Terra UST and Luna Crash explained: Reasons and solutions

Today I take a look at the crash of both UST and Luna tokens. I look at this using some textbook economic theory and tokenomics in this order:
0:00 Introduction
0:45 Terra and Luna's connection
4:00 Reasons for devaluation
6:00 Solutions
8:00 What the team is actually doing
10:00 Final thoughts

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I am a huge fan of useful crypto technology, have a degree in Financial Management, and I believe in the future of the blockchain. However I am not your financial advisor. So please consider all variables before making a financial decision.

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[cryptoconscious]

Please ignore random scammers copying my logo in the comments. I will not ask you for Whatsapp. my official twitter is @cryptoconsh

[jasonb]

Great video. You explained the situation best. Doesn't seem like many people really know what happened. Thanks.

[michealwilliam]

i have been making losses trying to make profit trading. I thought trading demo account is just like trading the real market... can anyone help me out or at least advise me on what to do?

[youthfuldeception]

This is the best video I have seen explaining what happened to Terra Luna.

[sebastiansalim]

its been crazy! thank you for the explanation!

[silveks]

Thank you CC for great explanation. Good to have you on Cosmos ✊

[HB-tulipan]

James, thanks again for another video. I am afraid it is too little too late what the luna foundation is doing. My personal losses are significant (many liquidity pools to zero), but part of the risk I was willing to take. However I really sorry for people who lost fortunes. Please remain positive and seek support if required!! ❤️
And remember, never try to make up for losses entering leverage trading or falling into trap of random scammers! Find yourself a job, work hard and invest your savings (DCA) into BTC, ETH, a house or stockmarket. 💪

[neriofrio]

Great video. I like how impartial your comments are but at the same time understanding how people has been affected, including me. Cheers man

[reylove]

Thanks for taking the time to do the graphs and explain all that you did.

[aoa]

This is a good example of why one never place all their eggs in one basket...always diversify to limit risk.

[jonathandinkelmeyer]

Thx for the video James, those last words regarding the individual bankruptcy are appreciated! But - afaik the Luna Foundation did not sell their Bitcoins, they just loaned them out to arbitrageurs so they can actively fight for the peg. Didn't work out. The question is - what happens to those assets now....

[TidalGrave]

Great video, I didn't have much money in crypto to begin with, and I had maybe 5 dollars in Luna? So I'm not hurting as much as many others. The dip is disheartening to see as it always is though, but I still have faith that Bitcoin will go back up and then the Cosmos as a whole will stabilize over time. In fact I'm planning to buy more ATOM while it's still under $12, buy the dip and hold right? Thanks for the insight James 🤘🏾

[treushooto]

Great explanation! Osmosis is offering USDC and several other stables provided by the Axelar protocol atm. I hope the Luna foundation is able to bring back UST to the pegged price though. Wish you and everyone effected all the best in these challenging times. Luna just halted the chain btw!

[arielpacheco]

"you are worth more than the money in your back acccount" .. Thx Bro

[neriofrio]

Good explanation. I ve lost more than 20k so far... depressing. But it is what it is. Crypto goes up and it goes down... we have to keep calm and keep hoing

[jbgant]

I understand very little about cryptocurrency but the question I think everyone is asking has nothing to do with stabilization, but how they can get all their money back.

[gamingplugonline]

great opportunity to buy more osmo under $2 atom under $10
with this I don't think anyone would miss any airdrop on the Cosmos

[Dey_callme_HND]

@PuzzlesCrusade is a mix of Candy Crush and Warcraft? So the mechanics, the user interface so to speak is the one you should remember from candy crush. It feels like candy crash with more warcraft action style.

[thelion]

Praying for the cosmos especially luna

[HB-tulipan]

Ps - as Do Kown was behind an earlier scam, i dont think Luna nor TUSD will ever recover. Just for fun a bought 1000 Luna this morning. Everytime I open my wallets this will remind me to focus on quality (BTC, ETH and selected other projects)