the market. When why is the price divided by 2, can it be divided by 2 and divided by 2 again? ***The limit at any time is always 100%*** At any point in time, like the price of a coin, we are not always limited by the uptrend, but we always limited to a discount of 100%. Even $LUNA at $30 when it drops to $0.00001 is 99% down. Similarly, when $LUNA falls from $5 to $0.00001 is also a 99% decrease, or even $LUNA decreases from $0.1 to $0.00001 is also a 99% decrease. This is similar to your capital. No matter if you have different amounts of capital, whether it is $1K or $10K or $1M, the risk to our capital is always 100%. Do not feel inferior when holding small capital, or overconfident when holding large capital, because everyone please understand that it is 100% of yourself.
Source: Collector
