TERRA COLLAPSE EXPOSED: CZ Reveals the REAL Mistake
@CZ didn’t sugarcoat it: “Do Kwon had the right idea — but the execution failed badly.”
What really went wrong?
The idea itself wasn’t the problem.
The USTC–LUNA algorithm could have worked with strong risk controls and proper safeguards.
The real failure was execution.
USTC lost its peg, which triggered unlimited LUNA minting. Hyperinflation followed, and the ecosystem collapsed. The chain later split, giving birth to LUNC.
Critical mistakes
No real reserves
No circuit breakers
Repeated warnings ignored
Growth scaled too fast without protection
Over $40 billion was wiped out, making it one of the biggest failures in crypto history.
Now it’s no longer speculation. With Do Kwon recently sentenced, the Terra collapse stands as a clear lesson.
Market takeaway:
Great ideas without risk management are destined to fail.
What’s your view?
Was Terra always doomed, or was it simply mismanaged?
