#TerraLunaCollapse
Algorithmic stablecoin Terra (UST) death spiral erased $40 billion.
Origin & Impact
In May 2022, Terra’s algorithmic stablecoin UST lost its $1 peg, triggering death spiral that destroyed $40B in value in days. The mechanism linking UST to LUNA cryptocurrency failed catastrophically. Founder Do Kwon’s arrogance (“I don’t debate the poor”) aged terribly as investors lost everything.
The hashtag documented the horror: life savings evaporated, suicides reported, and crypto’s “too smart to fail” hubris shattered. Terra’s collapse sent shockwaves through crypto, triggering broader crash. Do Kwon fled to Montenegro, facing criminal charges.
Related Hashtags
#Crypto #Stablecoin #DoKwon