Study: #TerraUSD Crash Caused by Coordinated Trading Attack
Researchers have found new evidence that the $3.5 billion TerraUSD and $LUNA crash in 2022 was likely caused by a coordinated trading attack. Instead of normal market activity spread across many traders, just a few controlled nearly all trading right before the collapse. This pattern suggests a planned effort to crash the system.
The team used a method called temporal multilayer graph analysis to study trading behavior on Ethereum. Their data showed that five or six traders acted in sync, each holding almost the same market share — too precise to be random.
They developed the tool with Pometry, a spin-out from Queen Mary University of London. The study was published in ACM Transactions on the Web by Cheick Tidiane Ba, Ben Steer, Matteo Zignani and Richard Clegg.
Over the past month, both Terra Luna Classic ( $LUNC ) and Ethereum ( $ETH ) have experienced declines in their market values.
Terra Luna Classic (LUNC): •March 2025: LUNC’s price decreased by approximately 3.57%, starting at $0.00006749 and closing at $0.00006508. •April 9, 2025: LUNC is trading at approximately $0.00005554.
This represents a further decline of about 14.6% since the end of March.
Ethereum (ETH): •March 2, 2025: ETH was trading at approximately $2,213.99. •April 9, 2025: ETH is priced at about $1,483.35.
This indicates a decrease of approximately 33% over the past month.
The question of whether FTX was involved in the Luna/UST depeg and crash in May 2022 is a complex one, with no definitive proof but plenty of speculation and some circumstantial evidence floating around.
Here’s what we know: The Terra ecosystem, with its algorithmic stablecoin UST and native token Luna, collapsed spectacularly when UST lost its $1 peg, triggering a death spiral that wiped out around $40 billion in market value. This started around May 7, 2022, when massive sell-offs of UST—over $2 billion unstaked from the Anchor Protocol—kicked off a panic. Luna’s price tanked from $80 to fractions of a cent as the system’s mint-and-burn mechanism failed under pressure.
Now, where does FTX fit in? After FTX’s own collapse in November 2022, U.S. prosecutors reportedly started looking into whether Sam Bankman-Fried (SBF), FTX’s founder, and his hedge fund Alameda Research might have played a role in Terra’s downfall. The theory is that they could have manipulated markets to profit from the crash, possibly through shorting Luna or orchestrating trades that destabilized UST. Some on-chain whispers—like claims from crypto analysts on X—suggest FTX and Alameda pulled large amounts of UST from liquidity pools (e.g., $200 million each with Celsius) at a vulnerable moment, potentially accelerating the depeg. Do Kwon, Terra’s founder, even pointed fingers, alleging Alameda sold 500 million UST in February 2021 to drain Curve pools and later shorted Bitcoin to weaken Luna Foundation Guard’s reserves during the May crash.
But here’s the rub: there’s no smoking gun. Investigations were in early stages as of late 2022, and no conclusive findings have pinned FTX as the mastermind. Blockchain analytics like Nansen’s May 2022 report argue the depeg wasn’t a single-player attack but a cascade of events—big swaps on-chain (e.g., 85 million UST for USDC on May 7) and poor liquidity on centralized exchanges like Binance and FTX.
USTC’s expertise in high-performance computing and algorithm optimization could help Wanchain address scalability bottlenecks in cross-chain transactions. This might result in faster, more efficient bridges between blockchains like Ethereum and Polkadot, enhancing Wanchain’s throughput.
2. Advancement of Decentralized Identity Solutions
Combining USTC’s research in secure data systems with Wanchain’s decentralized infrastructure could lead to innovative self-sovereign identity (SSI) protocols. These could enable secure, privacy-preserving identity verification across multiple blockchains, benefiting sectors like healthcare or finance.
3. Integration of Quantum-Resistant Blockchain Features
With USTC’s leadership in quantum technology (e.g., its quantum communication projects), a collaboration could pioneer quantum-resistant cryptographic methods for Wanchain. This would future-proof Wanchain’s ecosystem against quantum computing threats, a growing concern in blockchain security.
4. Development of Green Blockchain Technologies
USTC’s work in energy-efficient systems and renewable energy research could inspire Wanchain to reduce the environmental footprint of its blockchain operations. This might involve optimizing consensus mechanisms or integrating energy grid data, aligning with global sustainability goals.
5. Access to Government and Industry Networks
USTC’s connections with Chinese government bodies and state-owned enterprises (e.g., its State Grid ties) could open doors for Wanchain to pilot blockchain projects in regulated sectors. This could accelerate adoption of Wanchain’s technology in areas like supply chain tracking or digital currency infrastructure.
#LUNC “inflation rate” comparison with other POS blockchains 🔥
#LUNC “inflation rate” comparison with other POS blockchains 🔥 Ethereum ( #ETH )
- Inflation Rate: Since the Merge in September 2022, Ethereum transitioned to PoS, significantly reducing its issuance. As of March 2025, Ethereum’s inflation rate is near zero or slightly deflationary, depending on network activity. Base issuance is about 0.5-1% annually (around 970,000 ETH minted yearly for a 120 million ETH supply), but this is offset by EIP-1559, which burns transaction fees. In 2024, burns
The Luna Classic DAO is proud to announce its LLC approval by the great State of Wyoming.
We welcome the #LUNCcommunity on this journey to take #LunaClassic and $WESO to new heights. 🤝
What does it mean? 👇👇👇
- The Luna Classic DAO's LLC approval in Wyoming marks it as the first U.S. state to legally recognize Decentralized Autonomous Organizations as LLCs, a move formalized under Wyoming's DAO law effective July 1, 2021.
- This approval enhances Luna Classic's ($LUNC ) legal structure, potentially increasing investor confidence and enabling the project to engage more effectively in regulated financial activities.
- The mention of $WESO ties into WESO's role as an industrial landlord for blockchain economies, suggesting a strategic partnership or integration to bolster Luna Classic's infrastructure.
- Luna Classic's burn mechanism, which reduces its token supply to potentially increase value, continues to be a key feature, as highlighted in recent discussions about its market strategy and community resilience.
Terra Luna Classic just hit a Nakamoto Index of 6. For those wondering what that means—buckle up, it’s a sign the network’s getting more decentralized.
Luna Classic community is looking for options to peg back stablecoins👇
1/15 🚨 Re-pegging Terra’s small stablecoins: The fastest way to rebuild confidence? Let’s break it down. 🧵👇 #Crypto #Terra #USTC #LUNC
2/15 While everyone focuses on USTC’s massive supply (8.19B), the real opportunity lies in low-supply stablecoins that are far easier to re-peg! 💡
3/15 🏆 The top small-cap stablecoins with the lowest total supply: • CHTC (15,766 CHF) 🇨🇭 • EUTC (62,541 EUR) 🇪🇺 • CATC (19,074 CAD) 🇨🇦 • HKTC (36,449 HKD) 🇭🇰 • NOTC (31,028 NOK) 🇳🇴
4/15 Why focus on these? ✅ Lower supply → Easier to restore peg ✅ Requires less liquidity to stabilize ✅ Builds confidence before tackling bigger assets like USTC
5/15 🔥 Step 1: Burn excess supply • If any of these stablecoins were over-issued, controlled burns can quickly restore balance • With a supply under 100K, even modest burns could have a huge impact!
6/15 🔄 Step 2: Liquidity pools (LPs) for arbitrage • LPs allow traders to buy below $1 and sell above $1 • If liquidity is deep enough, arbitrage will naturally restore the peg • Market makers can support this with incentives
7/15 ⚖️ Step 3: Demand & Utility • Creating real use cases for small-cap stables ensures lasting stability • Example: Payments, DeFi integrations, on-chain Forex trading • A pegged stablecoin is useless without demand!
8/15 🚀 Step 4: Market Maker Support • Working with CEXs & DEXs to establish peg support • If an entity offers to back-stop price deviations, the peg becomes more resilient
9/15 🛠 Step 5: Governance & Treasury Reserves • A treasury can hold USD, BTC, or other assets as backing • This helps stabilize price movements if arbitrage alone isn’t enough.
As was stated by founder of Cardano, @IOHK_Charles , one of the main focus for Cardano this year will be stablecoins. #LUNC is quite rich with stablecoins , that can be used. #LUNCcommunity is willing to collaborate with Cardano and integrate #USTC for mass adoption. I created few key points how it can beneficial for both parties. 1. Decentralised Finance (DeFi) Integration Use Case: USTC can be integrated into Cardano’s growing DeFi ecosystem for various applications. •Stable Asset for Lendin
How #ADA can collaborate with #LUNC and what benefits collaboration will give to both parties?👀 Utility in Cardano’s Ecosystem •Cardano’s Djed Stablecoin: Cardano has launched Djed, a decentralized, overcollateralized stablecoin designed to provide price stability in DeFi applications. • USTC as an Additional Stablecoin: USTC could be used as an alternative stablecoin within Cardano’s DeFi ecosystem, providing diversity and choice for users seeking stable assets for lending, borrowing, or trad
🧵 The Legendary XRP Comeback & Why #TerraClassic (LUNC) Could Follow a Similar Path 🚀
1/ XRP’s ATL & ATH Story 📉➡️📈 In July 2014, XRP hit its All-Time Low (ATL) of $0.0028. Fast forward to January 2018, XRP reached an All-Time High (ATH) of $3.40 — an incredible rise of over 121,000% in just 3.5 years.
2/ How Did XRP Recover? Despite regulatory challenges & market crashes, XRP leveraged: ✅ Strong community backing ✅ Ongoing real-world use cases (RippleNet) ✅ Resilience in long-term market cycles
The lesson? Even when sentiment was low, XRP never disappeared.
3/ Enter Terra Classic (LUNC): The Parallel Story 📉 After the Terra ecosystem collapse in May 2022, LUNC dropped to near-zero, shaking the crypto world. Many declared it dead.
But like #XRP, LUNC’s story isn’t over.
4/ #LUNC’s Potential for a Comeback 🚀 Here’s why #LUNC could stage its own legendary recovery: ✅ Strong Community: A global army of believers still supports LUNC. ✅ Burn Mechanism: Token burns are actively reducing LUNC supply. ✅ Decentralized Efforts: Developers & community initiatives drive rebuilding.
5/ Resilience in Crypto Cycles 🔄 History shows that crypto projects can recover when: •Community-driven efforts stay strong •Supply dynamics improve •Utility & innovation return
LUNC has elements that could align with this formula.
6/ The Road Ahead 🌐 While LUNC’s comeback won’t be instant, history (like XRP’s recovery) teaches us that patience & belief in fundamentals can reward long-term holders.
Main developer from Luna Classic Blockchain @TheVinhNguyen4 just posted commonwealth discussion for $LUNC core security upgrade package. commonwealth.im/terra-luna-cla…$51k is required for whole job to be done within 11 weeks duration, and equivalent of #LUNC will be calculated upon approval the proposal. https://commonwealth.im/terra-luna-classic-lunc/discussion/14878-terra-classic-core-security-upgrade-package