In 2018, the Terra project was born under the leadership of ambitious entrepreneur Do Kwon. The main goal was to build a decentralized financial system based on stablecoins. LUNA quickly became the cornerstone of this system, playing a key role in supporting the UST stablecoin.
Do Kwon lived a life of luxury, appearing in the media confidently talking about his project that would change the face of the financial economy forever. As time passed, LUNA began to rise amazingly!
📌 2/ Ascent of LUNA:
In 2021, LUNA saw a major shift as it came under the spotlight. Its price surged to over $100, making Terra a force to be reckoned with in the crypto world. Do Kwon became a global icon, and many called him the new “Elon Musk” of crypto.
Can you imagine how fast the project grew? From nothing to billions of dollars in just a few months.
📌 3/ The beginning of the decline - the sudden collapse:
But… behind this boom was an unexpected danger. UST, the stablecoin that was the centerpiece of the system, was facing fundamental problems in its complex mechanism.
🔻 In May 2022, questions about UST’s stability began to grow. The currency lost its peg to the dollar, sparking a major crisis. Investors rushed out, leaving LUNA facing an uncertain future.
📌 4/ The spiral of doom – LUNA’s collapse:
Like a sinking ship, the project gradually lost control. Attempts to save UST by burning billions of LUNA only exacerbated the problem, causing inflation to skyrocket.
It's like trying to save a sinking ship by filling it with water instead of plugging the hole...that was the situation with LUNA and UST.
The currency, once worth over $100, collapsed to less than a cent. Investors watched in dismay as their money vanished before their eyes.
📌 5/ Decline in luxury life:
Do Kwon, who had been enjoying a life of luxury, suddenly found himself in the crosshairs of criticism. Media and investors demanded an explanation, while markets plunged into a tailspin.
✨ From the position of king to the position of convict, Do Kwon lived a dramatic journey similar to Hollywood movies.
📌 6/ The expected ending:
Despite his attempts to restore confidence by launching LUNA 2.0, Do Kwon was unable to turn back the clock. The trust that took years to build was shattered in a matter of weeks, and investors were no longer willing to take risks.
The LUNA story is not just about a currency collapse... it is an important lesson in the world of cryptocurrencies, as uncalculated risks can lead to huge losses.
📌 7/ Lessons learned:
• The story of LUNA offers an important lesson for anyone who takes risks without clear strategies, and for anyone who pursues dreams without realizing the risks. In the world of crypto, things can change very quickly, so you should always be careful.
Will you continue the adventure or will you learn from this resounding fall?
