Terra Luna, the cryptocurrency native to Terraform Labs has crashed further and is 97 per cent down in the last 24 hours. The token is trading at $0.5145 as per data from CoinMarketCap, as of 8:50 am IST on Thursday.
What is Terra Luna?
Terra is a blockchain protocol that supports price-stable global payment networks by using stablecoins backed by fiat currency. Terra, according to its white paper, combines the price stability and widespread adoption of fiat currencies with the censorship-resistance of Bitcoin (BTC) and offers rapid and low-cost transactions.
How are Terra Luna and TerraUSD related?
The LUNA token and UST are mutually dependent, as the Terra ecosystem's success is predicated on the adoption of UST as a stablecoin. LUNA invests in UST and is burned as demand for UST increases. On the other hand, if UST is viewed as unstable, the value of LUNA may fall.
Why is Terra Luna crashing?
The cryptocurrency Terra Luna started crashing amid the TerraUSD algorithmic stable coin de-pegging fiasco. TerraUSD, or $UST is also native to Terraform Labs.
Terra Luna’s path to recovery
Do Kwon, the founder of Terraform Labs, announced on Twitter on Wednesday amid the Terra Luna crash that he has a recovery strategy for the Terra tokens that he will release soon.
Many speculations are also being made that Terraform Labs is in touch with several investors to bring the cryptocurrency back on track.
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