Luna

TerraUSD, the controversial algorithmic stablecoin, slumped on Wednesday as crypto markets await a rescue led by primary backer Do Kwon.

On Tuesday, following an earlier tweet from Kwon that he was “close to announcing a recovery plan,” the token rallied to around 94 cents. Over the weekend, the token lost its intended peg to the US dollar, falling to about 99 cents. Luna, a coin that’s part of the peg mechanism for TerraUSD, tumbled 84% over the past 24 hours, according to CoinMarketCap.

Cryptocurrency Terra Luna crashed over 85 per cent on Wednesday, data from CoinMarketCap shows, with the cryptocurrency trading at $6.18 as of 12:30 PM IST.

As we speak, LUNA is down to $11 from its all-time high of $119.18 in April 2022, this phase of instability in LUNA will remain because the overall crypto market is expected to remain choppy in the coming weeks.” The success of the Terra ecosystem is based on the adoption of UST as a stablecoin, hence the LUNA token and UST are inextricably linked. Jennifer Lu, co-founder of Coinstore, explained the whole fiasco to Business Today, “The recent incident of UST losing its dollar peg has sent shockwaves across the crypto market as it has exposed the weakness of algorithm backed stable coins. The LUNA's value dropped as a result, although the peg was not reinstalled. The UST Curve pool gradually shrunk as users exchanged UST for competing stablecoins when UST began trading drastically below its dollar peg. Alternatively, if UST is seen as volatile, LUNA's value may fall.

The cryptocurrency has plunged 87% in the past 24 hours alone.

But if you held bitcoin, your “currency” has lost 52% and counting. At least 40% of bitcoin investors are currently underwater, according to Yahoo Finance. And it’s not looking to get better anytime soon. Then it crashed again to a low of $0.31 early this morning and currently sits at $0.44. Stablecoins are supposed to maintain a peg to a given currency, most commonly the U.S. dollar, but since the “reserves” for these stablecoins are almost always things that are not U.S. dollars, the stability is an illusion. But it’s still unclear whether regulations would improve stablecoins or simply cause many of them to go out of business and evaporate entirely. Yellen and Republican Sen. Pat Toomey from Pennsylvania then discussed pushing forward regulations on stablecoins before the end of the year. Needless to say, people have lost a lot of money in a very short period of time.

Major Korean exchange Coinone has suspended trading of Luna. · Korbit and Bithumb have also issued investment warnings.

© 2022 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. Korbit and Bithumb have issued “designated investment warnings” on the coin citing similar concerns as well. The situation, however, does offer an insight into the level of unease among Korean crypto investors concerning Luna’s current decline.

Following a day in which teetering stablecoin TerraUST (UST) bounced around $.90, it resumed its free-fall overnight to approach $0.30 before recovering ...

One token that is surging today is MKR, the governance token underpinning the dollar-pegged stablecoin Dai, which was up as high as 40% today. However, that has not come to fruition. Today attention will focus on whether the Luna Foundation Guard, led by founder Do Kwon, will be about to recover from this downward spiral.

Kwon said Terra endorses a community proposal that seeks to bring UST back to its intended $1 peg.

The prices of inter-linked LUNA and UST tokens on the popular Terra network tanked this week, causing leading exchanges, including Binance, ...

Its value should come from its utility in the wider economy and usefulness to everyone. He also concluded he was “bullish on UST once the dust settles down.” While it may be the case (in theory) that stablecoins can experience price volatility and even potentially fail, that potential also puts them in a similar risk category to other digital assets. It’s important to remember that national fiat currencies themselves are essentially algo-backed stablecoins, with their own values based on demand and issuers’ reputations. The whole point of a “stablecoin” is to reduce the risk of volatility altogether or even eliminate it. Blockchain developer Emin Gün Sirer pointed out that stablecoins of all types and generations have suffered issues with their values decoupling from the fiats they represent. Its operators also say the network has earned processors more value in transaction fees than any other blockchain, apart from BTC and Ethereum (it would be tough for anyone to knock either of those fee behemoths from their perches). They rightly cry foul when their positions disintegrate, yet exist on these platforms in the hope of making exponential gains and getting rich quickly. The prices of inter-linked LUNA and UST tokens on the popular Terra network tanked, leading exchanges including Binance to suspend transactions in those assets. Exchanges hide behind the same glitches, disabling and enabling transactions on their platforms. The following Twitter thread describes what happened and what could have happened. The market is struggling to find a stablecoin it can trust as a buffer against other digital asset volatility, while exchanges once again switched off services as trouble loomed—protecting themselves, but not users. It was the second time UST had decoupled from the U.S. dollar in a few days.

Luna, which has been in freefall along with its related stablecoin TerraUSD (UST), fell below $1 on Wednesday.

As such when people sell large amounts of TerraUSD, putting downward pressure on the price, more Luna will be printed and supply could increase exponentially. © 2022 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. - Luna price has fallen below $1 as the Terra ecosystem comes under persistent pressure.

The price of the Terra (LUNA) cryptocurrency has fallen by more than 99 per cent, wiping out the fortunes of crypto investors. Terra, which ranked among the ...

The crash in supposed stablecoin TerraUSD has caused dismay in cryptocurrency markets, and comes during a brutal period for digital assets.

Algorithmic stables are a confidence game. They added that soon "panic set in." Investors can exchange one unit of TerraUSD for $1 of luna. The dramatic drop in TerraUSD and luna is a "death spiral" that could see confidence in the stablecoin evaporate entirely, analysts at research house Fundstrat said in a note. TerraUSD, a major stablecoin which is supposed to be fixed at $1, tumbled on Wednesday to as low as $0.30 as confidence in the crypto project evaporated. - Analysts labeled the drops a "death spiral" and questioned whether confidence would ever return to the Terra project.

With LUNA and UST getting crushed in the market, two South Korean exchanges issued warnings to users dealing with the two tokens.

This triggered a death spiral in TITAN’s price, which was used as collateral to mint the stablecoin. “UST was trading at close to $0.2 today, so confidence will be hard to regain. “The cold storage of tokens on exchanges does not imply they actually have all tokens for redemption.

Stakeholders rushed to Twitter this morning to head off any damage caused by Terra's stablecoin and native token cratering.

firstly you are 99% lying. — Fingerprints (@FingerprintsDAO)May 11, 2022 — Darren Lau (Lau, Lau) 👘 (@Darrenlautf)May 11, 2022

Anchor Protocol's token called Anchor (ANC) has lost more than 70% in the last day due to UST and Luna's struggles.

The protocol generates new ANC tokens to fund Anchor’s lending and borrowing activity. © 2022 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. The algorithmic stablecoin is currently trading at about $0.30 — a deviation of about 70% from its supposed dollar value. As UST constitutes the majority of the deposits on the flagship Anchor’s Earn product, the value of deposited assets Anchor has dropped significantly since last Friday, going from 14 billion UST to now 3.7 billion UST. That's in part due to both withdrawals and the decrease in the price of UST. “The ANC price crashed due to the loss of confidence in UST and the Terra ecosystem as a whole, as a result of the UST de-pegging,” said Eden Au, research director at The Block Research. Anchor Protocol’s token called Anchor (ANC) has lost more than 70% in the last day, in part due to a sharp decline of overall deposits on the protocol and TerraUSD (UST) stablecoin failing to meet its dollar peg.

From borrowing and lending platforms to synthentic equities to simply trying to build a stable proxy for the US dollar, cryptocurrency projects have long ...

Users discussed losses ranging from a few thousand dollars to their life savings as the forum shows the painful side of crypto investments.

And researchers who study the effects of a stock downturn say similar effects are experienced among crypto traders. One member of the forum, No-Forever2056, said in a post that they had thought about cashing out when Luna was trading at $100 in March and early April, but held off to see if they could earn enough for a down payment on a house. I will lose my home soon,” the user wrote. “Well now even if I want to get out, I can’t as all my luna was locked staking,” No-Forever2056 wrote. I didn’t get out because I got greedy and hoped it would go up more,” said No-Forever2056, who declined to give their real name. TerraUSD (UST), an algorithmic stablecoin that should always be worth $1, lost its peg to the U.S. dollar last week and has dropped to as low as 30 cents.

LUNA fell from top 10 coins by market capitalization and is currently the 35th biggest virtual token by market value. Read more...

LUNA is among a number of altcoins – coins other than bitcoin – that have struggled this week. At the time, LUNA was worth $87. TST is a stablecoin, which means that it is backed by a reserve of the asset that it represents – often the US dollar. “Without a doubt, UST losing its peg will be seen as one of the defining moments of the current crypto market cycle. But the coin has been in a freefall since its sister token, TerraUSD (UST), lost its peg to the US dollar. “The depegging will likely result in a substantial regulatory risk – if not for the whole crypto space, then certainly for the stablecoins market.” But at the end of last week, UST depegged from the dollar, prompting a sell-off which also spilled into LUNA.