If you bought £100 in Luna a month ago, you may have felt assured. Luna's value has now plummeted; £100 is now just 4p. If you want to know more about crypto and its future go here

Luna wasn't the only cryptocurrency to drop 30% last week. Some have returned, but the market lost nearly $500 million in seven days, raising serious doubts about its survival.This fall was likely prompted by a "attack" on the stablecoin Terra (UST), which is intended to mirror the US dollar but is trading at 18 cents. Luna fell after it. This complicated assault includes initiating repeated transactions in the crypto market to trigger particular consequences, which might give the "attacker" with huge winnings.

These deals led Terra to plummet, which dragged down Luna. This produced fear, market withdrawals, and increased panic. Some (but not all) stablecoins depend heavily on perception and confidence, which may lead to huge drops.Recent cryptocurrency declines have questioned the stability of stablecoins. They're supposed to be almost risk-free by "pegging" to another asset. Yet this week's impacts spread across the whole crypto market, creating single-day losses similar to – or worse than – a "Black Wednesday" for crypto (Black Wednesday was the day in 1992 when speculators forced a collapse in the value of the pound). Even Tether, the top stablecoin, fell to 95 cents on the dollar, highlighting the need for regulation. Where is crypto's safe place if stablecoins aren't?

Cryptotrust The future of cryptocurrencies depends on investors. Some have compared this catastrophe to a classic bank run. Bank run consumers fear that their bank won't give them their money, not that it's worthless. A better parallel is to stock market collapses, when investors fear their holdings may lose value. So far, crypto holders' reactions to the meltdown imply they perceive their assets similarly. Despite previous price volatility, investors frequently assume asset prices will keep rising. In this situation, the investor wants in. They see the asset increasing, think it's "sure," and invest.

The investor may invest more after early success. Add social media and fear of "inevitable" benefits, and investments continue. Simply put, many investors assumed cryptocurrency would make them wealthy. This belief is shattered.Investing in cryptocurrencies may also be motivated by the expectation that they will replace existing financial exchanges.

For these investors, a cryptocurrency's rising value shows its growing dominance over conventional money. A large decrease in crypto's value is also an ideological loss. This ideological viewpoint makes investors less inclined to sell in a steep decline. This group may give the sector optimism. We speak about "fundamental value" in stock market collapses. Crypto is often thought to be worthless. Perhaps there's some belief-based worth, however. The amount of the investment pool who believes in crypto's long-term future and the promise of a new money may decide its intrinsic worth. Considering bitcoin investors as diverse groups with varied incentives helps us understand their behavior. We may have seen the worst of this catastrophe, and brighter days may be coming. In bitcoin, like in every market, nothing is certain, as any financial consultant would tell you.