Within one week, dozens of billions of USD were destroyed. On May 5, 2022, “TerraUSD” lost its peg to the US dollar and has been struggling to recover ever since. Being one of the best know DeFi projects, Terra has raised doubts about other DeFi protocols. Most important: Bitcoin was not the trigger, as the media write. The bad-quality project Terra/Luna created incentives for investors to invest. It did and became systematically relevant. Then, it was attacked this week. The attack started on March 27th: While Terra was buying 20k BTC, an unknown player borrowed 100k BTC to sell into Terra’s purchasing of Bitcoins.

The price of Terra collapsed from $85 to basically 0.

Market capitalization from $31B to basically 0.

UST was a “stablecoin” pegged to the USD with a targeted price of 1.00, but it dropped to $0.17 by now.

Market capitalization from $19B to basically $2B.

In total, close to $50B were evaporated. That’s why you should choose your investments wisely!

Like BocasDAO — we do not speculate with your money, we build physical value, and you can actually enjoy it!