đ¸ The Terra Luna Collapse: $60 Billion Lost in the Greatest DeFi Crash
In May 2022, the crypto world witnessed one of the most catastrophic failures in decentralized finance (DeFi) history â the collapse of the Terra ecosystem, including its stablecoin UST and governance token LUNA.
đ UST was designed to maintain a 1:1 peg with the U.S. dollar through an algorithmic mechanism tied to LUNA. But when market conditions triggered a death spiral, the peg broke â and over $60 billion in value was wiped out within days.
đ LUNA crashed from over $100 to less than a cent. Investors, including major institutions, were blindsided. Thousands lost their life savings.
âď¸ Terra founder Do Kwon faced international investigations and arrest warrants, as the event triggered global regulatory crackdowns on stablecoins and DeFi projects.
â ď¸ The Terra crash became a turning point in crypto history â a brutal reminder of how innovation without risk controls can end in disaster.
đˇď¸ #TerraLuna
