Terra's history entered a black abyss
In this article I will write a little history of the crypto world which has caused some people to feel disappointed and some even despair because of the tragedy that occurred during the freefall in digital asset prices.
Thursday (12/5/2022), at 01.00 UTC, Terra LUNA was sold for US$0.045 per coin. In the last 24 hours the price fell 97.2%. Currently its market capitalization reaches US$154.11 million.
In fact, this crypto asset is called Terra with the trading code LUNA. This is a blockchain-based project developed by Terra Labs in South Korea.
Terra LUNA has the ambition of being a platform that creates stablecoins linked to official money issued by central banks. The aim is to support global payment systems with fast and affordable settlement such as Alipay on the blockchain.
Terra LUNA was first issued at a price of US$0.8 per coin and touched an all-time high of US$119.55 per coin in April 2022. Terra LUNA was also once the crypto asset with the sixth largest market capitalization with a value of US$40 billion.
Terra LUNA has a vital role in stabilizing the price of Terra stablecoin and reducing market volatility. When the stablecoin drops slightly then Terra LUNA will be sold or burned (destroyed) to stabilize the price. One of the most popular Terra stablecoins is TerraUSD with trading code UST, as quoted from CoinDesk, Thursday (12/5/2022).
TerraUSD is a stablecoin project that is linked to the US dollar exchange rate. These tokens offer a better store of value to avoid cryptocurrency volatility. The developer offers a target of one coin equivalent to US$1.
The problem is that the TerraUSD price is now below its target of US$1. It is not clear what caused the price of stablecoin cryptocurrencies to fall. However, what is certain is that the decline in the price of TerraUSD has caused the price of Terra LUNA to fall into freefall.
In conclusion, for those of you who are new to the world of crypto, you must be smart in analyzing coins and how long you will stake them. Because prices are not always stable, anything can happen in the crypto world, 0.1% could become 100% overnight or vice versa.
