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.

Following a few days of carnage, the two leading crypto assets built on top of the Terra blockchain have plummeted to significant lows. LUNA has dropped to $0.00000100 per coin and the once-stable coin terrausd (UST) hit a low of $0.044 per unit. After temporarily halting the Terra blockchain and restarting it, the team has […]

‘A Dark Day for Crypto' — A Deep Dive Into the Obliterated Terra Token Ecosystem and Damaged Apps

The Terraform Labs CEO was last seen in Singapore, but his current location is unknown. The post After Terra's stablecoin implosion, battered investors ask ‘where is Do Kwon?' appeared first on The Block.

After Terra's stablecoin implosion, battered investors ask ‘where is Do Kwon?'

TerraUSD, an "algorithmic" stablecoin that's meant to be pegged one-to-one with the dollar, plunged below $1 this week.

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In a Twitter thread, the Binance boss shared his disappointment in how Terraform Labs team handled its ecosystem's collapse.

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Terra halted its blockchain, and Binance suspended LUNA trading following the coin's implosion.

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Galaxy Digital, an early backer of Terraform Labs and Luna, said in a release that market conditions warrant an update on its liquidity position. The post Terra-backer Galaxy Digital gives update on liquidity position appeared first on The Block.

Terra-backer Galaxy Digital gives update on liquidity position

Congressional leaders are changing their approaches in response to the Terra algorithmic stablecoin debacle. The post Terra disaster fuels work of Congress on stablecoin legislation appeared first on The Block.

Terra disaster fuels work of Congress on stablecoin legislation

Binance CEO Changpeng Zhao has weighed in on the collapse of the stablecoin TerraUSD (UST) and its related token Luna (LUNA). The post Binance CEO Changpeng Zhao disappointed with how Terra handled UST's collapse appeared first on The Block.

Binance CEO Changpeng Zhao disappointed with how Terra handled UST's collapse

Luna's supply increased by nearly 17,000 times in just three days as its mechanism led to a vicious cycle of higher supply and lower prices. The post Luna supply soared to 6.5 trillion coins before Terra's latest halt appeared first on The Block.

Luna supply soared to 6.5 trillion coins before Terra's latest halt

After warnings of delistings, the crypto industry's largest exchange Binance finally removed all trading pairs for Terra's LUNA and UST.

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Bitcoin

Bitcoin jumped back above $30,000 on Friday as it rebounds from levels not seen since late 2020.

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With its native token LUNA and stablecoin UST in freefall, Terra has halted its blockchain for the second time in quick succession. The post Terra says it has halted blockchain for second time in 24 hours appeared first on The Block.

Terra says it has halted blockchain for second time in 24 hours

Janet Yellen, recently speaking at American University, made erudite, sensible remarks about the right approach to regulate digital currencies and assets, innovation and the policies surrounding them.

The blockchain was halted earlier Thursday after the governance token luna fell in price.

The circulating supply of Luna has risen dramatically while the price of the Terra native asset has plunged. The post Luna token price craters below $0.0001 as circulating supply soars above 400 billion appeared first on The Block.

Luna token price craters below $0.0001 as circulating supply soars above 400 billion

As yet another altcoin nears zero, the event reminds the community why Bitcoin is the only authentic cryptocurrency.

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Terra temporarily halted its blockchain as its native asset LUNA suffered through extreme hyperinflation and price collapse. The embattled algorithmic stablecoin protocol halted the blockchain on Thursday in order to prevent governance attacks because LUNA's inflation significantly reduced the cost of an exploit. Terra resumed block production around 11 a.m. PT. LUNA's circulating supply skyrocketed […] The post Terra Temporarily Halts Blockchain As LUNA Hyperinflates and Implodes 99% in One Day appeared first on The Daily Hodl.

Terra Temporarily Halts Blockchain As LUNA Hyperinflates and Implodes 99% in One Day

Quick Take In this weekly series, we dive into some of the most interesting data and developments across the Layer 1 blockchain landscape, from DeFi and bridges to network activity and funding The Terra protocol has undergone a collapse of epic proportions with the depegging of Terra USD (UST) from the U.S. dollar and a dramatic decline in the price of LUNA This week, we take a look at the fall of one of the most prominent L1 protocols in crypto and the impact to its ecosystem thus far 

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KSI says he has now lost at least $8 million in crypto so far and admits to having a gambling addiction.

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If the trading pair gets delisted, that would mean users can no longer trade LUNA for USDT on Binance.

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At 12:14 p.m. (ET), the Twitter account operated by the Terra team announced that the Terra blockchain network had been halted. According to the Terra developers' tweet, Terra validators needed to apply a patch to further disable delegations. Terra Blockchain Halts in Order to Prevent Governance Attacks, Team Says Restart Coming Soon At the time […]

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With LUNA trading for pennies—down from over $80 a week ago—the validators take extreme measures to protect the network.

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The price of Terra's luna token collapsed to less than a penny on Thursday after trading at about $80 one week ago.

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The Terra blockchain halted after the terra token (LUNA) fell in value to below 2 cents on Thursday.

The price of LUNA has fallen too low to prevent governance attacks, according to Terraform Labs.

The Terra blockchain has been halted to protect against a possible attack, according to a statement by Terraform Labs. The post Terra blockchain halted to protect against possible attack appeared first on The Block.

Terra blockchain halted to protect against possible attack

A joint body tasked with coordinating crypto regulation globally is sorely needed and could become a reality within the next year, according to Ashley Alder, chair of the International Organization of Securities Commissions (IOSCO), an association of market regulators.

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