$LUNA Down 96% From All-Time High, Terraform Labs CEO Says Stay Strong, Lunatics

– $LUNA, the native staking and governance token of Terra protocol, is currently trading below $10, which is a huge fall from the all-time high of $119.18, which was set just over five weeks ago.

– The protocols two main tokens are Terra and Luna.

– TerraUSD ($UST) is a stablecoin that is supposed to maintain a stable peg to the US dollar.

– However, $UST has lost its dollar peg, and is currently trading at around 50 cents.

– One of the main reasons for this is that the demand for $UST is higher than the borrowing demand on Anchor protocol, which is one of the main use cases for $UST.

– As a result, the Terra Foundation has to inject reserves into Anchor protocol in order to maintain the peg.

– Another reason for the loss of peg is that the reserves that have been set up to defend the peg are not sufficient.

– Nic Carter, who is a general partner at Castle Island Ventures, as well as Co-Founder and Chairman of Coin Metrics, has said that algorithmic stablecoins are among the worst ideas that the crypto industry has come up with.

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$LUNA Down 96% From All-Time High, Terraform Labs CEO Says Stay Strong, Lunatics 2

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