MEXC EXChange Data: Terra (LUNA) — Down to $0 from a high of $119.18.

Venus1100

Active member
According to MEXC Exchange data, LUNA, Terra protocol's native staking and governance token, is trading below $1 on Thursday (May 12), a significant drop from the all-time high of $119.18 set just over five weeks ago.

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What exactly is Terra?
Terra is a blockchain protocol that powers price-stable global payment systems with fiat-pegged stablecoins. Terra, according to its white paper, combines the price stability and widespread adoption of fiat currencies with the censorship-resistance of Bitcoin (BTC) and provides quick and affordable settlements.

Terra's development began in January 2018, and its mainnet went live in April 2019. As of September 2021, it offers stablecoins pegged to the US dollar, South Korean won, Mongolian tugrik, and the International Monetary Fund's Special Drawing Rights basket of currencies — with plans to expand.

The Terra native token, LUNA, is used to keep the price of the protocol's stablecoins stable. LUNA holders can also submit and vote on governance proposals, giving it more power.

LUNA's contribution to UST
UST is a stablecoin that is "algorithmic." The LUNA token and UST are mutually dependent, as the Terra ecosystem's success is dependent on the adoption of UST as a stablecoin. LUNA invests in UST and is burned when demand for UST increases. Following upgrades such as Columbus-5, LUNA supply may become highly deflationary in the long run.


On the other hand, if UST is perceived as unstable, the value of LUNA may fall. Following the Wormhole hack, UST briefly lost its peg, causing a temporary price crash for LUNA.

Why did UST lose its peg to the US dollar?

On Monday (May 9), Aztec Network's Jonathan Wu posted an excellent thread on $UST's de-pegging from the dollar:

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On Tuesday (May 10), popular pseudonymous crypto analyst "Onchain Wizard" posted a fantastic thread outlining his theory on how $UST was attacked:

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sincerem

VIP Contributor
Its a shame to hear about the massive drop down in the price of Luna Terra token, people really lost alot in the coin. That's why I don't like investing in any coin that is hyped or encouraged by influencers to invest on. I am only investing in coins like BTC, ETH, BCH, LTC, BNB. Those ones aren't all that volatile when it comes to reduction. But doesn't mean, thy wouldn't reduce in price. When it comes to cryptocurrency, it has to do with risk taken, that's why it is encouraged to spend what you can expect to lose, if you can't withstand the loss it is better not to invest.
 

Venus1100

Active member
Its a shame to hear about the massive drop down in the price of Luna Terra token, people really lost alot in the coin. That's why I don't like investing in any coin that is hyped or encouraged by influencers to invest on. I am only investing in coins like BTC, ETH, BCH, LTC, BNB. Those ones aren't all that volatile when it comes to reduction. But doesn't mean, thy wouldn't reduce in price. When it comes to cryptocurrency, it has to do with risk taken, that's why it is encouraged to spend what you can expect to lose, if you can't withstand the loss it is better not to invest.
Crypto is always with massive rise and down.Value investment is great.
 

sincerem

VIP Contributor
Crypto is always with massive rise and down.Value investment is great.
That's very very correct bro, now that Luna is down, those who capitalized on the price reduction can still go again to reinvest and watch out for the coin. Crypto have been of bearish and bullish, and it seems that Luna suffered one of the worst bearish I've ever seen since I started trading crypto. It is very awful indeed seeing a coin dropping down from 119$ to zero at the moment, the zero means, running down below one dollar. For the coin to touch another 119$, it will take a very long time, it might not even take that much progress to hit that height anytime soon, unless unexpected repeat itself in the crypto space again, maybe the coins experiencing emergency bullish within some few hours.
 
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