What’s the Difference Between the Mantra (OM) and Terra Luna Classic (LUNC) Crashes?
While both OM and LUNC saw significant declines in value, their crashes unfolded for very different reasons:
Mantra (OM):
The price of OM declined due to broader market conditions, limited adoption, and a gradual loss of momentum in its original DeFi-focused strategy. There was no protocol failure—just a market-driven downtrend. The team has since shifted focus toward real-world assets (RWAs) and expanded cross-chain functionality.
Terra Luna Classic (LUNC):
LUNC’s collapse was triggered by the depegging of UST in 2022. The algorithm attempted to stabilize UST by minting massive amounts of LUNA (now LUNC), leading to hyperinflation and a near-total value wipeout. The ecosystem later split, birthing LUNA 2.0, while LUNC is now maintained by the community.
Key Takeaway:
OM's decline was a slow market correction followed by strategic evolution. LUNC's crash was a system-wide failure with rapid, irreversible consequences. Understanding the cause behind each helps investors navigate risk and resilience in the crypto space.