Terra is a Cosmos-based system that allows algorithmic stablecoins to be pegged to the LUNA currency.

Prior to depegging, TerraUSD (UST) maintained its stablecoin moniker and value relative to the dollar for almost 18 months. The decoupling caused investor fear, resulting in the collapse of UST and LUNA. LUNA's price fell from $64 on 9 May 2022 to pennies a few days later.

In order to be tied to the fiat currency, the Treasury lacks dollar reserves. It employs LUNA to retain its value. However, Terra supporters opted to relaunch LUNA and rename the project Terra 2.0. Could the moment be right to purchase?

https://www.terra.money

Terra was a blockchain platform designed to support stablecoins, primarily TerraUSD (UST), an algorithmic stablecoin pegged to the US dollar. Founded in 2018 by Do Kwon and Terraform Labs, it used a dual-token system—UST for stability and LUNA (its native token) to absorb price fluctuations. Terra's ecosystem supported decentralised finance (DeFi) applications, payments, and smart contracts.

However, in May 2022, UST lost its peg, triggering a catastrophic collapse of both UST and LUNA, wiping out billions in market value. This crash exposed risks in algorithmic stablecoins and led to regulatory scrutiny. Despite its failure, Terra's technology influenced later blockchain projects. A new version, Terra 2.0 (LUNA), was launched, but it remains a cautionary tale in crypto history.