Some days ago, I talked about the bear market and the great filter scenario where the bear market would expose cryptos with flaws regardless of their popularity or marketcap and would give room room for other with more utility, no flaws and a solid community to get noticeable and worthy of putting our money in. I had no idea that this theory was gonna have an effect on a stable coin and one of those with the biggest market cap for that matter.
Stable coins are supposed to be the safest space for anyone investing in cryptos and with the crash of LUNA and Terra, it just shows that even a stable coin cold have a flaw that could take away fortunes from their investors. It's quite sad there were flaws in even in the only place most people feel the safest and I'm honestly not happy this crash happened, I wouldn't wish it on my worst enemy.
I only wish the flaws in this project had been exposed sooner and wouldn't have tge kind of impact it had on its investors.
Frankly speaking, things could have been worse. Imagine if the project had somehow kept going and these flaws weren't exposed when the project has more investors in millions and one LUNA was about $3000, can you imagine how crazy and dreadful it would been to wake up one day and see your portfolio with stablecoins at zero value? I can't begin to imagine the impact of that kind of crash...probably x100 of its current impact.
Events like this actually expose many projects without a solid foundation and that's why the bear market is particularly the best time to do your research and get invest in certain cryptos. Right now, investing in cryptos feels aloy more riskier than I felt a couple weeks ago but the fact is that there are so much projects out there with flaws that aren't very visible now and it's gonna take a certain event to show if they're as sustainable as they appear.