RippleVictory

Bitcoin regained the $83,000 level after dropping to $81,000 yesterday, ahead of the Federal Open Market Committee (FOMC) meeting.
The price of Bitcoin has experienced notable fluctuations recently, as it fell below $77,000 last week before stabilizing above $80,000.
Despite attempts to rise towards $85,000, every upward wave faced a quick corrective drop, as occurred over the weekend and on Monday.

The 2022 collapse of LUNA and UST remains one of the biggest disasters in crypto history, wiping out billions of dollars in investor funds. Many traders, including myself, saw hard-earned money disappear overnight as LUNA crashed from $116 to nearly zero—a catastrophic event that shook the entire market.

💥 What Really Happened?

Terraform Labs, founded by Do Kwon, promised a revolutionary stablecoin, TerraUSD (UST), that would always maintain a $1 peg. However, unlike traditional stablecoins backed by real-world assets, UST relied on an algorithmic mechanism involving LUNA. When confidence in this system collapsed, both UST and LUNA plummeted, leaving investors with worthless tokens.

🚨 Do Kwon’s Alleged Fraud – Was It a Perfect Scam?

New reports reveal that Do Kwon may have deceived investors all along:

🔹 False Stability Claims – Kwon allegedly told investors that the Terra Protocol automatically stabilized UST when it depegged in 2021. Reality? A high-frequency trading firm secretly bought millions of UST to manipulate its price.

🔹 No Backup Plan – As LUNA crashed, Terraform Labs had no emergency response, leaving investors to suffer devastating losses.

🔹 Legal Consequences – In June 2024, Kwon agreed to pay an $80 million fine and was banned from crypto transactions as part of a $4.55 billion settlement with the U.S. SEC. Meanwhile, LUNC (formerly LUNA) and UST continue to trade at nearly zero.

💸 Lessons from the LUNA Crash

1️⃣ Never Go All-In on One Crypto

Putting all your funds into a single project—even a top-ranked one like LUNA—is risky. Diversify across multiple assets to reduce your losses in case of failure.

2️⃣ Don’t Trust Hype & Big Promises

The crypto market is full of projects that seem promising but lack solid foundations. Always research a project’s fundamentals before investing.

3️⃣ Be Wary of Algorithmic Stablecoins

Unlike USDC or USDT, algorithmic stablecoins rely on unproven mechanisms. If confidence breaks, they can collapse instantly, as UST did.

📉 Final Thoughts: The Risk of Blind Trust

The LUNA disaster was a brutal wake-up call for the crypto community. While some still believe in LUNC’s revival, the damage was done—trust was lost, and billions vanished. Whether this was a perfect scam or just a failed experiment, one thing is clear:

🚨 Never put all your money into one project, no matter how promising it looks.

👉 Did you lose money in the LUNA crash? Share your experience below!