What Can We Learn From LUNA’s Collapse?

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Lehman Brothers’ collapse was the largest corporate bankruptcy in US history, having accrued $619 billion in debt. So large were Lehmnan’s liabilities that it presaged the Great Recession of 2008 – 2009, making it necessary for the Federal Reserve to step in. On the same level of fallout is Terra’s collapse for the crypto space. On the heels of Ethereum, at a $41 billion market cap in April, Terra (LUNA) was supposed to usher Finance 2.0 by providing a blockchain counterpart to the VISA payment system. Additionally, one of its main dApps, Anchor Protocol, enticed users with up to 19.5% yields …

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