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The MAIN Reason LUNA Crypto Crashed to $0 — Bye,Bye $40 Billion!
Imagine waking up one day to find that $40 billion of your money has just disappeared. That’s exactly what happened to investors in the Terra cryptocurrency ecosystem.
In the blink of an eye, the value of its main token, called Luna, plummeted to zero, causing massive losses for everyone involved.
What exactly caused this tragic downfall? Let’s know below.
The Rise and Fall of Terra
The Terra project was started by two people, Do Kwon and Daniel Shin, with the goal of creating a new kind of digital currency that could revolutionize the financial world. By 2022, their Luna and TerraUSD (UST) tokens had become very popular, attracting tons of investors who were promised high returns.
The problem was that UST wasn’t a normal stablecoin, which is a cryptocurrency designed to always be worth $1. Instead, UST relied on complex computer programs and market forces to try to maintain its $1 value. This experimental approach made many experts worried that it wouldn’t work in the long run.
