Black Swan Event

By: WEEX|2024/10/17 13:53:54
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A black swan event refers to a rare and unexpected occurrence that has a significant impact on the market or an industry. The term originates from the work of Nassim Nicholas Taleb, who described these events as unpredictable and having extreme consequences. In the cryptocurrency market, a black swan event could involve anything from regulatory crackdowns to major exchange hacks or the sudden failure of a prominent project, all of which can lead to market crashes. One notable example is the 2022 collapse of Terra (LUNA) and its algorithmic stablecoin UST, which caused a massive shock to the entire crypto market, wiping out billions in value. These events are difficult to predict and often lead to high volatility, major sell-offs, and loss of confidence among investors.

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