Two years ago today, on May 15, 2022, Terra’s LUNA cryptocurrency lost 99.999% of its value, marking one of the darkest days in the crypto market's history.
The coin plummeted from $100 to less than $0.002 within a week, resulting in over $7 billion in losses for investors. LUNA's collapse was tied to Terra's algorithmic stablecoin, UST, which lacked backing and stability.
When UST lost 40% of its value, LUNA followed suit. Terra's founder, Do Kwon, fled but was eventually apprehended in Montenegro and is facing charges in South Korea. Despite attempts to revive the project with a new coin, both LUNA and its successor, LUNC, remain largely worthless.
This incident underscores the inherent risks in the altcoin market, emphasizing the need for caution when investing in such volatile assets.