Luna's price fluctuations can seem erratic. here's a breakdown of why that happens:

**investor speculation:** luna's dramatic shifts can primarily be attributed to active speculators. many are drawn by the potential for big gains, which can be higher for a low-market-cap asset like luna compared to more established cryptocurrencies. a single tweet or rumor can spark significant price movement.

**developers:** unlike decentralized networks like bitcoin which are developed by many independent third parties, luna's blockchain is built and controlled by one single entity. this affords substantial power to the developers, putting them in the unique position to unbelievably control luna’s price. in most cryptocurrencies, the development team or blockchain developers possess disproportionate influence over price direction, albeit without possessing control over the transactions.

**token ops:** shifts in the inflation rate or the release of additional tokens have a direct impact on supply and demand—and therefore on price. in simpler terms, if the volume of new luna being added by the developers, which is set at about 700,001 for a week, suddenly decreases, demand may outstrip supply, which would tend to increase prices.

the bottom line: luna is a plaything for the rich. if you are in it to make a quick buck, you’d probably love it. but if you’re in it long term, you could ride many seas of volatility. maybe the end will be worthwhile. this is outside of the severe global financial impact of covid-19.

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> “risk is when you don’t know what you’re doing.”
– warren buffet