đ âThe Rise and Collapse of Terra (LUNA): From $119 Glory to a Catastrophic Downfallâ đ
In one of cryptoâs most dramatic sagas, Terra (LUNA) rose to fame, peaking at an all-time high of $119, only to crash to a staggering $0.00001 in May 2022. This historic implosion erased $60 billion in market value and left the crypto world reeling. Here's the story of LUNAâs meteoric rise, its disastrous collapse, and its rebirth as Luna Classic (LUNC).
---
đ The Meteoric Rise of LUNA
1ïžâŁ A Bold Vision: Terra, spearheaded by Do Kwon and Terraform Labs, sought to redefine payments with its algorithmic stablecoin, UST, backed by its native token, LUNA.
2ïžâŁ Unprecedented Growth: By early 2022, Terraâs DeFi ecosystem boomed, with billions in Total Value Locked (TVL) and LUNA reaching its apex of $119 in April 2022.
3ïžâŁ Top 10 Crypto Status: LUNA became a market favorite, with growing adoption and integrations fueling investor confidence and making it a top 10 cryptocurrency by market cap.
---
đ„ The Catastrophic Crash
đ» The Depeg Disaster: USTâs algorithmic design, reliant on a burn-and-mint mechanism with LUNA, failed when large-scale withdrawals broke its $1 peg.
đ» The Death Spiral: To restore the peg, an overwhelming supply of new LUNA was minted, leading to hyperinflation. LUNAâs supply ballooned from 350 million to over 6 trillion, annihilating its value.
đ» Investor Chaos: Within days, the combined market cap of LUNA and UST plunged, wiping out over $60 billion and sending shockwaves across the crypto space.
---
đ The Aftermath: Enter Luna Classic (LUNC)
1ïžâŁ Rebranding: Post-collapse, the original Terra chain was renamed Terra Classic, and its token became Luna Classic (LUNC). A new blockchain, Terra 2.0, launched with a revamped LUNA token.
2ïžâŁ Community Resilience: The LUNC community continues efforts to rebuild, implementing token burns and projects aimed at restoring value.