Terra’s LUNA Crashes 95% As Investors Mull Recovery Plan
Terra's Flagship Token is Cratering
By: yyctrader • Loading...
Markets![Terra’s LUNA Crashes 95% As Investors Mull Recovery Plan](/_next/image?url=https%3A%2F%2Fcdn.sanity.io%2Fimages%2F6oftkxoa%2Fproduction%2Fc8c122d7f80ab1f83ee6c6b08631748e4378883b-880x495.jpg&w=828&q=75)
Yesterday was a bad day for the Terra ecosystem. Today is worse.
Heavy selling saw LUNA crash 97% to a low of $0.69 before bouncing to $2.50 in midday trading New York time.
LUNA is tumbling. Source: Binance
A crisis of confidence in UST, Terra’s native stablecoin, has escalated after founder Do Kwon tweeted a recovery plan that would increase daily minting capacity from $293M to $1.2B in an attempt to absorb excess UST supply more quickly.
UST, which rebounded to $0.93 yesterday, reversed course and hit a low of $0.22. It’s currently trading around fifty cents on the dollar.
UST’s implosion marks a dark day for DeFi. Many users who attempted to ride out the bear market by parking their stablecoins in Anchor for its fixed yield find themselves saddled with a massive loss.
A rumoured bailout from Terra’s VC backers seems to have fallen through.
![the-defiant](/_next/image?url=https%3A%2F%2Fcdn.sanity.io%2Fimages%2F6oftkxoa%2Fproduction%2Fcc559ae61eaa39e8a79cb7b506f2e4b2565d8018-582x194.png&w=828&q=100)
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