LUNA Crash — 3 lessons from the biggest crypto crash

GM,

Hope all of you reading this post are thriving, it doesn’t matter if you lost some or if you made some during this time. Just existing in these times gives us all a huge experience boost and learning for our whole lifetime, that makes us better in the long run ;)

Terra’s Luna, the 4th largest crypto crashed in front of our eyes. It’s all over the crypto Twitter, Reddit, news channels, and even govt. authorities commenting on it. A $50 billion asset went to dust in a matter of 3 days.

Now comes the learning part, as we don’t want to indulge in who did what and where their FRICKIN’ BTCs WENT! Today, We are going to share what we learned from this epic failure.

Let’s jump right into it!

Stop Loss

I can’t emphasize enough how important stop loss is, and it doesn’t matter if you are on a centralized or decentralized exchange. If you think about it, you could have set your take profits and stop losses right, and you could be chilling while the crash happens right in front of you. While this is cliche advice, you’ll be surprised how many investors actually utilize stop losses. During crisis moments, there’s a huge surge of users flocking into DEXs and CEXs, sometimes leading to server downtimes.

Many of the DEXs don’t provide a stop-loss order functionality, which IMO is a big pain point considering how volatile crypto is.

Symphony finance provides stop-loss orders. Your orders keep earning yield on safe protocols like Aave while they are un-filled 🤯. Too good to be true? Maybe, but it is already live on Avalanche & Polygon here.

We strongly believe stop-loss is the #1 tool to save your investments during the unexpected turn of events, which is way too common in crypto.

Use DEXs with Stop-Loss, and Use them to minimize your risks.

Diversification

If you take a quick look at crypto Twitter, you’d probably see your whole feed filled with #Luna tweets. A lot of investors lost over 90% of their portfolio in one single night.

Enter diversification.

This is another thing that crypto investors need to get right. Diversify your portfolio, crypto offers multiple chains, multiple different farming opportunities, and games, there’s so much opportunity other there, still, investors put in their investments into 1–2 assets.

Symphony is currently live on two chains at the moment and has plans to go live on multiple chains in the near future. While this is to give choices to the users, we also do this to ensure that we reach a larger audience who can utilize what we offer.

Don’t put all of your eggs in one basket, Diversify!

Community

It’s all about the community. It always was. The strength of the crypto projects is always based on how strong the community is.

Instead of spending time in the echo chambers of crypto Twitter, we strongly advise everyone to take a look at what their community is talking about, what kind of replies are they getting on their official tweets, and what’s going on in their discord/telegram servers.

In the present example, Before the crash, the Luna community believed that LUNA was worth around $100+. Then the de-pegging of UST happened. And people realized that LUNA was not what they thought. The community lost trust and devalued it until it reached almost <$0.001. This all means that after all, the community around the assets is forcing the price down. While this might be a not-a-everyday thing, this is one important point to not disregard from now onwards.

Community is everything for crypto projects.

About Symphony

Symphony is a DEX trader’s one-stop destination in which you could trade cryptos just as you do on CEXs like Binance, Coinbase, etc. We revolutionized limit orders by combining them with yield farming, in YOLO our flagship product. To put it simply, you earn a safe yield while you wait for your orders to be filled at your desired price. Yes! you heard that right!

Have you tried out our dapp yet? If you haven’t, head over to https://app.symphony.finance.

We also invite you over to our discord server, come and be a part of the exciting future that we are building — Discord

Also, check out our Twitter and give a follow if you haven’t yet — Twitter

That’s it for now, I will be back with another article soon. Take care till then, GO YOLO!

#DefiMultiTasking

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Yield generating limit orders

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