Why We Should All Be Talking About the Luna Losers in Terra’s Implosion

The collapse of the Terra stablecoin and its token Luna is a big deal in the world of criptocurrency. Luna was a top 10 coin by market value, and the UST stable coin was also pitched as an important experiment in the world of digital money.

There are many examples of important coins that have ridden off into the sunset after a brief moment in the spotlight. We rarely hear about the people who didn't get to buy the Lambos, or the people who didn't make a lot of money.

In this way, the world of cryptocurrencies is full of survivorship bias. In fact, you could argue that crypto thrives on the concept, hyping up the people who have made money in the space (or believe that they will someday) while playing down the possibility of losing it all.Many of these tokens derive their value from an influx of new money rather than an underlying cashflow, so incentivizing new users into the ecosystem is paramount, and that means you need to deflect attention from the many who have lost their shirts.

The founder and CEO of Terraform Labs, Do Kwon, was an expert in this, constantly hawking not only the importance and uniqueness of the project, but also the possibility of early entrants. Those who missed the boat were doomed to be poor forever.