The Collapse of UST Luna: Implications and Reflections

We’re currently watching one of the the largest events in Crypto history. 

The sketchy outlook in the markets has triggered a run on the UST stablecoin, which began destabilizing in the last several weeks.

As time progressed, the peg worsened, and it eventually rolled over into a complete crash of both the value of UST, and the native asset LUNA.

What led to the crash? Was it a coordinated attack, or an inevitable collapse?

What Red Flags were there ahead of time? What’s the fallout from all of this? What lessons can we learn? 

------ 📣 OPOLIS | Sign Up to Get 1000 $WORK and 1000 $BANK https://bankless.cc/Opolis 

------ 🚀 SUBSCRIBE TO NEWSLETTER:          https://newsletter.banklesshq.com/    🎙️ SUBSCRIBE TO PODCAST:                 http://podcast.banklesshq.com/   

------ BANKLESS SPONSOR TOOLS: 

⚖️ ARBITRUM | SCALED ETHEREUM https://bankless.cc/Arbitrum 

❎ ACROSS | BRIDGE TO LAYER 2 https://bankless.cc/Across 

🏦 ALTO IRA | TAX-FREE CRYPTO https://bankless.cc/AltoIRA 

👻 AAVE V3 | LEND & BORROW CRYPTO https://bankless.cc/aave 

⚡️ MAKER DAO | THE DAI STABLECOIN  https://bankless.cc/MakerDAO  

🦁 BRAVE | THE BROWSER NATIVE WALLET https://bankless.cc/Brave 

------ Topics Covered:

0:00 Intro 6:30 Explaining the Terra Ecosystem 9:30 Tail Risk and Background 13:50 Bitcoin, Curve, and Monsters 17:54 The Initial Destabilization 20:14 The Panic Begins 24:40 The Charts 27:18 A Total Collapse 32:30 Regulators Get Involved 35:08 Was This An Attack? 37:58 The Collateral Damage 40:00 Do Kwon’s Big Talk 41:52 Rick Sanchez and Basis Cash 44:08 Community Response 46:05 How Do We Move On? 49:14 Don’t Take Shortcuts

------ Resources:

Anchor Protocol: https://app.anchorprotocol.com/earn  Buying Bitcoin: https://twitter.com/LFG_Reserve/status/1507688906820620291  Curve Pools: https://dune.com/SebVentures/UST  Binance Orderbook: https://twitter.com/hasufl/status/1523817151471230976?s=20&t=FiTLk5ce5JmTg_s7QnWgMw  External Collateral: https://twitter.com/ThinkingBitmex/status/1523526622044860416  Deploying More Capital: https://twitter.com/stablekwon/status/1523733542492016640  Collapse: https://twitter.com/ryanberckmans/status/1523712585794977792  Bitconnect: https://twitter.com/TrustlessState/status/1524451573908209664?s=20&t=1cKzW3BXwfKsAdFAsObfLQ  Historical: https://twitter.com/nic__carter/status/1524233730717585409?s=20&t=azvpduGJEOCfqyNCUFSBWA  Janet Yellen: https://twitter.com/tier10k/status/1524031909067698180?s=20&t=FiTLk5ce5JmTg_s7QnWgMw  Coordinated Attack: https://twitter.com/TerraBitesPod/status/1524229263469293570?s=20&t=FiTLk5ce5JmTg_s7QnWgMw  Vitalik Clip: https://twitter.com/BanklessHQ/status/1523995722261147648?s=20&t=FiTLk5ce5JmTg_s7QnWgMw  Mental Health: https://twitter.com/Shigeo808/status/1524149580048191488?s=20&t=azvpduGJEOCfqyNCUFSBWA 

----- Not financial or tax advice. This channel is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. This video is not tax advice. Talk to your accountant. Do your own research.

Disclosure. From time-to-time I may add links in this newsletter to products I use. I may receive commission if you make a purchase through one of these links. Additionally, the Bankless writers hold crypto assets. See our investment disclosures here: https://newsletter.banklesshq.com/p/bankless-disclosures