StablecoinLessons

1️⃣ The Rise of Terra Luna – A Stablecoin Revolution

Terra Luna was supposed to be the future of decentralized finance (DeFi). Founded by Do Kwon, it introduced TerraUSD (UST)—an algorithmic stablecoin designed to maintain a 1:1 peg to the US dollar.

✔️ UST was backed by Luna, creating a self-sustaining ecosystem.

✔️ Investors poured billions into Terra, believing it was the safest stablecoin.

✔️ Anchor Protocol offered 20% APY, attracting massive deposits.

For a while, it worked. Terra Luna became one of the top crypto projects, with a market cap of $60 billion.

2️⃣ The Collapse That No One Saw Coming

🚨 On May 7, 2022, UST lost its peg, dropping below $1.

🚨 Investors panicked, withdrawing billions from Anchor Protocol.

🚨 Luna’s price crashed, triggering a death spiral—UST kept falling, and Luna hyperinflated.

Within days, Terra Luna went from $60 billion to nearly zero.

3️⃣ The Aftermath: Chaos and Arrests

✔️ Do Kwon went into hiding, avoiding authorities.

✔️ Millions of investors lost everything, wiping out life savings.

✔️ South Korea issued an arrest warrant, leading to Do Kwon’s capture in Montenegro.

4️⃣ The Lessons That Changed Crypto Forever

✔️ Algorithmic stablecoins are risky—UST’s collapse proved they can fail.

✔️ High yields aren’t sustainable—Anchor’s 20% APY was too good to be true.

✔️ Regulation is coming—Governments are now cracking down on stablecoins.

#TerraLunaCollapse
#CryptoHistory #StablecoinLessons
#Write2Earn

This is the grand finale of Season Two—but is it really the end? 🚀🔥