Today for the Luna and USD prices everyone is asking right now is Luna. Actually, that is it over with Luna. Is it gonna go back? Is UST going back to one dollar? Is Luna going back to 120 us dollars? Should I buy Luna or should I never touch it again?
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Let’s talk about Luna. Well, what happened in the last few days? Luna we actually have a coin with a speculative value right reaching 120 dollars and then we have the stablecoin UST with a packed value of one dollar an algorithmically backed stablecoin that lost its pack. It went way below a dollar like way below and, unfortunately, multiple millions like at least hundreds of thousands of people. But, potentially even millions of people lost money and, honestly, I just saw Davis posting a 60 billion US dollar market cap. It was for Lehman brothers in 2008 which caused a huge collapse. The market cap of Luna was 48 billion U.S dollars already. We are actually with crypto now in the top league right. We are talking about valuations like big international acting banks, so this was another collapse which we have seen the last time 2008 and not in crypto. But, in the financial markets now everyone is asking is Luna going to come back or is it going to stay at zero? Well, Duquan, the founder, actually released some kind of action plan right.
As you know recently, more and more Luna were minted constantly every single second. This is why the price was going towards zero, of course. It was the lost trust, but it was also a constant minting of the lunar supply. As you know, you can go there and exchange your two stable coins with Luna. Then you get a dollar of Luna and, of course, it expands the circulating supply and, of course, it pressures the price down. This is what was happening. Said enough not everyone was knowing that and was actually buying Luna at 10 cents five cents one cent. It seems so cheap but if the circulating supply expands it doesn’t really make sense right now. There is a proposal from duke 1 and you have to understand this separate entity you have, of course. The founder duke 1 and then you have the validators right and not necessarily. They have to do the same thing, but now he was coming out and going into it here. He was making a proposal, in fact, you can go here and check it out. But, I just made a screenshot for you where you can see that he was proposing that the supply goes back to one billion tokens from, however, how much like maybe a few trillion or whatever.
But, it goes back to one billion tokens and the game plan here is that 40 percent of this supply goes to the previous Luna holders. There is the question, of course, that remains. Is it going to the centralized exchange holders who are holding it on Binance? Who knows right. Other 40 are going to UST holders pro rata at the time of the new network update. Then we can see that even new holders should get some tokens in accordance to his personal um suggestion here and, of course, ten percent to fund future developments. Maybe, there is some hope right and there is some hope.
But, let’s say the validators agree with this specific proposal. It comes into place everything is being done as he is proposing it. We are going back to normal then you have to still think that we are talking about a stable coin that lost its trust completely. You might change the algorithm, you might do like a few more backups or whatever. But, this trust is broken that is for sure and it’s hard to gain it back then, of course, we have multiple many people who just panic sold, who will never get something of the compensation.
Or so then we have, of course, many people on some centralized exchanges who never paid out. Maybe some of these exchanges are not going to participate in this program right. We have a lot of factors coming into place, so there is on you and I will leave you all the links down below to check it out. Make your own opinion, I think it is possible that there is a comeback, but I think even if the comeback is coming. It will be very hard to restore even a fraction of the trust. It is very unfortunate. I think I am very empathic with everyone who lost money there. I am even empathic with the team right. It’s a lot of pressure coming towards them with all of that taken into consideration, I still want to stay realistic and I want to tell you it’s not going to be that easy Binance listed it back again and the blockchain is running again. But, this is gonna be a hard road and you. Let me know what you think about that.
This article is a transcription of a video made by MMCrypto
Original video: https://youtu.be/1FI1awjaGtM