Terra’s LUNA Drops Below $10 Amid Catastrophic Sale
Terra’s LUNA Dropped Into Single-Digit Territory After Massive Sale
Terra’s LUNA plunged below $10 on the Binance exchange at 05:06 UTC, reaching an intraday low of $9.61.
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The controversial cryptocurrency has now fallen a whopping 87% within a week. It now sits below Litecoin and Bitcoin Cash on CoinMarketCap after the stunning collapse.
Terra’s UST is trading at $0.78 and is failing to restore its peg despite the Luna Foundation Guard having deployed all of its Bitcoin reserves to bolster the algorithmic stablecoin.
Do Kwon, the controversial founder of the project, tweeted that he was about to announce a recovery plan for UST, but the price action shows investors have lost faith in Terra.
As reported by U.Today, US Treasury Secretary Janet Yellen recently cited Terra’s implosion of making a case for stablecoin regulation at a recent congressional hearing.
Prior to the crash, UST was the third most popular stablecoin (behind only Tether and USD Coin). Such cryptocurrencies are designed to provide peace of mind in turbulent times. Still, Terra’s decoupling from its dollar peg was believed to be one of the main reasons behind the recent sell-off spilling over into the broader cryptocurrency market.
The major coin market remains in the doldrums at the time of writing. Bitcoin, the world’s largest cryptocurrency, currently trades at $31,367 on the Bitstamp exchange.