Bit interconnection? ‘Luna Brothers’ Moment Sees Terra Increase 3,500% Token Supply Overnight

Earth (Luna), the internal token of the blockchain protocol Terra, is undergoing a major change, which is also causing intrigue and despair.

Data released on May 13 confirmed that the supply of the beleaguered cryptocurrency expanded to a staggering 6.9 trillion LUNA overnight.

6,900,000,000,000 LUNA with almost zero value

After a tumultuous week, things went from bad to worse as Terra tried to rescue LUNA and its failed USD stablecoin TerraUSD (UST).

Both coins continue to depreciate despite massive sales of BTC and loans to prop up the market.

At the time of writing, LUNA/USD is trading at an almost imperceptible average price of $0.00005474 at the time of writing, according to Data from CoinMarketCap.

To the dismay of those looking to go long at previously low levels, LUNA has been unable to stem its decline, and Terra’s latest move appears to have exacerbated that.

The supply increase officially kicked off on May 8 and has taken a ridiculous turn in recent days, reminiscent of hyperinflationary fiat currencies.

On May 11, 1.8 billion LUNA were minted and added to the existing supply of 764 million. If that wasn’t enough, another 185 billion tokens appeared on May 12.

Ultimately, on May 13, Terra minted 6.7 trillion LUNA – a 3,483% increase at one time.

“There’s bitcoin, and there’s junk,” popular commentator Hodlonaut, creator of bitcoin cultural resource Citadel21, responded in a May 12 print.

After the total supply of LUNA reached 6.9 trillion, Hodlonaut drew a line in the presence of altcoins.

Worse than OneCoin?

As spectacular as inflation was, LUNA’s debacle was the most watched, as older market participants compared the events to the demise of crypto Ponzi schemes like BitConnect and OneCoin.

related: 168,000 BTC leaves exchanges, Bitcoin price sees ‘reversal candle hell’

David Hoffman, co-founder of encrypted messaging Bankless, Arrange LUNA implosion vs BitConnect size and comparative market cap chart.

LUNA and BitConnect market cap chart.Source: David Hoffman/Twitter

“LUNA is really the biggest cluster I’ve seen in crypto,” popular trader MDXCrypto continue:

“Worse than Bitconnect, worse than Onecoin, worse than Axie, worse than all of them.”

As Cointelegraph recently reported, Terra has Commitment to revive the entire ecosystemdespite this Close the LUNA blockchain a few hours later.

“Even if LUNA and UST survive this event, some genius protocol changes will have to be made in the long run to increase market confidence that LUNA’s market cap will always float above UST,” said former chief executive of derivatives platform BitMEX Executive Arthur Hayes, wrote The first in a series of blog posts on stablecoins titled “Luna Brothers, Inc.” Posted on May 13:

“I don’t know how to do this.”

LUNA/USD, already pull At the time of writing, Bitfinex is trading at $0.0077, according to data from major exchange Binance Cointelegraph Market Pro and Transaction view.

LUNA/USD 1 hour candle (Bitfinex). Source: TradingView

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