- Terra (LUNA) is seeing an elevating activity as a bunch of investors bet on the coin’s recovery.
- The recent crash that LUNA witnessed came as a bombshell for the crypto community when UST shed its ties.
- LUNA is currently trading at $0.0002 and is up by around 18% in the last twenty-four hours.
Following the huge crash that came as a bombshell for the crypto community, Terra (LUNA) is now seeing an elevating activity as a bunch of investors bet on the coin’s recovery.
LUNA is a token created besides TerraUSD (UST), the algorithmic stablecoin by Terraform Labs to maintain its one-to-one peg with US Dollar. On Friday, the coin witnessed a massive plunge by around 99% in the previous twenty-four hours. While it was trading at around $85 earlier, it fell to around $0.00005733.
The primary reason that can be associated with the meltdown can be its link to UST which broke its 1:1 peg from the dollar earlier in the week.
However, the coin started to show some positive signs when it showed recovery. At the time of writing, LUNA is trading at $0.0002 with a market cap of $1,873,955,105 and is up by around 18% in the last twenty-four hours.
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The recovery can also be assumed due to hindrances in shorting LUNA given the fact that margin trading was suspended by significant exchanges with no signs of relisting.
Furthermore, this happens simultaneously with Do Kwon, Terra’s founder issuing an apology to investors and the overall LUNA community. Kwon highlighted via his Twitter that he had not benefited from this crash, unlike other crypto frauds where the founders manage to earn huge profits before a loss in value. He expressed himself in a long Twitter thread.
1/ I’ve spent the last few days on the phone calling Terra community members – builders, community members, employees, friends and family, that have been devastated by UST depegging.
I am heartbroken about the pain my invention has brought on all of you.
— Do Kwon
Whereas, after the shocking instance of the crash, Terraform Labs has resolved to restart the blockchain with some investors anticipating making gains from it.
Coinbase recently decided to suspend the trading of wrapped Luna (WLUNA) and TerraUSD (UST). Another exchange giant Binance delisted the LUNA and UST trading with Binance USD (BUSD) but later resumed it.
Terra’s meltdown has affected and shocked the whole crypto community, but it is to look forward to how the team would try to restore it now. And how other coins would be affected amid the bearish trends that are prevalent in the sector currently.
Source: https://www.thecoinrepublic.com/2022/05/15/why-is-luna-soaring-following-the-massive-downfall/