Lessons from Luna/UST: When Confidence Creates Blind Spots

When $LUNA and $UST were booming, many saw exponential growth and an influx of confidence, especially from prominent figures in the DeFi space who vouched for the "sustainability" of its mechanism. During that time, I was one of those who overlooked certain warning signs, believing in the team and the strong community support, thinking their system was robust enough to handle any situation. The failure to question and deeply analyze the hidden risks was a costly mistake from that lesson. I underestimated the fragility of algorithmic stablecoins and was swayed by narratives more than fundamental economic and financial principles.