The Terra LUNA crash last month sent many investors back in their returns. The crypto market generally crashed the previous month, but the 80% deep dive in Terra wasn’t funny. The panic by the investors to pull out of the crypto crash intensified the fall of many coins. Generally, the crypto market suffered a loss estimated at $400 billion in a few days. Surprisingly, a new report has emerged showing that while the Whales were dumping their holdings, the retailers were busy buying up Terra. According to the Terra investor who made the report, many smaller wallets were stocking up the coin amid the panic. New findings that many withdrawals and swaps were going on. Most of the outflows were going on Terra’s Anchor Protocol during the early days of the crash in May. Related Reading | Bitcoin Exchange Outflows Suggest That Investors Are Starting To Accumulate The Terra crash caused a lot of pain in the crypto market. According to the Policy head at Blockchain Association, Jake Chervinsky, the crash week was one of the most painful days in the history of cryptocurrency. Diverse Reasons For Terra Crash Many people have speculated several reasons for the crash. But one glaring reason is the operations of the Terra’s Anchor Protocol. According to how stablecoins operate, they’re backed by reserves which should always be adequate to pay off investors even if they all pull out at the same time. But UST is a ...
