LUNA crypto

2022 - 5 - 11

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Image courtesy of "CNBC"

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.

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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.

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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.

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Image courtesy of "The Block Crypto"

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.

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Luna Nosedives Under $2, Loses 98% Of Its Value As TerraUSD ... (Forbes)

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.

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UST founder Do Kwon shares plan to save its stablecoin from mass ... (TechCrunch)

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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South Korean Exchanges Warn LUNA Investors as UST Collapse ... (CryptoPotato)

With LUNA and UST getting crushed in the market, two South Korean exchanges issued warnings to users dealing with the two tokens.

This triggered a death spiral in TITAN’s price, which was used as collateral to mint the stablecoin. “UST was trading at close to $0.2 today, so confidence will be hard to regain. “The cold storage of tokens on exchanges does not imply they actually have all tokens for redemption.

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Cryptocurrency TerraUSD Plunges as Investors Bail (The Wall Street Journal)

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

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LUNA meltdown sparks theories and told-you-sos from crypto ... (Cointelegraph)

Some of you saw it coming; some of you still can't believe it's real. Was the alleged "most significant collapse in crypto history" an attack?

In an investor letter, Alden described the accompanying Bitcoin “selling pressure” that would flood the market with tens of thousands of coins if the UST peg crumbled. Also, when @stablekwon/LFG publicized they would protect the peg at certain level it was an invitation to attack. Inevitably, Crypto Twitter accused Neuner of trying to protect his significant yet fast evaporating LUNA bags. What was once considered a FUD attack on Luna has evolved into something far more conspiratorial and insidious. There are real consequences to the coins’ failures. At one point, the LUNA price tread lower than UST.

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Crypto Firms Quick to Announce No Exposure to UST, LUNA (Decrypt)

Stakeholders rushed to Twitter this morning to head off any damage caused by Terra's stablecoin and native token cratering.

firstly you are 99% lying. — Fingerprints (@FingerprintsDAO)May 11, 2022 — Darren Lau (Lau, Lau) 👘 (@Darrenlautf)May 11, 2022

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Luna Bailout Terms Put a Crypto Spin on Death-Spiral Financing (Bloomberg)

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

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'I didn't get out because I got greedy': Investors share losses on Luna ... (Fortune)

Users discussed losses ranging from a few thousand dollars to their life savings as the forum shows the painful side of crypto investments.

And researchers who study the effects of a stock downturn say similar effects are experienced among crypto traders. One member of the forum, No-Forever2056, said in a post that they had thought about cashing out when Luna was trading at $100 in March and early April, but held off to see if they could earn enough for a down payment on a house. I will lose my home soon,” the user wrote. “Well now even if I want to get out, I can’t as all my luna was locked staking,” No-Forever2056 wrote. I didn’t get out because I got greedy and hoped it would go up more,” said No-Forever2056, who declined to give their real name. TerraUSD (UST), an algorithmic stablecoin that should always be worth $1, lost its peg to the U.S. dollar last week and has dropped to as low as 30 cents.

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LUNA suffers free fall: How low will this crypto token go? (Capital.com)

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.

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Breaking: Why Did Terra (LUNA) Crater 95% Today? Should You ... (Motley Fool)

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.

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The Crash of Crypto's Perpetual Wealth Machine (New York Magazine)

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.

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$1 Trillion Crypto Meltdown—Huge Crash Wipes Out The Price Of ... (Forbes)

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

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Suicidal Posts Spike After Crypto Project Crashes (Futurism)

A nosedive in the crypto market tanked LUNA, a stablecoin based on the US dollar. Reddit users panicked, posting mental health and depression struggles.

The Luna reddit forum is full of suicidal posts. LUNA isn’t the only coin that may not rebound from historical lows. The coin is now worth about $0.43.

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Will Terra Luna recover? Cryptocurrency price crash news, USD and ... (NationalWorld)

Get all of the latest Money news from NationalWorld. Providing fresh perspective online for news across the UK.

UST is a little bit different to traditional stablecoins. “I understand the last 72 hours have been extremely tough on all of you,” he said. “Its mission is to free people from the hidden fees that are embedded in everyday international payments,” says this Medium article. Since UST is tied to the value of the US dollar, its price - and therefore that of Terra - was thought to be much more secure. Terra is designed to always be worth US dollar (USD) in real-world money, and while Luna’s price fluctuates with the market, one Terra will always get you $1 worth of Luna, and $1 worth of Luna one Terra. That means that should Terra trade for more than $1, traders can acquire $1 worth of Luna and exchange it for a Terra worth more than a dollar = profit.

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Binance billionaire CZ urges crypto community to 'go back to ... (Fortune)

Billionaire CEO calls for humility and a renewed sense of purpose after stablecoin Terra sees owners rush for the exits.

Those of use who didn’t want anything to do with crypto could just not put any money in it,” she said. Build real products, not reliant on short term incentives or promotions, but with intrinsic value that people use,” he posted to Terra was designed to trade at a one-to-one ratio to the dollar, not with some form of actual collateral that should underpin its value as is the case with Tether, but through an algorithmic process of creating and then destroying its very own supply of coin.

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Crypto's plummet tests the durability of a hype-driven industry (The Washington Post)

Amid a collapse in many cryptocurrency prices this week, fans of the Washington Nationals might have spotted an odd tweet from the baseball team's account.

“Prices had to come back down to earth, and it happened,” said Abraham Chaibi, co-founder of crypto trading firm Dexterity Capital. “This is not an existential crisis for crypto by any means.” The crypto crash has not spurred a groundswell of new momentum for creating clearer federal rules for the assets. The announcement drew criticism from the Labor Department and a pair of Democratic senators — Elizabeth Warren (Mass.) and Tina Smith (Minn.) — who wrote the company asking it to address the “significant risks of fraud, theft and loss” associated with the assets. Warren said this week’s meltdown in crypto prices underlines the danger for retirees. “There was a big drop in 2014, and then in 2018, there was a ‘crypto winter,’ and many smaller episodes in between. The NBA, for example, has bet big on it, with the Warriors, Mavericks and Heat all making splashy deals with crypto companies — a potential optics issue as all three teams play postseason games this week. The plunge in crypto prices tracks a broader move by investors to dump risky assets, such as tech stocks, as the Federal Reserve hikes interest rates to battle inflation. “After several years of missing out on the profits, many in traditional finance have just recently committed to getting involved in digital asset markets. In total, an estimated 40 percent of bitcoin holders are underwater on the asset, according to a new analysis from crypto analytics firm Glassnode. The exchange reported that its active monthly users dropped to 9.2 million in the first quarter of this year, down from 11.4 million in the previous quarter. It does not use algorithms the way UST does; the latter is an unorthodox method that essentially relies on trades instead of assets to back it up, which may be responsible for its plummet. Coinbase, the largest U.S.-based crypto trading platform, posted a first-quarter loss of $430 million on Tuesday as its stock continued a slide that has it down 79 percent this year.

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Stablecoins, explained: Why the crash of Terra and Luna has ... (CNN)

Within the often head-scratching world of cryptocurrencies, there's a small but growing sub-species known as "algorithmic stablecoins" that have some ...

"I do think that the winnowing process of good ideas and questionable ideas ultimately makes the ecosystem stronger," Paxos' Cascarilla says. By Thursday, backers appeared to be struggling to win investor support for the recovery plan, Bloomberg reported Early Thursday, the crypto was trading at around $28,000, down more than 12% over 24 hours. Unfortunately, there are these moments of creative destruction that actually end up being some of the best ways of kind of narrowing things down to what people can really get behind." That appears to be what happened this week. Once investors lose faith in the system, all bets are off. But on Thursday, mounting pressure shook Tether, the world's largest stablecoin with an $80 billion market cap. Their purported stability has turned these once obscure tokens into the bedrock of the crypto ecosystem. And while they sound similar, the algorithmic variety are, functionally, another beast entirely. Most stablecoins are backed by real-world collateral such as dollars or cash equivalents. They also are used for other types of financial exchanges, such as lending, borrowing or sending payments overseas with less friction than going through a traditional bank. Or, more pessimistically, a Lehman Brothers moment.

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Cryptocurrency luna now almost worthless after controversial ... (CNBC)

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.

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Crypto Crash Explained—Why Bitcoin, Luna, Ethereum Prices ... (Newsweek)

Treasury Secretary Janet Yellen said that financial regulators would soon release a report on the risks of cryptocurrency and other digital assets.

It's why the President signed an [executive order] outlining the first ever whole-of-government approach to addressing the risks and opportunities of digital assets. Both bitcoin and its rival, ethereum, are down about 30 percent in the past seven days. She added that legislation on stablecoins could be crafted by 2023.

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Crypto's Long Night: Market Bleeds As LUNA Nears $0 (Forbes)

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.

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Product Tracking Luna Cryptocurrency Tumbles 99% (Bloomberg)

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.

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Crypto is getting utterly obliterated and no token is safe (Fortune)

Investors with money tied up in the algorithmic stablecoin TerraUSD, and its sister cryptocurrency Luna, have lost their shirts. As of Thursday morning, ...

By April, Luna was trading at more than $100, before slowly coming back to Earth. Yet, while the token was trading at about $80 just seven days ago, as of Thursday, it was basically worthless, down 99% over the past 24 hours, to about 1 cent per token,according to CoinMarketCap. The Luna cryptocurrency experienced a major run up since January 2021. The stablecoin’s instability has brought down its partner cryptocurrency substantially. BNB was down 59% Thursday from its high of $669 last November when crypto prices were peaking. The second-largest cryptocurrency by market capitalization, Ether, was also down double digits on Thursday. The cryptocurrency was trading at $1,954, down 17% over 24 hours. Early last month, the crypto behemoth was priced at more than $40,000, but a slide that began on April 8 has shown no signs of letting up.

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Terra's Crypto Meltdown Was Inevitable (WIRED)

An epic crash in algorithmic stablecoins spells trouble for the entire industry.

It is fully shielded from the real world, and takes pride in it. At a Mexican restaurant in North London a few weeks ago, a handful of small-time but remarkably discerning retail cryptocurrency investors predicted that terra and luna would crash. “So far,” he said, “this story has always followed the most humorous timeline.”

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How a Cryptocurrency Trader Turned $10000 Into $200 in Just Days (Bloomberg)

The collapse of Terra and Luna are part of broader market turbulence that has rattled the crypto world, even as some holders of the coins shrug at steep ...

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Crypto crash? What investors need to know about Luna, Tether, and ... (MarketWatch)

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.

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Terra Luna stablecoin collapse: Is this the 2008 financial crash ... (Euronews)

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.

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Stablecoins luna and terraUSD add fuel to cryptocurrency fire (CBS News)

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.

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Stablecoins are struggling to survive the crypto crash (The Verge)

After the Terra stablecoin broke its dollar peg and dropped to less than 30 cents, investors have been watching closely for repercussions across ...

Terra’s future is uncertain, but the sheer volume of unredeemed Terra coins presents a huge problem for the project. Still, the sudden drop is a reminder that the economics behind most stablecoins is still highly experimental. Tether’s USDT stablecoin, the largest by circulation, sank well below its dollar peg to trade at 95 cents on some exchanges on Thursday morning, though the price has since recovered. Terra isn’t the only stablecoin facing problems in the wake of the cryptocurrency downturn. Terra’s problems started on May 9th when the price of the UST stablecoin began to slide dramatically. Over the past few days, the TerraUSD (UST) stablecoin, which is meant to maintain a dollar peg, uncoupled dramatically from the $1 mark and dropped to a low of less than 30 cents on May 10th.

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