The Complete Collapse of LUNA/UST
047: Be on the look out for similar Ponzis
What is LUNA and who is Do Kwon?
Kwon Do - Hyung, more commonly referred to as Do Kwon in the crypto world, is a Korean crypto developer who is the co founder and CEO of Terraform Labs. He studied Computer Science at Stanford University, graduating in June 2015. Do also spent time trapping at both Microsoft and Apple as an engineer. Terraform Labs was the developer of the stablecoin known as TerraUSD or (UST) and the network token Terra (LUNA) as we will refer to it here. The collapse of these financial instruments led to losses of $45 billion dollars in an incredibly small amount of time and numerous conspiracy theories, takes, and views on what transpired and how.
Blackrock and Citadel did not kill UST
you guys are smoking crack
— icebergy ❄️ (@icebergy_) May 11, 2022
Unlike the infamous Bernie Madoff Ponzi Scheme on Wall Street in which investors were fleeced for nearly $65 billion over time, this event unfolded rapidly as many young traders and retail investors were absolutely fucked in the course of 48 hours. Like baby lions on the savannah tempted to leave their pride in search for food (profits), new investors flocked into riskier assets this cycle farther away from mom (Bitcoin) but soon became a quick meal to insidious predators preying on hopeful market youngsters seeking more risk, ironically, in a stablecoin lmao.
This event will have far reaching consequences for crypto regulation and likely for the push for CBDC (Central Bank Digital Currencies) after all, at this point you should be well aware the US Government will enter crypto/regulate the shit out of it or kill it. That’s how powerful Bitcoin and crypto will be. In my opinion one of the best things to speak to is how to help you avoid the next ponzi, or collapse, so that you can have a positive crypto experience and not one defined by potentially losing your entire net worth overnight because you allocated too far out on the risk curve.