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

After the collapse of Terra's once-stable coin terrausd (UST), a number of people wondered where the Luna Foundation Guard's (LFG) bitcoin went, as the funds were supposed to be used to defend the UST's $1 parity. On Friday, the blockchain intelligence and analytics firm, Elliptic, published a blog post that summarizes where the bitcoin was […]

Onchain Analysis Report Says Terra's Bitcoin Reserves Were Sent to Binance and Gemini

New analysis reveals the fate of billions in Bitcoin that the Luna Foundation Guard said it deployed to protect UST.

What Happened to Terra's Bitcoin Reserve as UST and LUNA Crashed

Binance CEO Changpang Zhao says he's unhappy with the way Terra handled the collapse of its native crypto asset LUNA and its stablecoin TerraUSD (UST). In a lengthy thread, Zhao tells his six million Twitter followers that Binance reached out to the people behind Terra and made suggestions on how to mitigate the crisis. “While […] The post Binance CEO Breaks Silence, Says Terra (LUNA) Should Have Handled the Collapse Differently appeared first on The Daily Hodl.

Binance CEO Breaks Silence, Says Terra (LUNA) Should Have Handled the Collapse Differently

Binance CEO Changpeng Zhao says he doesn't think Terra's plan of forking the blockchain will work because it won't provide any value. The post Terra fork won't work, according to Binance CEO appeared first on The Block.

Terra fork won't work, according to Binance CEO

Prominent blue-chip institutions are debunking rumors circulating on social media that they had a hand in the recent collapse of Ethereum challenger Terra (LUNA) after its algorithmic stablecoin depegged from the dollar. According to a new report by Bloomberg, massive institutional investors such as BlackRock and Citadel Securities are pushing back against the notion that […] The post Citadel Securities, BlackRock Push Back Against Rumors of Involvement in Terra (LUNA) Collapse: Report appeared first on The Daily Hodl.

Citadel Securities, BlackRock Push Back Against Rumors of Involvement in Terra (LUNA) Collapse: Report

Most major coins declined for the sixth straight week as Terra's LUNA went from $118 to zero in roughly a month.

This Week in Coins: Virtually Every Top 100 Cryptocurrency Sinks as LUNA Scrapes Bottom

Avalanche

NEAR Protocol

Following tweets from Terra founder Do Kwon, LUNA surged by over 1,500% on Saturday. However, with several exchanges halting deposits, only those who entered at the very bottom have seen these gains. This comes as AVAX and NEAR both fell by over 20%. Avalanche (AVAX) Although LUNA was undoubtedly today's biggest gainer, recent volatility and […]

Biggest Movers: LUNA Climbs 1,500% Following Do Kwon Tweets, While AVAX and NEAR Fall on Saturday

Even as the entire crypto market tanked, the biggest story was the dual implosion of Terra's UST and LUNA. Here's what happened.

How Terra's UST and LUNA Imploded

Ethereum

Luna, the collapsed cryptocurrency that was designed to support the terraUSD (UST) stablecoin, has rocketed higher over the last 24 hours despite falling to near zero this week—a dramatic collapse that shook the wider bitcoin and crypto market.

‘Revival Plan' Boosts ‘Essentially Zero' Luna Price By 1,000% Amid Bitcoin, Ethereum And Crypto Crash

"The decision was not made lightly and is crushing news for everyone involved,” the expo organizers said on Twitter. The post Terra Dapp Expo canceled following chaotic week for Terra network appeared first on The Block.

Terra Dapp Expo canceled following chaotic week for Terra network

Terra co-creator Do Kwon insisted that he didn't profit over the collapse of the network's LUNA cryptocurrency and UST stablecoin.

Do Kwon 'Heartbroken' Over Terra Demise

Terraform Labs co-founder and CEO Do Kwon broke his social media silence early Friday evening with a trio of tweets about the collapse of Terra's LUNA token and associated stablecoin, UST. 1/ I've spent the last few days on the phone calling Terra community members – builders, community members, employees, friends and family, that have […] The post Do Kwon says he is ‘heartbroken' in new statement, claims no UST or LUNA sold during crisis (edited) appeared first on The Block.

Do Kwon says he is ‘heartbroken' in new statement, claims no UST or LUNA sold during crisis (edited)

VanEck, Valour and 21Shares have been forced to halt their LUNA-based exchange-traded products (ETPs) as the Terra Network remains halted.  The post Terra network halt leaves LUNA-based ETPs unable to trade appeared first on The Block.

Terra network halt leaves LUNA-based ETPs unable to trade

According to statistics on Friday, May 13, the top stablecoins by market capitalization are currently worth $163.7 billion after the stablecoin economy was valued at close to $200 billion just last week. Of course, the climactic terrausd (UST) failure wiped out billions from the stablecoin economy, and Binance's stablecoin BUSD has recently entered the top […]

Stablecoin Shuffle — Terra Fiasco Shakes up Fiat-Pegged Crypto Economy, Over $35 Billion Disappears

Terra co-creator Do Kwon has a plan to revive the network after its collapse. It doesn't involve UST stablecoin.

Do Kwon Resurfaces to Propose Clean Slate for Terra—Without UST Stablecoin

Do Kwon, the co-founder and CEO of Terraform Labs, pitched a revival plan proposal on Friday following the collapse of the algorithmic stablecoin UST and its related Terra-based asset, Luna. The post Do Kwon pitches revival plan for Terra blockchain, with distributions to LUNA and UST holders appeared first on The Block.

Do Kwon pitches revival plan for Terra blockchain, with distributions to LUNA and UST holders

Three different exchange-traded product (ETP) issuers announced they would suspend trading or issuing shares in Luna-related investment vehicles after the cryptocurrency lost 99.98% of its value over the course of a week.

The decisions come after the collapse of algorithmic stablecoin TerraUSD (UST) along with the LUNA ecosystem.

This episode is sponsored by Kava and BCB Group.

The “Revival Plan” involves redistributing network ownership to UST and LUNA token holders.

Amid Terra's collapse, over $1.2 billion in bitcoin reserves remains unaccounted for by Luna Foundation Guard. The post Over $1.2 billion in bitcoin reserves remains unaccounted for by Luna Foundation Guard appeared first on The Block.

Over $1.2 billion in bitcoin reserves remains unaccounted for by Luna Foundation Guard

Luna buy and sell trades will be reversed, the company said in a post on its website. The post Trading app Crypto.com halts Luna trading after quoting wrong price appeared first on The Block.

Trading app Crypto.com halts Luna trading after quoting wrong price

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.

Regulators are growing anxious about stablecoins after Terra's stunning collapse

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

Binance CEO 'Disappointed' in Terra's Handling of UST Depeg, Contrasts With Axie Infinity

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

News for Terra Crypto (LUNA)