Terra was an algorithmic stablecoin protocol that spectacularly collapsed in May 2022, wiping out approximately $40 billion in value within days. Its UST stablecoin lost its peg and LUNA became worthless, triggering contagion across the entire crypto market.
2018
Terraform Labs founded by Do Kwon and Daniel Shin
2021
LUNA reaches $100+, UST becomes widely used
2022
UST loses peg in May — death spiral wipes out $40B in days
2022
Do Kwon issues arrest warrant by South Korean prosecutors
2023
Do Kwon arrested in Montenegro with forged documents
Algorithmic stablecoins, payments, DeFi
💡 Did You Know
At its peak, Luna was worth over $119 per token. Within a week in May 2022, it was worth fractions of a cent
⚠ Controversies & Red Flags
The collapse destroyed billions in savings, triggered regulatory crackdowns globally, and led to the arrest of co-founder Do Kwon in Montenegro