🚨 A Harsh Lesson from History: The Collapse of
$LUNA and $UST 🚨
In May 2022, the crypto world was shaken by the dramatic collapse of the stablecoin TerraUSD (UST) and the LUNA token, resulting in an estimated loss of $60 billion! 😱
🔹 The Beginning:
Do Kwon and Daniel Shin created the Terra network to revolutionize payments using #Stablecoin.
The UST was an algorithmic stablecoin pegged to the dollar, relying on the LUNA token instead of real assets.
The Anchor protocol promised huge returns of up to 20% annually on UST deposits, attracting most investors.
🔹 The Collapse:
In just one week in May 2022, billions of dollars were withdrawn from UST.
The currency lost its peg to the dollar (from $1 to $0.91), spreading panic among investors.
The Terra blockchain halted, and UST and LUNA were delisted from major exchanges.
Major companies like Voyager, Celsius, and 3AC declared bankruptcy!
🔹 After the Collapse:
Billions in Bitcoin reserves were pumped in to rescue the system.. but failure was its fate.
The launch of Terra 2.0 did not restore trust.
In 2023, Do Kwon was arrested in Montenegro and sentenced to prison.
⚠️ The Big Lesson:
High returns always come with high risks.
Algorithmic stablecoins are not as safe as they appear.
Transparency and risk management are the foundation of any investment.
❓ The Question Now:
Can we witness a similar collapse to #LUNA again in the crypto world?
#Luna #Terra #UST #Crypto #Digital_Currencies
#استثمار $LUNA