How This Man Just Caused a $45 BILLION Crash [Terra Luna]

How This Man Just Caused a $45 BILLION Crash [Terra Luna]

Do Kwon thought he could rule the crypto world with Terra Luna, instead what followed was the largest failure to occur in the crypto space.
Correction at 1:58 I showed the screenshot of the wrong project, it’s supposed to be ‘Basis Cash’, not ‘Basis Markets’. Sorry about that.

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Sources:

Personal interviews with sources at Terra Labs

https://www.coindesk.com/business/2022/05/08/ust-briefly-loses-peg-luna-drops-10/

https://www.bloomberg.com/news/articles/2022-05-15/luna-crash-this-crypto-insider-warned-of-terra-ust-s-collapse

https://www.coindesk.com/layer2/2022/04/22/built-to-fail-why-terrausds-growth-is-giving-finance-experts-nightmares/

https://www.euronews.com/next/2022/05/12/terra-luna-stablecoin-collapse-is-this-the-2008-financial-crash-moment-of-cryptocurrency

https://decrypt.co/100434/what-happened-terras-bitcoin-reserve-ust-luna-crashed

https://fortune.com/2022/05/13/terra-ust-stablecoin-crash-suspicious-potential-attack-george-soros/

https://coinjournal.net/news/the-10-million-luna-twitter-bet-who-will-win/

https://www.coindesk.com/business/2022/05/09/ust-stablecoin-falls-below-dollar-peg-for-second-time-in-48-hours/

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35 Responses

  1. Ryan Delafosse says:

    “Only put in what you are willing to lose” Truly words to live by in the crypto space.

    Also, diversify, diversify, diversify!

    • Rob says:

      @Austin Ford Buffet agrees

    • Rob says:

      @Sturm Kintaro best comment re Warren Buffet!!

    • Rob says:

      @Tyrell Dunn over what period and what inflation?

    • zaq_hack says:

      To the folks hating on this comment: I put everything into my house for years. It is “the largest investment most people make,” I heard. It is the safest investment, people said. “You can always use the equity in case of an emergency.” All of that was bullshit and it cost me everything in 2008 when that same house dropped $150k in value overnight.

      I don’t give a f*** what basket you think you should put all your eggs into, you are wrong. There’s a difference between “investing in Ponzi shitcoin” and investing in real estate, commodities, stocks, etc. You don’t want to diversify? You think “Bitcoin only?” Your day will come, too.

      There is no “one thing” that the market makers cannot take from you if they truly desire. Your house. Your gold. Your precious blockchains. Luna didn’t simply collapse: it was executed. It was double-tapped as a warning, but suddenly, everyone saw it coming? Good luck with that, Anon … good luck.

    • Mazda Tranyo Cabrio says:

      diversify what? it’s all the same asset class you…. you kids don’t have the first clue on what the word means

  2. My Reviews says:

    I’ve lost a staggering $35 in this crash and I’m totally devastated.

  3. Twiiidy says:

    It feels amazing watching a thorough historical documentary of an event that happened THIS MONTH

  4. Cheng Teoh says:

    When in history has there ever been an investment that could earn you 20% a year that was low risk?
    The only thing that I can think of at the moment that even comes close is the Series I Bonds that is currently paying 9.62%.

  5. Beware the Lily of the Valley says:

    The ability to have this video out so soon is amazing. Thank you for your hard work and for bringing news to me I wouldn’t have known of otherwise.

  6. Your Dad Has A Dog Filter says:

    I’m no financial expert, but whenever I hear about such high returns, alarm bells go off in my head. To pay out that much, there has to be some sort of ‘robbing Peter to pay Paul’ sort of stuff going on

    • unidentfied says:

      @Stephen Louie scammed? you mean you enter markets, have same chances and you win or lose? same with stock markets, same with forex etc scammed? LOL. I am contributing huge value, both sides are, but you can’t see it. Guess what: you have absolutely no idea about tech behind it, about markets, you believe in piece of paper printed in any amounts without gold backing.. I paid for my things in btc, other side got btc, not cash, not fiat with inflation. Other party got BTC. You can change dollar for euro, same thing if you wish, both useless and with inflation. Hide? You cannot answer a simple question then you attack me personally? hehe, good one. Now tell me, if I used my real name instead of nickname, then would be your angle of attack? None. You do not understand what crypto is, and you do not understand what privacy and value of privacy is. I value my privacy a lot, you don’t simple.

    • Stephen Louie says:

      @unidentfied Bragging about how you scammed money from others to pay for your assets while not contributing any real value is no different than the hedge fund managers you purportedly despise. Guess what, you ultimately paid for those assets with fiat currencies. I can see why you hide behind the moniker “unidentified”.

    • Stephen Louie says:

      @deveash bharadwaj Yes printing money causes inflation and is often politically motivated. It is just a form of currency devaluation. It causes hardship but so does raising interest rates. This is the point of national governments and it is their prerogative to print money or to raise interest rates. These actions are taken to stabilize the nation and its economy. Crypto has to no such political requirement and as such cannot be a legitimate national currency. While crypto may not destabilize nations, they cannot stabilize an economy either since they have no ability to stimulate or slowdown economies. This is the job of central banks. However, poorly regulated equity markets caused the failures you mentioned. For example, crypto currency won’t solve housing bubbles from forming.

      Value is a communal shared concept. Gold has value because of its difficulty in obtaining it (old fashion proof of work and scarcity) but if a huge deposit were to be found tomorrow, it’s value would drop.

      Since crypto is just the people’s currency that group of people will eventually demand regulation to protect their assets and thus become a de-facto government for their currency. It’s just a different group of people forming a government. So again, this is another “unforeseen” that become a reality for crypto at some point and all the crypto enthusiasts will realize that nothing has changed.

    • unidentfied says:

      @Stephen Louie Btw I bought 4 houses all paid by crypto, 2 cars, paid by crypto too… you are right, no usability at all. Guess what validated my transactions XD hint: it was not fiat backed by nothing XD

  7. MOON BAGS says:

    It is indeed a DISASTER. Fantastic video explanation of a tragic event. People’s lives have been ruined by this. 🙁

  8. SioxerNikita says:

    Crypto volatility is basically paradise for day traders. The problem with crypto overall is it is a currency that is being speculated in. There is reasons why currency speculation is pretty illegal in most of the world, since currency is supposed to be stable.

    And for that matter, anything with returns has be looked at with skepticism… Because you cannot guarantee returns, not even banks. The closest you get is a diversified stock portfolio (which is also not a good system, very ripe for abuse), because markets overall has a trend towards up, although slow and potentially bubble breaking at some point.

    Crypto was a fun idea, but until they are regulated, and speculation is illegal, they will never be a proper currency, stablecoin or not.

    Besides none of the coins are truly decentralized either. Not even BitCoin. Big holders / people with many transactions and an air of authority can get it forked with their rules, because well… They have what the system needs… The currency and the transactions.

    Even then, the massive ecological damage coming from crypto is even more terrible, which means the faster it crashes, the better frankly.

    It is a great idea, but terrible outcome

  9. K S says:

    Great video but you are really under representing the massive coordinated attack. It was done by the SAME hedge fund that was badly hurt by the Gamestop/Robinhood fiasco, the one that front-runs ALL the Robinhood transactions, and the same one that is currently buying up thousands of private homes all over the US. They made a few hundred million by costing the whole ecosystem more than 45 billion. But more than that, they are now in prime position to get the legislation they want passed that will benefit Wall street while further crippling the common person from being able to invest in crypto. This will all come out once the blockchain forensics are done, but by then will long forgotten. I’ve never been a fan of Do Kwon, but to blame this all solely on him is pretty unfair.

    • frieswijk says:

      The crash was unavoidable. If you want to hedge the value of a token by automaticly make more tokens, you are just waiting for it to fail.

      This coin was so blatenly a fraud (20% profit!) that is still mindboggling anyone fell for this

  10. Scott Thomson says:

    I must say, even though my $600 investment is now worth 0.00004, it was astounding to watch it pan out in real time. It happened soooo quick. Then you had the “dip buyers” that thought buying Luna on it’s way down was a great idea and kept buying as it kept crashing.

    • Scott Thomson says:

      @Vincent Ferrere understood, but his name is still the main me tied to it… I dunno. I mean maybe 5 – 10 years down the road, but myself, I’d personally be shocked if we are able to squeeze any value from it.

    • Vincent Ferrere says:

      @Scott Thomson Kwon isn’t heading the new token. He is letting the community to control it.

    • Scott Thomson says:

      Honestly, I hate to say it, but anyone having any faith in the “fork” is just being foolish. His credibility is destroyed, the terra/Luna brand recognition is destroyed, and no developers are sticking around. At this point it might as well become a meme coin.

    • Scott Thomson says:

      @Vincent Ferrere the “new” token is going to be worthless and we won’t be able to touch it for however long. They won’t be able to maintain most of the developers. You cant just make something valuable. Especially after that catastrophic failure. You’d feel safe putting money back into something Kwon is the head of? The new tokens are going to be absolutely worthless. Sad truth.

    • Vincent Ferrere says:

      It was a great idea…look at it from both sides.
      We were actually buying to help prevent the collapse. Now WE are eligible for the Luna core airdrop.

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