LUNAUST RIGHT NOW!!!
As at the time of this publication the LUNAUST has fallen by more than 99 per cent, wiping out a large fortune of tons of crypto investors, tens of billions of dollars wiped out in about 24 hours
from our previous publication we gave you the load down of what the UST LUNA crisis was about and what opportunities could be gotten from on there
Nebo Finance reports that the panic in the Terra eco system as its stable coin the UST further slips from its intended $1 peg
TerraUSD, otherwise known as UST, sank below 40 cents for the first time Wednesday, as holders continued to flee the token in what some have described as a “bank run.” The token at one point fell as low as 31 cents, according to CoinGecko data.
In simple terms, the Terra protocol destroys and creates new units of UST and LUNA to adjust supply. When the price of UST falls below the dollar, it can be taken out of circulation and exchanged for LUNA, making UST’s supply more scarce and boosting its price — at least, that’s how it should work in theory.
The CEO Do Kwon finally spoke amidst the massive sell off of the native token of the blockchain. LUNA losses over 90 per cent value in less than a week as well as its programmed stable coin UST trades as low as 25 cents.
He stated that he understood how tough the last 72 hours have been on holders of the LUNAUST token and is resolved to work with everyone to weather the crisis and build a way out of the crisis together
do we have a recovery plan in place
FEAR AND GREED AT 12 (FEAR AND GREED INDEX)
The danger of the fear and greed index at extreme fear only goes to show how traders are reacting to the extreme decline of the LUNA/UST eco system and this excessive fear tends to drive down the share prices below their worth
HOW WORSE THE SITUATION IS
To further complicate things, Terra’s creator, Do Kwon, bought $3.5 billion worth of bitcoin to provide a backstop for UST in times of crisis. The theory was that UST could eventually be redeemed for bitcoin instead of LUNA, but this is untested and hasn’t yet been put into practice.
LUNA, UST’s counterpart, has lost more than three quarters of its value in the past 24 hours. It was last trading at a price of $3.78.
Adding to UST holders’ woes, Binance, the largest crypto exchange by market volume, temporarily suspended withdrawals of both UST and LUNA “due to a high volume of pending withdrawal transactions,” citing network congestion.
Do Kwon, the coin’s creator, made a last-ditch effort to return UST to its $1 peg by increasing the rate at which new LUNA is minted per day. The venture is essentially allowing supply of its stablecoin to be eaten up, a move it hopes will boost the price. Source cnbc.com
Algorithmic stablecoins are still a relatively new phenomenon. But UST has grown to become a major player in the crypto economy, with a circulating supply of 16 billion tokens.