Terra (LUNA) is a chain that declined just like its tokens. However, the population that trusted it accepted and launched a plan to reactivate this cryptographic system.
The stable coin UST, one of the most influential today, and LUNA, which is a similar token and does not allow the variability of the value of UST, unexpectedly plummeted to zero today; these cryptocurrencies before the fall were located in the first places critical.
Many investors gave their capital invested in that blockchain network a total loss, after which the terra employees were significantly affected because their financial support was at risk. Still, other cryptocurrencies such as Kadena and Polygon quickly made very lucrative proposals to these workers.
Effects of this crash on investment funds
The CEOs of the investment fund (3AC) Three Arrows Capital assure that it was their investment in the Ethereum Token staking and LUNA, the main reason for their financial collapse; in the same way, GBTC fund bases its price on the value of bitcoin. If you are interested in trading, you might want to consider knowing about the benefits of Bitcoin.
This unexpected process led to the outcome of worrying measures for the creators of said funds, who received serious threats, even to the point of an attempt on their lives, by their active investors.
The opinion issued by the developers of 3AC regarding these losses was that due to the unexpected fall of the cryptocurrencies in question, it did not give them a chance to evaluate the situation and take measures to avoid the total breakdown of the fund, which had repercussions in the entire crypto market.
The last thing that ended up causing the total fall of the investment funds was the devaluation of bitcoin to values such as 20 thousand dollars per unit; this generated much more chaos, resulting in the discontent and frustration of those who remained in the funds of investment. However, transactions continued, which ended in losses.
Investment fund 3AC influenced the crypto winter.
The economic crisis of this investment fund also wreaked havoc on some companies due to their mismanagement and administration of capital, which created a barrier between it and the world economy.
On its exchange platform, Blockchain canceled transactions in Argentina due to the economic commitments to pay that the 3AC fund maintains with the cryptographic network of blocks.
Many crypto investment funds have been in total collapse due to the sudden fall of the LUNA cryptocurrency, taking radical measures affecting their workers directly since they have been dismissed from their positions, assuming that this strategy could represent a way out.
However, many other organizations have made this fall the basis to focus on new recovery and economic growth strategies, such as the experience of Celsius. This platform manages investments and financing in cryptocurrencies, with assets detained.
This economic breakdown gave way to the arrival of the crypto winter that we experienced at the beginning of this current year; the recession in the value of cryptocurrencies affected the entire digital economy worldwide and from which it is only recovering at a languid pace.
The crypto winter phenomenon only makes things worse because trades and trades remain stagnant; no one wants to trade to lose, keeping transactions paralyzed and consequently stagnating crypto prices.
Conclusion
Investment funds are a very convenient tool when investing with cryptocurrencies since they offer significant profits, among which is the rapid increase in invested capital.
Making investments in this type of economic strategy does not always result in disadvantage and loss; it is a risk that is run when entering this environment; we have to be very attentive to the changes that the market presents in terms of supply and demand of the cryptocurrencies or tokens that represent a particular fund.
Today’s economy is inclusive and allows us to be part of that tremendous evolutionary movement that blockchain technology has brought, where cryptocurrencies are the protagonists and have achieved significant economic value.
It is time to make decisions, which allow us to increase our assets in a considerable period, and investment funds are a good option; we only need to know the behavior of the currencies with which they operate to define their profitability and variability, thus achieving a way to be successful.