• Terra and LUNA were visionary crypto tokens designed by Do Kwon, who aimed to create a decentralized financial network.
• The value of LUNA skyrocketed in March 2022, but the two tokens crashed spectacularly in May 2022 due to mysterious rug-pulling or Ponzi schemes.
• The Terra ecosystem was maintained by the UST token and Luna token, backed up by smart contracts and the Anchor Protocol and Luna Foundation Guard (LFG).
What is Terra LUNA?
Terra and its sibling token LUNA have charted a rollercoaster journey across the crypto universe one year after its catastrophic crash. Their breathtaking highs, profound lows, and now indications of resurgence have kept observers on edge. Do Kwon, the visionary architect of this cosmos, has himself navigated a whirlwind path. He has been exalted, vilified, and mysteriously disappeared, only to reappear in the most unlikely places. Terraform Labs was an ambitious project rooted in blockchain technology that aimed to create a decentralized finance network using TerraUSD (UST) and Luna (LUNA) tokens. UST was designed to be an algorithmic stablecoin with a value of 1 USD each token, backed up by floating rate cryptocurrency Luna.
Terra’s All-Time High
By March 2022, Luna had soared to an all-time high of nearly $120 per token creating a dedicated fandom dubbed ‘lunatics’ with Kwon as their ‘king’. However this crypto utopia was short-lived as both tokens crashed in May 2022 due to mysterious rug-pulling or Ponzi schemes making it difficult for people to decipher which it actually was.
Maintaining UST Stability
The Terra ecosystem’s core was an equilibrium between UST and Luna where theoretically one UST would always equal $1 worth of Luna tokens with them being freely exchanged between each other via smart contracts reducing the quantity sold while increasing that bought when necessary to maintain this peg. To provide further support for UST’s stability came from Anchor Protocol and Luna Foundation Guard (LFG).
Do Kwon After Collapse
After the collapse Do Kwon fled from media attention for some time until he reappeared as CEO at blockchain venture firm Hashed which invested in projects related to cryptocurrencies such as ICONLOOP during his tenure there until stepping down recently leaving many questions unanswered about his involvement behind it all.
One year later we are still trying to piece together what happened behind Tera’s collapse while also noting signs of resurgence though no doubt wary before fully trusting anyone again especially Do Kwon whose ambition may have come too close towards reality for comfort yet still remains shrouded in mystery even today