Cryptocurrency News
Why did Terra LUNA and UST crash? | Find out on The Market Report
2022.05.12 00:01
Why did Terra LUNA and UST crash? | Find out on The Market Report
Cryptocurrency investors never thought they’d have to ask whether TerraUSD (UST) or LUNA would reach $1 first. On Wednesday, that question became the talk of the cryptosphere as the Terra ecosystem imploded.
As the algorithmic stablecoin UST lost its dollar peg, crashing to a low of around $0.30, Terraform Labs co-founder Do Kwon took to Twitter (NYSE:TWTR) to share his rescue plan. At the same time, the value of sister token LUNA, once a top-10 crypto project by market capitalization, plunged over 98% to $0.84, according to CoinMarketCap. For reference: LUNA was trading north of $120 in early April.
