TerraUSD (UST) Depeg Sparks Early Panic
- Stablecoin
- DeFi
- CT Lore
On May 8, 2022, TerraUSD (UST) began showing cracks as it briefly lost its $1 peg, triggering early panic across CT before the full-blown Luna crash. Traders watched in horror as the algorithmic stablecoin wobbled, with over $2 billion in value at risk and faith in Terra’s model crumbling. Whispers of a coordinated attack on UST’s liquidity pools spread like wildfire, amplified by big names on X. This was the ominous prelude to one of crypto’s biggest disasters, forever scarring CT.
Incident Details
- Type
- LEVERAGE COLLAPSE
- Funds Lost
- $2B
- Status
- Total loss
Initial depeg led to cascading failures, culminating in Terra Luna's total collapse within days, wiping out billions and shattering trust in algorithmic stablecoins.