LUNA

The cryptocurrency has plunged 87% in the past 24 hours alone.

But if you held bitcoin, your “currency” has lost 52% and counting. At least 40% of bitcoin investors are currently underwater, according to Yahoo Finance. And it’s not looking to get better anytime soon. Then it crashed again to a low of $0.31 early this morning and currently sits at $0.44. Stablecoins are supposed to maintain a peg to a given currency, most commonly the U.S. dollar, but since the “reserves” for these stablecoins are almost always things that are not U.S. dollars, the stability is an illusion. But it’s still unclear whether regulations would improve stablecoins or simply cause many of them to go out of business and evaporate entirely. Yellen and Republican Sen. Pat Toomey from Pennsylvania then discussed pushing forward regulations on stablecoins before the end of the year. Needless to say, people have lost a lot of money in a very short period of time.

Major Korean exchange Coinone has suspended trading of Luna. · Korbit and Bithumb have also issued investment warnings.

© 2022 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. Korbit and Bithumb have issued “designated investment warnings” on the coin citing similar concerns as well. The situation, however, does offer an insight into the level of unease among Korean crypto investors concerning Luna’s current decline.

Following a day in which teetering stablecoin TerraUST (UST) bounced around $.90, it resumed its free-fall overnight to approach $0.30 before recovering ...

One token that is surging today is MKR, the governance token underpinning the dollar-pegged stablecoin Dai, which was up as high as 40% today. However, that has not come to fruition. Today attention will focus on whether the Luna Foundation Guard, led by founder Do Kwon, will be about to recover from this downward spiral.

Kwon said Terra endorses a community proposal that seeks to bring UST back to its intended $1 peg.

The past few days have been extremely volatile across the crypto economy, after one of the largest stablecoins, TerraUSD (UST), depegged from its $1 value ...

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While Terra's UST trades more than $0.75 from its dollar peg, the currency responsible for maintaining that peg, LUNA, is also in freefall.

Stablecoins are supposed to be fungible with their real-world fiat counterparts. Moreover, Terra hoped to solve the transparency issues of other leading stablecoins by foregoing cash reserves and instead creating LUNA. LUNA is the wellspring of value for Terra’s stablecoins, as for every digital dollar in Terra stablecoins, the equivalent is burned in LUNA. The opposite is also true; users could always swap 1 UST for $1 of LUNA and burn that UST. In the case of Tether and Circle, this means cash and bonds, although Tether’s fidelity to keeping adequate cash reserves has been questioned several times. Earlier today, LUNA lost 32% of its value in the space of an hour. Terra’s LUNA – the formerly market-leading digital currency that was worth just over $119 in April – is trading at $0.85 at the time of writing. In what will surely be a historic week in stablecoin history, Terra’s LUNA, the currency that backs its dollar-pegged stablecoin UST, has slid beneath a dollar at the time of writing.