Luna crypto

2022 - 5 - 10

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Post cover — Image courtesy of "Blockworks"

Cryptocurrency Luna Lurches as Terra USD Volatility Continues ... (Blockworks)

LFG has deployed its BTC reserves, but $1 billion in circulating supply contraction has so far failed to restore the dollar peg as UST trades around 90 cents ...

Exceed the cap, and the spread — the amount of LUNA that one UST can be redeemed for — is designed to widen. But for some, irrespective of whether the peg ultimately recovers, it has been a catastrophic loss. It used a roughly similar burn and mint stabilization mechanism to UST’s, and the platform’s WAVES token has fallen by 80% since. The speed of the descent overwhelmed the intended arbitrage-based stabilization mechanism built into the protocol design, which has a roughly $290 million per day soft cap for redemptions at $1. As each UST is redeemed for $1 worth of LUNA, the latter’s supply expands. The net UST supply contraction amounts to roughly $1 billion already.

Terra Plunges 60% In 24 Hours. Why The Crypto's Price Is Crashing ... (Livemint)

Terra(LUNA) has had a whirlwind of a week with the cryptocurrency tumbling at an alarming rate.

The extended depreciation has resulted in massive withdrawals from the Terra blockchain App Anchor, which has seen its balances drop by $7.8 billion or 30%," said Melbin Thomas, Co-Founder of Sahicoin. The daily chart for LUNA has broken below the ascending channel pattern. Terra's price has fallen more than 91% from its record high of $119.8 it had hit in April this year.

Controversial stablecoin UST — which is meant to be pegged to the ... (CNBC)

UST, a so-called stablecoin that's meant to maintain a $1 peg, was trading at just 50 cents Wednesday.

"We should have had these in place previously, so let me apologize for that." Investors are now closely watching for how Luna Foundation Guard responds to prop up its ailing stablecoin. UST's price has crumbled under the pressure of a sell-off in cryptocurrencies recently, resulting in further panic in the market. The fear now is that Luna Foundation Guard dumps those bitcoins onto the market, resulting in an even bigger sell-off. It's fallen over 50% since setting an all-time high of nearly $69,000 in November. It uses a complex system of minting and burning tokens to adjust supply and stabilize prices.

How Crypto Whales Wiped Off Terra Luna On Binance, Other ... (Outlook India)

Read here to know more about how Terra and its algorithmic Stablecoins work, and what events led to it losing half of its value in five days.

May 10: Terra’s founders and the Luna Foundation Guard (LFG) stepped in to control the free fall of their Stablecoins and crypto. May 9: The Luna cryptocurrency lost 60 per cent of its value and was trading at $45 on May 9. Since UST and Luna are tied together by an algorithm program as explained above, this massive selling and shorting caused the balance to be put off. They also started to short Luna crypto currency at the same time. In a normal market scenario, this should result in UST supply getting reduced and its price should climb back to $1. But things went horribly wrong and the algorithms failed to keep this ratio. Bitcoin dropped 8.4 per cent that day, and the overall crypto market cap was also down by 7.46 per cent. Luna Foundation Guard (@LFG_org) https://t.co/IKQmFhPNdE May 9, 2022 To maintain TerraUSD’s price, the Luna supply pool adds to or subtracts from TerraUSD’s total supply, depending on the situation. 6th May 2022: The crypto market has been experiencing volatility and price swings ever since the US Federal Reserve increased the interest rate, and inflation data reached market participants. This essentially means that LUNA investors’ wealth has been eroded by more than 88 per cent in five days. A crypto Stablecoin is different from a crypto coin. This is because it tracks the value of a particular asset, say dollar or gold, and derives its price from it.

Terra Luna CRASHES over 85%; here's why (Business Today)

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.

Crypto Investors Do Not, Under Any Circumstances, 'Gotta Hand It ... (Gizmodo)

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.

Korean crypto exchanges issue warnings about trading Luna (The Block Crypto)

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.