Odd Lots

This Is How the Terra Stablecoin Actually Imploded

May 15, 2022

Kevin Zhou, founder of Galois Capital, is known for his keen insights into crypto markets. He dives into the dramatic collapse of the Terra ecosystem, detailing how over $60 billion vanished and exposing the risks of algorithmic stablecoins. Zhou recounts his early warnings and strategic shorting of Luna. The discussion covers the chaos of UST's de-pegging, the emotional turmoil for investors, and broader implications for the crypto landscape. His reflections highlight the challenges of maintaining stability amid volatile and misleading yield promises.

01:09:26

Creator website

Episode guests

Kevin Zhou

Highlights

AI Chapters

Episode notes

Where Do the Yields Come From?

01:29

Facebook Connects People

00:53

Is it Possible that there were frictions within the luna terra ecosystem?

01:14

Intro

2min

The Fall of Terra: A Crypto Cautionary Tale

22min

Bitcoin Reserves and the Terra Unraveling

9min

Unraveling the UST De-Peg Crisis: A Perfect Storm of Events

6min

Shorting Terra: Challenges and Volatility

4min

The Reflexive Downfall of Terra Luna and Its Comparisons

5min

Instability in the Stablecoin Market

26min

The collapse of the Terra ecosystem, and the tokens Luna and UST, will go down as one of the most painful and devastating chapters in crypto history. Over $60 billion market value has evaporated, and numerous retail investors are nursing major losses. What's particularly bad is that this was a big project, championed by some of the most notable names in crypto. But some people obviously saw it coming, and understood it to be a disaster in the making. On this episode we speak with Kevin Zhou, the founder of the crypto hedge fund Galois Capital. He began warning about Terra publicly earlier this year, and was short Luna starting in early May. He explains the exact mechanics of the coin's implosion.

See omnystudio.com/listener for privacy information.

Remember Everything You Learn from Podcasts

Save insights instantly, chat with episodes, and build lasting knowledge - all powered by AI.