How Did Terra Luna (Crypto) Crash by 99.9 Percent, and What Is This Cryptocurrency?

Share On Facebook
share on Linkedin

Terra (Luna) crypto: once valued at $120.00 devalued (crashed) to $0.02. The devaluation occurred by 99.9 percent, and it happened within the 11th-12th of this month (May).


The SPX fell below the 4,000 level: for the 1st time ever since the 5th month of 2012. Bitcoin also revisited the $25,000 price level. The Cryptocurrency market is interrelated to the stock market index – S&P 500.

The cause of the Terra LUNA devaluation exceeds its interrelationship with the stock market. It shows us how volatile cryptocurrency price is.

Terra (Luna)

Terra (LUNA) Explained

Terra is the name of the crypto, while LUNA is its symbol.

Terraform Laboratory – established in 2018, designed the Terra LUNA and the Terra USD.

The intention is to produce an ‘algorithmic stablecoin’ where LUNA can be recycled to generate UST to keep its value at the 1 to 1 ratio pinned to the dollar, and conversely, is dissimilar to that of other stablecoins, such as the Tether – USDT and USD Coin – USDC.

Terra (Luna)

Functioned Till It Doesn’t Anymore
Do Kwon (CEO of Terra LUNA) has in the past designed a failed stablecoin called Basis Cash. This discovery was made public via a piece of news on Coindesk and Yahoo Finance. The cause of the TerraUSD crash is yet unknown. Even the CEO of Terra LUNA has not given any clarification to investors and the general public.

What Is the Actual Cause of LUNA Crash?
Do Kwon (CEO of Terra LUNA) is known as a proud person on Twitter in a few cliques. And because of this, Some think that it is an assault carried out for personal reasons. Charles Hoskinson tweeted that Gemini exchange loaned out a hundred thousand Bitcoin to a big organization. This organization then converted most of the Bitcoin to TerraUSD at a discount. By mutual agreement between the organization and the CEO of Terra: the liquidity of TerraUSD was abased.

This organization then put the majority of the Bitcoin and TerraUSD into the market: And this caused further liquidation fall of leveraged buys, lagging, and fright selling by traders. Many traders sold out all the TerraLUNA and TerraUSD in their possession.

Claims Rebuffed
Some individuals said: that Terra is a Ponzi plan and does not have sufficient Bitcoin in its hold, which ought to have been used to avert the incidence. None of the above-stated reasons stays unaffirmed, as Gemini said it didn’t give out any loan. Nevertheless, one can be detected maneuvering in most financial markets.

The founder of Cardano later said in a tweet that even if Gemini’s tweet is correct, no one carried out any attack on Terra. Presently, there is a lot of disturbance on social media about what could have caused the crash.

Teach yourself technical analysis: Technical Analysis

CLICK HERE TO REGISTER FOR FREE ON ADVFN, the world's leading stocks and shares information website, provides the private investor with all the latest high-tech trading tools and includes live price data streaming, stock quotes and the option to access 'Level 2' data on all of the world's key exchanges (LSE, NYSE, NASDAQ, Euronext etc).

This area of the site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ADVFN Plc. ADVFN Plc does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ADVFN.COM and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Authors may or may not have positions in stocks that they are discussing but it should be considered very likely that their opinions are aligned with their trading and that they hold positions in companies, forex, commodities and other instruments they discuss.

Leave A Reply

Do you want to write for our Newspaper? Get in touch:

By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions

P: V: D:20220818 20:33:24