Will the Luna coin decline continue or increase? The answer to the question is among the questions questioned.
While Terra LUNA Coin evaporated with a 99.99 percent drop, the decline in the TerraUSD stablecoin, which should be indexed to $1, could not be stopped. Many crypto exchanges stopped their operations and left the related coins out of the list. So, will the Luna coin decline continue or increase? Does Luna coin burn? The movement came from the founder.
The long-awaited message about Luna has finally arrived. Investors finally found explanations to clear up their confusion about the fallen Terra.
Will the Luna coin decline continue or increase? Will Luna coin burn? The answers to the questions are among the researched topics. Massive returns, price spikes, signaled a bubble forming in the cryptocurrency markets. As a matter of fact, what happened in the months and especially in the last week caused unforgettable events in the financial markets.
The cryptocurrency market suffered a massive crash when the stablecoin UST dropped below $1 on May 9. The value of UST, which was collateralized at $1 by the LUNA Foundation, plunged rapidly.
The Luna Foundation sold Bitcoin on May 9-10 in order for the UST to rise above $ 1 again. The foundation recently announced that it has only 313 Bitcoin reserves.
GIANT SALE Triggers BITCOIN’S DROPPING
The Luna Foundation announced that it purchased $3.2 billion worth of Bitcoin in the January-May period. The company also had a goal of buying $10 billion worth of Bitcoin. The Luna Foundation has triggered the sharp decline in Bitcoin by selling more than $3 billion in reserves it holds. The foundation has only $87 million in reserves left.
The decline in Bitcoin seems to have affected many cryptocurrencies. The values of cryptocurrencies, which fell rapidly after the FED, upset the investors. Many investors announced that they lost millions of dollars. Many of the world’s leading investors stated that they did not understand what they were going through after the sudden drop in Luna.
Many projects continue to be put forward to save Terra. The unlimited supply of Luna and the resulting post-Inflation continue to scare investors. After Luna’s rapid collapse, a new recovery package came into play.
HERE’S THE PLAN TO RESCUE LUNA, VALUABLE TO ZERO
LUNA, which was traded at $ 87 last week and is among the top 10 cryptocurrencies with the highest volume, was launched in a record amount after UST lost its stability. As supply increased, the LUNA plummeted and the price dropped to almost zero. Thus, LUNA, which is in the top 10, fell to the 53rd place among the highest volume cryptocurrencies.
Terra’s founder and CEO, Do Kwon, recently announced his plan to save LUNA. Kwon proposed to fork LUNA as a new blockchain network, separating it from UST.
Kwon, who gave up LUNA to save UST last week, aims to save LUNA with a new blockchain network, with his new statement.
According to Kwon’s suggestion, the LUNA tokens still in circulation on the market will continue as LUNA Classic (LUNC).
New LUNAs will be airdropped to LUNA Classic stakers, LUNA Classic and UST holders, and Terra Classic developers.
BINANCE CEO DOESN’T LIKE THE RESCUE PLAN
Changpeng Zhao, CEO of Binance, the world’s largest cryptocurrency exchange, is not welcoming of LUNA’s plan to be rescued with a new blockchain network. According to Zhao, this will not increase the LUNA value.
On the other hand, the volume loss in Tether, the most traded stable coin on cryptocurrency exchanges, worries investors. Investors pulled $7 billion from Tether last week. Since May 12, Tether’s market cap has dropped by 9 percent to $76 billion, according to CryptoCompare data.
Tether’s price dropped to $0.95 last week after the UST’s stabilization broke. Although this development caused panic in the crypto money market, the price of Tether recovered in a short time and reached the level of 1 dollar again.
Why is luna coin rising?
Recently, there has been a spike in Luna. Luna Coin, which managed to do 13x in a short time, gave hope to investors. However, this short-term rise in Luna did not last long.
Do Kwon’s Twitter posts helped get luna a bit of a lift. This rise was short-lived, however, and Terra Luna began to decline rapidly again.
Many say that Luna needs to be saved and that the damage can be repaired. However, Luna’s short-term rise did not last long, which again disappointed everyone.
The main reason for the short-term rise in Luna was Do Kwon’s Twitter posts. Asking support from the Luna community on Twitter, Do Kwon was able to find support from millions of people in a short time.
Can luna coin be recover?
The question of whether the cryptocurrency Luna can return to its old days still remains on the agenda. Attempts to re-rescue Luna continue.
LUNA, which was among the top 10 cryptocurrencies with the highest volume, traded at $ 87 last week, was launched in a record amount after UST lost its stability. As supply increased, the LUNA fell and the price dropped to almost zero. Thus, LUNA, which is in the top 10, surprised everyone by falling to the 53rd place among the highest volume cryptocurrencies.
Terra’s founder and CEO, Do Kwon, recently announced his plan to save LUNA. Kwon proposed to fork LUNA as a new blockchain network, separating it from UST. There are thousands of investors who believe that Luna will survive again.
We can see the valuation process later if Terra Luna is burned.
Mike Novogratz Hopeful For Luna
Billionaire fund manager Mike Novogratz, who is well known by crypto money followers, was buried in a deep silence after the collapse of the stable coins TerraUSD and Luna, which he gave great support and even had a tattoo on his arm. Novogratz broke his silence by saying “It was a great idea that failed” for stablecoins.
Maybe a stretch 😉 pic.twitter.com/eiY0Qe4o0B— Mike Novogratz (@novogratz) January 17, 2022
Michael Novogratz, general manager of Galaxy Digital, was known for being a staunch supporter of the stablecoin ecosystem, particularly Luna and TerraUSD. In January, he had Luna tattooed on his arm, shared his photo on his social media account and was on the agenda of the world.
Novogratz was left without comment after the market value of stablecoins, which primarily gave profits to its investors, has fallen over the past few weeks.
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.