[et_pb_section fb_built=”1″ fullwidth=”on” _builder_version=”4.20.4″ _module_preset=”default” da_disable_devices=”off|off|off” global_colors_info=”{}” da_is_popup=”off” da_exit_intent=”off” da_has_close=”on” da_alt_close=”off” da_dark_close=”off” da_not_modal=”on” da_is_singular=”off” da_with_loader=”off” da_has_shadow=”on”][et_pb_fullwidth_header title=”The Great Crypto Crash Of 2022″ text_orientation=”center” header_fullscreen=”on” _builder_version=”4.20.4″ _module_preset=”default” title_text_align=”center” title_font_size=”32px” subhead_font=”||||||||” subhead_text_align=”center” subhead_font_size=”24px” background_color=”#191919″ background_image=”https:\/\/jmsc6110a.com\/capstone2023\/wp-content\/uploads\/2023\/05\/Crypto-Header.png” parallax=”on” filter_opacity=”95%” title_text_shadow_style=”preset2″ content_text_shadow_style=”preset2″ text_shadow_style=”preset2″ global_colors_info=”{}”]<\/p>\n
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By Wen Xudong<\/p>\n
[\/et_pb_fullwidth_header][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.20.4″ _module_preset=”default” custom_padding=”||9px||false|false” da_disable_devices=”off|off|off” global_colors_info=”{}” da_is_popup=”off” da_exit_intent=”off” da_has_close=”on” da_alt_close=”off” da_dark_close=”off” da_not_modal=”on” da_is_singular=”off” da_with_loader=”off” da_has_shadow=”on”][et_pb_row _builder_version=”4.20.4″ _module_preset=”default” width=”50%” custom_padding=”||0px|||” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.20.4″ _module_preset=”default” module_alignment=”center” min_height=”358.4px” custom_padding=”||||false|false” global_colors_info=”{}”]<\/p>\n
W<\/span>ith the high salary he was earning from his job in the technology industry, Michael Chen and his wife were able to acquire a large loan for a new house. On top of that, Chen was making a lot of money from investments in cryptocurrencies. With the profit he gained, he put a down payment on a new car and could still invest more money into the crypto market.<\/span><\/p>\n He never expected that his investment in one of the most reliable cryptocurrencies, known as stablecoin, would backfire so spectacularly. In May of 2022, he lost around HK$550,000 in a week.<\/span><\/p>\n What happened to Chen is a microcosm of the crypto market in 2022?<\/span><\/p>\n Chen was forced to sell his car, for a very low price, just to maintain his daily expenses.<\/span><\/p>\n \u201cI had to sell it. To be honest, my everyday life was affected. I couldn\u2019t afford the monthly payment for the car and I needed money to pay my huge loan for my house,\u201d he said.<\/span><\/p>\n A main characteristic of cryptocurrencies is that their prices usually see large fluctuation. This has made the crypto industry ripe for investment. \u2018Stablecoins\u2019 were introduced to provide a less volatile cryptocurrency for general online transactions.\u00a0<\/span><\/p>\n Unlike other cryptocurrency, stablecoins are usually pegged to real currencies. Whilst the price of a single Bitcoin<\/a>, arguably the most famous cryptocurrency, has ranged from HK$2340 to over HK$360,000<\/a> in the last ten years, the rate for one Tether token, the world\u2019s first stablecoin, should constantly be around 1:1. $1 for one Tether token (otherwise known as USDT).\u00a0<\/span><\/p>\n Tether achieves this by effectively having enough dollars and assets in its reserve to account for every USDT in circulation.\u00a0<\/span><\/p>\n The stablecoin and cryptocurrency Chen had invested in, and had lost him so much money from, were named UST and LUNA.<\/span><\/p>\n <\/p>\n [\/et_pb_text][et_pb_text _builder_version=”4.20.4″ _module_preset=”default” text_font_size=”24px” header_font_size=”32px” min_height=”39px” custom_margin=”13px||-1px|||” custom_padding=”||0px|||” global_colors_info=”{}”]<\/p>\n [\/et_pb_text][et_pb_text _builder_version=”4.20.4″ _module_preset=”default” module_alignment=”center” custom_margin=”||||false|false” custom_padding=”||||false|false” global_colors_info=”{}”]<\/p>\nThe Story of Terra LUNA<\/strong><\/h1>\n