Luna

It has been what some called a “very dark” week for crypto, with stablecoin TerraUSD, once the 10th largest cryptocurrency, losing its peg, while bitcoin fell ...

Another miner, Ebang International Holdings Inc. EBON,, lost 12% to $0.64, with a 26% loss over the past five days. Shares of Marathon Digital Holdings Inc. MARA,lost 0.2% to $9.95, with a 37% loss over the past five days. Bitcoin fell as far as $25,402 Thursday, the lowest level since December 2020, according to CoinDesk data. Ether ETHUSD,lost 31% over the seven-day stretch to around $1,905. She called on Congress to pass a “comprehensive framework” to ensure there are no gaps in regulation. Bitcoin BTCUSD, -0.73%plunged 26% over the past seven days, trading at around $28,260 on Thursday, according to CoinDesk data. LUNA, another cryptocurrency that backs UST, fell to as low as $0.03 Wednesday from over $80 on May 6. It has been what some called a “very dark” week for crypto, with stablecoin TerraUSD, once the 10th largest cryptocurrency, losing its peg, while bitcoin fell to its lowest level since 2020. Why is Terra in the news? Here’s what investors need to know. Michael Saylor’s MicroStrategy Inc. MSTR,lost 2% Thursday to $164.84, while it was down 47.3% over the past five days. Shares of Coinbase Global Inc. COIN, +8.90%gained 1.8% to $54.68 on Thursday, while it has fallen 52% over the past five trading sessions.

The stablecoin Terra and Luna crisis has rocked the price of Bitcoin and Tether too. This is how it all unfolded.

And so you had equivalents backed by a derivative of the price of that house,” he added. The company had said all its tokens were backed by dollars held in a reserve. “The idea of an algorithmic stablecoin is instead of having a backing reserve you have a sort of messy, a lower quality banking reserve. It was obviously nonsense. Stablecoins claim to be a relatively safe haven in the highly volatile crypto market. “In the 2000s, when money was great, people had so much money, they couldn't even invest it fast enough. "Everyone knew this was nonsense. They are meant to be tied to a fiat currency and usually maintain a 1-to-1 peg with the US dollar. “It was based on nonsense and had Bitcoin effective at the bottom and they actually crashed the price of Bitcoin and that crashed all the other cryptos because they're all correlated,” Gerrard said. So let's bet on mortgages and loans based on mortgages. The company said “very little” of the borrowed Bitcoins have been spent, but it is “currently being used to buy” UST. Many worry that the Luna Foundation Guard will sell a large part of its Bitcoin to support UST. UST, created by Terraform Labs, is an algorithmic stablecoin, which means that instead of having cash and other assets held in a reserve to back its token, it uses a complex mix of code and Luna to stabilise the process.

The price of Terra's luna token collapsed to less than a penny on Thursday after trading at about $80 just one week ago.

On Saturday, TerraUSD fell below $1 as concerns over the Federal Reserve looming interest-rate hikes and removal of pandemic-era stimulus pummeled the broader crypto market and pushed luna down about 10%. Despite vast attempts to reestablish the peg, TerraUSD has only collapsed further this week, feeding bearish sentiment. Last year, the U.S. Commodity Futures Trading Commission fined Tether $41 million for making misleading statements about its reserves. Fueling the recent weakness, sister asset TerraUSD, a so-called stablecoin meant to trade at about $1, broke its peg last weekend, falling to 36 cents and trading at less than 32 cents on Thursday; algorithms are meant to help keep TerraUSD at $1, but the token uses luna as a stabilizing mechanism when the price deviates.

In a race to remove all bad debt from the Terra ecosystem, Terraform Labs is pulling out all the steps with three emergency actions.

If UST falls below $1, investors can buy the discounted token, swap it for $1 in LUNA and then sell the newly-minted LUNA on the market for a profit. LUNA is Terra’s governance token, which means it can be used to vote on proposals within the ecosystem. This would reduce the UST supply by another 3%. Investors can always swap one UST for $1 of LUNA and vice versa. First, Terraform Labs suggests burning roughly 1 billion UST in the project’s community pool. Any community member can create a governance proposal to spend the tokens in the community pool.

The billionaire “Shark Tank” investor also says the turmoil in crypto markets is the same as with stocks: “Don't go overboard on crypto.”

The root of the problem seemed to be in the crypto market, as UST deposits in Anchor fell from $14 billion to $11.2 billion over the weekend. UST being so reliant on Anchor has been a source of criticism in the crypto community, since Anchor’s yields may well be inflated by huge backers. “When money is cheap, people have to put it somewhere and search for returns.

The price of bitcoin has fallen nearly 30% over the past month as investors seek to pare risk.

TerraUSD and luna are known in crypto circles as stablecoins, which means their value is tied to a commodity or a currency. The crypto exchange platform on Wednesday reported a $430 million net loss in the first quarter. Coinbase lost half its value in the past week due, in part, to slumping crypto prices. It also means some investors who were once gung-ho on crypto have sold their holdings for a loss. Those declines began soon after the prices of terraUSD and luna dropped below $1. Bitcoin fell as low as $26,513 Thursday, down 8% from Wednesday. Ripple has fallen 19% to $0.38 and ether is down 14% to $1,981.

Algorithmic stablecoin TerraUSD shared the weaknesses of fiat currencies like the dollar but without many of its strengths.

- Opinion: The Mastriano Pileup in the Pennsylvania Elections You may cancel your subscription at anytime by calling Customer Service. The stablecoin part refers to how it aims to always be worth one U.S. dollar, making it a useful digital substitute for the greenback.

Why did crypto crash? Reason for cryptocurrency market drop today 2022 - Terra Luna, Bitcoin, Ethereum prices. Bitcoin has fallen to its lowest crypto market ...

- Terra (LUNA) -96.90% (£0.0430) - Avalanche (AVAX) -24.52% (£22.97) - Wrapped Bitcoin (WBTC) -9.67% (£23,011.76) - Polkadot (DOT) -23.13% (£6.68) - XRP (XRP) -22.43% (£0.31) - Dogecoin (DOGE) -23.14% (£0.0631) - BNB (BNB) -9.94% (£222.66) - Solana (SOL) -27.71% (£35.84) - Cardano (ADA) -25.14% (£0.38) - Tether (USDT) +0.00% (£0.81) - Ethereum (ETH) -18.93% (£1,585.24) - Bitcoin (BTC) -9.27% (£23,143.65)

Worth $119.22 at its peak, LUNA, the sister asset of troubled cryptocurrency TerraUSD, collapsed to almost $0 overnight.

Meanwhile, the supply of LUNA has shot up by 20-fold today to hit $25 billion (The drop in UST’s price caused additional LUNA to be minted and issued into the open market). To stop “the depeg death spiral”, the protocol’s contributors proposed to cut interest rates to a target of 4%. TerraUSD (UST), designed as an algorithmic stablecoin that should always be worth $1, lost its peg to the U.S. dollar last week, dropping to as low as 36 cents.

Digital-asset turmoil is sweeping through exchange-traded products, with one tracking the troubled Luna token seeing its price almost evaporate in what may be ...

The VanEck Terra ETN (VLNA GR) dropped by a similar magnitude. The 21Shares Terra ETP (ticker: LUNA SW) tumbled 99% to 0.01 Swiss Francs on Thursday, having closed at 22.29 Swiss Francs on May 6. Digital-asset turmoil is sweeping through exchange-traded products, with one tracking the troubled Luna token seeing its price almost evaporate in what may be the biggest ETP wipeout ever.