Although a depeg of this proportion was theorically possible, this event will be a marking point in defi history, a black swan never seen before to this scale in crypto.
Now the question is; is the project over? In my humble -nobody- opinion, I think UST will be saved with a bit of time, but LUNA will have to loose most of it’s remaining value for this to happen.
On the bright side, LUNA hasn’t lost it’s utility, the ecosystem is still expanding. But Luna was always about pushing the Terra stablecoins ecosystem, not just another altcoin.
Do Kwon has already proved he and LFG will stand to hard times and push on to innovate and overcome struggles.
This is a make or break challenge, contrary to most people, I still have confidence in the system, but it will take a lot of effort from the team to regain the trust of investors.
If we get through this alive, the ecosystem will anchor (pun intended) itself as one of the definitive crypto projects ever next to Bitcoin and Ethereum.