Terra Luna cryptocurrency price collapses 98% overnight. How Crypto Whales Wiped Off Terra Luna news On Binance, Other Platforms.
The terra luna cryptocurrency market is facing an unprecedented crash this week. At the time of writing, Bitcoin (BTC) price stood at $28,031.48, considerably lower than the benchmark of $30,000. On Indian exchanges, Bitcoin price stood at Rs 23.8 lakh. Even Ethereum (ETH) is facing a tough week, currently priced at $1,937.85 on global exchanges and Rs 1.65 lakh on Indian platforms. The biggest loser among all cryptos appears to be Terra Luna (LUNA), which crashed over 85 percent on May 11, as per Coin Market Cap data. And the reason behind this is the ‘de-pegging’ of Terra USD (UST) stable coin.
Terra Luna, the terra luna cryptocurrency native to Terraform Labs has crashed further and is 97 per cent down in the last 24 hours. The token is trading at $0.5145 as per data from Coin Market Cap, as of 8:50 am IST on Thursday.
Terra (LUNA), TerraUSD (UST) Crash News: 99% down! Check Latest Prices
Terra (LUNA), Terra USD (UST) Crash News (May 12): The price of cryptocurrency terra luna price (LUNA) has plummeted to just $0.5 in the last 24 hours. The once popular crypto has lost over 99 per cent of its price value in the last 7 days and over 96 per cent in the last 24 hours, according to Coin Market Cap data. Similar to LUNA, the price of cryptocurrency terra luna price so-called stable coin – Terra USD(UST) – is now worth around $0.6, down over 33 per cent in the last seven days.
Terra price crash has come as a wake up call for crypto investors, with analysts expecting further decline in in value of both LUNA and UST.
What is Terra Luna?
Terra is a block chain protocol that supports price-stable global payment networks by using stable coins backed by fiat currency. according to its white paper, combines the price stability and widespread adoption of fiat currencies with the censorship-resistance of Bitcoin (BTC) and offers rapid and low-cost transactions.
Terra is a blockchain protocol that uses fiat-pegged stablecoins to power price-stable global payments systems. According to its white paper, Terra combines the price stability and wide adoption of fiat currencies with the censorship-resistance of Bitcoin (BTC) and offers fast and affordable settlements.
Development on Terra began in January 2018, and its mainnet officially launched in April 2019. As of September 2021, it offers stablecoins pegged to the U.S. dollar, South Korean won, Mongolian tugrik and the International Monetary Fund’s Special Drawing Rights basket of currencies — and it intends to roll out additional options.
Terra’s native token, LUNA, is used to stabilize the price of the protocol’s stablecoins. LUNA holders are also able to submit and vote on governance proposals, giving it the functionality of a governance token.
Who Are the Founders of Terra?
Terra was founded in January 2018 by Daniel Shin and Do Kwon. The two conceived of the project as a way to drive the rapid adoption of blockchain technology and terra luna cryptocurrency through a focus on price stability and usability. Kwon took on the position of CEO of Terraform Labs, the company behind Terra.
Prior to developing Terra, Shin co-founded and headed Ticket Monster, otherwise known as TMON — a major South Korean e-commerce platform. He later co-founded Fast Track Asia, a startup incubator working with entrepreneurs to build fully functional companies.
Kwon previously founded and served as CEO of Anyfi, a startup providing decentralized wireless mesh networking solutions. He has also worked as a software engineer for Microsoft and Apple.
What Makes Terra Unique?
Terra seeks to set itself apart through its use of fiat-pegged stablecoins, stating that it combines the borderless benefits of cryptocurrencies with the day-to-day price stability of fiat currencies. It keeps its one-to-one peg through an algorithm that automatically adjusts stablecoin supply based on its demand. It does so by incentivizing LUNA holders to swap LUNA and stablecoins at profitable exchange rates, as needed, to either expand or contract the stablecoin supply to match demand.
Terra has established a number of partnerships with payments platforms, particularly in the Asia-Pacific region. In July 2019, Terra announced a partnership with Chai, a South Korea-based mobile payments application, in which purchases made using the application on e-commerce platforms are processed via the Terra blockchain network. Each transaction is subject to (on average) a 2%–3% fee charged to the merchant.
In addition, Terra is supported by the Terra Alliance, a group of businesses and platforms advocating for the adoption of Terra. In February 2019, the company announced that e-commerce platforms from 10 different countries, representing a user base of 45 million and a gross merchandise value of $25 billion, were members of the alliance.
Terra’s Role for UST
The LUNA token and UST are mutually dependent, as the success of the Terra ecosystem is a function of the adoption of UST as a stablecoin. LUNA backs UST and is burned when demand for UST rises. Following upgrades like Columbus-5, the supply of LUNA could become highly deflationary in the long run.
On the flip side, the value of LUNA can also decrease if UST is perceived as unstable. UST briefly lost its peg following the Wormhole hack, leading to a temporary price crash for LUNA.
How Many Terra (LUNA) Coins Are There in Circulation?
Terra has a supply of 1 billion tokens. If this number is exceed, LUNA is burn until it returns to the equilibrium supply level. New LUNA tokens are minted through the protocol’s algorithm, as need, in order to maintain the price of Terra stablecoins.
LUNA was first made available for purchase in a private token sale for initial investors. Which included the investment arms of major exchanges such as Binance, OKEx and Huobi. The sale conclude in August 2018, and as a result, Terra raised $32 million. Of the 385,245,974 LUNA mint for the sale. 10% was reserve for Terraform Labs, 20% for employees and project contributors, 20% for the Terra Alliance. 20% for price stability reserves, 26% for project backers and 4% for genesis liquidity.
Why UST is falling and not USDT, BUSD?
Interestingly, other popular stable coins like Tether (USDT). USD Coin (USDC) and Binance Dollar (BUSD) have maintained their prices around $1 amid the ongoing crypto market crash.
Experts believe that the UST debacle has exposed the vulnerabilities of algorithmic based stable coins.
Stable coins like USDT, USDC and BUSD are back by actual dollar reserves as claim by issuers of these cryptos. This means, for even unit of these stable coins. There is a matching US dollar locked in a bank account somewhere.
How are Terra Luna and Terra USD related?
The LUNA token and UST are mutually dependent. As the Terra ecosystem’s success is predicate on the adoption of UST as a stable coin. LUNA invests in UST and is burn as demand for UST increases. On the other hand, if UST is view as unstable, the value of LUNA may fall.
LUNA crash: How much did Terra Luna price drop?
As per Coin Desk, LUNA price stood at $0.37, or Rs 32.34 as per Indian exchanges. The crypto currency saw a drop of 55 percent on May 10, and an additional 85 percent on Wednesday. In the past couple days, LUNA investors were wipe out of 95 percent of their wealth.
LUNA price is now around 97 percent below its all-time peak of $118, as seen in April.
Why is Terra Luna crashing?
The terra luna cryptocurrency started crashing amid the cryptocurrency terra luna price USD algorithmic stable coin de-pegging fiasco. luna terra USD, or $UST is also native to Terraform Labs
The Terra ecosystem has adopted UST as a stable coin, leading to the interlinking of luna terra news and UST. A stable coin is link to an underlying asset, such as precious metal such as gold, or the US dollar.
UST has recently ‘de-pegged’ to $0.45 from its value of $1. This marked a drop of about 55 percent. Since both UST and luna terra news are interlink, the massive drop in UST value has result in LUNA’s overall drop.
As per Coin Desk, Terra’s market cap now stands at under $1 billion ($994.17 million at the time of writing). This is in stark contrast to its all-time high market cap of around $25 billion.
For now, investors can only wait for the market to progressively stabilize to help recover from the losses
Terra Luna’s path to recovery
Do Kwon, the founder of Terraform Labs, announced on Twitter on Wednesday. The Terra Luna crash that he has a recovery strategy for the Terra tokens that he will release soon.
Many speculations are also made that Terraform Labs is in touch. With several investors to bring the terra luna cryptocurrency back on track.
