Crypto Luna Plummets in Value
The leading cryptocurrency stablecoin is generally anchored to a real asset so it can be redeemed at parity with that asset, preserving stable value—like Luna, which was pegged to the US dollar. To give it real worth and avoid being hollow, they even invented virtual banks offering 20% annualized returns to attract investors.
Then, as they gradually became unable to sustain that 20% steady return, inevitably some people cashed out at the top and ran—which is where money always flows toward maximum profit—triggering panic, bank runs, and the stablecoin collapsing back into nothing.
If a currency can't correspond to real productive value in the physical world, it's basically hollow. Cryptocurrency is actually a lot like QQ coins: it has value as long as you can redeem it for real goods and services through JD cards or similar vouchers. The moment Tencent or JD declares you can no longer use it to top up memberships, pay phone bills, or buy things, it becomes worthless.
Speculation is based on offloading risk onto the next buyer; investing is based on genuine applied value.