The single most important lesson from the LUNA crash is one I think about every time I open a new position.
UST was offering 20% annual yield on a stablecoin and people treated it like a savings account.
When something sounds too good to be true in crypto it is almost always because the risk is hidden not because the reward is real.
The 20% yield was not being paid from organic revenue, it was being subsidised by the Luna Foundation Guard which injected $450 million just to keep the payments going, that is not a yield, that is a Ponzi with extra steps.
Do Kwon was arrested in Montenegro in March 2023 on charges of securities fraud and wire fraud.
My personal take is this, before you put your money anywhere in crypto ask yourself one question, where does this yield actually come from, if nobody can give you a clear answer to that question then you already have your answer. ⚠️
TRADE HERE -> $SOL - $DOGE -$LUNC
#LUNA
UST was offering 20% annual yield on a stablecoin and people treated it like a savings account.
When something sounds too good to be true in crypto it is almost always because the risk is hidden not because the reward is real.
The 20% yield was not being paid from organic revenue, it was being subsidised by the Luna Foundation Guard which injected $450 million just to keep the payments going, that is not a yield, that is a Ponzi with extra steps.
Do Kwon was arrested in Montenegro in March 2023 on charges of securities fraud and wire fraud.
My personal take is this, before you put your money anywhere in crypto ask yourself one question, where does this yield actually come from, if nobody can give you a clear answer to that question then you already have your answer. ⚠️
TRADE HERE -> $SOL - $DOGE -$LUNC
#LUNA