The LUNA and UST Crash Explained in 5 Charts

The LUNA and UST Crash Explained in 5 Charts


The system looked similar to that of a young Uber, where VCs subsidized peoples’ ride fees in a longterm bid to achieve market dominance. Instead of cheaper cab fares, inflated Anchor yields were used to pull people into the Terra ecosystem – hopefully permanently. The problem, according to critics, was that TFL and its partners could only afford to subsidize investors for so long. At some point, the money would dry up, and so would Anchor’s customer’s (and UST’s willing holders).

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