๐ธ The Terra Luna Collapse: $60 Billion Lost in the Greatest DeFi Crash
In May 2022, the crypto world witnessed one of the most catastrophic failures in decentralized finance (DeFi) history โ the collapse of the Terra ecosystem, including its stablecoin UST and governance token LUNA.
๐ UST was designed to maintain a 1:1 peg with the U.S. dollar through an algorithmic mechanism tied to LUNA. But when market conditions triggered a death spiral, the peg broke โ and over $60 billion in value was wiped out within days.
๐ LUNA crashed from over $100 to less than a cent. Investors, including major institutions, were blindsided. Thousands lost their life savings.
โ๏ธ Terra founder Do Kwon faced international investigations and arrest warrants, as the event triggered global regulatory crackdowns on stablecoins and DeFi projects.
โ ๏ธ The Terra crash became a turning point in crypto history โ a brutal reminder of how innovation without risk controls can end in disaster.
๐ท๏ธ #TerraLuna
