Terra Turned Terror

If you hold any cryptocurrencies, you probably didn’t get much sleep last week.

A famous algorithmic stablecoin project called TerraUST wiped out $18 billion of wealth for its investors. It’s governance token TerraLUNA, once hit over $100 per token, has lost 100% of value in mere 3 days.

The crypto market overall has lost $1T market cap in the past week.

I have been a Bitcoin maximalist since 2015 and have witnessed hundreds of ICO projects busted in 2018 and too many NFT projects went off the cliff in 2022. I should have avoided UST as I knew it was not collateralized but I adopted UST anyways because it’s THE stablecoin of the Cosmos Ecosystem. Seeing it imploded is like experiencing another downfall of Ledman Brothers.

Lessons learned: always do your own research and understand the token economics before investing. Being lazy and blindly follow endorsements by famous investors almost guarantee money flying out from your wallet.