Luna was by no means the only victim in a week where cryptocurrencies weredown 30%.
Its partner coin,Luna, subsequently collapsed.
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Crucially, the recent major falls in cryptocurrencies have called into question just how stablestablecoinsreally are.
For if stablecoins arent stable, then where is cryptos safe space?
Crypto confidence
Howinvestorsrespond will be key to the future of cryptocurrencies.
In this scenario, the investor doesnt want to miss out.
They see the asset rising, consider it a sure thing and then invest.
Frequently buoyed by initial successes, the investor may then put in more.
Combine this with social media and the fear of missing out on inevitable gains, and the investments continue.
Put simply, many will have invested in cryptocurrencies because they believed it would make them richer.
This belief has no doubt been shaken.
And it is this group that may yet provide hope for the sector.
In established stock market crashes we talk of a return to fundamental value.
The fundamental value of crypto is frequently assumed to be zero.
However, perhaps there is at least some fundamental value that is based on belief.
