In May 2022, the cryptocurrency world was rocked by a shocking disaster, with Luna and its stablecoin UST evaporating hundreds of billions of RMB, marking the worst "crash" in crypto history.

From May 11 to 12, the price of LUNA plummeted from $120 to $0.00005, a drop of over 99.99999%, essentially reaching zero.

The mastermind behind this was South Korean Do Kwon, who was arrogant enough to call himself the "King of Luna." He launched the "algorithmic stablecoin" UST, promising it would always be worth $1, using Luna as a "buffer" to adjust prices: when UST rose, Luna was burned to exchange for UST profits; when UST fell, UST was burned to exchange for Luna. In reality, it was a Ponzi scheme.

To attract people, he also created the Anchor financial app, claiming a 20% annual yield on UST deposits with almost no risk. This yield was initially supported by new investor funds and subsidies in Bitcoin from the authorities. Many were misled, with the app at one point locking up nearly $20 billion.

In May 2022, large institutions saw through the scam and aggressively sold UST while withdrawing money from Anchor. The price of UST plummeted, and the system crazily printed Luna to burn UST in an attempt to restore the price. As a result, Luna went from several hundred million to several trillion units, becoming worthless paper. In just three days, Luna dropped from $80 to $0.00001, a decline of over 8 million times; UST fell from $1 to a few cents, becoming a "junk coin."

Retail investors, institutions, and venture capitalists all suffered, with Three Arrows Capital going bankrupt, triggering a series of exchanges and lending platforms to collapse. Do Kwon fled, and in 2023 he was arrested in Montenegro using a fake passport, with the US and South Korea vying for his extradition; he could face decades or even a century in prison. #加密市场反弹