LUNA crypto

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.

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.

The past few days have been extremely volatile across the crypto economy, after one of the largest stablecoins, TerraUSD (UST), depegged from its $1 value ...

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The selloff in the algorithmic stablecoin that was supposed to be pegged to $1 accelerated, briefly sending its price to less than a quarter of that value.

- Cryptocurrency TerraUSD Plunges as Investors Bail You may cancel your subscription at anytime by calling Customer Service. Cryptocurrency TerraUSD Plunges as Investors Bail

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

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.

Stablecoin TerraUSD fell 30%+ since losing its 1:1 peg to the U.S. dollar, but why is sister crypto LUNA tanking too? Read on to find out why.

It worked for a bit but the UST stablecoin fell today to as low as $0.29 at 3:45 a.m. EST, completely decoupled from the U.S. dollar peg this morning and dragged LUNA down with it. Naturally, this is at a high cost to UST and LUNA holders, but we will continue to explore various options to bring in more exogenous capital to the ecosystem & reduce supply overhang on UST," Kwon stated in his tweet series. Our updated list of the best cryptocurrency apps for 2022 is packed with best-in-class picks. Despite all this financial engineering, TerraUSD (UST) started to slip in value to the U.S. dollar late last week due to fears over rising inflation and the Fed's raising of interest rates. We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. It's important for every person to do their own investment research and only use an amount that you're comfortable losing. This algorithmic price shifting creates arbitrage opportunities for savvy investors to trade between LUNA and UST at lower prices on one exchange, for higher prices on other exchanges to help to restore market equilibrium for both coins. "Before anything else, the only path forward will be to absorb the stablecoin supply that wants to exit before $UST can start to repeg. With the current on-chain spread, peg pressure, and UST burn rate, the supply overhang of UST (i.e., bad debt) should continue to decrease until parity is reached and spreads begin healing. In fact, you've probably used this company's technology in the past few days, even if you've never had an account or even heard of the company before. While traders on cryptocurrency exchanges are used to volatility, today's price action surrounding Terra (LUNA) has been breathtaking -- in the worst way possible. A little context is needed to understand LUNA's crypto crash.

The implosion of the audacious Luna and Terra coin project has left the crypto world shaken, regulators fired up, and lot of retail investors much poorer.

Kwon’s nonprofit took $1.5 billion, half of it in bitcoin, and tried to bail out Terra, which got back up to 90 cents a coin on Tuesday. Kwon tweeted that he was “deploying more capital,” then there was mostly silence until a Wednesday-morning thread took on a more formal tone and ended with a promise that Terra would “return.” The goal, said Cory Klippsten, CEO of the exchange Swan Bitcoin, appears to have been keeping the price as high as possible for as long as possible so investors could make a profit after a lock-up period ended and then bounce. Kwon — who had built up a persona as a proud crypto asshole, even saying once that he doesn’t “ debate the poor” in a thread about, I’m not kidding, financial panics — has lost whatever goodwill he had among his followers. For a while, it had been a cool way to make money out of nowhere, an excuse to move to Miami and show off your wealth. As 2022 wore on, it all started to feel more and more like the domain of weirdo-rap alleged money launderer Razzlekhan. Defenders have called it an “ attack,” though it’s unclear if this was anything more than a large withdrawal of money they weren’t prepared to cover. Meanwhile, shares in leading U.S.-based crypto exchange Coinbase were off by 25 percent, and the trillion-dollar-plus crypto industry is teeming with rumors about large funds or companies that may be on the brink of failure. While Terra should always be at $1, Luna could rise and fall with the markets — and the coins could freely be exchanged for each other for small profits. Terra is supposed to be trade reliable at the value of exactly one U.S. dollar, but it plummeted to 29 cents on Wednesday morning. At the time, Luna was on a massive run, up more the 1,000 percent over the prior six months. (The ex-Princeton wrestler also hired Hilary Duff to play at his birthday party a few years ago.) But even for Novogratz, the tattoo seemed a little over-the-top. “I’m officially a Lunatic!!!” he tweeted to his more than 400,000 followers.

Bitcoin and cryptocurrencies have crashed further overnight, dropping to levels not seen since the crypto market began surging in late 2020...

The market inclines to sell on that kind of uncertainty and that is why stocks and crypto fell, but there is also a hope that inflation in the U.S. will continue to alleviate." Want to stay ahead of the market and understand the latest crypto news? Sign up now for the free CryptoCodex—A daily newsletter for crypto investors and the crypto-curious

TerraUSD, or UST, has been dragged into the spotlight after the stablecoin, which is supposed to be pegged one-to-one with the U.S. dollar, fell below the ...

Its peg has been lost and now investors are rushing to dump the associated luna token. The fear is now that the organization my have to sell off its bitcoin holdings to try to support the peg. Binance said that as a result, there is a "high volume of pending Terra network withdrawal transactions" on its exchange, in a sign that investors are rushing to sell luna. UST is an algorithmic stablecoin which uses code to maintain its price at around $1 based on a complex system of minting and burning. Luna, the sister cryptocurrency of controversial stablecoin TerraUSD, has collapsed to nearly $0. - Luna, the sister cryptocurrency of controversial stablecoin TerraUSD, has collapsed to nearly $0.

Worth $119.22 at its peak, LUNA, the sister asset of troubled cryptocurrency TerraUSD, collapsed to almost $0 overnight.

Meanwhile, the supply of LUNA has shot up by 20-fold today to hit $25 billion (The drop in UST’s price caused additional LUNA to be minted and issued into the open market). To stop “the depeg death spiral”, the protocol’s contributors proposed to cut interest rates to a target of 4%. TerraUSD (UST), designed as an algorithmic stablecoin that should always be worth $1, lost its peg to the U.S. dollar last week, dropping to as low as 36 cents.

Digital-asset turmoil is sweeping through exchange-traded products, with one tracking the troubled Luna token seeing its price almost evaporate in what may be ...

The VanEck Terra ETN (VLNA GR) dropped by a similar magnitude. The 21Shares Terra ETP (ticker: LUNA SW) tumbled 99% to 0.01 Swiss Francs on Thursday, having closed at 22.29 Swiss Francs on May 6. Digital-asset turmoil is sweeping through exchange-traded products, with one tracking the troubled Luna token seeing its price almost evaporate in what may be the biggest ETP wipeout ever.

It has been what some called a “very dark” week for crypto, with stablecoin TerraUSD, once the 10th largest cryptocurrency, losing its peg, while bitcoin fell ...

Another miner, Ebang International Holdings Inc. EBON,, lost 12% to $0.64, with a 26% loss over the past five days. Shares of Marathon Digital Holdings Inc. MARA,lost 0.2% to $9.95, with a 37% loss over the past five days. Bitcoin fell as far as $25,402 Thursday, the lowest level since December 2020, according to CoinDesk data. Ether ETHUSD,lost 31% over the seven-day stretch to around $1,905. She called on Congress to pass a “comprehensive framework” to ensure there are no gaps in regulation. Bitcoin BTCUSD, -0.73%plunged 26% over the past seven days, trading at around $28,260 on Thursday, according to CoinDesk data. LUNA, another cryptocurrency that backs UST, fell to as low as $0.03 Wednesday from over $80 on May 6. It has been what some called a “very dark” week for crypto, with stablecoin TerraUSD, once the 10th largest cryptocurrency, losing its peg, while bitcoin fell to its lowest level since 2020. Why is Terra in the news? Here’s what investors need to know. Michael Saylor’s MicroStrategy Inc. MSTR,lost 2% Thursday to $164.84, while it was down 47.3% over the past five days. Shares of Coinbase Global Inc. COIN, +8.90%gained 1.8% to $54.68 on Thursday, while it has fallen 52% over the past five trading sessions.

The stablecoin Terra and Luna crisis has rocked the price of Bitcoin and Tether too. This is how it all unfolded.

And so you had equivalents backed by a derivative of the price of that house,” he added. The company had said all its tokens were backed by dollars held in a reserve. “The idea of an algorithmic stablecoin is instead of having a backing reserve you have a sort of messy, a lower quality banking reserve. It was obviously nonsense. Stablecoins claim to be a relatively safe haven in the highly volatile crypto market. “In the 2000s, when money was great, people had so much money, they couldn't even invest it fast enough. "Everyone knew this was nonsense. They are meant to be tied to a fiat currency and usually maintain a 1-to-1 peg with the US dollar. “It was based on nonsense and had Bitcoin effective at the bottom and they actually crashed the price of Bitcoin and that crashed all the other cryptos because they're all correlated,” Gerrard said. So let's bet on mortgages and loans based on mortgages. The company said “very little” of the borrowed Bitcoins have been spent, but it is “currently being used to buy” UST. Many worry that the Luna Foundation Guard will sell a large part of its Bitcoin to support UST. UST, created by Terraform Labs, is an algorithmic stablecoin, which means that instead of having cash and other assets held in a reserve to back its token, it uses a complex mix of code and Luna to stabilise the process.

The price of bitcoin has fallen nearly 30% over the past month as investors seek to pare risk.

TerraUSD and luna are known in crypto circles as stablecoins, which means their value is tied to a commodity or a currency. The crypto exchange platform on Wednesday reported a $430 million net loss in the first quarter. Coinbase lost half its value in the past week due, in part, to slumping crypto prices. It also means some investors who were once gung-ho on crypto have sold their holdings for a loss. Those declines began soon after the prices of terraUSD and luna dropped below $1. Bitcoin fell as low as $26,513 Thursday, down 8% from Wednesday. Ripple has fallen 19% to $0.38 and ether is down 14% to $1,981.

The Terra (LUNA -99.96%) blockchain is powered by two cryptocurrencies: Terra and Luna. Terra is a stablecoin tied to the value of fiat currencies.

Moreover, because the arbitrage mechanism would need to significantly increase the Luna supply (and decrease its value) to restore the stablecoin's peg, investors have also been selling Luna. Instead, the price of the stablecoin has continued to plunge, and panicked investors have been selling, adding to the downward pressure. The trader can then sell that TerraUSD coin to earn a profit of $0.02. At the same time, the arbitrage mechanism increases the supply of TerraUSD, which eventually brings its price back to $1. Earlier this week, TerraUSD lost its peg and the stablecoin saw its price plunge to $0.30. It has since regained some of its value, though its price is still well-below the $1 target. When the supply spiked and TerraUSD lost its peg earlier this week, the arbitrage mechanism failed to resolve the problem. And given Terra's runner-up position in the DeFi industry, investors had good reason to believe demand for TerraUSD would continue to rise. Arbitrage is the simultaneous buying and selling of an asset to capitalize on small price discrepancies in different markets. The Terra stablecoin maintains its price through a built-in arbitrage mechanism. Its price is kept stable by the computer code behind the arbitrage mechanism. The system works the same in reverse. And Luna is used to absorb stablecoin price volatility. For example, TerraUSD ( UST -75.49%) is pegged to the U.S. dollar.

What made the crypto markets crash? Should you sell crypto, or will it go back up? And what happened to Bitcoin?

The idea, as the name implies, is to offer investors a safe haven in the wild, gyrating world of crypto with a digital asset that is typically pegged to some sort of benchmark, like, in the case of UST, $1. So, to do that, most stablecoins like the two largest, Tether and USDC, purport to be backed by an equal dollar amount of assets—typically cash, bonds, and some other mix. Analysts and crypto experts including FTX CEO Sam Bankman-Fried are optimistic that the current downturn is just that rather than some sort of Black Swan event, and that, once stocks begin to recover, so too will crypto. By comparison, the global value of crypto markets in the now-infamous 2018 crypto winter dropped by about 70%. Luna, the sister crypto, has plunged to just 3 cents as a result. And as I wrote Thursday morning, the results weren't great. Since the market hit an all-time high in November, crypto has been stumbling, but, in the last week, the decline has accelerated in shocking fashion, sparking questions about the stability of so-called stablecoins, whether another long-awaited crypto winter is here, and what investors can do about it. The latest to reach the conclusion was analysts at Bank of America, according to Fortune's Taylor Locke. So, when the Fed indicated May 4 that it would raise rates by half a percentage point, Bitcoin began to sink. The largest U.S. crypto exchange's stock has been tumbling for months now, a decline that closely mirrors the crypto market's. Like Bitcoin and Ether, Coinbase hit an all-time high in November. Since then, the company's stock has been swept up in the risk-off trade, with investors moving money into steady cash earners and out of growth-oriented companies like Coinbase. But the sell-off accelerated to new speeds this week, when, on Tuesday, Coinbase reported first-quarter earnings. Bitcoin is down by a third since May 4, now trading at around $28,000, while Ethereum's ETH token, the second largest crypto out there today by market capitalization, has dropped 35%. Altcoins like Cardano's ADA, Solana's SOL, and Polkadot's DOT are all down more than 45%. And the original meme token, Dogecoin, has plunged 40%. Zoom back far enough, and you'll see that the total value of global crypto markets today is still up 789% from March 2020 when crypto began to its latest rip higher. Of the sell-off, the damage has been widespread. Whatever the adjective, one thing that's abundantly clear by now is that the cryptocurrency markets are in turmoil—with no end in sight.