UST Luna - The Biggest COLLAPSE in Crypto History
Bankless
Intro
This chapter explores the catastrophic failure of the UST Luna stablecoin, detailing the timeline and mechanisms that attracted investors during a turbulent market. It also reflects on the profound emotional and financial impact experienced by individuals within the affected community.
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?
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------ 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
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