The Investors Centre Podcast

Terra Luna: How $45 Billion Disappeared in Six Days


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In this episode of The Investors Centre Podcast, Isiah breaks down arguably the most dramatic collapse in crypto history — the Terra Luna death spiral of May 2022.

Terra wasn't some obscure corner of the market. By early 2022 it was the third largest cryptocurrency ecosystem in the world. Luna was trading at over $100 a coin. And at its peak, over $14 billion was deposited into its Anchor Protocol — a product offering 20% annual interest on a coin designed to be as stable as cash.

Then, in six days, $45 billion in market cap was gone.

In this episode we cover:

  • What Terra and Luna actually were, and how the algorithmic peg was supposed to work
  • Why Anchor Protocol's 20% yield was a warning sign hiding in plain sight
  • The exact sequence of events that triggered the death spiral
  • Why the recovery mechanism made everything worse, not better
  • What the collapse teaches you about yield, stability, and who actually gets out first in a crisis

This isn't just a crypto story. It's a story about what happens when belief in a system outgrows the foundations that system was actually built on. And as Isiah explains — that story has a habit of repeating.

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The Investors Centre PodcastBy Thomas Drury