Crypto ACG
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đ¨ LUNA: The Biggest Crypto Scam in History đ $40 Billion Lost in One Day đ¨
The collapse of Terra (LUNA) remains one of the most shocking events in crypto history. In just one day, a staggering $40 billion vanished from the market, leaving millions of investors in devastation. But how did this happen?
Hereâs the untold story of Terraâs catastrophic failureâand the lessons every crypto investor must learn. đđđ
1/ The Terra blockchain, with its UST algorithmic stablecoin, promised to revolutionize payments. But unlike stablecoins backed by reserves, UST relied on an unstable mechanism with LUNA to maintain its $1 peg.
2/ The idea was simple: users could always exchange 1 UST for $1 worth of LUNA. But when the system was stressed, the very mechanism designed to stabilize UST turned into a death spiral.
3/ In May 2022, UST began to lose its peg after massive withdrawals from Anchor, a DeFi platform offering high yields. This caused panic and selling pressure, triggering the mechanism to mint more LUNA. But this flooded the market and sent LUNAâs price plummeting.
4/ As UST dropped to $0.10 and LUNAâs supply exploded, the value of LUNA crashed from $80 to $0.0001 within days. Major exchanges delisted the tokens, and Terraâs $40 billion market cap vanished almost overnight.
5/ Do Kwon, the controversial founder, had made bold claims about Terraâs success. But as the crash unfolded, his confidence turned to damage control. His plans to ârecoverâ by forking the blockchain fell flat, leaving many feeling betrayed.
6/ Lawsuits piled up, regulators came after Do Kwon, and investigations began into potential fraud and market manipulation. The crypto world was shaken to its core.
7/ The final blow? Do Kwon was arrested in March 2023 after months on the run, caught with a forged passport in Montenegro. His detention marked a pivotal moment in the fallout, with international authorities closing
#BTCBackto100K #CPIPlunge2025 #USPPISoftens #BinanceAlphaAlert #Write2Earn
The collapse of Terra (LUNA) remains one of the most shocking events in crypto history. In just one day, a staggering $40 billion vanished from the market, leaving millions of investors in devastation. But how did this happen?
Hereâs the untold story of Terraâs catastrophic failureâand the lessons every crypto investor must learn. đđđ
1/ The Terra blockchain, with its UST algorithmic stablecoin, promised to revolutionize payments. But unlike stablecoins backed by reserves, UST relied on an unstable mechanism with LUNA to maintain its $1 peg.
2/ The idea was simple: users could always exchange 1 UST for $1 worth of LUNA. But when the system was stressed, the very mechanism designed to stabilize UST turned into a death spiral.
3/ In May 2022, UST began to lose its peg after massive withdrawals from Anchor, a DeFi platform offering high yields. This caused panic and selling pressure, triggering the mechanism to mint more LUNA. But this flooded the market and sent LUNAâs price plummeting.
4/ As UST dropped to $0.10 and LUNAâs supply exploded, the value of LUNA crashed from $80 to $0.0001 within days. Major exchanges delisted the tokens, and Terraâs $40 billion market cap vanished almost overnight.
5/ Do Kwon, the controversial founder, had made bold claims about Terraâs success. But as the crash unfolded, his confidence turned to damage control. His plans to ârecoverâ by forking the blockchain fell flat, leaving many feeling betrayed.
6/ Lawsuits piled up, regulators came after Do Kwon, and investigations began into potential fraud and market manipulation. The crypto world was shaken to its core.
7/ The final blow? Do Kwon was arrested in March 2023 after months on the run, caught with a forged passport in Montenegro. His detention marked a pivotal moment in the fallout, with international authorities closing
#BTCBackto100K #CPIPlunge2025 #USPPISoftens #BinanceAlphaAlert #Write2Earn
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