Terra

Terraform Labs, founded by Do Kwon and Daniel Shin, is the development company behind the Terra blockchain protocol. Launched in 2018, its mission was to create a price-stable cryptocurrency ecosystem to power global payments. Its core innovation was an algorithmic stablecoin, TerraUSD (UST), which was designed to maintain a 1:1 peg with the U.S. dollar through a mint-and-burn mechanism with its native governance and staking token, LUNA. After a period of rapid growth, the Terra ecosystem suffered a catastrophic collapse in May 2022 when UST lost its dollar peg, wiping out over $40 billion in market value. Following the collapse, the original blockchain was rebranded to Terra Classic (LUNC), and a new chain known as Terra 2.0 (LUNA) was created without the algorithmic stablecoin component. The company and its founder now face significant legal and regulatory challenges worldwide.