The collapse of Terra (LUNA) and its stablecoin TerraUSD (UST) was the biggest disaster in crypto history thus far. Billions evaporated in days, leaving investors devastated. But the question no one asks is: have we learned anything from this?
The facts:
UST was an algorithmic stablecoin, without solid backing: It depended on an artificial relationship with LUNA to maintain its parity with the dollar. When trust broke, everything fell apart.
$60 billion in market value was wiped out, affecting millions of investors and even large institutions.
The founder, Do Kwon, disappeared, leaving a trail of losses, lawsuits and investigations.
Now, the controversial part:
LUNA was just the beginning – the market is full of other ticking time bombs.
Many projects continue to use similar models, promising very high returns while ignoring sustainability.
Regulators are keeping an eye on things, but the market doesn’t seem to have learned to be suspicious of projects with fragile economic models.
Final question:
Are you investing in technology or a scheme that could fall apart overnight?
The Terra disaster showed how hype can blind investors, but only the most attentive will survive the next collapses.
Link in bio. Learn from the past before it's too late.
The facts: