There are many reasons

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In addition to the volatile crypto, there are also all kinds of so-called 'stablecoins', which I wrote about in . This is a cryptocurrency that always retains its value. For example, the most widely used stablecoin, Tether, always equals $ . A safe haven for cryptocurrency traders, but nowadays also for residents of countries where their own currency is far from stable, such as Venezuela, Turkey and Nigeria. Most stablecoins always have a - cover with 'fiat' money, such as dollars and euros. For example, for every Tether, USDC, PAX dollar, etcetera, the issuing party has one dollar in a safe account, if you want to exchange it.

Stablecoins also continue to develop, and so-called 'algorithmic stablecoins' have been working for years, which automatically adapt to supply and demand on the basis of algorithms. Shockwave among cryptocurrencies One of the most bizarre and extraordinary events in the photo editor crypto world happened last week when one of those algorithmic stablecoins Luna lost its 'peg' ( - peg) against the dollar. At that time, this coin was no longer worth $ dollars, but in the end it was only worth cents.



The project was one of the top cryptocurrencies in the world, and the shock wave generated by this flaw caused $ . trillion of cryptocurrency market cap to evaporate. This is not only because the organization behind Luna dumped , Bitcoin on the market, but also the reactions that follow standard with this kind of violent price swings. The beauty of the underlying blockchain technology is that you can analyze all transactions worldwide. This shows that often the youngest crypto investors (the people who have been in it the shortest) are already selling their crypto.