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