Terra LUNA's $48B Crash

A story about how the Terra/LUNA cryptocurrency project collapsed, as told by Shaan Puri who was personally invested in it.

"I was in Hawaii when it happened. I was on a beach when LUNA crashed and went literally to zero. For a day or two, it kind of messed up my vacation. I couldn't even access my wallet since it was in the cloud and I wasn't home, so I couldn't sell if I wanted to.

I had invested $225K total - started with $25K, then put in another $200K as part of a VC deal where we got to buy LUNA at about $40, which was a 40% discount to the market rate at the time. For a while it looked like a genius move because LUNA hit $116. My $250K investment went up to about $750K.

Then someone or some group started dumping $1 billion worth of the stablecoin, which caused the peg to go down. When you have that much sell pressure, it won't stay worth a dollar - it slipped to 92 cents. They were also dumping Bitcoin, which was the reserve collateral. People started panicking and withdrawing.

I'm getting texts on the beach in Hawaii: 'Terra's depegging.' It goes down to 70 cents, shoots back up to 90 giving false hope, then plunges to 65, 60, 50. The whole thing wiped out about $48 billion in value. LUNA went from over $100 to less than a penny. I lost about $225K personally."