Terra

Terra (LUNA) is a public blockchain protocol that emerged from Terra Classic. Due to limited liquidity, LUNA sell orders will not be accepted from 10:51 PM - 11:11 PM CT. Please submit your orders outside of this window.

On Thurs. May 25, Terraform Labs announced that the Terra community had approved the creation of a new blockchain, Luna 2.0. The creation of this new chain is a response to unprecedented volatility on the Luna 1.0 chain, which caused the price of the original LUNA and UST to collapse almost to zero. 

As part of the migration, the former asset LUNA will become Luna Classic, or LUNC. A portion of LUNA holders will be eligible to receive an airdrop of the new token (LUNA), per the terms outlined by Terraform Labs.

The new Terra blockchain will utilize the new LUNA, and will not include the UST stablecoin. 

On 9 May, after nearly 18 months of steadily holding its value against the US dollar, the so-called stablecoin TerraUSD (UST) became unpegged. The uncoupling triggered a cascade response that ultimately crashed UST and the Terra (LUNA).

TerraUSD (UST) is a stablecoin, which means it is a cryptocurrency pegged to a fiat currency. In this case, it is designed to be pegged to the US dollar. Stablecoins are intended to allow investors to hold crypto assets with less volatility, and trade a dollar equivalent without needing to cash out their positions. 

UST is considered an algorithmic stablecoin because instead of being backed by assets such as cash or cash equivalents, it is supported by on-chain code that facilitates a change in the supply and demand between UST and LUNA.

LUNA is the cryptocurrency that works in unison with UST in an effort to keep UST in 1:1 parity with the US dollar. One dollar of LUNA can always be converted at a 1:1 ratio to 1 UST. 

For example, if LUNA is trading at $10, then it can be redeemed for 10 UST, and 10 UST can be redeemed for 1 LUNA. If UST rises above its $1 peg to $1.01, then traders can swap 1 USD of LUNA for 1 UST. This trade burns 1 LUNA and mints 1 UST, which can then be sold for 1.01 USD. 

If UST rises to $1.02, then traders can sell for a 2 cent profit, and so on. 


In theory, increasing the supply of UST and lowering the supply of LUNA brings the price of UST back down until it reaches $1. Conversely, if UST drops below the $1 peg, then traders will be incentivized to buy 1 UST for 0.99 USD, which can then be swapped for 1 LUNA. 

This move burns UST and mints LUNA, sending UST higher towards the $1 peg.

UST lost its peg to the dollar starting on May 8th following large withdrawals of UST from Terra’s DeFi protocol Anchor. UST fell quickly, and struggled to regain its peg because the burning of UST and minting of LUNA couldn’t keep up. 

UST descended rapidly as the prolonged de-pegging led to uncertainty and a snowball effect of larger withdrawals. 


A significant share of circulating UST was locked on Anchor, a Terra-based lending and borrowing protocol that paid users 19.5% to stake UST. 

The LFG used up about $2.9 billion of its bitcoin reserves in an unsuccessful attempt to revive UST. 

WSJ 
Decrypt 
Bloomberg

*This content is for educational purposes and is not investment advice.

Bitcoin

The CEO of the world's largest crypto exchange platform says bear markets are a normal part of market cycles and offers his thoughts on the aftereffects of Terra (LUNA) and Celsius (CEL) collapsing. In a new interview with Bloomberg Markets and Finance, Binance co-founder and chief executive Changpeng Zhao says digital assets are displaying normal […] The post Binance CEO Comments on Terra and Celsius Fallout, Says Bitcoin and Crypto Crash Is Part of Normal Market Cycle appeared first on The Daily Hodl.

Binance CEO Comments on Terra and Celsius Fallout, Says Bitcoin and Crypto Crash Is Part of Normal Market Cycle

The embattled chief executive of Terraform Labs is adamantly denying whispers that he cashed out billions of dollars worth of Terra (LUNA) and TerraUSD (UST). Rumors are circling on Twitter that Terra founder Do Kown used a borrowing protocol called “Abracadabra's Degenbox” to cash out of LUNA and UST and into the stablecoins Tether (USDT) […] The post Do Kwon Addresses Rumors That He Cashed Out $2,700,000,000 From Terra Ecosystem Before UST Collapse appeared first on The Daily Hodl.

Do Kwon Addresses Rumors That He Cashed Out $2,700,000,000 From Terra Ecosystem Before UST Collapse

Five South Korean cryptocurrency exchanges said they intend to create a consultative organization which will help prevent a repeat of a Terra LUNA-style token collapse. The organization is expected to achieve its objectives by applying standards that are endorsed by the crypto exchanges. Screening Guidelines Five of South Korea's leading domestic cryptocurrency exchanges have said […]

Report: South Korean Crypto Exchanges to Create Body to Preempt Another Terra LUNA Type of Collapse

Plaintiffs allege the exchange was unlawfully selling unregistered securities and inaccurately described them as "safe" and "fiat backed."

Binance US Sued Over Promoting, Selling UST and LUNA

A class-action lawsuit against Binance US has been filed in California that alleges the exchange misled investors and sold unregistered securities to roughly 2,000 plaintiffs. The case was filed by the law firm Roche Freedman LLP, a company known for high-profile crypto lawsuits during the last few years. The lawsuit accuses Binance US of marketing […]

Lawsuit Accuses Binance US of Selling Unregistered Securities, False Advertising Terra UST as ‘Safe'

The Block contacted Binance.US, the American affiliate of global crypto exchange Binance, for comment but had not heard back before press time.  The post Class action filed against Binance.US for sale of luna and USD Coin on platform appeared first on The Block.

Class action filed against Binance.US for sale of luna and USD Coin on platform

A class action lawsuit against Binance.US has been filed on behalf of investors in connection to the collapse of Terra USD (UST).

Binance.US Accused of Misleading Investors in Class Action Lawsuit Over Terra

After damning allegations resurfaced, the embattled entrepreneur wrote on Twitter: "I lost most of what I had in the crash too."

'Categorically False': Do Kwon Denies Cashing $2.7 BILLION Out of Terra Before Collapse

Terra's new LUNA 2.0 token has lost 54% in value in the last two weeks, after reaching $11.33 per unit on May 30. Meanwhile, the whistleblower Fatman has accused Terra's co-founder Do Kwon of cashing out $2.7 billion a few months before the UST de-pegging incident. Kwon, however, has been keeping tabs on Fatman's accusations […]

Do Kwon Accused of Cashing out $2.7B Before UST Collapse, Terra Founder Says Allegations Are False

Terra (CRYPTO: LUNA) founder Do Kwon has now come on Twitter to refute allegations against him about cashing out funds from the company.  On Thursday, TerraForm Labs (TFL) employees said that $80 million of company funds were sent to “secret wallets” every month before the LUNA collapse.

Terra's Do Kwon Denies Cashing Out $2.7B, Michaël Van De Poppe Says He Deserves Jail

Ethereum

Terra's collapse boosted activity on Ethereum and BNB Chain. But Tron is also getting a boost from its algorithmic stablecoin that resembles.

Where Is Terra's Market Share Going? Ethereum, BNB Chain, and Tron

Terraform Labs CEO Do Kwon will be required to cooperate with an inquiry issued by the U.S. Securities and Exchange Commission (SEC). In a new ruling, a court in New York City has denied an appeal Kwon filed against the SEC regarding Terraform's Mirror Protocol (MIR). Last October, the SEC subpoenaed Do Kwon while he […] The post US Court Orders Embattled Terra (LUNA) Founder Do Kwon To Comply With SEC Subpoena appeared first on The Daily Hodl.

US Court Orders Embattled Terra (LUNA) Founder Do Kwon To Comply With SEC Subpoena

Dogecoin

Dogecoin (CRYPTO: DOGE) co-creator Billy Markus and other prominent crypto industry watchers were unsurprised at the latest allegations against Terra's (CRYPTO: LUNA) parent Terraform Labs (TFL) and founder Do Kwon. What Happened: On Thursday, Watcher News reported that TFL employees have confirmed to the U.S. Securities and Exchange Commission that $80 million of company funds were sent to “secret wallets” every month before the LUNA and TerraUSD (CRYPTO: UST) collapse.

Dogecoin Creator Reacts To Do Kwon Allegedly Cashing Out $80M Monthly Before LUNA Crash

The tipping point for the crypto markets was the collapse of TerraUSD (CRYPTO: UST). This stablecoin was supposed to remain at $1, however, Terra lost its peg to the U.S. dollar and fell sharply, bringing the rest of the crypto market down with it.

FTX CEO Sam Bankman-Fried Predicted The Downfall Of Terra (Luna): What Investors Need To Know

Consumers in South Korea were especially affected by Luna's demise, and estimates suggest about 280,000 people had invested in the cryptocurrency.

Police Investigate Claims Terra Employee 'Embezzled' Bitcoin Holdings

A probe has been launched into Do Kwon's Terraform Labs over alleged embezzlement of the company's bitcoin.

South Korea Investigates Terra Labs For Alleged Bitcoin Embezzlement Following UST Collapse: Report

A new report claims that Do Kwon, Founder of TerraForm Labs and Terra (CRYPTO: LUNA), intentionally hiked Anchor Program's interest from 3.6% to 20%, despite warnings. What Happened: Mr.

Terra Designer Says Do Kwon Purposely Increased UST Interest Rates From 3.6% To 20% After Being Warned

With the bipartisan support of Sen. Kirsten Gillibrand (D-NY) and Sen.

US Bipartisan Legislation Looks To Regulate Stablecoins And Protect Investors Following Terra Crash

The founder of Terra (Crypto: LUNA), Do Kwon, is being sued by Korean legal firm LKB & Partners as of May 22 as numerous other investors prepare legal challenges against Terra. What Happened: According to The Block, the legal team backed by investors seek to seize and capture Kwon's property.

Investors Sue Terra Founder Do Kwon: What You Need To Know

After climbing to $11.33 per unit seven days ago on May 30, Terra's new LUNA 2.0 token has lost more than 56% in value against the U.S. dollar. Amid the market performance, a number of former Terra-based decentralized finance (defi) projects are transitioning over to the new Phoenix-1 blockchain. In addition to the defi projects […]

LUNA 2.0 Token Loses 56% Since Last Week, Whistleblower Accuses Terraform Labs of Owning Shadow Wallets

Cardano

Popular crypto strategist Michaël van de Poppe is outlining what's in store for five altcoins including smart contract platform Cardano (ADA), decentralized finance payment network Terra (LUNA) and step-to-earn protocol STEPN (GMT). The crypto analyst tells his 607,500 Twitter followers that he expects Cardano to continue rallying now that it has taken out its immediate […] The post Here's What's Next for Cardano, Terra, STEPN and Two Additional Altcoins, According to Top Crypto Analyst appeared first on The Daily Hodl.

Here's What's Next for Cardano, Terra, STEPN and Two Additional Altcoins, According to Top Crypto Analyst

Terra's (CRYPTO: LUNA) outspoken founder Do Kwon joked about a Tinder-style token earn mechanism as the ecosystem builders clashed over their share of fund allocation. What Happened: Terra Research Forum's FatMan shared snapshots of “behind the scenes” conversations on Terra's forum.

Terra's Do Kwon Draws Flak Over Cracking 'Tinder' Joke Amid Governance Chaos

Terra Classic (CRYPTO: LUNC) investors worldwide lost billions when the project collapsed but when new Terra (LUNA) tokens were distributed as compensation, at least, it was some consolation. However, the Indian investors were not even lucky.

Terra (LUNA) Investors In India Face Double Whammy — Thanks To 'The Taxman'

CEO of Binance Changpeng Zhao says that his company initially invested $3 million in the much-hyped Terra (CRYPTO: LUNA) project in 2018. In return, Binance received around 50 million LUNA.

Binance CEO On $1.6B Loss In Terra Investments; Why He Never Spoke To Do Kwon

TRON now says it has overcollateralized USDD, which began life only one month ago as an algorithmic stablecoin. The post Terra fiasco triggers bigger backstop for TRON's stablecoin appeared first on The Block.

News for Terra Crypto (LUNA)