2/ I understand the last 72 hours have been extremely tough on all of you know that I am resolved to work with every one of you to weather this crisis, and we will build our way out of this. Join Our Telegram channel to stay up to date on breaking news coverage. As a result, traders started to change 90 cents worth of UST for $1 of Luna. Luna Classic was on a path of recovery between May and September. Save my name, email, and website in this browser for the next time I comment. Read on. Tether and USDC are both tied to USD. supply is not available. Aside from LUNA, UST, the networks stablecoin also lost its peg and became the latest failed algorithmic stablecoin. Yes, there is a reasonable probability that LUNC Crypto can recover. Instead, the value of UST would be backed by its sister token, Luna. Supply restriction can drive prices higher only to a certain level. A collateralized stablecoin is backed by collateral reserves, similar to mechanisms followed by USDC and USDT stablecoins. Theres debate as to whether this happened as a response to rising interest rates or if it was a malicious attack on the Terra blockchain. Holders, stakers, and developers of LUNC will get rewarded with brand new LUNA tokens that will be capped at 1 billion. So at the moment, one can say with confidence that, current community activities will NOT spur a recovery in Luna Classic price. Kwons revival strategy essentially plans to distribute the network ownership to the native token holders, ie. Learn how your comment data is processed. In October and November combined, LUNC lost over 50% of its value. It. New Delhi: After nosediving last week, Terra ( LUNA) has laid out a revival plan. Under the distribution, 400 million tokens will be allotted to the previous token holders- who suffered the crash. Essentially, Terra needs to cut down on the token supply in order to counteract inflation. The Luna token skyrocketed about 135% in less than two months until its peak in April 2022. The biggest loser of the bunch has been luna, which collapsed from $85 early in the month to a fraction of a penny now. However, it is unlikely to be sustainable as numerous experts are predicting that the macro environment will worsen again next year. Stablecoins like Tether (USDT) and Circles USD Coin (USDC) are collateral-backed digital tokens whose value is pegged to the US dollar. var plc588602 = window.plc588602 || 0; UST's demise saw it fall below $0.10, though it is functionally worthless. Source: CoinMarketCap. Do Kwon addressed the Terra crash and proposed a way for the coin to recover in a blog post he released a few days after the crash. For example, LUNC has had 13 days when Volume had risen above $1 B since July. As this happened, the price of the LUNA token consequently reduced by 99.9% three times, taking the price from a solid $119 to a low of $0.00000112. The last amendment is to decrease distribution to post-attack $UST holders. On September 15, it was announced that a court in South Korea had issued an arrest warrant for Do Kwon. Number 1 is Technology change. Maker Price Prediction 2023, 2024, 2025: This is When MKR Price May Hit $1000. This is a scary time for new investors but the best thing you can do is not to make decisions based onemotions. They both use AI to allocate portfolio weights each week across four vertices: crypto, tech ETFs, large tech companies and small tech companies. It decreases the allocation of UST holders after the attack from 20to 15% to ensure the de-peg related allocation is on par with the original stakeholder (pre-attack $LUNA) allocation.. Before we look at this crypto disaster, we need to discuss stablecoins briefly. Our view is the Cryptocurrency market could see further downside over the next few months (2018 Precedent). Hopefully, this disastrous Luna collapse is more of a cursory, black swan event than the start of an era. 59,183 voted to accept the Binance.US offer restructuring plan, with 2,117 customers, or 3%, voting to reject it. What I see here is people still could not accept the fact that it is dead.. Community and builders invested so much money and time already in the chain that they have no choice but to continue the effort. The plan could have been to cause it to trade at a significant discount, then cover the position. To create UST you have to burn Luna. This form of cryptocurrency is unlike algorithmic stablecoins that are dependent on the value of the underlying asset and instead use smart contracts to maintain price equilibrium. But the crash led to the near-total collapse of TerraUSD's sister . Terra tokens function across several blockchains allowing the flexibility to transfer assets from one blockchain to another. It has since recovered somewhat but the big question is if Luna will recover or if it is at a dangerous place now. Terraform Labs created the UST coin to be an algorithmic stablecoin on the Terra network. Thirdly, the competitive environment. Algorand Price Prediction 2023-2030: Will Algorand hit $100? Should Traders Buy LUNA Before Forking! NFT will continue to be of interest for Terra Classic but perhaps not its biggest strength. Given the results of the last 3 months, it isnt very likely to yield results. After the collapse of the fatally flawed Terra blockchain, Do Kwon lost the crypto communitys trust, and he previously acknowledged that his stablecoin mechanism had already proven to be broken. 3 Emerging Trends In Silicon Valley's Unicorn Market, Three Ways To Shore Up Your Risk Management Practices, Why Selfishness Can Sometimes Be The Best Decision, Money Rules That Could Use An Update For 2023 And Beyond, How Business Psychology Can Benefit Entrepreneurs And Their Businesses, How Technology And Innovation Are Evolving Financial Markets, How Business Owners Can Use The Augusta Rule Tax Strategy, Q.ai - Powering a Personal Wealth Movement. On 9th May 2022, the UST stablecoin began to lose its peg. LUNC was ahead of LUNA for 22 days in February, and for 17 days in January. Long story short, Luna was abandoned as it became worthless. Will Luna Recover? However, during the price recovery from April, the UST de-pegged incident took place, which wiped out the asset. Please consult a registered investment advisor to guide you on your financial decisions. Its estimated that about 280,000 people in South Korea had invested money in Luna. Many loyal Luna fans (who referred to themselves as Lunatics) took to Reddit threads to share their disastrous stories. The co-founder has given up on restoring UST's peg, and wishes to hard fork Terra to start anew. How Uncle Sam may overthrow Satoshi as the ruler of digital currency using stablecoins as a tool of statecraft, Avalon digital universe: Sony and former Electronic Arts employees raise $13 million, Wash Trading on NFT Marketplace Blur: An Analysis, WETH Price Upside Remains As Bulls Eye $1,900, Featured in Forbes, Nasdaq.com, Yahoo Finance, Free Tickets to Jackpot Prize Draws for Holders, Passive Income Rewards - Play to Earn Utility, 10,000 NFTs Minted in 2022 - Now on NFTLaunchpad.com. While preferred to the original proposal that focused on UST, it seems the community is still against Kwon's plan. The need for Decentralized finance (DeFi) will continue to rise not just in the United States but also all over the world as consumers look for ways to borrow money with the lowest hassle or invest in assets with the highest return and lowest risk. Required fields are marked *. In contrast, the top 10 holders of the LUNA Classic token held only about 25% of its total supply. The Howey Test: Determining Cryptocurrency as a Security, A deep dive into Cardanos Soaring TVL in 2023, Project Hive: CyberPunk Style GameFi Protocol, Unlocking the Potential of Blockchain Technology: The Rise of Blockchain-Based Bonds, Token Statistics (LUNA) (As of 30th June 2022), Phygital NFTs-Amalgamation of physical and digital world, Beginners Guide on how you use Uniswap in 2021, Top 5 DeFi projects becoming the bedrock of new-age digital collateral, Liquid Staking: Rising Trend of DeFi For 2023, What is Celsius? Watcher.Guru (@WatcherGuru) May 14, 2022 The Layer 1 blockchain, which was among the top 10 largest digital assets by market cap, saw the value of its native token, LUNA, tank by 100%. Disclaimer: Our articles are NOT financial advice, we are not financial advisors. Save my name, email, and website in this browser for the next time I comment. It uses the COSMOS SDK, a framework for building blockchain applications that use the Tendermint-powered Proof of Stake consensus mechanism. A recovery plan will most likely help the LUNA cryptocurrency, which has dropped 97.48% in the past week and 28.5% in the past hour alone. The only winners were those who exited their positions before the crash. Advertisement Do Kwon's Luna recovery plan will create a new chain following the Luna crypto crash. This means that wallets withless than10k $LUNA will have the same genesis liquidity as the small wallet holder (i.e., 30% unlocked at launch),andhave the remaining 70% vested over 2 years with a 6-month cliff.. The recovery plan proposes a cap of 1 billion coins, where 900 million tokens of the new chain are set aside to be returned to LUNA and UST holders from before the de-pegging event and chain hold, and the last 100 million tranche is to be staked at the network genesis state. Conflux Price Prediction 2023-30: Will CFX reach $100? Once Luna and UST crashed, there was a total liquidity crunch in the cryptocurrency space that caused an even more catastrophic loss of value. This period in particular. Give time and they will realize there is no point.. We lost most of our funds. The dramatic crash meant its market cap dropped from above $40 billion to just $500 million, resulting in unprecedented losses for investors in a leading cryptocurrency. The coin's value tumbled from around $6.75 to less than one cent. The Layer 1 blockchain, which was among the top 10 largest digital assets by market cap, saw the value of its native token, LUNA, tank by 100%. Do Kwons post on the Terra Agora forum releases a specific short-term timeline for this recovery plan. Following this crash, crypto exchanges started to delist Luna and UST pairings. var absrc = 'https://servedbyadbutler.com/adserve/;ID=177750;size=0x0;setID=588602;type=js;sw='+screen.width+';sh='+screen.height+';spr='+window.devicePixelRatio+';kw='+abkw+';pid='+pid588602+';place='+(plc588602++)+';rnd='+rnd+';click=CLICK_MACRO_PLACEHOLDER'; Luna Classic could still recover due to market conditions improving but that would be in line with the market and not the outperformance as seen between May and September. Be[In]Crypto couldnt independently verify the claim. Terraform Labs founder Do Kwon proposed a "Terra Ecosystem Revival Plan," and the plan was shared in terra community forum. One UST coin can be swapped for $1 of Luna, and vice versa, and the UST is destroyed (or "burned . While the recovery plan is being put in place to adjust the UST supply,TFLs liquidity withdrawalin the past days has already led to a wider crypto market meltdown. If a massive crypto market slump wasn't bad enough, the world's third-largest stablecoin ecosystem collapsing has certainly added fuel to the fire. LUNA UST: The Recovery Plan Max Maher 911K subscribers 245K views 8 months ago #refundmyust Luna crash proposal. Save my name, email, and website in this browser for the next time I comment. Investing is speculative. Officials in South Korea seek to revoke Kwons passport as they believe hes currently residing in Singapore. Terra is ablockchainprotocol that uses fiat-peggedstablecoinsto power price-stable global payment systems. LUNC tends to dominate for fewer days in a month but pumps much harder than $LUNA. MetaGloria another NFT game is set to launch on Terra Classic this year. For pre-attack $aUST holders, post-attack $LUNA holders, & post-attack $UST holders, the initial liquidity parameters have been modified from 15% to 30% to increase token supply at launch & mitigate future inflationary pressures.. However, the plan to use MKR as collateral raises widespread concerns where the community sees risks in DAI pegging stability as the move resembles the mechanism run by the now-defunct Terra-LUNA system. A sell or buy decision is therefore completely dependent on the willingness to lose some money in the hope of gaining a lot. Terra Luna's Revival Plan 2.0. . But in practice, this involves other blockchains willing to share access to these services both technically and as a strategy. For example, lets say that Ethers price is $1,000. At the moment this is a work in progress. This is because the problems of the Terra ecosystem were caused by the implosion of their UST . The Ethereum hard fork was a $50 million bailout to save the blockchain and its stakeholders from the harmful effects of stolen funds. Bitcoin Continues To Ponder Can BTC Price Hit $50,000 In 2023? The market price of the troubled coin beginning from April 19 to May 19, 2022, shows how LUNA went from its All-Time High of $119.18 on April 5, 2022, to $0.0001349on April 19, 2022. First, Kwon through Terraform Labs the firm behind UST and LUNA proposed to fork the Terra blockchain which was put into voting for major LUNA investors. The current supply stands at a whopping $6.9 Trillion; a 18570x increase from its previous high. However, there are some who remain unconvinced about the coin making a revival as they said the new investors have learned nothing and people are ready to gamble again. What should I do?-. In fact, there is increased pressure on new tokens to enable numerous use cases. A lot of blockchain experts including the founder of Binance Changpeng Zhaowho has also lost almost his entire LUNA holdings says hes poor again have expressed pessimism about the LUNA recovery plan. Read: Terra Luna Classic Price Prediction 2023, 2025, 2030 and 2040. We sometimes use affiliate links in our content, when clicking on those we might receive a commission at no extra cost to you. As per analyst Kelvin Maina For Luna to recover, they will need to address the problem and show clearly that such a drop will not happen again. It was founded by Do Kwon and Daniel Shin and launched its main net in April 2019. All measures were focussed on two main themes- Burn a significant proportion of tokens and two, enable the technology to encourage Dapps to launch their services on Terra Classic which in turn drives demands Luna Classic Tokens. On May 7, over $2 billion worth of UST was unstaked (taken off the Anchor Protocol), and hundreds of millions of it were quickly liquidated. Terra's luna, a cryptocurrency designed to support UST's one-to-one peg with the U.S. dollar, has lost almost 90% of its value over the last week as traders offload the cryptocurrency. Many people lost their life savings and suffered financial hardships due to the Luna crypto crash. Currently, it is a massacre for the Terra investors, the profits of whom were slaughtered within a period of 48 hours. Stretto, the firm managing Voyager's court-supervised restructuring, polled 61,300 account holders who were owed money by the bankrupt crypto lender. Terra network is a blockchain network co-founded by Do Kwon and built in South Korea. Your email address will not be published. After underperforming most cryptocurrencies for most of January, Lunc rose on the back of the passing of the USTC Repeg proposal. The key takeaway should be that if an investment seems too good to be true, it usually is. However, the community has not accomplished much after Burn was rolled out. Earn platform and crypto lender Matrix Port was revealed to be another large creditor of 3AC, however it is not clear what . Its Wrapped LUNA price prediction for 2025 expected the token to trade at an average price of $211.55 by the end of that year. This will strengthen the governance of the Terra ecosystem. Media reportshad also earlier confirmed citing sources that the Singapore-based LFG is looking to raise more than $1 billion to collateralize the UST stablecoin rather than using an algorithmic mechanism. And as part of remedial measures to aid the pegging mechanism to absorb supply, Kwon endorsed acommunity proposalto expand the minting capacity of the ecosystem to $1.2 billion. Notices placed on CoinMarketCap: The original Terra Chain will be rebranded as Terra Classic (LUNC). On behalf of Binance, CZ asked the Terra team to compensate retail users first and supported the prioritization of the smallest wallets with UST deposits on Anchor. This is a work in progress and the community is making very slow progress. You will also come across relevant news, on-chain data analysis and Wrapped LUNA price predictions for 2022 and beyond. The good news is that the price has remained stable over the month. Terraform Labs is not relenting in its effort to revive Terra coin (LUNA) which crashed from $64.13to $32.00on May 9, 2022, and dipped to further to nearly $0 in less than four days. However, the recovery will depend on multiple factors Government regulation, increased liquidity, and increased use cases in the Luna Classic ecosystem. Orbeon Protocol (ORBN) Presale Continues To Rise, Ripple Pursues CBDC Development, In Talks With 20+ Central Banks. Following the tokenomics, the total supply of the new LUNA Core chain would be capped at 1 billion tokens. When the Luna crypto network collapsed, its estimated that $60 billion got wiped out of the digital currency space. The price dropped hard by nearly 100% every day until it lost 100% of its value and . DigitalCoinPrice was more bearish about WLUNAs future. Luna Classics Price recovery will depend on a few factors: Among the above three factors, the macroeconomic environment is not in control of the Luna Classic Community. The latest revival plan raises lots of questions among holders whose coins are on third party crypto exchange platforms. BNB is ranked 7th while Cronos is ranked 16th on NFT Sales. The final 200 million tokens will be distributed among the community- primarily to support future projects. Ethereum Classic (ETC) was the core blockchain at the time, and Ethereum (ETH) was the forked blockchain. There is no reason to exist on Terra without stablecoin, and we dont see any real hope for price recovery or stability. The community is also stepping up to expand the minting capacity of the ecosystem to $1.2 billion. Officially launched in April 2019, LUNA is the native token of Terra used to stabilize the price of the protocols stablecoins. The Luna crypto network collapsed in what's considered the largest crypto crash ever, with an estimated $60 billion wipeout, shaking the global digital currency market. It is therefore difficult to say if we have reached the Cryptocurrency market bottom. Terra ended up launching a new coin, Luna 2.0. This deflationary protocol was designed to ensure there was long-term growth for Luna. The platform offers a decent transaction speed and fairly lower transaction charges. Terraform Labs, the developer behind the Terra blockchain and its UST and . By using this website you agree to our terms and conditions and privacy policy. Within this action, Terraform Labs will hold a governance vote on Wednesday, May 18, on whether to pass a hard fork for Terra, similar to the famous DAO hack the Ethereum network experienced in 2016, which split blockchain networks into two tokens, Ethereum (ETH) and Ethereum Classic (ETC). The collapse saw LUNA drop more than 99 per cent from its peak above $110 to just one ten thousandth of one cent. Over the last few weeks, the cryptocurrency market has recovered significantly. By comparing the price and volume of UST displayed in the chart above, we found that volume increased significantly on May 8, originating during the same time as the tokens initial loss of value. A month but pumps much harder than $ Luna the recovery plan Max Maher 911K 245K! Max Maher 911K subscribers 245K views 8 months ago # refundmyust Luna crash proposal lender Matrix Port revealed... 110 to just one ten thousandth of one cent long-term growth for Luna of a cursory, black event. 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