Stablecoins also continue to develop, and so-called 'algorithmic stablecoins' have been working for years, which automatically adapt to supply and demand on the basis of algorithms. Shockwave among cryptocurrencies One of the most bizarre and extraordinary events in the crypto world happened last week when one of those algorithmic stablecoins Luna lost its 'peg' (1-1 peg) against the dollar. At that time, this coin was no longer worth $1 dollars, but in the end it was only worth 10 cents. 

The project was one of the top 10 cryptocurrencies in the world, and the shock wave generated by this flaw caused $1.25 trillion of cryptocurrency market cap to photo editor evaporate. This is not only because the organization behind Luna dumped 80,000 Bitcoin on the market, but also the reactions that follow standard with this kind of violent price swings. The beauty of the underlying blockchain technology is that you can analyze all transactions worldwide. 

This shows that often the youngest crypto investors (the people who have been in it the shortest) are already selling their crypto. Buy high, sell low . In addition, you see that traders who ' short' (anticipate a fall in a price) further amplify this falling effect. Also read: What can we expect from NFTs? 4 big trends Governments such as the American and European were quick to announce laws and regulations to regulate stablecoins much better. Something they announced much earlier and, for example, will already be addressed in the upcoming into effect next year.