It has been a year since Terra founder and mastermind Do Kwon began “injecting extra capital” into the ecosystem to keep it afloat. On May 8 last year, the algorithmic stablecoin UST began to lose its peg to the dollar, and the LUNA token fell below the plinth. Three days later, the situation became critical.
The crypto community remembers these days well: the results of the collapse of Terra were terrible – UST fell from $0.9 to $0.002. And the LUNA token fell by 99%. Together with them, for the company, bitcoin collapsed, pulling the rest of the cryptocurrency market with it. 200,000 wallets of the Terra ecosystem turned into a pumpkin. In addition, many projects on the Terra blockchain were also destroyed. The next ten months were very difficult for the industry.
The CEO of the largest cryptocurrency exchange Binance, Changpeng Zhao, recalled that the collapse of Terra taught all cryptans a lesson. And not even one.
A year ago today, UST/LUNA crashed. $40 billion in value gone. BTC went from 28k to 19k. A few lessons can be learned. pic.twitter.com/h0Hyj5elx6
— CZ Binance (@cz_binance) May 11, 2023
Exactly one year ago, UST/LUNA crashed. Lost 40 billion dollars. Bitcoin fell from 28 to 19 thousand dollars. Several lessons can be drawn from this.
Market analyst Philip Swift didn’t forget about that day either:
A year on and while many got hurt along the way, the market is now healing https://t.co/8X9HQgPkWm
— Philip Swift (@PositiveCrypto) May 11, 2023
A year has passed, and although many have suffered because of this, the market is now recovering.
At the end of March, Do Kwon was arrested in Montenegro. Kwon was stopped at the airport in Podgorica (the capital of Montenegro) with forged documents. Montenegro borders Serbia, where the former crypto mogul has been hiding since December last year.
And while Do Kwon is awaiting trial in Montenegro for forging documents, a court in South Korea has seized the personal assets of the co-founder of Terraform Labs in the amount of more than 233.3 billion Korean won ($176 million). The judge also banned the sale of the Galleria Foret residential complex in Seoul, a new business center and several imported cars. The court also banned the disposal of Kwon’s financial assets, including securities, bank deposits and cryptocurrencies stored in personal accounts on cryptocurrency exchanges.
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