The crypto-economy has been in turmoil over the past few days as billions of people flee the market in search of safety. Problems with LUNA sparked a sharp sell-off as Terra’s native digital asset fell 97% against the U.S. dollar in 24 hours. Terrausd has fallen 67% from its $1 par and was trading at a low of $0.299 per unit at 9:00 a.m. ET.
Terra’s native token LUNA fell 97%, UST fell 67% in 24 hours
The Terra blockchain ecosystem has ravaged Due to the events of the past few days, when the network’s algorithmic stablecoin terrausd (UST) started lose the peg to the dollar. Project founders Do Kwon and Luna Foundation Guard (LFG) also explained that the team lent $1.5 billion in Bitcoin (bitcoin) and terrausd (UST) to help protect the hook.The effort was in vain, UST slipped to $0.66 per coin But then, for most of Tuesday, UST managed to climb back above the $0.90 area.
On Tuesday night, UST started to tumble again and continued to slide to a recent low of $0.299/unit. The native token LUNA suffered even more losses than UST, as it lost 97% of its value in the past 24 hours. The 24-hour price range for LUNA is between $33.93 per coin to $0.810 per coin.Also, after Do Kwon said to stay strong and have plans in the works, Terra co-founder public on Twitter.
“Before anything else, the only way forward will be to absorb stablecoin supply that wants to exit before UST starts repricing,” Kwon said. “There is no other way. We propose some remedies to help the peg mechanism absorb supply. First, we support community proposal 1164 to increase the base pool from 50M to 100M SDR *) reduce the PoolRecoveryBlock from 36 to 18 which will allow minting Capacity increased from $293 million to approximately $1.2 billion,” Terra co-founder added.
Kwon also said that Terra could bounce back from the crash, noting that the project won’t go anywhere. “The return of Terra will be a sight to behold,” Kwon tweeted. The Terra founder added:
We stop here. We will continue to make noise.
“Worse than Bitconnect”
Of course, in this case Many people lose money some of them Lose everything, many criticized Terra’s founder’s response.Podcast host Peter McCormack ask Kwon “What are your chances of the same thing not happening again?” Bitcoin proponent Hasselblad said UST event “worse than Bitconnect”. “At least Bitconnect is not masquerading as a stablecoin,” Hasselblad added. “When your Ponzi scheme targets people’s savings (rather than investment) portfolios, there’s a special place reserved for you in hell.”
In addition to criticism, people also try to buy the dip Because they believe a strong comeback will happen. However, while doing so, many cryptocurrency traders are getting caught up in price volatility.Additionally, Crypto Twitter (CT) Influencers are delete tweet That discuss UST and LUNA are positive.Additionally, crypto liquidity provides Genesis with explain The company “has no direct contact with UST and LUNA.” The individual also claimed that the downfall of LUNA and UST was a “coordinated attack”. “The best market manipulation,” one person tweet.
Other Terra supporters have been watching the bot on Twitter, and statement They were convinced that Terra’s problems were the result of a blatant attack.Strange to see a bot or twitter account repeating the same statement, can be found here, here, here, hereand here. While LUNA and UST have yet to drop to zero, people are either betting they will, or believing in Do Kwon and thinking a massive reversal is likely. By 10:45 a.m. ET, UST was trading at $0.504 per unit.
Sator CEO Says Luna Foundation and Do Kwon May Still Hold Bitcoin Reserves
Isla Perfito, CEO of community-first Web3 content engagement platform Sator, said it is still possible that the Luna Foundation Guard (LFG) could hold bitcoin. “People thought LFG had sold their bitcoin,” Perfito told Bitcoin.com News in a statement. “That’s why UST is priced at 0.40 against the U.S. dollar.if they have bitcoin, their backing is better. Do Kwon should provide his balance snapshot bitcoin Save UST. Today’s CPI data was higher than expected. Sator’s CEO added:
In my opinion, inflation has peaked. Investors are now waiting for the stock market to bottom. With UST, 1 LUNA can be exchanged for 1 UST and vice versa. That’s why we watched Luna crash – they were selling Luna coins when they decided not to keep the peg. Having said that, it is possible that they have reserves to save UST.
Alex Tapscott, managing director of the digital asset group at Ninepoint Partners, explained to Bitcoin.com News on Wednesday that Terra’s problems are akin to an explosion of hedge funds. “It’s no different than what happens when a large hedge fund ‘blows up’ and is forced to close out positions,” Tapscott explained in an email. “It becomes a price taker, causing its own assets to suffer ( Although usually only temporarily).” Tapscott continued:
In the long run, the thesis on Bitcoin and cryptocurrencies remains the same. Bitcoin was the internet’s first digital native currency, and cryptoassets as a whole represent the internet’s second era — the Internet of Value — that will continue to transform and rethink many industries.
What do you think of the LUNA and UST fiasco and how things are going? Let us know what you think about this topic in the comments section below.
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