Analyzing Terra’s Aftermath

And the implications on the broader crypto ecosystem.

Three weeks ago, we saw one of the most incredible crashes in crypto history: the fall of Terra. In less than a week, over $40B of market capitalization vanished, and hundreds of thousands of people lost many thousands (or even millions) of dollars.

The response to the fiasco has shone a bright light on a few truths: that most crypto investors only really care about the money and that many crypto projects are not as decentralized as they claim.

Terra was first, who’s next? Photo by Mariia Shalabaieva on Unsplash.

It’s All About the Money

During Terra’s incredible bull run from $1 to $115, countless people were extolling the project's virtues, why it was going to revolutionize the financial system, and why it was the most innovative project in crypto (myself included by the way).

Once it crashed, it became painfully clear that few really cared about the project’s fundamentals (I like to think I did, as evidenced by the balanced nature of my prior story about Terra linked earlier).