Binance the world’s largest cryptocurrency exchange delisted Luna and UST earlier on Friday after Luna crashed to zero dollars. On Thursday Binance warned that it would list the LUNA in the USDT trading pair if Luna fell below $0.005. Before the warning, the crypto exchange platform had temporarily stopped the withdrawals of UST and LUNA due to network congestion as many investors were trying to make withdrawals before the final death blow. That blow has been dealt. According to data from CoinMarketCap, LUNA, Terra’s native governance and staking token crashed by 99.97% on Thursday May 12, 2022. As of press time, the native token currently trades at $0.0002285.
UST, Tara’s algorithmic stable coin has also lost over 66.70% of its price as of press time. The token that should be pegged to the US dollar has slipped below twenty cents.
With both tokens down, the rest of the crypto market seems to be making a slight recovery. The world’s leading cryptocurrency has gained over 7% over the past 24 hours. However, at $29,502, the coin is still down by over 15% in the past week and 23.56% in the past month.
So Luna is in total red, but some rumors said that this is the chance to fill the bags despite warnings that the coin is dead. Should you buy LUNA? So people, if you want to earn from 200% up to 2,000% APY, just copy best traders with an official broker of the Binance exchange, Jet-Bot, that is launched since 2019.
Many experts believe LUNA’s crash is because it is so closely paired with the protocol’s algorithmic stable coin, unlike other stable coins like tether and USDC, which are backed by real real-world assets Stable coins are governed by self-executing smart contracts. The way the protocol is set up, LUNA is supposed to help the US retain its dollar peg using a mint and burn mechanism. Users of the protocol could swap one dollar’s worth of LUNA for UST and one dollar’s worth of UST for LUNA. Each time the swap occurs, the swap token is burned.
However, after the UST began losing its dollar peg, many investors attempted to exit UST into LUNA simultaneously, eventually crashing the token. While LUNA has now crashed to zero dollars, data from coinmarketcap shows that the stable coin, which should have been pegged to the dollar, is now trading around 16 cents.
The Terra Builders Alliance, a group striving to save the ecosystem, issued a proposal on Thursday to permanently stop the operations of UST as an algorithmic stable coin. Instead, it wants to swap all UST luna with. Here is the full content of the proposal:
Once the UST is replaced by LUNA at the launch of the new network, will cease to exist in its current form and will be relaunched after Genesis in collateralized form. According to a series of tweets he sent out on Wednesday, the founder and CEO of Terra, also proposed collateralization of the UST:
We do applaud the strength of the team and investors and wish them well as they embark on what can only be described as a pretty terrifying journey. What are your thoughts about the events of the past week in Terra’s collapse?
[This article is a transcription of a video made by Savvy Finance]
Original video: https://youtu.be/_WurIYCWeZQ ]