Onchain Wizard - Understanding the Mechanics of the Rise & Fall of LUNA/UST

And what we can learn for other projects

In this paid issue, I will be walking through the mechanics at play behind the rise and fall of UST/LUNA. If you read my thread on twitter about the UST attack, and found yourself a bit lost, my goal is you will have better understanding of the tokenomics, liquidity and flows behind the collapse after reading through this (but will also give you some color on how UST demand exploded leading up to the attack). Also as a reminder, paid subs will be getting a bonus post on Friday where I will go through what I’m seeing from “smart money” wallet activity.

The beginning of LUNA + UST:
Lets start with a bit of background. The LUNA token was launched in January of 2019, with an ICO token price of $0.80 per LUNA (source). And the associated Terra blockchain (an L1) was launched in April of 2019. But it was not until late 2020 when things really started to heat up. In fact, until late 2020, the LUNA token spent its life as a sub ~$200mm market cap token.