The destruction that took place on the Luna (Terra) side a few days ago upset everyone. The rescue plan for the Luna coin, which will surprise everyone today, has been announced and the coin, which was expected to disappear, is on the rise again. The world is almost looking at Cryptocurrencies. Many different coins in the world of cryptocurrencies like Bitcoin have surprised many with their sharp declines.
In this article, we will talk about Luna, who is on the rise and everyone wonders if she will return to the old days. Please do not view this article as investment advice. In this article, we will talk about all the explanations about Luna and what can happen. ABSOLUTELY NOT INVESTMENT ADVICE!
Do Kwon Is So Sad About Everything
Do Kwon, Founder of Terraform Labs, whose historic declines in TerraUSD (UST) and LUNA cost investors billions of dollars, said, “I am so sorry for the pain my invention has caused all of you.” Do Kwon stated that he believes decentralized economies still deserve decentralized money, noting that it is clear that this money will no longer be UST.
1/ I’ve spent the last few days on the phone calling Terra community members – builders, community members, employees, friends and family, that have been devastated by UST depegging.— Do Kwon 🌕 (@stablekwon) May 13, 2022
I am heartbroken about the pain my invention has brought on all of you.
Terraform Labs Founder Do Kwon, which has caused billions of dollars in losses in the crypto money market in recent days, made a new statement about what happened in TerraUSD (UST) and LUNA.
In a statement on Twitter, Do Kwon said that he spent his last days talking on the phone with members of the Terra community, staff, friends and family destroyed by the depegging of the UST (could not be fixed at $1), adding that “I am so sorry for the pain my invention has caused all of you.”
Do Kwon: I Didn’t Profit
Stating that he believes that decentralized economies still deserve decentralized money, Do Kwon continued his statement as follows:
“But it has now become clear that this coin will no longer be the UST as it is. Neither I nor any of my affiliates profited in any way from this event. I did not sell UST or LUNA during the crisis. We are working to document the Luna Foundation’s use of Bitcoin reserves during the depegging process. Please be patient. Our teams are multitasking.”
Why did the LUNA coin crash?
After Bitcoin saw 27 thousand dollars of gold, there were also great losses in LUNA, the local cryptocurrency of the Terra network. LUNA coin, which was traded at $ 116 on April 5, fell to $ 0.0000571 on May 14. With the statement made by Binance, it was noted that withdrawals for Terra LUNA were stopped.
The US inflation data announced last week caused fluctuations in the crypto money market, as in many other markets. Terra LUNA was one of the most affected by this fluctuation.
UST crashed for the second time in the last 2 days due to the liquidity problem of the UST stable coin, which should be stable at 1 dollar, while LUNA lost more than 90 percent in value in this process.
After the attack on the LUNA coin, unfounded purchases were made, as a result of the spreading fear, exits from Terra began. After the exits from the TERRA coin, there was a sharp decline in the stable coin. After these negative developments, Terraform Labs Founder Do Kwon said, “I am very sorry for the pain my invention has caused all of you.”
The algorithmic stablecoin UST, whose value should always be stable at $1, first fell below $0.70 on the evening of May 9. Then, when it broke above $0.90 the next day, Do Kwon announced that they were working to fix UST to $1 again.
Meanwhile, as Bitcoin fell below the psychological limit of $30,000, it was alleged that the demand for UST was deliberately increased by an organized attack, creating a liquidity problem. UST fell to $0.62 on May 11. The turmoil in this stablecoin has affected the entire cryptocurrency market. Although the UST was bullish on May 12, it fell below $0.20 yesterday. Bitcoin also saw below $27,000 during this time.
Meanwhile, billions of dollars were lost in LUNA, the native cryptocurrency of the Terra network. LUNA, which was traded at $64 on May 9, dropped to $0.00014. Trading has been suspended on Binance.
LUNA’s New Supply Loses Value
LUNA, which is among the top 5 cryptocurrencies in terms of market value, has thus signed a historical collapse. The total market value of LUNA had dropped to $154 million the previous day. However, despite the coin’s value approaching zero, the total market value seemed to have increased to $1 billion as billions of LUNA were supplied. Unlike many cryptocurrencies, LUNA does not have a supply limit.
According to the established algorithmic system, 1 dollar LUNA had to be burned to obtain 1 UST. It was aimed to keep 1 UST stable at 1 dollar by transferring the obtained USTs to the liquidity pool and establishing the supply-demand balance. In addition, the Luna Foundation had different cryptocurrencies as reserve money. In other words, although it seemed to be fixed to the 1 dollar value, this money did not have a dollar equivalent.
The supply of LUNA has been increased as part of efforts to stabilize the UST. Actually, Luna upset everyone and ruined a lot of things. The reality that every Luna Coin investor feared has come true.
WILL LUNA COIN RISE AGAIN?
While the LUNA coin markets are falling sharply, millions of LUNA are expected to find buyers from the bottom. There is no clear information about how long this process will continue, but it is estimated that LUNA coin will not return to its old level for a long time.
Terra Luna Coin has broken the record for rising, showing an increase of 1020% since morning hours. Terra Coin, which has fallen to zero levels, has been increasing since the morning hours. It is also thought that the increase will continue after USDT purchases are expected to open. In addition, some investors think that it is misleading and decreases will occur.
Those who made purchases for Terra Luna Coin started to think that it would be 1 dollar. Experts, as well as those who think that they will make a big profit if there is 1 dollar, find it difficult to reach the 1 dollar level. After the 1000% increase he made today, some experts began to interpret that he would still not reach that level and that he would balance it with a decrease and increase at the current level.
Will Do Kwon’s rescue plan work?
Founder Do Kwon is confident in the recovery plan. He also said that no LUNA and UST tokens were sold during the crisis. He stated that Terra’s priority is to protect his L1 first.
The team is currently working on the LFG Bitcoin reserve to protect the community and developers in the Terra ecosystem. The recommendations on Agora continue to provide the best steps for the community to move forward. Loyal owners and developers will be compensated so they can continue to provide value and support to the Terra ecosystem. Finally, the team said:
“We are currently working to document the use of LFG BTC reserves during the de-pegging event. Please be patient as our teams are multitasking.”
UST’s discontent destroyed investors’ faith in the Terra ecosystem. At this point, with both UST and LUNA floundering well below $1, Terraform is unlikely to add value to the blockchain.
6/ What we should look to preserve now is the community and developers that make Terra’s blockspace valuable – I’m sure our community will form consensus around the best path forward for itself, and find a way to rise again.— Do Kwon 🌕 (@stablekwon) May 13, 2022
Do Kwon Still Believes in Luna
Luna’s sudden fall was enough for many investors to have nightmares. However, Do Kwon was very uncomfortable with this situation and asked Luna not to cut their support.
Investors, especially optimistic and impressed by Luna’s potential, have started investing in Luna Coin again. Luna’s volume is back in the billions and the Luna foundation seems pretty happy with it.
Investors seem to agree that the Crypto world will survive again and it is the money of the future.
Justin Sun Speaks USDD Stablecoin on Awakening of LUNA/UST Dissolution
The dubious crypto business person makes sense of how an algorithmic stablecoin can in any case prevail while denying reports he was behind the de-fixing of Terra’s bombed UST.
Justin Sun didn’t expect Terra’s $19 billion UST stablecoin would disentangle short of what multi week after his own algorithmic stablecoin, USDD, sent off.
In late April, Sun declared that the blockchain he established, Tron, would make its own algorithmic stablecoin, USDD. The dubious undertaking drew analysis for its similarity to the Terra stablecoin UST, which, until this previous week, was the biggest decentralized stablecoin by market capitalization.
In a Lehman Brothers-like second for crypto markets, UST lost its stake to the U.S. dollar on Tuesday, catalyzing a difficult demise winding that everything except cleared out the $30bn Terra biological system, including its once-white-hot LUNA tokens. A flood of intense apprehension among dealers prompted steep downfalls across all digital forms of money, and the infection seems to have momentarily spread to other stablecoins, including Tether’s USDT and the Waves blockchain environment’s neutrino USD, or USDN.
Buying MOAR! https://t.co/DVG3sIWlic— H.E. Justin Sun 🅣🌞🇬🇩 (@justinsuntron) May 12, 2022
In any case, Sun is a hopeful person. “I actually have confidence in algorithmic stablecoins,” he told CoinDesk in a Zoom interview, which was planned before any of the market unrest surfaced.
As indicated by its whitepaper, Sun’s stablecoin would keep up with its stake by a stamping/consume process that would switch one USDD over completely to $1 worth of TRX, the local badge of the Tron blockchain.
On the other hand, $1 worth of TRX could be singed to mint one USDD.
Starting around Saturday morning, the market cap of USDD came to $270 million, as indicated by information from CoinMarketCap. That is a small part of the market cap of UST before last week’s breakdown and until further notice addresses little danger to the resource supported stablecoins USDT ($77 billion) and USDC ($51 billion), nor to the now-driving decentralized-finance stablecoin, $DAI ($6.4 billion).
Right now, the yields for marking Tron’s USDD are essentially as high as 40%, about twofold the 20% yield presented by Terra’s Anchor Protocol.
Notwithstanding UST’s disentangling this previous week, Sun is certain Tron’s $USDD will eventually demonstrate effective.
The dubious crypto business person (and diplomat of Grenada to the World Trade Organization) talked with CoinDesk about how USDD will contrast from UST, the $10 billion Tron DAO depository he’s intending to assemble, the crypto bear market and whether he’s in any capacity answerable for setting off the Terra total implosion (as some #cryptotwitterati have recommended).
This interview has been altered for length and clearness.
Justin Sun: First, I need to talk a smidgen about algorithmic stablecoins. I think they are vital to our industry. The present stablecoins are exceptionally unified. It’s totally collateralized, and that implies they all need a bank, and genuine bank administrations. We call crypto a decentralized world, yet today, stablecoins are the most brought together part. We needed to plan a calculation to ensure stablecoins can essentially remain decentralized.
I think the disappointment of LUNA was not on the grounds that algorithmic stablecoins are not feasible or are not possible. LUNA’s disappointment for the most part relied upon an excess of influence. They developed to a sensational market cap in an extremely brief timeframe.
At the point when we planned USDD, we zeroed in on the sound development of USDD. We need to keep our USDD market cap generally little contrasted with TRX and complete market cap. And furthermore simultaneously, more modest than the Tron DAO Reserve.
Luna Coin is on the agenda on Twitter
Thousands of content is being created about Luna on Twitter and millions of users are sharing for Terra on Twitter.
Some investors call it “Gambling”.
On the other hand, some investors insist that there is still hope for Luna and that she should stick to it.
However, the hashtag “$Luna”, which has received close to 700 thousand shares on Twitter, is still the most talked about topic and many people from all over the world continue to follow this agenda.
$LUNA A BIG BURN🔥🤫— TERRA LUNA (@TerraLunaInform) May 14, 2022
$LUNA 🌔 gets to $1 I will sent $1000 to every person that LIKES this tweet— 中國密碼鯨公司WHALE CHINESE 🇨🇳🐳🚀🌖 (@ChinaPumpWXC) May 14, 2022
If this post gets 5000 likes, I will giveaway 2.6 million $LUNA to 26 people.— Ash WSB (@ashwsbreal) May 14, 2022
Hello there! My name is Oktay from Tokensboss editors. I introduce myself as a business graduate and writer. I have been doing research on cryptocurrencies and new business lines for over 2 years.