TerraUSD (UST) Depeg Sparks Panic as Luna Crash Looms
- Stablecoin
- DeFi
- CT Lore
On May 2, 2022, doubts about TerraUSD (UST) stabilization mechanisms led to an early depeg, shaking CT confidence in the algorithmic stablecoin. The first shockwave hit as UST dipped below $1, triggering massive outflows from protocols like Celsius and Voyager Digital. This event marked the beginning of a catastrophic collapse for Terra and Luna, with billions in value wiped out in the following days. CT went feral, with memes and doom posts flooding timelines as traders scrambled to exit positions.
Incident Details
- Type
- LEVERAGE COLLAPSE
- Funds Lost
- $0
- Status
- Total loss
This was the initial tremor before the full Terra/Luna collapse, wiping out billions and leading to lawsuits against Do Kwon and Terraform Labs.