Collapse vs. Hype: What Can We Learn From Terra’s Demise in the Rise of Meme Coins?

The collapse of Terra’s algorithmic stablecoin UST and its token LUNC in May 2022 exposed the cryptocurrency industry to a devastating shake-up. The event caused billions in market value to evaporate in days, leaving investors grappling with questions about whether Terra was truly fraudulent or just an innovation that failed to withstand scrutiny. Fast forward to today, as meme coins like Shiba Inu, Pepe, and Floki have dominated headlines while attracting massive communities of users. This stark contrast between collapse and hype underscores the current state of the cryptocurrency landscape.