I Lost $250,000 With Luna... Here's What I Learned

About this video

Shaan recounts his investment in Terra/Luna, a decentralized stablecoin project that promised to solve cryptocurrency’s real-world adoption problems through e-commerce payments in Korea. After initial success and massive growth—with Luna reaching $116 and Shaan turning a $250k investment into $750k—the project collapsed in a matter of days when a coordinated attack exploited its algorithmic design, wiping out $48 billion in value and leaving Shaan down roughly $225k.

Key takeaways

• Terra’s founder Do Kwan positioned Luna as solving crypto’s core problem (being unusable as actual currency), but pivoted from e-commerce to a 20% savings rate that was unsustainable and funded by investor money as a customer-acquisition cost, similar to how Uber subsidized rides
• Shaan invested with eyes wide open to the risk—he knew algorithmic stablecoins had never worked and documented the death-spiral risk beforehand, which is exactly what happened when a motivated actor exploited the project during a liquidity migration window
• Shaan’s emotional resilience came from pre-mortems: he wrote down upfront what could go wrong, sized his position appropriately (not more than 15% in any project), and maintains the discipline to avoid checking his net worth during downturns and instead focus on earning income

Episode details: published May 25, 2022 · 11K views · 22:42 long. Summary written by Self Growth Videos from the episode itself. The business ideas, figures and results discussed are the hosts’ and guests’ own claims, shared as brainstorming and entertainment — not verified facts and not investment advice.

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