Anatomy of a Stablecoin’s failure: The Terra-Luna case

• Published in: Finance research letters Vol. 51; p. 103358
• Main Authors: Briola, Antonio, Vidal-Tomás, David, Wang, Yuanrong, Aste, Tomaso
• Format: Journal Article
• Language: English
• Published: Elsevier Inc 01.01.2023
• Subjects: Cryptocurrency; Herding; LUNA; Network science; Stablecoin; UST; G40; G11; G10; UST; Cryptocurrency; Stablecoin; Herding; Network science; LUNA

We quantitatively describe the main events that led to the Terra project’s failure in May 2022. We first review, in a systematic way, news from heterogeneous social media sources; we discuss the fragility of the Terra project and its vicious dependence on the Anchor protocol. We hence identify the c...