The coin’s value has dropped from around $116 at its peak to under $1, and it is currently worth less than one cent. The cryptocurrency Terra (Luna) has collapsed, losing more than 99 percent of its value. It has continued to crash since and is valued at around $0.006 as of Friday morning. In just a few hours, the coin wiped out practically all of the wealth of investors.
Here is everything you need to know about the coin, what caused the crash, and what could happen next.
Hi, guys welcome to “The Proficiency Post” this post is about Luna will rise again: So let’s get started What is Luna? The Terra network’s native tokens, Luna and TerraUSD (UST), are both blockchain-based projects developed by Terra Labs in South Korea.
CoinDesk explains: “The Terra blockchain is built on Cosmos SDK; a framework that allows developers to create custom blockchains and build their own decentralized applications on top of Terra for various use cases. “As of now, The Terra ecosystem contains more than 100 of these natively built projects. These include non-fungible token (NFT) collections, decentralized finance (DeFi) platforms, and Web 3 applications.”
The goal of Terra is to be a peer-to-peer electronic cash system. It aims to do this through the use of “stable coins”, which are cryptocurrencies pegged to a real-life currency. UST is pegged to the US dollar, which means one UST is supposed to be worth around the same as one dollar. Luna plays a vital part in this.
Why did Luna crash?
Luna crashed due to Terra losing its peg to the dollar, due to concerns over the Federal Reserve’s looming interest-rate hike. This sent its price tumbling through the floor. Leading crypto exchange Binance temporarily suspended withdrawals on Luna, and on the Terra blockchain officially halted.
Terra said it made the move to “prevent governance attacks”. The coin’s collapse comes amid a general downturn for cryptocurrency, with many coins losing a quarter of their value in the past 24 hours. Investors appear to be moving away from cryptocurrency and towards less risky investments in the face of global inflation.
Shares in Coinbase, the largest crypto exchange in the US, dropped 15.6 percent overnight on 17-05-2022 after it posted net losses of $430m (£348m), far worse than analysts were expecting. Coinbase cited a “trend of both lower crypto asset prices and volatility that began in late 2021” but was quick to point out that it does not expect these conditions to be “permanent”.
The news has raised questions about whether the market has reached an expected cooling-off period – previously dubbed a “crypto winter” – or a more permanent chill, perhaps a “crypto ice age”.
Will Luna recover?
The coin has the potential to recover, but at present things are extremely uncertain. Do Kwon, founder of Terra creator Terraform Labs, tweeted on 17-05-2022: “Close to announcing a recovery plan for $UST. Hang tight.” He added on 18-0502922: “I understand the last 72 hours have been extremely tough on all of you – know that I am resolved to work with every one of you to weather this crisis, and we will build our way out of this.“
Do Kwon Tweet
The Terra ecosystem is one of the most vibrant in the crypto industry, with hundreds of passionate teams building category-defining applications within… Terra’s return to form will be a sight to behold.”
Do Kwon created a “Terra Ecosystem Revival Plan,” which he posted on the Terra Community Forum.
According to Kwon’s ‘Revival Plan,’ the entire Terra blockchain will be restarted, with network ownership being handed entirely to UST and LUNA holders via 1 billion new tokens.
Investing advice site Investing Cube has speculated there is a “good chance” the cryptocurrency could recover. Analyst Kelvin Maina wrote: “For Luna to recover, they will need to address the problem and show clearly that such a drop will not happen again. As an analyst, I expect to see a bump in Luna prices after UST is pegged back to the dollar.
I also expect the prices to start recovering after the Terra project shows that similar problems will not happen in the future.”
Terra (LUNA) Price Prediction
According to Experts LUNA has become one of the most popular crypto assets in the past months. This crypto asset has returned more than 60 percent of investors’ profits. LUNA is already fundamentally bullish, and if the price closes at 100 USD, it will likely see new highs.
Many crypto experts find Terra (LUNA) an attractive cryptocurrency because Terra (LUNA) has great potential and ambition as a medium of exchange and payment. Another reason, Terra (LUNA) has entered the leading cryptocurrencies by market cap.
Wallet Investor’s prediction states that the value of LUNA in 2023 may gradually decline after an upward trend in 2022. Still, from the same source, the forecast of LUNA prices in mid-2022 could touch 170 USD.
While the predictions from the other experts say that LUNA can pass the average price level of 130 USD in 2022, the minimum projected value of the token trading price could be 131.15 USD at the end of this year. That’s all for today’s article if u like the post gives please share it with your friends.