Cryptocurrency
A lesson to be learnt from Terra’s collapse
By The Cash Cottage  •  May 17, 2022
Terra Luna
A rising star that was ranked among the top ten Cryptocurrencies collapsed in a matter of a few days shocked the world. It was every investor’s nightmare, as Terra’s native token, Luna fell by 97.5% in a few hours from $80 to a mere 0.0004 cents in a few days. For those that invested in Luna and the Terra ecosystem, my heart goes out to you in these difficult times. It is also my regrets and apologies that I have recommended Anchor protocol as a passive income stream before. Even deep research and conviction did not help in this situation. To understand what caused the collapse, we have to take a look at the mechanism in place. What happened? The initial cause of collapse was due to the depegging of Terra’s stable coin, also known as UST. Stablecoins are usually pegged to a dollar in a 1:1 ratio. However, UST uses algorithms for the...
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By The Cash Cottage
I am a 26-year-old “Young” adult, working and doing part-time University studies. My story started when I came across the topic of personal finance at the start of this year. After the banks reduce their interest rates, I poured my time and effort to look deep into saving and investing my hard-earned money. I believe many young adults who are stepping into the world of adulting are as lost as me when I first started. My inspirations come from Youtubers and fellow financial blogs, for which I am very grateful for their guidance and now I would like to pass on the knowledge. I hope that this blog will help you in your quest for FIRE and make smarter, informed financial decisions.
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