Lessons from Luna/UST: When Confidence Creates Blind Spots

When $LUNA and $UST were booming, many saw explosive growth and an influx of confidence, especially from DeFi celebrities who vouched for the "sustainability" of this mechanism. At that time, I was one of those who overlooked some warning signs, believing in the team and the support from a large community, thinking their system would be strong enough to handle any situation. The failure to question and deeply analyze the hidden risks was a mistake that made that lesson expensive. I underestimated the fragility of algorithmic stablecoins and believed in narratives more than fundamental economic and financial principles.