In May 2021, the cryptocurrency market experienced a tumultuous period, with the collapse of LUNA (now known as USTC) being particularly notable. Within just a few days, LUNA issued over 50 trillion tokens, causing its value to fall by 99.9% for three consecutive days. This event not only affected LUNA holders but also had a ripple effect on the entire crypto assets ecosystem.

At that time, the price of Bitcoin fell to around $35,000, and many investors originally planned to buy the dip when Bitcoin dropped below $30,000. However, the sudden collapse of LUNA attracted a lot of investors' attention and funds. Some believe this may be a market manipulation strategy designed to divert investors' focus from Bitcoin and prevent them from buying significant amounts of Bitcoin at low prices.

This event fully demonstrates the high risk and volatility of the Crypto Assets market. It reminds investors to be cautious about so-called "bottom-fishing" opportunities, as the market often exploits the human tendency to pursue quick profits. At the same time, it highlights the importance of diversifying one's investment portfolio to avoid concentrating all funds in a single asset.

The LUNA crash event has also sparked in-depth reflection on the mechanisms of stablecoins and the sustainability of decentralized finance (DeFi) projects. It has prompted regulators and industry insiders to pay more attention to risk management and investor protection issues.

Reflecting on this event, we can draw some important lessons: first, it is crucial to maintain rationality and vigilance in a highly speculative market; second, a deep understanding of the project's fundamentals and technical details can help investors avoid potential risks; finally, the market is constantly evolving, and investors need to adjust their strategies at any time to adapt to the new market environment.