Terra/LUNA–UST Collapse

Terra/LUNA–UST collapse 🥶

one of the most destructive events in crypto history.

📉 Here, what happened? 👇

Terra was supposed to be the future of money. Decentralized. Stable. Scalable. Then in 2022… it exploded. $40 BILLION vanished.


Meet Do Kwon, founder of Terra. Smart. Cocky. Famously said, “I don't debate the poor.” Bro was building an algorithmic Stablecoin empire.


The idea was wild but simple... UST = algorithmic Stablecoin, LUNA = volatile token that backed it. UST goes down? LUNA gets burned, UST goes up? LUNA is minted. Pure math. No dollars. No banks.

But in May 2022… UST lost its peg (aka stopped being $1). People rushed to exit. The algorithm kicked in. LUNA was minted like crazy. Price went to ZERO. Fast.


In a few days... 💀 UST dropped to $0.10. 💀 LUNA went from $80 to fractions of a cent. 💀 $40B+ in value disappeared. The “stablecoin” wasn’t so stable after all.


Real people lost homes. Startups collapsed. VCs got wrecked. Even Celsius & Voyager had exposure. The Terra crash pulled down half of crypto.


Do Kwon... Still tweeting during the crash. Went “on the run.” Got arrested in Montenegro with fake docs. Multiple countries want him now. This isn’t over.


This wasn’t a hack. It was a flawed design. No collateral. No escape valve. Just pure algo + hype = death spiral.

Do you think Terra was a scam? Or just bad code with too much confidence?