Terra Temporarily Halts Blockchain As LUNA Hyperinflates and Implodes 99% in One Day

– The blockchain of Terra was halted temporarily as the native asset LUNA suffered from extreme hyperinflation and price collapse.

– LUNA’s circulating supply skyrocketed from around 345 million on Tuesday to more than 1.46 billion on Thursday, according to crypto analytics firm Messari.

– Price-wise, LUNA plummeted more than 99% in 24 hours, going from around $1.00 on Wednesday to a low of less than $0.0083 at one point on Thursday morning.

– The collapsing crypto asset is trading at $0.02719 at time of writing, after being priced at a high of more than $119 less than 40 days ago.

– LUNA’s price crashed after Terra’s UST stablecoin lost its peg to the dollar. UST was designed to allow holders to redeem 1 UST for $1 worth of LUNA.

– When UST dipped well below the dollar mark, massive amounts of sell-pressure dragged down LUNA’s prices as aggressive arbitrage took effect.

– Terra founder Do Kwon addressed the LUNA community on Twitter early on Wednesday morning with what he said was a plan to weather the crisis. Kwon, however, has remained silent since then as LUNA’s price collapse compounded severely.

 

 

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