‘Bro, we might have only seen the first episode of the LUNA collapse script.’
Last night, a legal document spanning hundreds of pages was made public in a U.S. court, shaking the entire crypto world: Terraform Labs' management has officially filed a lawsuit against market giant Jump Trading, seeking damages of up to $40 billion!
The document hides the bloodiest details: Jump is accused of secretly manipulating prices during the first UST depegging in 2021, in exchange for a massive amount of cheap LUNA tokens under the guise of 'fixing the algorithm,' which were then dumped on the market, yielding billions in profit — and this directly became the fuse for the final collapse.
At this moment, founder Do Kwon is in prison, while the real 'Wolf of Wall Street' has just begun to surface.
This news kept me awake all night. Not because of gossip, but because it cruelly reaffirms the core survival law of the crypto world: when a stabilization mechanism relies on the 'secret protocols' of a few rather than publicly transparent mathematics, so-called 'stability' is just a Ponzi scheme that could explode at any moment.
The tragedy of Terra, on the surface, is the failure of algorithmic stablecoins, but at its core is the complete collapse of 'trust in centralization'.
Users believed in Do Kwon's narrative, believed in Jump's 'market rescue ability', but ultimately found that behind it all was a carefully designed game of interests. Your assets became chips in the bets of the big players.
This matter stands as a giant warning monument before every crypto investor, prompting a question: in a world full of clever traps and power games, what should we believe to truly protect the 'stability' of our assets?
My answer has been crystal clear since the moment LUNA collapsed two years ago. I transferred most of my assets that required 'stability' to @usddio (USDD). This is not because it has the most compelling story, but because it made a promise that is completely opposite to UST (and the vast majority of centralized stablecoins).
Why did the collapse of UST instead validate the correctness of the USDD path?
Transparency against black boxes: on-chain verifiable vs. secret protocols
The death spiral of UST began with behind-the-scenes transactions that no one knew about. All collateral assets of USDD (BTC, TRX, etc.) arereal-time, multi-chain, publiclocked in smart contracts, which anyone can audit at any time. There are no 'secret market rescue protocols', only lines of immutable code written on the blockchain. Trust comes from seeing.Over-collateralization against algorithmic illusions: asset backing vs. confidence game
UST attempted to maintain its peg to the dollar through algorithms and confidence, which is essentially a house of cards. USDD, on the other hand, insists onover-collateralization—every circulating USDD is backed by on-chain hard assets valued at over 1 dollar. Its stability does not depend on market sentiment, but on real collateral liquidation lines. This is physics, not psychology.Decentralized governance against single points of failure: community guardianship vs. big power manipulation
The lifeblood of Terra depended on a few entities like Do Kwon and Jump. The core parameters of USDD are determined by decentralized community governance, with no single entity able to manipulate the system for private gain. Its stability is maintained byglobal consensus, not by the balance sheet or moral standards of a particular company.
#USDD sees stability as trust—after witnessing the trillion-level disaster triggered by the collapse of 'trust' in UST/LUNA, I understand the weight of this word 'trust' more than anyone. It cannot come from a charismatic leader, nor from mysterious market makers; it can only come from on-chain assets that are never unlocked and public ledgers that never close.
The legend of LUNA returns to the spotlight with an epic lawsuit, which is precisely the best investor education: it uses the extreme contrast of a hundredfold surge and total collapse to tell us that in the world of cryptocurrencies, choice is more important than effort. Choose protocols that engrave transparency and security in their genes, rather than those that place your assets on the gambling table of a few.
True stability is not about using a more complex story to cover the flaws of the previous one, but about returning to the simplest principles: what exactly protects my money?
If you have also suffered losses in the collapse of LUNA, or are simply uneasy about the omnipresent risks of centralization, then it is time to delve into @usddio. What it represents is not just another stablecoin, but a survival philosophy that places asset security and transparency as the highest priority.
Follow @usddio, and choose a transparent, unsinkable ship in the treacherous sea of crypto.
History does not simply repeat itself, but the rhymes are always about trust and betrayal.
