When the Luna crypto network collapsed, it's estimated that $60 billion got wiped out of the digital currency space. Algorithmic stablecoins (UST) are not the same as Tether or USD Coin, which are backed by actual dollars or assets stored in a bank.
The peg had been broken. Confidence evaporated. More than $40 billion in wealth was wiped out in luna's collapse.
Terra's UST and LUNA cryptocurrencies lost nearly $45 billion (€44 billion) in value within 72 hours in May.
As valuations tumbled, over $1.8 trillion of crypto value dissolved. Over $450 billion vanished during the market turmoil following the Terra/Luna collapse in May 2022 alone; another $200 billion was lost in the wake of the FTX bankruptcy in November 2022.
The recent crash in crypto token LUNA wiped out the investments of nearly 2.3 Lakh Indians. Approximately 2.1 Lakh Indians lost their investments in LUNA in the last seven days, sources at seven leading exchanges which include WazirX, BuyUCoin, CoinDCX, Unocoin and other exchanges told Inc42.
Among the winners of the UST flash crash are Pantera Capital, a hedge fund that saw a 100x return on its investment. Joey Krug, the fund's co-chief investment officer, told CNBC that in the primary fund where they held and traded luna, they sold about 87% of their position from Jan. 2021 through Apr. 2022.
Instead, its stability was based on algorithms tied to its sister cryptocurrency, luna. When luna's valuation plummeted from about $80 (£66) at the start of the month to a fraction of a cent, terra's followed suit. Their collapse sparked panic in the market.
The old Luna will be replaced by Luna 2.0, completely severing ties with the failed stablecoin. But the old Luna will not disappear completely, it will simply co-exist with the new and improved Luna 2.0. Holders of the old Luna, now renamed Classic, and UST will be given part of the 1 billion new tokens.
The suit marks the first major U.S.-based court filing relating to Terra, whose UST and LUNC tokens wiped out around $40 billion in investor funds when they crashed to pennies last month.
The exchange's assets in the cryptocurrency Luna fell to just $2,200 from $1.6 billion, at the token's peak price, a month before. In a tweet, Zhao claimed that Binance held 15 million Luna tokens, which the exchange had obtained in exchange for a $3 million investment in the Terra network, which Luna is founded on.
Some think that LUNC could get some value through reasonable management and token burns, but it is improbable that it will ever reach $1 again.
From one perspective, LUNC has already recovered. The coin has a market capitalization of over $1 billion, despite the chain's DeFi ecosystem having a TVL of only about $6.5 million as of December 9. 2022.
Luna's value collapsed in one of the most stunning crypto crashes ever recorded. In total, over $15 billion in cryptocurrency value was wiped after the TerraUSD stablecoin collapsed. In the case of Luna Foundation Guard, Elliptic followed the money to major exchanges Gemini and Binance.
Luna, the cryptocurrency associated with TerraUSD, or UST, is now worth $0 as the stablecoin has dramatically lost its $1 peg. The Terra network stopped processing transactions twice in 24 hours. Binance, the world's largest crypto exchange, temporarily delisted UST and luna.
SAN FRANCISCO (KRON) – Luna, a cryptocurrency tied to the stablecoin TerraUSD, is now basically worthless.
Luna's prices plummeted from US$87 on May 5, 2022, to US$0.0005 on May 13. Terra's widely adopted stablecoin, UST fell from the peg of 1:1 USD to 0.03:1 USD for the lowest price.
The collapse of Terra in May 2022 marked the first major run in crypto and contributed to the collapse of several other key players in the eco-system. We provide a detailed analysis of the run and the economics of the Terra network prior to the run.
Changpeng Zhao suffered a $1.4 billion loss in wealth after the SEC cracked down on his Binance crypto exchange. This week's U.S. government crackdown on crypto trading platforms Binance and Coinbase come at a hefty price tag for their billionaire founders, Changpeng Zhao and Brian Armstrong.
He lost $340,000 to a crypto scam.
Naum Lantsman in his Los Angeles home. He fell victim to a cryptocurrency scam and ended up losing his entire life savings. Naum Lantsman was sure his cryptocurrency investments were making money.
Based on our LUNA price forecast and technical analysis, the coin is expected to continue its upward trend significantly throughout 2029. The potential high for the year may reach around $12.46, while the potential low could be around $8.65.
Is LUNA coin a good investment? It might be but it may very well not be. LUNA coin was behaving bullishly in 2021 and some analysts predict this trend to resume. However, the token has recently undergone a huge crash, with the cryptocurrency falling out of the top 10 by market cap.
LUNA Price Live Data
The live price of Terra is $ 0.6359322 per (LUNA / USD) with a current market cap of $ 207.62M USD. 24-hour trading volume is $ 58.69M USD.
The significantly increased supply of LUNA on crypto markets along with the de-pegging of UST ultimately made investors lose confidence in the project and so the price of LUNA continued to crash till it was basically worthless. As a result, LUNA and UST were delisted from most major crypto exchanges around the world.
After a large amount of UST was dumped, the stablecoin started to depeg. More UST was sold in a mass panic, minting more Luna and increasing the Luna circulating supply. This had the knock-on effect of then crashing the price of Luna. This circulating supply inflation has drastically increased since the crash.