The Cryptocurrency Roller Coaster

Allan, Chief Operations Officer

In early May 2022, the country was hard at work trying to stabilize itself from erratic spikes of the COVID-19 virus. US officials flew to Ukraine to meet with President Volodymyr Zelensky to assess the war and discuss support. As concerns over inflation permeated through the exchanges, something mystifying was brewing in the crypto markets.  

In 2018, Korean cryptocurrency developer, Do Kwon, co-founded Terraform Labs. Terraform Labs developed the Terra blockchain, which features the stable coin Terra USD and network token Terra (LUNA). This is a dual token system designed to combine the decentralized freedom of cryptocurrencies with the stability of regular, good old fashion money. Remember that outdated concept? I have invested in stable coins before, but mostly as a holding spot within my crypto exchange account. I treat them like a money market fund that I use in my stock account. Like many novice crypto investors, I used these stable coins without fully understanding the mechanics behind them.  

On May 9, the bottom was starting to fall out of Terra (LUNA). As the price of stable coins began to dip, it caused a massive sell-off. On May 15, the once popular stable coin was wiped out to the tune of $400 billion in value.  

This crash caused a ripple effect across the crypto markets, which is perfect because the stock market is also going through its downturn. So basically, there is nowhere to run. The only thing investors can do is to make thoughtful and measured decisions and stick to their long-term plans. The bottom line is that cryptocurrencies are here to stay. The crypto market, like the stock market, is expected to experience ups and downs, to have bull and bear markets. To weed out investors who are not serious about making sound decisions and not jumping on the latest trends. In the long run, the steady investor always wins.

Medallion XLN is just weeks away from our ICO launch. Please subscribe, so you don’t miss out on all the buzz surrounding our launch from some of Crypto’s biggest names, such as * classified *. Stay tuned…the world will be watching!