Learnings from Terra UST failure

  1. Can you still participate in such “Ponzi scheme” project, for example, Terra? The answer is Yes, you can, but you should be aware that you may lose everything you put in. (you: “this is nonsense…”. Then keep on reading the point #2. )
  2. You still want to take the risk because the return might be huge. Do some research yourself, do not just listen to others. However, it can only help you filter out low-quality scam projects. How can you avoid such a big project like Terra? No, you cannot. (you: “Really? it doesn’t help at all…”)
  3. After the research, you know there are risks, but you still don’t want to miss the “chance”. Last step: you need an Exit plan, a plan to help you reduce some risk and cash out at the right time. For example, the attack will most likely happen in a bear market because it wants to create a death spiral effect together with the downward market. If Luna market cap falls below UST market cap, de-peg will likely happen; hence set price warning and take action.

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Yudi

Yudi

Founder of Things Protocol, project lead of MobiFi, ex CTO advisor of Shell