- Bitcoin fell more than 50% from its peak and dragged down the rest of the crypto market.
- The Luna token, from the Terra project, was the most affected because the UST stablecoin lost parity with the dollar.
- Terra’s founder says he is going to save the project, but few believe him.
The stablecoin $UST, the Terra stablecoin, fell as much as 60 cents from a dollar dragging the Terra (LUNA) cryptocurrency into the collapse, token that went from being worth $120 to less than 0.1.
A) Yes, fortunes disappeared of investors who had deposited in that project the savings of years of work.
Terra once ranked among the top 15 cryptocurrencies in the digital asset market, but the bitcoin crash earlier in the week hit some projects much harder and the price crashed.
Bitcoin fell to $29,000 from $41,000 trading last Thursday, down 29 percent.
If the account is faced with the 67 thousand that was its historical maximum, the drop is 56 percent.
This Thursday, May 12, Bitcoin is trading at $28,100.
What happened to the price of Terra (Moon)
The drop in the price of Terra (the acronym under which the token is exchanged is LUNA) is remarkable. Suffice it to say that it went from a capitalization of almost 39 billion less than two months ago to 5 million this week.
On Reddit, investors from all over the world recount their misadventures. “I lost all my life savings” describes one of the members of the r/TerraLuna subReddit. “I had bought Luna at 85, I don’t know what I’ll do”, He added regretting not having sold at 120, a price he reached before falling into the void.
Another Reddit user claimed to have lost more than $15,000 after failing to sell his Terra Luna tokens for $100.
“I should have sold for 100, so I would have made $25,000,” he lamented on the r/No-Forever subReddit. “But I got really greedy with the idea of scraping together more money and putting down a down payment on a family home. There will be no house now, no savings.”
Why the price of Luna fell
The most important exchange platform by volume of transactions, Binance, temporarily suspended the withdrawal on the Terra (LUNA) network, which shows that even those who wanted to sell when the price fell, could not do so and were “trapped” in the collapse. Price.
Binance said the reason for the temporary suspension of withdrawals on the Terra network was due to “a large volume of pending withdrawal transactions” due to “slow network congestion.”
While the bitcoin crash affected Terra, the concrete thing is that the crash of the Luna token was aggravated by difficulties with the Terra stablecoin, UST.
Earlier this week, the UST lost parity 1-1 with the dollarfalling to 30 cents, only to recover later.
Luna Foundation Guard, the body that acts as the administrator of UST, is looking for 1,000 million dollars to rescue the stablecoin that achieves parity based on an algorithm that obviously failed.
Do Kwon, founder of Terra (Terraform Labs) said on Twitter that he is about to announce a recovery plan for $UST.
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