The Terra project is under threat – the rate of the popular stablecoin UST could not return to $1 and fell to $0.34, and the rate of the LUNA coin, which acts as collateral for UST, collapsed to $5.
Over the past day, the LUNA rate has fallen by 83%. Yesterday, the coin was trading at $30, and in early April, LUNA could be bought at $115. That is, the drop from the peaks was more than 90%.
The UST stablecoin is doing a little better – the token lost 75% of its value and fell to $0.34. At the time of publication, TerraUSD managed to return to $0.42.
On Tuesday, the fall of the TerraUSD rate noted even US Treasury Secretary Janet Yellen. She emphasized that this shows the risks that “arise with such a sharp and explosive growth in the popularity of a product.” Yellen used the example of UST to once again urge American regulators to create a regulatory framework for stable cryptocurrencies.
Just yesterday, the Luna Foundation announced the search for $ 1 billion to solve the problems of the Terra ecosystem. It seems that either the organization did not find the funds, or they did not help stabilize the situation and the fall in the UST and LUNA rates became uncontrollable. Recall that yesterday the UST fell only to $0.61.
Source: Bits
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