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Terra (LUNA): The Blockchain Story from Collapse to Rebirth
Have you heard of Terra? The experience of this project can be described as a legend in the crypto world - it once thrived, then collapsed overnight, and now it has risen again.
What is Terra?
Terra is an open-source public chain that mainly serves the application ecosystem of DeFi, NFT, Web3, and more. Simply put, it is an independent blockchain that, like Ethereum, can deploy various decentralized applications.
Behind “Resurrection from Death”
The Original Story (Terra 1.0)
In May 2022, the Terra ecosystem collapsed. What was the culprit? An algorithmic stablecoin called UST was too tightly bound to the LUNA token, and when UST decoupled, the entire ecosystem went down with it. This incident left a deep scar in the crypto world.
The Choice of Rebirth (Terra 2.0)
Terraform Labs (the development team) did not give up, but launched Terra 2.0 in the second half of 2022 - essentially a brand new blockchain. The old Terra was renamed “Terra Classic”, and the new Terra started over, continuing to use LUNA as its native coin, but this time it learned its lesson: no more algorithmic stablecoins.
How does it work?
What can you do with LUNA?
How is Terra now?
After reconstruction, Terra has regained the attention of investors and is now one of the listed varieties on major global exchanges. Although it once fell from grace, it still has a place in the public chain track.
Risk Warning: Investing in crypto assets involves risks. Please assess based on your own risk tolerance before making any decisions. Past project stories (whether successful or failed) do not represent future performance.