How will $LUNAholders on exchange wallets be treated? By the end of the fourth quarter of 2022, VC crypto investments totaled 345 deals worth $2.5 billion, down 57.7% from 2021, even though the amount of capital raised was 4.7% greater than in 2021 . After the UST lost its peg with LUNA, many exchanges stopped trading. Addressing the crash, he said, 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.. Essentially, Terra needs to cut down on the token supply in order to counteract inflation. Another Twitter user, possibly an investor says: Right now @terra_moneyfeels like a sports team thats lost its star player. Even the CEO of Binance agreed and described the earlier proposal to fork and relaunch LUNA as wishful thinking. Over the last few weeks, the cryptocurrency market has recovered significantly. But the crash led to the near-total collapse of TerraUSD's sister . On May 7, over $2 billion worth of UST was unstaked (taken off the Anchor Protocol), and hundreds of millions of it were quickly liquidated. In Sum, the chances of $LUNC recovering are good as the overall cryptocurrency market has also begun a path of recovery. Fintech & Crypto News Do Kwon Details Recovery Plan, As LUNA's Struggle Continues Do Kwon, the founder of Terra, has outlined a roadmap to recover the project's ecosystem after LUNA crashed 99% from its all-time high to below $1 and TerraUSD (UST) fell out of its USD peg. Crypto analysis website InvestingCube said that a LUNA crypto price recovery could very well be a possibility. The debacle that imbalanced the burning and minting mechanism of the ecosystem, wiped off over 90% of LUNAs value. There is no way around it.. Then Anchor would turn around and loan the deposit to another investor. The community has organized really well and has accomplished a lot of milestones between June and September. Stretto, the firm managing Voyager's court-supervised restructuring, polled 61,300 account holders who were owed money by the bankrupt crypto lender. Updated May 16, 2022, 10:59 AM IST. In the same process, a person can also involve in a form of lending (not P2P) by contributing to the lending pools and earn a healthy return. So if you were looking to make an investment, although risky, you can do it there. Check out what else is buzzing in the crypto scene today: . 2. In October and November combined, LUNC lost over 50% of its value. This is a scary time for new investors but the best thing you can do is not to make decisions based onemotions. With this, LUNC is the 28th largest cryptocurrency. It was promptly abandoned. If UST slipped, traders could make money from buying UST and then exchanging it for Luna. If youre going to invest in digital currency and other particularly volatile assets, you have to accept that theres going to be some outsized risk associated with it. Furthermore, as the price dropped to 10-month lows of $27K, the volume peaked at 268 million, the day the Luna Foundation Guard depleted their BTC stockpiles. The SEC vs XRP case will determine whether such regulation will come via court precedents or via new laws. Since the beginning, TerraUST has maintained its $1 peg. The crypto token wiped out almost the entirety of investors' wealth in just a few hours. Binance also suspended the deposits and withdrawals for LUNC and USTC so . Kwon has requested community members for patience as Terraform Labs works on multiple tasks to stabilize UST, repeg it and drive a recovery in LUNA. The Terra Luna vote for a Luna fork is now live, with validators approving the plan for a new chain. Both kits help spread risk across industries, not just investing in a single coin or company, but the entire ecosystem. One retail crypto investor even confessed that they lost their savings of $20,000 in Luna. Terras move has been condemned by UST holders from exchanges such as Coinbase. You may opt-out by. Note: Crowdwisdom360 collates Predictions and data from all over the net and has no in-house view on the likely trends in the Stocks or Crypto Coins. In the last 6 months, LUNC has gained in 2 months and has traded negatively in the other 4 months. Luna LUNA -4.3%, the collapsed cryptocurrency that was designed to support the terraUSD (UST UST -8.5%) stablecoin, has rocketed higher over the last 24 hours despite falling to near zero this. The UST coin was supposed to derive its stability through Luna, also created by Terraform Labs. LUNA continues to lose value, with a 24-hour trading volume of more than $2 billion. While other stablecoins (USDC or Tether) are fiat-backed, the UST would not be backed by real assets. In December, LUNC was ahead every day of the whole month. This deflationary protocol was designed to ensure there was long-term growth for Luna. What I see here is people still could not accept the fact that it is dead.. Community and builders invested so much money and time already in the chain that they have no choice but to continue the effort. The only way for the LUNA price to recover to anywhere close to its former high over $100, would be to burn large amounts of the LUNA circulating supply from the 6.5 trillion today, back to. A lot of blockchain experts including the founder of Binance Changpeng Zhaowho has also lost almost his entire LUNA holdings says hes poor again have expressed pessimism about the LUNA recovery plan. Do Kwon and the new recovery plan for Terra. 22 hours ago. Studied Computer Science at Stanford University. Terraform Labs created the UST coin to be an algorithmic stablecoin on the Terra network. Terra ended up launching a new coin, Luna 2.0. If youre looking to invest in the cryptocurrency space, you may want to consider one an investment kit like our Crypto Kit or Emerging Tech Kit. A stablecoin is pegged to a more stable currency like the US dollar. Even at the time of this update, hundreds of holders are doubtful that the revival plan would work, saying, LUNA is dead. His statement that Terra is more than UST is one of the misleading statements in the crypto community because Terra is not more than UST. The need for Decentralized finance (DeFi) will continue to rise not just in the United States but also all over the world as consumers look for ways to borrow money with the lowest hassle or invest in assets with the highest return and lowest risk. It was just 8 days for $LUNA. The Crash: The Terra crash happened as a result of liquidating $285 million worth of UST and consequently UST lost its parity with the US dollar. A crisis of confidence in UST, Terra's native stablecoin, has escalated after founder Do Kwon tweeted a recovery plan that would increase daily minting capacity from $293M to $1 . While the Luna Classic price remains much lower than its pre-crash price, it now sits between $0.0005 and $0.0004, with a market cap of around $3.5 billion. Do Kwon stated that Terra is more than UST, and that forking the chain to make it totally community-owned is the best route forward for the project, its developers, and token holders. In fact, there is increased pressure on new tokens to enable numerous use cases. TerraUSD (also known as UST) and Luna are two sister coins on the same network. One of such plans is a hard fork with the majority of the LUNA holders voting, "YES" for the proposal which spurred recovery plans. It all started when someone liquidated $285 Mn worth of UST on Curve and Binance. The value of wrapped tokens is backed on a 1:1 basis to their native cryptocurrencies. This video about Terra Luna disaster happening again.#bitcoin #crypto #altcoin #terra #tron #blockchain #binance #ethereum Discord Link : https://discord.gg/9wSVmT2ewU My Tweet. This will help well-designed tokens and impact many of the tokens that are adding zero value and /or are mostly owned by the Founders themselves. One of such plans is a hard fork with the majority of the LUNA holders voting, YES for the proposal which spurred recovery plans. Looking at the $LUNC volume data for the last 31 days, LUNC price is dependent a lot more on Market Sentiments rather than trading volume. Its Wrapped LUNA price prediction for 2025 expected the token to trade at an average price of $211.55 by the end of that year. Kwon took to Twitter to share details of his plan which includes the introduction of a mechanism for collateralized UST. At the current price of $2.18, the token is down 98.3% since all-time highs of $119.18 in April 2022 approximately a month ago. And, this will increase minting capacity from $293M to ~$1200M., Kwon predicts, 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.. There are 3 major factors that will determine if Luna Classic goes back up again. Sources to the media outlet confirm that names like Alameda Research, Celsius, Galaxy Digital Holdings Ltd., Jane Street, Jump Crypto, and Nexo are part of the discussion. Do Kwons proposal to fork Terras LUNA to a new chain has received criticism from Binance CEO and cryptocurrency proponents. It was founded by Do Kwon and Daniel Shin and launched its main net in April 2019. The crash was catastrophic for many. For UST to retain its peg, one UST could be changed for $1 worth of Luna at any time. Trust is an essential ingredient in the crypto community, and once its lost, its hard to get it back. Thank you and please know that you've got our support and that we'd love to hear any information you may have about the parties involved. We reported that Kwon had proposed a reset of the network to 1 billion tokens which would be shared amongst old and new LUNA and UST holders while a substantial part would also be kept for the communitys continued growth. Some interesting updates, full transparency and lead to protect users: As it turns out, most UST pairs were 0 fee to begin with. A method to pay for transaction fees in the Terra network. We update our LUNC to USD price in real-time. Apecoin Price Prediction 2023, 2025, and 2030: Will Apecoin reach $100 and $1000? Keeper Popular Windows Password Manager With an Easy-to . Lets first understand the pegging mechanism of Terra, which has two assets, which are TerraUSD (UST) (Stablecoin) and Terra, the native coin (LUNA). As most of the assets co-relate with Bitcoin, this leads to the fall of the entire market. Check . Follow along as we explore how Terra plans to recover from the crash. On 9th May 2022, the UST stablecoin began to lose its peg. At the same time, 200 million USTs were unstaked (taken out of the Anchor Protocol) and immediately sold. For pre-attack $aUST holders, post-attack $LUNA holders, & post-attack $UST holders, the initial liquidity parameters have been modified from 15% to 30% to increase token supply at launch & mitigate future inflationary pressures.. Its estimated that the Luna crash ended up tanking the price of bitcoin and causing an estimated loss of $300 billion in value across the entire cryptocurrency space. Anchor would turn around and loan the deposit to another investor Binance agreed and described the proposal. 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