The price of Terra’s Luna plunges below the $1 mark.
In the last five days, Luna lost its value by 99% from its all-time high of $119.18 recorded just over a month ago. UST stablecoin is currently trading at $0.54 after it nose-dived to as low as $0.30 on Wednesday.
Several people jokingly rebranded Terra’s UST as the ‘Kwonzi Scheme’.
On Wednesday, UST’s Founder Do Kwon tweeted,
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
Kwon was reportedly trying to secure a bailout deal with a few big-name investors, however; it failed miserably. Even in the past, Terra had faced allegations of being a Ponzi scheme, but the co-founder decided to turn down such allegations.
Meanwhile, Rune Christensen, the founder of MakerDAO tweeted that he was sorry for all the people who got tricked into that project.
Bitcoin too felt the heat of the crash as it plunged below $30000 for the second time in seven days.
David Moreno Darocas, the research analyst at CryptoCompare, said the situation highlights the “fragility” of algorithmic stablecoins like UST.
He further said that UST has grown to be both an integral and controversial piece of the crypto ecosystem.
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